Turkey has recently tended to open the door to investment for foreigners on Turkish territory, allowing them to practice their investment activity within the Turkish territory, and in the face of this concern and encouragement by the Turkish government to attract commercial and economic activities through the many facilities it provided to investors, most of them turned to establish their own company in Turkey and the practice of their commercial activity through it, benefiting from the state’s encouragement for them and its easing of costs and taxes.
In our next article, we will discuss one of the facilities granted to investors, which is the establishment of a company on Turkish lands, the most important types of companies, their conditions, and their importance.
Before going into the papers and procedures required establishing the company, we must know the types of companies in Turkey:
1-Joint Joint Stock Companies: It is a type of company in which the capital is divided into shares distributed among the participating partners, and their liability is limited according to the percentage of their shares from the capital of the company registered in it as a joint stock partner.
The shareholders in this company must be five persons or legal entities, and the capital must not be less than 50,000 Turkish liras. A quarter of this amount is paid before the company is registered with the Turkish government.
Joint stock companies may carry out any industrial or commercial activity permitted by law, except for some businesses that require special permissions from the Ministry of Industry and Trade.
These companies include a board of directors and a supervisory board.
2-Joint liability companies: These companies are established with the aim of operating a commercial project bearing a specific commercial name. All shareholders have limited liability and the capital in this type of company is not limited to a minimum amount of money.
It is required that all the partners in this type of company be real, and the entitlements and rights of the partners are determined through the articles of association determined by the partners by agreement between them.
3-Unlimited Liability Companies: Licensing is often difficult for such companies; Due to their different conditions and the difference in the administrative reference entrusted with issuing the license, it includes banks and private financial institutions, insurance companies, financial leasing companies, debt collection companies, holding companies, foreign exchange companies, and companies that deal with warehouse storage.
4-Companies Ltd (Limited Liability Company):
This type of company is most suitable for owners of small and medium enterprises. It is not restricted to a specific number of shareholders. The company consists of at least one shareholder and fifty shareholders at most. The cost of establishing a company in Turkey of this type is very acceptable. Limited liability companies are not allowed to work in the areas of banking, insurance and currency exchange. This company is managed by two bodies: Directors and the Board of Directors. The company's shares cannot be sold or offered for subscription, and the partners are the guarantors of the public debts and the taxes imposed on the company. The liability of the partners is limited according to the percentage of their shares in the capital contributed.
As for the capital, Turkish law stipulates that the minimum capital is 10 thousand Turkish liras, but this amount does not give any additional powers. Turkish law treats companies in Turkey according to the value of the capital, so it is always recommended that the capital be At least 100 thousand Turkish lira and therefore additional benefits, including:
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Obtaining a work permit and establishing a work permit for the company’s owners and employees, which will facilitate their acquisition of citizenship
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The possibility of making large contracts and facilitating the import or export of goods to Turkey
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Most investors and owners of small and medium enterprises prefer to establish this type of company
Documents required establishing a company in Turkey:
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A copy of the passport translated and certified.
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Tax Number.
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Security approval that allows you to establish your company in Turkey
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The origin of the agency in the event that one of the partners is not inside Turkish territory, knowing that the person abroad cannot be appointed as a director of the company
Steps to establish a company in Turkey:
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Choosing the company’s headquarters: Turkish law states that every company must have a headquarters, which is a prerequisite for establishing a company in Turkey, that is, that the founders already have an office in Turkey, a shop or a building as necessary to establish the company in Turkey, where the company owner rents it or Buying it, and the price of the office or the value of its rent varies according to the region in which the owners of the company and the financiers want to establish their company, and the rental requires paying additional costs such as insurance and commissions for the real estate office or the broker, and it can also be a virtual headquarters, which is already an office or shop and is registered The company is in this place where it is a real headquarters for the state, but it is fictitious for the founder, that is, this headquarters cannot be used to practice the activity, as it is an address only for the company, and this is 100% legal.
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The company’s capital: The Company’s capital is the most important point in the matter of establishing a company in Turkey. Turkish law stipulates that the minimum capital is 10 thousand Turkish liras, but this amount does not give any additional powers. Turkish law differs in its treatment of companies In Turkey, according to the value of the capital, so it is always recommended that the capital be at least 100 thousand Turkish liras, this gives the following advantages:
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To obtain a work permit or residence.
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The ability to join Turkish trade organizations such as TÜRSAB or ALMUSIAD and other Turkish business and business groupings.
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The ability to make large contracts by importing and exporting goods in an easier way
Only 25% of the capital is deposited, meaning that if your capital is 100 thousand, the amount to be deposited will be 25 thousand pounds. This amount is deposited and held in the bank for a day, which is the period needed to establish the company, and then you can withdraw it, provided that the full amount is deposited before submission On the work permit / residence or within 24 months (two years) from the date of incorporation.
It is advised that the capital be greater than the amount specified in Turkish law to take advantage of other powers obtained by companies with large capital
- The preparation of all documents and forms and the certification of the company’s incorporation system by the Turkish notary, and the company’s founding system, which is intended to be the company’s founding contract that clarifies all the details related to the company, such as the nature of the company’s business activity, address and manager, and this is under the supervision of the chartered accountant He is approved by the Turkish state, where his responsibility lies in representing the company before the state, and his job is different from that of the company’s internal accountant. The legal requirement is a prerequisite, and in the absence of it, this is considered a violation that may lead to the closure of the company.
-Extracting the company’s tax number, so that companies have been dealt with as a legal person and have a tax number. This is done at the Tax Department after completing and ratifying the articles of incorporation.
Registration of the company in the commercial registry office and the Chamber of Commerce office.
After all the previous procedures are completed, it remains for the company manager to approve the signature, where he is appointed as the authorized signatory in the name of his company, and the signature of the company manager is approved before the notary. After this step, we can say that the shareholders have become the actual owners of the company and it has been approved in Turkey.