Establishment, types and costs of companies in Turkey
Table of Contents
- What are the types of companies in Turkey and the differences between them?
- Benefits and advantages of establishing a company in Turkey
- How to start a company in Turkey?
- Terms of incorporation of a company in Turkey
- Documents required to establish a company in Turkey
- Company expenses in Turkey
- Corporate taxes in Turkey
- Can you establish a company in Turkey from abroad?
- Closing a company in Turkey: What are the steps and what is needed?
What are the types of companies in Turkey and the differences between them?
There are four types of companies in Turkey:
- Joint-stock Companies
- Solidarity Companies
- Companies with special/unlimited liability legislation
Licensing of such companies is often difficult; Different conditions and administrative authority to issue a license, including private banks, financial institutions, insurance companies, financial leasing companies, debt collection companies, holding companies, foreign exchange companies and warehouse storage companies.
- Limited liability companies
This type of company is typical of small and medium-sized enterprises consisting of at least one shareholder, at most 50 shareholders, and the cost of founding a company in Turkey of this type is very acceptable. This company has a minimum capital of 10,000 Turkish lira/equivalent to less than $2000, while two shareholders should have a minimum capital of 12,500 Turkish lira.
Benefits and advantages of establishing a company in Turkey
When establishing a company in Turkey, you have a lot of features, including the fact that the company is in one of the best markets in the world, as well as having health insurance for all family members, which gives them free treatment in all state hospitals, as well as access to a work residence permit. As well as the dealer's card; allowing access to all information on tenders and exhibits of the State, and the existence of support from the Ministry of Economy if Turkish products are marketed. Besides, fairs and events are held for your company abroad; ease of export; The Turkish Government exempt exports from taxes, the ease of marketing of products within the EU States, as well as social security; The Turkish Government grants it when the company is closed or lost, and schools and universities are free of charge to family members, not to mention pensions after working for a certain period within Turkish territory.
How to start a company in Turkey?
Those who wish to start a company in Turkey must prepare the statutes for the foundation of the company, be certified by the notary and attach a statement of the company's address, as well as deposit 25% of the capital value in the bank. Capital is advised to be greater than the amount specified in Turkish law to take advantage of the other powers obtained by companies with large capital, so capital is always advised to be at least 100,000 Turkish lira or more, making it easier to obtain permission/establish employment for the owners and employees of the company, and other important benefits.
In the period of incorporation of the company, capital is not required to be deposited in a Turkish bank, provided that the deposit is made prior to the submission of the work permit/residence, or within two years of the date of incorporation.
The capital is deposited in a bank account of the company that is established, and the company receives a deposit sheet of the value of the capital by the bank, after which the company's papers can be managed, approval obtained from the Chamber of Commerce of Turkey, real estate registration and any other actions.
Submission of the original version of the company's statute as well as two certified copies thereof to the Commercial Registry Office within fifteen days of the date of authentication and certification by the notary.
For limited liability companies, they must be compatible with article 279 of the Turkish Trade Code.
The company's address must be explicitly and clearly stated in the foundation system, and it must be noted that the company's founding system will be publicly published in the Official Journal of the Commercial Register.
Terms of incorporation of a company in Turkey
Starting a company in Turkey is easy, away from the tired routine, as the new investor can easily get his documents for his new company. After the company is incorporated in the commercial registry office, the company must be registered in the local tax office, as the tax certificate, which must be clearly displayed and placed in the workplace, is received, where the local tax officer visits the company office or store within a few days to verify the information and the tax certificate.
Documents required to establish a company in Turkey
The foundation of the company in Turkey depends on the existence of documents to be obtained, which are generally: The commercial register containing the company's information, and the certificate of events, issued by the Chamber of Commerce on the basis of the commercial register number, it contains a complete explanation of the company's activities and activities, as well as the company's tax plate, and contains the company's tax number. It also requires signing with the notary on the basis of the company's information, and the existence of the chartered accountant's contract, an employee who connects your company to the government services, who is in charge of communication with them.
Documents required to register a joint-stock company
- Foundation contract signed by founders
- A document showing that at least 25 percent of the capital pledged in cash has been invested in the bank.
- Proof of payment indicating payment of the Competition Authority's share.
- Assessment reports prepared by the Expert Tribunal to determine the value of samples, assets to be used during the enterprise and, if any, capital in kind.
- If in-kind capital is added, the document to be taken from the relevant registry states that there are no restrictions on in-kind capital.
- A document demonstrating that real property, intellectual property rights and other values in kind are described as capital in kind in the records in which they were registered.
