Forming a company in Turkey offers exciting opportunities for foreign investors looking to tap into a dynamic and growing market. While the process may seem complex, with the right guidance, it can be navigated smoothly and efficiently.
At Akkas & Associates Law Firm, we bring over three decades of experience in guiding foreign investors through every step of company formation in Turkey. Our deep understanding of both Turkish law and international business practices positions us uniquely to support your venture.
From choosing the right company structure to navigating regulatory requirements and optimizing your tax position, we’re committed to ensuring your business gets off to the best possible start in Turkey.
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Establishing a company in Turkey can be a strategic move for entrepreneurs looking to tap into one of the fastest-growing markets in Europe and Asia. With a robust legal framework and a supportive government for foreign investments, Turkey offers various business structures to accommodate different needs. We will outline the essential aspects of forming a company in Turkey, including types of companies, registration processes, and key considerations.
Understanding Company Types in Turkey
Turkey recognizes several types of legal entities under its Commercial Code. The most common forms include:
- Limited Liability Company (LLC – Limited Şirket):
- Requires a minimum of one shareholder.
- Minimum capital requirement is 50,000 TL.
- Shareholders are only liable for the company’s debts up to their capital contribution.
- Joint Stock Company (AŞ – Anonim Şirket):
- Requires at least one shareholder.
- Minimum capital requirement is 250,000 TL.
- Shares can be traded publicly, making it suitable for larger enterprises.
- Collective Company (Kollektif Şirket):
- Formed by at least two partners who are personally liable for the company’s debts.
- No minimum capital requirement.
- Limited Partnership (Komandit Şirket):
- Comprises general partners who manage the business and limited partners who contribute capital without participating in management.
- No minimum capital requirement.
- Sole Proprietorship (Şahıs Şirketi):
- Owned and managed by a single individual.
- Simple to set up but offers no liability protection.
Steps to Register a Company in Turkey
The process of establishing a company in Turkey involves several key steps:
1. Prepare the Articles of Association
The first step is to draft the Articles of Association, which outlines the company’s structure, purpose, and operational guidelines. This document must be notarized in Turkey or at a Turkish consulate abroad.
2. Register with the Trade Registry
After notarization, the next step is to submit the Articles of Association to the local Trade Registry Directorate. This involves:
- Filling out the application form.
- Providing necessary documentation, including identification for shareholders and managers, and proof of capital deposit.
- Paying a registration fee.
3. Obtain a Tax ID
Once registered, the company must obtain a tax identification number from the local tax office. This is essential for tax compliance and opening a bank account.
4. Register with Social Security Institutions
The company must also register with the Social Security Institution to comply with labor laws and ensure employee benefits.
5. Publish in the Official Gazette
The establishment of the company must be published in the Turkish Trade Registry Gazette, which serves as public notice of the company’s formation.
6. Open a Bank Account
Finally, a corporate bank account must be opened to manage the company’s finances. This account is necessary for capital deposits and daily transactions.
Key Considerations for Foreign Investors
Legal Framework
Turkey has a favorable legal framework for foreign investors, allowing 100% foreign ownership in most sectors. However, certain industries may require local partnerships or specific licenses.
Investment Incentives
The Turkish government offers various incentives for foreign investors, including tax exemptions, reduced rates, and grants in specific sectors and regions.
Language and Cultural Barriers
Navigating the registration process can be challenging due to language differences and cultural nuances. Engaging local legal and business consultants can facilitate smoother operations.
Ongoing Compliance
Once established, companies must adhere to ongoing compliance requirements, including regular tax filings, annual audits (for certain company types), and updates to the Trade Registry as necessary.
Conclusion
Establishing a company in Turkey presents a wealth of opportunities for both local and foreign entrepreneurs. By understanding the various company types, the registration process, and the legal landscape, investors can make informed decisions that align with their business goals. For those considering this venture, professional guidance is invaluable to navigate the complexities of Turkish business law effectively.
For expert legal assistance and comprehensive support in forming your company in Turkey, contact Akkas & Associates Law Firm today. With decades of experience, we are committed to helping you succeed in the Turkish market.
Forming a Company in Turkey is Easy
Moreover, we have established more than 260 companies for our foreign clients including Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.
How Many Days Needed to Form Company in Turkey?
We can form your company and open bank accounts and get online banking in 1-2 days if partners are in Turkey and the company formation process will be faster and cost less.
We can form your company remotely if you are not in Turkey, however, the setup process will be longer and cost more.
Steps to Form a Company in Turkey
According to the Turkish Commercial Code, a limited company (LLC) requires a minimum of one partner and it can be a legal entity or a real person, there can be a maximum of 50 shareholders. The partner/partners can be Turkish or foreign as well. Foreigners can own 100% of a company and transfer their profit out of Turkey without any problems.
The minimum required capital for a limited liability company is 50,000. -TL (Turkish lira). The capital of the company shall be paid in two years and up to four installments.
Roadmap to Form Company in Turkey
- Partners’ passport translation and notarization
- Obtaining tax ID numbers for the partners
- Getting Power of Attorney from the partners for company formation before the Notary Public
- Determining and reserving the company title
- Signing a lease contract for the company address
- Preparing online company establishment procedures
- Filing company details at the Istanbul Chamber of Commerce online
- Filing company Articles of Incorporation online and getting them approved
- Filing all the documents at the Istanbul Chamber of Commerce and paying official company registration fees
- Obtaining a company registration certificate from the Istanbul Chamber of Commerce
- Getting signature circular notarized at Notary Public
- Giving Power of Attorney to an accountant on behalf of the company
- Opening company bank account
We Need the Following Documents to Form a Company in Turkey
From Real Persons;
- 2 Translated and notarized passport copies
- 2 Passport photos
- Power of Attorney to us for incorporating the company from each shareholder
Bank Account Opening for Your Company
We open bank accounts for companies established in Turkey. Nowadays, there is a huge demand for bank account opening by foreign companies in Turkey. We assist you in opening company bank accounts.
We need the below documents for the company bank account:
- Company articles of incorporation.
- Shareholders’ and directors’ passport copies and their addresses prove documents such as a utility bill.
- Turkish tax id number for each shareholder (we will get it).
- Signature circular for the company.
- Company stamp.
Our Services to Form Company in Turkey
Our attorneys are experienced in the formation and governance of the below company types;
- Branch Offices
- Liaison Offices
- Limited Liability Companies
- Joint Stock Companies
- Free Trade Zone Companies
- Joint Ventures
We regularly advise clients with respect to establishing a company in Turkey. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and liaison offices.
Reach us to Form a Company in Turkey
Forming a company in Turkey offers exciting opportunities for foreign investors looking to expand into a strategic market bridging Europe and Asia. Whether you’re considering a Joint Stock Company (A.Ş.) or a Limited Liability Company (Ltd. Şti.), navigating the registration process requires careful planning and local expertise.
From choosing your company type and preparing necessary documents to registering with the Trade Registry and obtaining required licenses, each step is crucial for a successful launch. Turkey’s favorable business environment, robust economy, and investment incentives make it an attractive destination for international businesses.
However, understanding local regulations, tax implications, and employment laws can be complex. That’s where Akkas & Associates Law Firm comes in. With over three decades of experience guiding foreign investors through company formation in Turkey, we’re uniquely positioned to support your venture.
Don’t navigate this process alone – contact Akkas & Associates Law Firm today to ensure a smooth and compliant entry into the Turkish market.