Turkey allows foreign investments, and business persons can establish a new company or buy a readymade company in Turkey. The entrepreneurs have the freedom to choose a company from different types of Turkish companies as per their business needs. The Limited Liability Company and the joint-stock company are the common and most preferred types of Turkish companies by foreign entrepreneurs.
When you plan to open a company in Turkey, it is very important to consider the particularities of the types of 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.
The 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.
Characteristics of types of companies in Turkey
If you are interested in opening a small and medium-sized company, then Limited Liability Company is the best choice for you. The incorporation process of Limited Liability Company is simple and straightforward. The characteristics of this type of company encourage foreign investors to choose such companies for investment in Turkey. There is at least one shareholder for this company, and it requires a minimum share capital of around 5,000 TRY. This type of company is handled by the board of directors.
● When we talk about the benefits of Limited Liability Companies in Turkey, this company can also be used for various activities. Also, readymade companies in Turkey are quite common and are typically created as Limited Liability Companies. These companies are preferred by investors who want not to spend time with the registration of a new company.
● A Joint Stock Company is preferred by investors who want to own a large business in Turkey. Like 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 TRY. This type of company is managed by a board of directors along with a supervisory board.
● Another type of company in Turkey is Commandite Company. 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 Commandite Company. The shareholders of this company can have limited or unlimited liability.
● Collective company is also one of the types of companies in Turkey, which is similar to Commandite Company, but the shareholder 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.
How to register a company in Turkey?
No matter what type of company you want to open in Turkey, you need to follow some steps that must be completed. These include:
● You need to verify the company name with the Trade Register. 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.
● The taxation, Vat, and social contributions must be registered with the tax authorities.
● When you apply for business licenses, it is issued as per the activities of the company.
How to establish a company in Turkey?
No matter what type of company in Turkey you want to establish, it is initiated through MERSIS (a web portal of the Ministry of Commerce in Turkey). You need to enter some details regarding the company in this portal. These include the type of the company, company’s title, address, partners, capital, board of directors, and other information.
Once you enter this information, 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.
If you choose to open a Joint Stock Company, you are required to pay a minimum of one-fourth of the capital before registering a company. 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 new company. Also, the capital, in addition to the one-fourth, is to be deposited in this account.
When it comes to the limited companies, they have no need to deposit the capital before registration in accordance with the Turkish Commercial Code. Hence, 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.
No matter what type of company in Turkey you have chosen to open and how much capital you have invested before the company’s registration, the total capital of the company should be accomplished within 24 months after the registration by the partners.
Buy 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 opening and registering a company from the initial point. These companies provide a lot of advantages to foreign investors who want 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 owning procedure.
Suppose you are interested in gaining the benefits of opening a company in Turkey. In that case, this guide may help you get some useful information about the different types of companies in Turkey and the steps to open a company in Turkey.