- Contracts with the company being incorporated with its founders and other persons, including those relating to the acquisition of assets, if any.
- Letter of authorization for companies whose incorporation is subject to approval by the Ministry or other official institutions.
- Written statements by non-contributing board members, if any, that they accept this duty.
- In the case of a legal entity on the Board of Directors, the name and surname of the real person shall be determined by the acting legal person and the documented copy of the decision of the competent body to determine it.
- Signing and binding the persons authorized to represent the company.
Documents required to register a limited liability company
- The company agreement is signed by the founders.
- Written statements by unaffiliated board members that they accept this duty.
- In the case of a legal person on the Board of Directors, the name and surname of the real person shall be determined by the acting legal person, and the documented copy of the decision of the competent body shall be determined.
- Assessment reports prepared by an expert appointed by the Tribunal concerning the valuation of assets in kind and assets to be seized during incorporation, if any.
- If in-kind capital is added, the document to be taken from the relevant registry states that there are no restrictions on in-kind capital.
- In the case of capital in kind, the document explaining that intellectual and immovable property rights and other values established as the capital in kind are annotated in the registries in which they are registered.
- Contracts with the incorporated company, its founders and other persons, including access to assets, if any.
- Signing company manager announcements.
- Proof of deposit indicating the deposit of the competition authority's share.
Documents required to register a cooperative company
- The company's agreement is signed by the founders accredited by the management of the commercial registry.
- Letter of the delegation from the authority to establish the cooperative.
- Signatures of authorized persons and cooperative representation of the company under the heading of the cooperative.
Documents required to register collective and limited partnerships
- Company contract signed by documented founders.
- A copy of signatures signed by persons authorized to bind and represent the company under the title Cooperative.
- Assessment report prepared by the expert appointed by the Tribunal to determine the value of assets in kind in the event that the limited shareholder places the equity in kind in the limited partnership companies.
- A letter from the relevant registry stating that there are no restrictions on capital in kind.
- A document demonstrating that immovable intellectual property rights and other values placed as in-kind capital are annotated in the registries in which they were registered.
Company expenses in Turkey
Depending on the quality of the founding company, the joint-stock companies should not be less than 50,000 Turkish lira equivalent to approximately $9,000. Corporate solidarity is not a minimum capital requirement, while companies with privacy legislation, which are not limited in liability, are often difficult to license for such companies; if the conditions vary according to the administrative authority responsible for issuing the license and require large sums, the limited liability companies have a minimum capital of 10,000 Turkish lira, equivalent to less than $ 2,000.
Corporate taxes in Turkey
Corporate tax is calculated from the net profits achieved during the three-month financial cycle, where twenty percent of the net profits earned by companies or institutions and bodies are deducted as a profit tax after accounting for the company's imports and expenses. Full and incomplete liability for corporate profits tax determines the pattern of taxation. Strict liability means that the profit tax is deducted from the entire profits (profits obtained inside and outside Turkey), and incomplete liability is deducted from profit tax only from profit obtained within Turkey by companies not stationed in Turkey.
Monthly and annual taxes following the foundation of the company in Turkey
The enterprise tax is calculated from the net profits achieved during the three-month financial cycle, where 20% of the net profits earned by companies or institutions and bodies are deducted as a profit tax after accounting for the imports and expenses of the enterprise. There is also a monthly tax of 59 lira, which is the tax of the monthly computational statement that it provides to the Tax Service every month, which is a fee for the monthly statement, the fixed fee is unchanged, and the non-resident companies in Turkey are subject to an income tax of 15%.
How to extract a dealer's card in Turkey?
The dealer's card in Turkey is extracted from the centers of the Chambers of Commerce of the Turkish States and submitted through the company's legal accountant. In turn, the employee receives the application and after it. Within 10 days, the card or business license is sent to the address of the company.
Can you establish a company in Turkey from abroad?
A company can be established in Turkey from abroad by following some steps, first, identifying initial data, such as company name, number of partners, shares, activities and capital prepared for the company. Accordingly, the agent organizes the company's contract of incorporation to be submitted to the Chamber of Commerce, a document containing a set of provisions and clauses agreed upon by the founding partners. Then the company's founding delegation works for a trusted investor's acquaintance - and you can communicate with us to do the job - at the Turkish embassy in the investor's country of residence and send the delegation (original) to the agent's address in Turkey to initiate the foundation procedure. The necessary documents are then extracted from the Turkish Chamber of Commerce and sent to the Turkish Embassy to obtain the approval of the signature and the operation of a chartered accountant agency in Turkey, which ends with the opening of the company's bank account.
