This article explains Verification of a Turkish Company process in details. Turkey is a country that provides excellent benefits for investors who want to start a company there. A port of entry between Europe, the Middle East, and Central Asia, Turkey has the most delicate economy, a liberalized investment environment, and a good revenue system. Different company registration agents in Turkey, helping clients from any corner of the world seeking to expand to the Turkish market.
Verification of a Turkish company is required for a foreign businessperson when he/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 he may try to act on his/her own if they know the primary process.
Verification of a Turkish Company
Fascinate in establishing a business in Turkey has increased in the last years because of the economic improvements of the Turkish authorities, 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. The entity may provide details about every company registered in this country.
Turkish companies are registered and issued in the trade register gazette. Finding in the register data bank is causing a major part of details that could be helpful for your business.
Types of companies in Turkey
The different types of companies that can be used for company establishment in Turkey are:
- ● The joint-stock company, which is generally used by shareholders interested in setting up large operations in Turkey.
- ● The short liability company, which can be private or public, although foreign enterprises generally employ the private type.
- ● The commanding company is a non-corporate enterprise form and is similar to a limited partnership in other countries.
- ● The collective company is also a non-corporate kind of organization and can be registered by natural persons only.
- ● The cooperative company is one of the oldest and one of Turkey’s most famous types of companies.
The limited liability company is the most famous type of business. At least one investor is needed to form this kind of company, and the lowest share capital of 10,000 TRY 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 joint-stock company has a greater minimum share capital than the restricted liability one – 50,000 TRY. This kind of company has various rules concerning the company management system: it must have at least one investor and a compulsory board of directors. The liability of members is restricted to the amount of invested capital. The capital is distributed into stocks that can be received public when the company is included in the Stock Market. This type of company is appropriate for big businesses.
Reasons to Invest in Turkey
Turkey has a dynamic economy that invites many foreign investors. It also has a bright economic growth, and the country is expected to have one of the quickest-growing economies amidst the OECD members. Besides, Turkey urges straightforward foreign investments and has a dynamic private area.
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. Incentives are also relevant to explore and develop activities, tactical investments, or extensive investments.
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 in Turkey:
- The foreign company’s Articles of union, which must be converted into Turkish and certified.
- The foreign company’s credentials of registration must also be translated 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 it in the Turkish business’ management.
- Details about the company directors and their passport copies.
Applying for business licenses 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. Between the industries in which particular licenses are necessary are trading, the financial business, and manufacturing. These are also some types of the most advanced economic sectors in Turkey.
Rules and regulations for companies in Turkey
The Commercial Code 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 – 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 business register in Turkey.
- The sector/split-up of a company must also be stated to the Companies Register.
- The Company Law also offers for the extermination of companies in Turkey.
Together with the Articles of Incorporation belonging to a company integrated in Turkey, these requirements are the reason for corporate governance in the country.
Advantages of registration a company in Turkey
Below are a number of the benefits of registering a company in Turkey:
- A strategic center of commerce between Asia and Europe.
- Geo-politically political location.
- Steady economy and well-advanced banking system.
- Active and inexpensive workforce.
- Government subsidies and Free Trade area advantages.
- Exceptionally demanding domestic market.