Are you a foreign individual or corporation looking to expand your business in the Middle East or Europe? Turkey is a growing economy and strategic location for business growth. To start a business in Turkey, foreign individuals and corporations must go through a company formation and registration process. In this article, we will provide a comprehensive guide to the company formation and registration process in Turkey.
Types of Companies
There are several types of companies that foreign individuals and corporations can form in Turkey, including joint-stock companies, limited liability companies, and branch offices. Joint-stock companies and limited liability companies are the most common types of companies that foreign individuals and corporations form in Turkey.
Joint-Stock Company (JSC)
A joint-stock company is a company whose capital is divided into shares, and each shareholder is only liable for the amount of their shares. A JSC requires a minimum of two shareholders and a minimum capital of TRY 100,000 (approximately $5,200). The company must also have a board of directors and a supervisory board. If you want to learn more about the differences between joint-stock companies and limited liability companies in Turkey, check out our article.
Limited Liability Company (LLC)
A limited liability company is a company whose capital is divided into shares, and each shareholder is only liable for the amount of their shares. An LLC requires a minimum of one shareholder, and the minimum capital required is TRY 10,000 (approximately $520).
Branch Office
A branch office is an extension of a foreign company in Turkey. The branch office is not a separate legal entity, and the foreign company is liable for the obligations and liabilities of the branch office in Turkey.
Steps for Company Formation and Registration
The company formation and registration process in Turkey involves the following steps:
1. Choosing a Company Name
The first step in company formation is choosing a unique company name. The company name should not be identical or similar to any other registered company name in Turkey.
2. Drafting the Articles of Association
The Articles of Association outline the company's purpose, activities, and shareholders' rights and obligations. The Articles of Association must be prepared in Turkish and notarized.
3. Opening a Bank Account and Depositing the Minimum Capital
To open a company in Turkey, a foreign individual or corporation must open a bank account in Turkey and deposit the minimum capital required for the chosen type of company.
4. Obtaining the Tax Identification Number
The company must obtain a tax identification number from the tax office in Turkey.
5. Registering with the Trade Registry
The company must register with the Trade Registry in the province where the company's headquarters will be located.
6. Obtaining the Work Permit and Residence Permit
Foreign individuals who will work for the company in Turkey must obtain a work permit and residence permit from the Ministry of Interior in Turkey.
Conclusion
Starting a business in Turkey can be a complex process for foreign individuals and corporations. It is advisable to seek legal assistance from a qualified Turkish lawyer who can guide foreign individuals and corporations through the company formation and registration process. By understanding the legal requirements and seeking legal assistance, foreign individuals and corporations can start a successful business in Turkey. At our law firm, Dogus Law, we have a team of qualified Turkish lawyers who can provide legal assistance to foreign individuals and corporations in company formation and registration in Turkey. If you need further information, please contact us.
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