Closing a company in Turkey: What are the steps and what is needed?
The closure of the company in Turkey may last a full year because the Turkish State considers the companies to be legal, thereby conferring upon the company the debts or rights to know the decision to close it and to deal legally with the rights, the legal agency of the chartered accountant required to initiate the closure proceedings, and the consequent payment of the company's debts and taxes even during the closure procedures.
When establishing a company in Turkey, a person obtains a lot of advantages, including:
- Health insurance for all family members, as it grants them free treatment in all hospitals of the country.
- Obtaining a work residence permit.
- Obtaining a merchant card which allows obtaining all the information regarding the tenders and exhibitions of the country.
- Support from the Ministry of Economy when marketing the Turkish products and holding exhibitions and events for the company abroad.
- Ease of export as the Turkish government exempts exports from taxes.
- Ease of marketing products in the European Union.
- Social security, as the Turkish government grants it if the company is closed or lost.
- Schools and universities are free for family members.
- Retirement pension after working for a certain period in the Turkish territory.
Establishing a company in Turkey is one of the easy things that are away from the tiring bureaucracy, as the new investor can easily obtain the necessary documents for his/her new company, which are a photocopy of the passport translated into the Turkish language and ratified by a notary, the validity period of the passport should be more than six months, the entry stamp to Turkey must be present, obtaining a tax number document which can be issued easily from any tax center in Turkey, in addition to three personal photos.
The articles of association must be prepared to establish the company, it also needed to be ratified by a notary and attached to a statement about the company's address.
Depositing 25% of the value of the capital in the bank, and it is recommended that the capital be greater than the amount specified in Turkish law to take advantage of other benefits that the large-capital companies get, that is why it is always recommended that the capital be at least one hundred thousand Turkish liras or more, this makes it easier to obtain a work permit/residence permit for the owners and workers of the company, in addition to other important benefits.
It is not required to deposit the capital in a Turkish bank during the establishment period of the company, provided that it is deposited before applying for a work permit/residence permit, or within two years from the date of establishment.
The capital is deposited in the bank account of the company that is created, and the company obtains from the bank a deposit document with the value of the capital, after which the company’s documents can be managed and approved by the Chamber of Commerce in Turkey, obtaining the real estate registry, and any other procedures.
Submitting the original copy of the company’s articles of association in addition to two certified copies of it to the Commercial Registry Office within 15 days from the date of authentication and ratification by the notary.
It varies according to the type of the established company, as joint-stock companies should not have a capital less than 50,000 Turkish lira / equivalent to about 9,000 dollars, the joint companies have no minimum required capital, but the companies with private legislations that have no limited liability, licensing them is often difficult as their conditions differ based on the different administrative authority responsible for issuing the license, not to mention that they require large sums of money, while the minimum capital of the limited liability companies is 10,000 Turkish liras / equivalent to less than 2,000 US dollars.
There are four types of companies in Turkey, they are:
Joint-stock companies S.A, the company’s capital is divided into shares distributed among the shareholders, and the shareholders’ liability equals the percentage of their shares of the company they hold as shareholder partners.
- The number of establishing partners must be at least five persons or legal entities with a capital of at least 50,000 Turkish lira / equivalent to about 9,000 dollars, a quarter of this amount is paid before the company’s registration. The joint-stock companies can carry out any commercial or industrial activity permitted by Turkish law, except for some businesses and activities that require special permissions from the Ministry of Industry and Trade, and these companies include a board of directors and a supervisory board.
- Limited Partnership Company, this type of company is established to run a commercial project under a specific trade name, and the liability of all shareholders is limited. with no minimum capital required, all shareholders must be real persons, and the shareholders' rights and obligations are determined by the articles of association.
- Companies with their own legislation / Unlimited Liability Company, the licensing for such companies is often difficult because of the different conditions and administrative authority responsible for issuing the license, this includes banks and private financial institutions, insurance companies, financial leasing companies, debt collecting companies, holding companies, foreign exchange companies, and companies that deal with storage in warehouses.
- Limited liability companies, this typical type of company is for owners of small and medium projects, they consist of a minimum of one shareholder and a maximum of fifty shareholders. The cost of establishing this type of company in Turkey is very acceptable, the minimum capital of this company is 10,000 Turkish lira which is less than 2000 US dollars, but if there are two shareholders, the minimum capital for them should be 12,500 Turkish liras.
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