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What are The Types of Companies in Turkey?
Foreign investors are welcome in Turkey, and entrepreneurs can start a new company or purchase an existing one. Entrepreneurs have the option of selecting a company from a variety of Turkish companies based on their business demands. Limited Liability Companies (LLCs) and Joint-Stock Enterprises (JSCs) are the most common and preferred types of companies in Turkey among foreign investors.
When you plan to start or buy a company in Turkey, it’s important to consider the particularities of the company. Some choose to open a small or medium-sized company, while some prefer to establish a larger corporation. You can take the help of company formation agents in Turkey to know everything about the types of companies in Turkey and local regulations for incorporating companies.
An experienced Turkish lawyer can provide you all the required guidance and information if you are willing to register a company in Turkey, and want to become an owner of a Turkish company. The lawyer can also help you obtain a work or residence permit or help in applying for licenses and other permits.1
Are you curious about corporate taxation in Turkey? You can check out our article on; “Corporate Taxation in Turkey” and learn information on the subject.
What are the features of Turkish companies?
If you are interested in opening a small or medium-sized company, then a Limited Liability Company is the best choice for you. The incorporation process of a Limited Liability Company is simple and straightforward. The characteristics of this type of company encourage foreign investors to choose this type of company for investment in Turkey. There is at least one shareholder for this company type, and it requires a minimum share capital of around 5,000.00₺. This type of company is handled by the board of directors.2
When it comes to the advantages of a Limited Liability Company in Turkey, this business structure may be employed for a variety of purposes. Also, readymade companies in Turkey are quite common and are typically created as Limited Liability Companies. These companies are preferred by investors who don’t want to spend time with the registration of new companies.
A Joint Stock Company is preferred by investors who want to own a large business in Turkey. Similar to a Limited Liability Company, this type of company also requires at least one shareholder, and the minimum share capital for a Joint Stock Company is 50,000.00₺. This type of company is managed by a board of directors along with a supervisory board.2
Another type of company in Turkey is the Commandite Company type. This type of company is preferred by investors who want to operate a commercial enterprise under a trading name. Also, no minimum share capital is required for the Commandite Company type. The shareholder(s) of this company can have limited or unlimited liability.
“Collective Company” type is also one of the types of companies in Turkey, which is similar to the “Commandite Company” type, but the shareholder(s) of this company can have limited liability.
All types of companies in Turkey must prepare the Articles of Association as per the Turkish Commercial Code. It is also recommended to check for the availability of the desired business name before starting the company’s registration process. It can be performed at the Trade Registry Office of Turkey.2
How can you register a company in Turkey?
- Whatever form of company you wish to start in Turkey, there are a few steps that must be followed. These are some of them:
- You need to verify the company name with the Trade Register of Turkey. Remember that the company name should be unique.
- The Articles of Association must be drafted and notarized by a public notary in Turkey.
- The Articles of Association and other required documents must be filed with the Companies Registrar.
- Corporate taxation, Vat, and social contributions must be registered with the legal tax authorities of Turkey.
- When you apply for a business license, it is issued based on the company’s activities.
How to establish a company in Turkey?
No matter what type of company you want to establish in Turkey, it’s initiated through the MERSIS (a web portal of The Ministry of Commerce in Turkey). You need to enter some details regarding the company in this web portal. These include; the type of the company, company’s title, address, partners, capital, board of directors, and other necessary information.
Once you enter this necessary information, the MERSIS will prepare the Articles of Association of the company.
After you apply for approval, the location of the company is stated to the Commercial Registry Office. Here, the founding partners will sign the Articles of Association. Registration declaration and other related documents are required to be presented along with the registration fees that must be paid.
If you choose to start a Joint Stock Company, you are required to pay a minimum of one-fourth of the capital before registering a company in Turkey. If this capital is the cash capital, then after signing and the approval by the Articles of Association, it is required to open a bank account in the name of a newly founded company. Also, the capital, in addition to the one-fourth, is to be deposited into this account.3
When it comes to the Limited Companies, they do not need to deposit the capital before registration per the Turkish Commercial Code. Therefore, it means that such companies are required to be registered with a sign of the Articles of Association and fees deposited at the Commercial Registry Office in Turkey.
Regardless of the sort of company you want to start in Turkey or how much capital you invested in before the company was registered, the complete capital of the company should be gathered by the partners within 24 months of the registration.
How can you acquire a company in Turkey?
Many foreign investors prefer to purchase a readymade company in Turkey because they want to become an owner of an already registered company rather than starting and registering a company from scratch. These companies provide a lot of advantages to foreign investors who wish to do business in Turkey.
Becoming an owner of an already established company in Turkey is quite simple and straightforward. You can take the help of an expert for the acquiring procedure.
Assuming you are interested in gaining the benefits of opening a company in Turkey, this article may help you get some useful information about the different types of companies in Turkey and the steps to establish a company in Turkey.
Do you already own a company in Turkey and looking for Dissolution or Liquidation? You can check out our article about; “Company Dissolution and Liquidation in Turkey” and get more information on the subject.
