Many business people worldwide choose purchasing a company in Turkey instead of establishing a new one. There are many benefits that attract business persons to be a part of Turkey’s economy by buying a company in the country. You can take the help of a Turkish lawyer who will provide all necessary information and guidelines, and legal help if you want to buy a limited liability company, joint-stock company, or partnership.
If you choose to purchase a company in Turkey, then there is no need to go through the entire registration process. You just require to follow the essential formalities when choosing to buy a company instead of registering the new company. Though many countries allow foreign investors to buy a ready-made company, they are a little bit different from others when it comes to the laws in Turkey.
Its economic activity defines the existence of a company. Ready-made companies are chosen by foreign investors when they want to start their business without delay. They pick the company which is already established in the market.
Purchasing a Company in Turkey
As per the Turkish Company Law, a company director must visit Turkey to change the articles of association. It is also important to prove to the local tax office that a company is doing a valid business. In the past few years, many foreign investors have been shown their interest in purchasing a company in Turkey. One of the main reasons for this interest is the favorable economic environment.
Some of the foreign investors prefer to buy a company in Turkey because they want to engage in the share transfer process for the existing registered company.
If we talk about the Turkish legal system in terms of companies in the country, they are categorized into two types – private companies and capital companies. Here, private companies consist of collective companies, while capital companies consist of joint-stock companies and limited liability companies. Generally, individual companies are not preferred by foreign investors.
How to buy a company in Turkey legally?
The Turkish Commercial Code is an important legislature that manages the accurate transfer of shares. The parties are required to agree on the new structure of the company before starting the negotiation procedure. It also involves the purpose as well as the assets. In this situation, the two main documents that are involved in the transfer or acquisition of the company in Turkey are the Letter of Understanding (LOU) and the Share Purchase Agreement (SPA).
Purchasing a Company in Turkey Legally
Here, the LOU is prepared under specific terms and conditions, and it also comprises the details of the company’s new owner. This also includes the details about the financial statements, purchase payment, access to the company’s accounts, and others. When you buy a company in Turkey, the bank statements and transactions involved in the process are controlled and analyzed by the Banking Regulatory Supervision in Turkey.
At the same time, it is vital to take the help of an expert when buying a business in Turkey. He/she must be updated with the legal framework for Mergers and Acquisitions (M&A) transactions in Turkey. The significant legal matters hold the control of the company you are going to buy in Turkey. They also help in understanding the consequences of the agreements for the key directors of the company.
What are the tax aspects when buying a company in Turkey?
Tax aspects play a significant role when buying a company in Turkey. So, an M&A advisor must know everything about how tax matters affect buying a Turkish business. The advisor must be updated with the tax framework for M&A transactions in Turkey. The best idea is to set up the acquisition in a tax-friendly way so that you will not have to deal with any surprise due to tax issues at a later stage.
Characteristics of an existing company in Turkey
Buying a ready-made company in Turkey attracts various investors. This is because:
● These companies are already incorporated, and they need just a few modifications to start economic activities.
● Even if these companies have had an economic activity, the new owner can change the purpose of these companies.
● These companies are available with tax identification and VAT numbers. Also, they do not require tax registration.
● Though these companies can be used for any economic activity in the country, they can also be run as offshore companies.
● These companies are available with bank accounts, but these accounts can be changed along with other alterations.
● Most of these companies are registered as private limited liability, which means offering various benefits.
The process of buying a company in Turkey is not lengthy; instead, you can buy a company in just some days. There are company registration agents in Turkey who can help you buy a company in Turkey.
Why investors purchase a ready-made company in Turkey?
Buying a registered company in Turkey means you will get its trading history as well as the workers/staff that are already aware of how things run. This also helps in having access to the database of clients. You need not run after looking for clients.
Already registered business in Turkey is an excellent investment with numerous benefits. With the help of its history, you can quickly analyze if there is any change required or improve certain areas to understand the necessities better.
For foreign investors, it is recommended to hire a local accountant who can help you analyze the business’s value and assets before making any decision. They can also help with VAT registration in Turkey. It is also advised to take the help of a law firm or an expert in Turkey about purchasing a Turkey.
Final Words – Purchasing a Company in Turkey
If you are planning to buy a company in Turkey, it becomes essential to consult an expert who can help you purchase a company in Turkey. An expert will take care of all the required formalities and make you an owner of a Turkish company.