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How can a Company be Verified in Turkey?
Turkey is a country that provides excellent benefits for investors who want to start a company in Turkey. Turkey has the most flexible economy, a liberalized investment environment, and a good revenue system, with a port of entry between Europe, the Middle East, and Central Asia. Various Turkish company registration agents assist clients from all over the world who want to enter the Turkish market. These are some of the several reasons why investors are looking for information about a company’s verification in Turkey.
Verification of a company in Turkey is required for foreign business people when he or she demands to buy a shelf company in this country, or he/she desires to complete a crucial contract with a business partner. A businessperson from abroad may contact a Turkish lawyer to make this verification or try to act on his/her own if they know the primary process.
Verification of a Company in Turkey
Interest in establishing a business in Turkey has increased in the last years because of the economic improvements of the Turkish Government, whose interest is to attract progressively more foreign entrepreneurs. The changes have brought loads of foreign investors year after year, and they combine their companies with the local Trade Register, ultimately contributing to the Turkish economy.1 The entity may provide details about every company registered in Turkey and the company’s verification.
Turkish companies are registered and issued in the Trade Register gazette, thus verification of a company is achieved.2 A substantial amount of information that can be of use for your business is included in the registry database.
What are the types of companies in Turkey?
The different types of companies in Turkey that can be used for company establishment are as follows:
- The Joint-Stock Company type, which is generally preferred by shareholders interested in setting up large operations in Turkey.
- The Limited Liability Company type, which can be private or public, although foreign enterprises generally employ the private type.
- The Commandite Company type is a non-corporate enterprise form and is similar to limited partnerships in other countries.
- The Collective Company type is also a non-corporate kind of organization and can be registered by domestic residents only.
- The Cooperative Company type is one of the oldest and one of Turkey’s most famous company types.
The Limited Liability Company is the most famous type of business in Turkey. At least one investor is needed to form this kind of company, and the lowest share capital of 10,000.00₺ will also have to be stored during the early phase of the integration process. The liability of the investors is restricted to the amount of share capital invested in the company. The investor or investors can’t achieve a company’s verification until they have deposited the required amount.
The Joint-Stock company type has a greater minimum share capital than the Limited Liability Company type, which is 50,000.00₺. This kind of company has various rules concerning the company management system, the company must have at least one investor and a compulsory Board of Directors (BoD). The liability of members is restricted to the amount of the invested capital. The capital is distributed into stocks that can be received publicly when the company is included in the Stock Market and the verification of the company is completed. This type of company is appropriate for big businesses.
Reasons to Invest in Turkey
Turkey has a thriving economy inviting numerous foreign investments. There is also strong economic growth and one of the fastest-growing economies in the Organisation for Economic Co-operation and Development (OECD) is predicted to be in the country.3 Turkey also calls for straightforward international investment and a dynamic private sector.
Exemplary infrastructure and an accomplished and competitive workforce are two different significant reasons why investors look over Turkey to base their business. The country also has a good tax system, and the government offers impulse and tax advantages to those who open companies in specific free zones.3 Incentives are also relevant to explore and develop activities, tactical investments, or extensive investments.
Other important reasons are as follows:
- Robust Economy,
- Large Domestic and Regional Markets,
- Strategic Location,
- Favorable Demographics,
- Skilled and Cost-Competitive Labor Force,
- Continuous Reform Process,
- Liberal Investment Climate,
- Lucrative Incentives,
- Advantageous R&D Ecosystem,
- Sectoral Opportunities.
Documents needed for Company Formation in Turkey
The documents needed for registering a company in Turkey rely on whether the investor or investors are individuals or companies. In the event of individuals, two copies of passports or IDs must be submitted upon registration. In the event of legal units, the following documents are needed for company formation and the verification of a company in Turkey:
- The foreign company’s Articles of Association, which must be converted into Turkish and certified.
- The foreign company’s credentials of registration must also be translated into Turkish and certified.
- A determination of the company’s management board for establishing a company in Turkey.
- Details about the person in the foreign company who will represent the company in the Turkish business’ management.
- Details about the company directors and their passport copies.
Applying for a Business License in Turkey
The business licensing stage must be finished if the Turkish company will undertake particular actions. In this case, specific business licenses and authorization must be acquired with the government representing the company’s sector. Among the industries in which particular licenses are necessary for trading, the financial business, and manufacturing. These are also among some of the most advanced economic sectors in Turkey.
Rules and Regulations for Companies in Turkey
The Commercial Code of Turkey establishes provisions related to good management procedures and requirements for an internal and unconnected audit. A company must support its economic and business proceedings on transparency, fairness, liability, and responsibility. The Code includes guidelines regarding:
- The compulsory financial statements a Turkish company must develop and file with the tax establishment.
- The administrative structure of the company consists of the investors and the company directors, and managers.
- The annual audit procedure, which means that Turkish companies must have their financial accounts verified.
- The company’s investors, also known as stockholders, are the proprietors of the company.
- The structural modifications through the company must be reported to the Trade Register in Turkey.
- The sector of the company and split-up of a company must also be stated in the Companies Register.
- The Company Law also offers for the extermination of companies in Turkey.
These standards, along with the Articles of Association of a company established in Turkey, constitute the basis for corporate governance in the country. Verification of a company can’t be achieved until the required conditions are met.
Advantages of Registering a Company in Turkey
Below are a number of the benefits of registering a company in Turkey:
- A strategic center of commerce between Asia, the Middle-East and Europe,
- Geo-politically political location,
- Steady economy and well-advanced banking systems,
- Active and inexpensive workforce,
- Government subsidies and Free Trade area advantages,
- Exceptionally demanding domestic market.