Establishment, types and costs of companies in Turkey

What are the types of companies in Turkey and the differences between them?

There are four types of companies in Turkey:

• Joint-stock Companies

• Solidarity Companies

• Companies with special/unlimited liability legislation

Licensing of such companies is often difficult; Different conditions and administrative authority to issue a license, including private banks, financial institutions, insurance companies, financial leasing companies, debt collection companies, holding companies, foreign exchange companies and warehouse storage companies.

• Limited liability companies

This type of company is typical of small and medium-sized enterprises consisting of at least one shareholder, at most 50 shareholders, and the cost of founding a company in Turkey of this type is very acceptable. This company has a minimum capital of 10,000 Turkish lira/equivalent to less than $2000, while two shareholders should have a minimum capital of 12,500 Turkish lira.

Benefits and advantages of establishing a company in Turkey

When establishing a company in Turkey, you have a lot of features, including the fact that the company is in one of the best markets in the world, as well as having health insurance for all family members, which gives them free treatment in all state hospitals, as well as access to a work residence permit. As well as the dealer's card; allowing access to all information on tenders and exhibits of the State, and the existence of support from the Ministry of Economy if Turkish products are marketed. Besides, fairs and events are held for your company abroad; ease of export; The Turkish Government exempt exports from taxes, the ease of marketing of products within the EU States, as well as social security; The Turkish Government grants it when the company is closed or lost, and schools and universities are free of charge to family members, not to mention pensions after working for a certain period within Turkish territory.

How to start a company in Turkey?

Those who wish to start a company in Turkey must prepare the statutes for the foundation of the company, be certified by the notary and attach a statement of the company's address, as well as deposit 25% of the capital value in the bank. Capital is advised to be greater than the amount specified in Turkish law to take advantage of the other powers obtained by companies with large capital, so capital is always advised to be at least 100,000 Turkish lira or more, making it easier to obtain permission/establish employment for the owners and employees of the company, and other important benefits.

In the period of incorporation of the company, capital is not required to be deposited in a Turkish bank, provided that the deposit is made prior to the submission of the work permit/residence, or within two years of the date of incorporation.

The capital is deposited in a bank account of the company that is established, and the company receives a deposit sheet of the value of the capital by the bank, after which the company's papers can be managed, approval obtained from the Chamber of Commerce of Turkey, real estate registration and any other actions.

Submission of the original version of the company's statute as well as two certified copies thereof to the Commercial Registry Office within fifteen days of the date of authentication and certification by the notary.

For limited liability companies, they must be compatible with article 279 of the Turkish Trade Code.

The company's address must be explicitly and clearly stated in the foundation system, and it must be noted that the company's founding system will be publicly published in the Official Journal of the Commercial Register.

Terms of incorporation of a company in Turkey

Starting a company in Turkey is easy, away from the tired routine, as the new investor can easily get his documents for his new company. After the company is incorporated in the commercial registry office, the company must be registered in the local tax office, as the tax certificate, which must be clearly displayed and placed in the workplace, is received, where the local tax officer visits the company office or store within a few days to verify the information and the tax certificate.

Documents required to establish a company in Turkey

The foundation of the company in Turkey depends on the existence of documents to be obtained, which are generally: The commercial register containing the company's information, and the certificate of events, issued by the Chamber of Commerce on the basis of the commercial register number, it contains a complete explanation of the company's activities and activities, as well as the company's tax plate, and contains the company's tax number. It also requires signing with the notary on the basis of the company's information, and the existence of the chartered accountant's contract, an employee who connects your company to the government services, who is in charge of communication with them.

Documents required to register a joint-stock company

• Foundation contract signed by founders
• A document showing that at least 25 percent of the capital pledged in cash has been invested in the bank.
• Proof of payment indicating payment of the Competition Authority's share.
• Assessment reports prepared by the Expert Tribunal to determine the value of samples, assets to be used during the enterprise and, if any, capital in kind.
• If in-kind capital is added, the document to be taken from the relevant registry states that there are no restrictions on in-kind capital.
• A document demonstrating that real property, intellectual property rights and other values in kind are described as capital in kind in the records in which they were registered.
• Contracts with the company being incorporated with its founders and other persons, including those relating to the acquisition of assets, if any.
• Letter of authorization for companies whose incorporation is subject to approval by the Ministry or other official institutions.
• Written statements by non-contributing board members, if any, that they accept this duty.
• In the case of a legal entity on the Board of Directors, the name and surname of the real person shall be determined by the acting legal person and the documented copy of the decision of the competent body to determine it.
• Signing and binding the persons authorized to represent the company.

