Are you a foreign investor and want to open a company in Turkey? Luckily, there are numerous options to invest in Turkey as a foreign investor. These include partnership, limited company, and Joint Stock Company. Each type of business form follows the Turkish Commercial Law. If we talk about the joint-stock company, it is also called a public limited company. The agents in Turkey can help foreign investors to open a company in the country.
If you want to open a joint-stock company in Turkey, you need to find answers to several questions before making a final decision; What is a joint-stock company, how to set up a company, and how is the establishment process, etc.
Let’s start with some explanation of joint-stock Company in Turkey.
What is a joint-stock company?
The joint-stock company is an entity that possesses similar features to any business and makes profits categorized by shares of stock. All enterprise activities are taken care of by a legal entity, even if any debt is involved. If you are interested in establishing a joint-stock company in Turkey, you must take the help of a Turkish law firm. The Turkish lawyer can guide and provide legal assistance and make your establishment process smooth and less stressful.
One or more legal persons can be involved in opening a joint-stock Company with any amount of capital. Turkish laws do not include any statement of a maximum limit of the shareholders. The foreign investor can gain 100% ownership of the joint-stock company.
Even if a foreign investor has never visited Turkey, he is eligible to become a shareholder of a joint-stock company in Turkey by the means of power of attorney.
How to get approval for establishing a Joint Stock Company in Turkey?
When it comes to open a joint-stock company in Turkey, Turkish laws do not hold any permission of any authority. There are certain types of companies such as banks, insurance companies, consumer finance, holdings that require the Ministry of Customs and Trade approval. But for these companies, the Ministry of Customs and Trade will interfere only during the conflict with the obligatory rules and regulations of the commercial code.
Apart from these companies, the commercial code mentions that a joint-stock company established in Turkey requires no permission from any authority.
What are the conditions to establish a joint-stock company in Turkey?
Though foreign investors do not need any authority permission to open a joint-stock company in Turkey, they require fulfilling several requirements. These include:
- Minimum one shareholder, it can be a person or a corporate entity.
- The minimum amount to set up a company is 50,000 TRY.
- Minimum 25% of the setup amount needs to be submitted before the company registration.
- The Board of Directors is made of one or more persons or corporate entities.
- Shareholders are not necessary to become part of the board.
- A company with more than 250 shareholders subjected to follow the rules and regulations enforced by the Capital Market Board.
Steps to register a joint-stock company in Turkey
The registration of a joint-stock Company in Turkey involves several steps that need to be followed carefully without any error. These include:
- The first step involves drafting the Articles of Association that must include the members’ information and the company activities.
- The representatives of the company must finalize a company name.
- Then, statutory documents as well as the passports or other ID documents of the shareholders and directors of the company, are also required to be filled with the Turkish Companies Registry.
- What activities your company involves may obtain you certain licenses.
After the registration of a joint-stock company in Turkey, the company requires to organize annual general meetings every three months from the end of the fiscal year. If you want assistance in establishing a joint-stock company, It is advised to contact a Turkish legal representative.
What are the requirements to establish a joint-stock company in Turkey?
The foreign investors interested in opening a large business in Turkey usually prefer to register a joint-stock company in Turkey where some conditions are required to be fulfilled to make their company registered under Turkish Law. These conditions have already been discussed above. Please read them thoroughly.
In the shareholders’ meeting, certain decisions are taken towards the activities of the company. The auditors and the accountant are appointed. It is always recommended to go for Turkish citizens for mentioned positions because they can easily understand Turkish and communicate with Turkish people more effectively. You must get the one who knows what regulations are required to be followed in the Turkish market.
Let’s have a look at the required documents to open a joint-stock company in Turkey.
- Once you complete the preliminary preparations, you must submit the given documents to the relevant trade registry office.
- A letter of application must be signed by the members of the board of directors or it must be signed by the members who are responsible for representing the company. The application must include share capital, address, company name, tax office name and, a list of extensions information.
- Three copies of the Incorporation Declaration Form signed by authorized persons. For foreign shareholders, four copies are required.
- Notarized copies of the Articles of Association
- Chamber Registration Declaration form signed by the founders of the joint-stock company.
- Notarized copies of passports and residence certificates of foreign shareholders and members of the board of directors
- Notarized signature copies of persons having authority to represent the company
- Notarized acceptance letters as proof that mention the acceptance of roles by the non-shareholder members
- The bank receipt
- Bank letter with a company name and the total deposited amount as well as each of the shareholders.
- The contract between the joint-stock company and shareholders
- An approval letter signed by the Ministry of Customs and Trade
The process of Joint-stock company registration in Turkey may take a couple of weeks. A joint-stock company opening process in Turkey can be easier with the help of a legal representative.