Documents required to register a limited liability company

1. The company agreement is signed by the founders.
2. Written statements by unaffiliated board members that they accept this duty.
3. In the case of a legal person on the Board of Directors, the name and surname of the real person shall be determined by the acting legal person, and the documented copy of the decision of the competent body shall be determined.
4. Assessment reports prepared by an expert appointed by the Tribunal concerning the valuation of assets in kind and assets to be seized during incorporation, if any.
5. If in-kind capital is added, the document to be taken from the relevant registry states that there are no restrictions on in-kind capital.
6. In the case of capital in kind, the document explaining that intellectual and immovable property rights and other values established as the capital in kind are annotated in the registries in which they are registered.
7. Contracts with the incorporated company, its founders and other persons, including access to assets, if any.
8. Signing company manager announcements.
9. Proof of deposit indicating the deposit of the competition authority's share.

Documents required to register a cooperative company

1. The company's agreement is signed by the founders accredited by the management of the commercial registry.
2. Letter of the delegation from the authority to establish the cooperative.
3. Signatures of authorized persons and cooperative representation of the company under the heading of the cooperative.

Documents required to register collective and limited partnerships

1. Company contract signed by documented founders.
2. A copy of signatures signed by persons authorized to bind and represent the company under the title Cooperative.
3. Assessment report prepared by the expert appointed by the Tribunal to determine the value of assets in kind in the event that the limited shareholder places the equity in kind in the limited partnership companies.
4. A letter from the relevant registry stating that there are no restrictions on capital in kind.
5. A document demonstrating that immovable intellectual property rights and other values placed as in-kind capital are annotated in the registries in which they were registered.

Company expenses in Turkey

Depending on the quality of the founding company, the joint-stock companies should not be less than 50,000 Turkish lira equivalent to approximately $9,000. Corporate solidarity is not a minimum capital requirement, while companies with privacy legislation, which are not limited in liability, are often difficult to license for such companies; if the conditions vary according to the administrative authority responsible for issuing the license and require large sums, the limited liability companies have a minimum capital of 10,000 Turkish lira, equivalent to less than $ 2,000.

Corporate taxes in Turkey

Corporate tax is calculated from the net profits achieved during the three-month financial cycle, where twenty percent of the net profits earned by companies or institutions and bodies are deducted as a profit tax after accounting for the company's imports and expenses. Full and incomplete liability for corporate profits tax determines the pattern of taxation. Strict liability means that the profit tax is deducted from the entire profits (profits obtained inside and outside Turkey), and incomplete liability is deducted from profit tax only from profit obtained within Turkey by companies not stationed in Turkey.

Monthly and annual taxes following the foundation of the company in Turkey

The enterprise tax is calculated from the net profits achieved during the three-month financial cycle, where 20% of the net profits earned by companies or institutions and bodies are deducted as a profit tax after accounting for the imports and expenses of the enterprise. There is also a monthly tax of 59 lira, which is the tax of the monthly computational statement that it provides to the Tax Service every month, which is a fee for the monthly statement, the fixed fee is unchanged, and the non-resident companies in Turkey are subject to an income tax of 15%.

How to extract a dealer's card in Turkey?

The dealer's card in Turkey is extracted from the centers of the Chambers of Commerce of the Turkish States and submitted through the company's legal accountant. In turn, the employee receives the application and after it. Within 10 days, the card or business license is sent to the address of the company.

Can you establish a company in Turkey from abroad?

A company can be established in Turkey from abroad by following some steps, first, identifying initial data, such as company name, number of partners, shares, activities and capital prepared for the company. Accordingly, the agent organizes the company's contract of incorporation to be submitted to the Chamber of Commerce, a document containing a set of provisions and clauses agreed upon by the founding partners. Then the company's founding delegation works for a trusted investor's acquaintance - and you can communicate with us to do the job - at the Turkish embassy in the investor's country of residence and send the delegation (original) to the agent's address in Turkey to initiate the foundation procedure. The necessary documents are then extracted from the Turkish Chamber of Commerce and sent to the Turkish Embassy to obtain the approval of the signature and the operation of a chartered accountant agency in Turkey, which ends with the opening of the company's bank account.

Closing a company in Turkey: What are the steps and what is needed?

The closure of the company in Turkey may last a full year because the Turkish State considers the companies to be legal, thereby conferring upon the company the debts or rights to know the decision to close it and to deal legally with the rights, the legal agency of the chartered accountant required to initiate the closure proceedings, and the consequent payment of the company's debts and taxes even during the closure procedures.

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