Turkey Company Registration and Formation
Turkey is a nation that is transcontinental which lies in between Europe as well as South Western Asia. It is simple to register your company in Turkey however, you must adhere to local laws.
You can register your company in Turkey with a minimum of one shareholder and one director and without the requirement of a physical presence.
A Turkish investor can establish an organization inside that Turkish free trade zone. This free zone can provide numerous advantages to companies. Companies that are incorporated in a zone that is free of charge will get tax incentives and advantages from the government. Investors can also return funds back to the country of origin via Turkey’s Free Trade Zone.
In this article, we will be briefing you about the detailed process of Turkey company registration and formation services and also the various documents required to setup your firm. So, without any further ado, let’s dive into it.
Turkey Company Registration Procedure
The step-by-step guideline for a Turkey company registration has been described below-
Sign-up using MERSIS
In the first phase of company registration, the applicant has to register an account online through the MERSIS system. The online method would be accessible to all candidates. For international applicants, registration with MERSIS would first require a tax number.
Prepare company contracts through MERSIS
MERSIS requires the applicants to submit certain legally mandated information for a contract. The firm contracts can be generated by entering specific application-related data into the MERSIS. MERSIS would assign the Company’s tax identification number for the business. The contract is then signed by the owners and validated by an authorized body. Some businesses would be required to complete tasks at the Trade Registry Directorate.
Notary
In the event that the procedure for approval falls towards the Notary, then the requirements must be met by the correct notary. The signatures would be confirmed when the notary completed the necessary steps. Then, the individuals will prepare the declarations.
Deposit Capital
0.04 percent of the firm’s share capital must be deposited to the Competition Authority’s bank account. This sum can be deposited together with the other transactions in the relevant trade registration. 25% of the share capital must be deposited in the bank account in case of joint stock firms before registering a company.
Apply at the Trade Registry Directorate
The founders’ application and the necessary paperwork are sent to the trade registry directorate, which fulfils the enrollment process. A trade registry can approve the application after it has been reviewed.
Eligibility Criteria to Register a Company in Turkey
In order to register a company registration in Turkey the following requirements must be fulfilled:
Minimum capital requirement
The minimum capital requirement for a joint-stock company in Turkey is 50,000 TL. Non-Public Joint Stock Companies have a requirement OF 100,000 TL. A capital of TL 10,000 is required for a limited company.
Number of Shareholders
It is important to note that a Joint Stock Company and a Limited Liability Company do not require a certain number of shareholders. The type of company may only be established by having at minimum one shareholder. Any individual, of any country, may own shares in a Turkish corporation;
Minimum Directors
For the Turkish company registration procedure, a minimum of one director is needed. There are no local resident director requirements.
Local Representative
Local representatives are required to be appointed for branch offices with particular needs.
Registred office address
Turkish corporation is required to have a registered office in Turkey.
Required Documents for Company Registration In Turkey
These documents are necessary for register your company in Turkey:
- A statement attesting to the capital’s deposit in a bank.
- Supporting documentation of payment to the competition authorities.
- A submitted application for registration with the Trade Registry.
- The company’s Valuation Reports are used to calculate the cash assets and non-cash assets.
- Documents or evidence proving that the Intellectual property rights are legally held by the respective owner.
- Any type of contract the business has signed.
- Ministerial Respective Approvals
- Information on directors (notarized copy of the document that shows the board is taking the proper action of the body that is competent to register
- Signature Authorizations are signed by those who are competent to bind the company.
- All agreements signed by the company
- Signature of the Declarations of Directors
- Approval of signatures by the Trade Registry of the Company
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Business Structures for Company Registration in Turkey
These are the types of business structures that could be used to register a company registration in Turkey
Joint Stock Company registration in Turkey
In the case of a Joint Stock Company, the share capital of the corporation is split into shares, and the stockholders have limited liability. Any commercial endeavor that is not restricted by law may be the basis for the formation of a joint stock company.
There must be a minimum of one shareholder (either a natural person or a legal body), and a minimum capital requirement of TL 50.000 must be met. Prior to filing with the Trade Registry, at least 25% of the share value must be deposited in the bank account.
Limited Liabilities Company registration in Turkey
A limited liability company is the most common form of business structure for small and medium-sized firms. For a Turkey company registration using the Limited Liability Company, it is necessary to have a minimum of one shareholder who are held accountable for the firm’s obligations only to the proportion of their investments.
The minimum capital needed to start an LLC in Turkey is 100,000 TL, from which 25% should be paid at the time of incorporation of the firm. Directors and shareholders in an LLC have to be appointed. A manager typically oversees an LLC.
Branch Office for company registration in Turkey
A branch office is merely a subsidiary of the international holding company. The branch’s debts are the responsibility of the parent company of the foreign branch. The branch office may earn money. The business would need to pay a certain proportion of corporate taxes.
Representative Office for company registration in Turkey
The representative office is an office branch and serves as an additional part of the parent foreign company. The parent company of the foreign entity will be responsible for the official representative. In Turkey, representative offices are not permitted to engage in any commercial business and can only engage in non-commercial endeavors. The representative office is only able to carry out market research and other tasks to aid in the promotion of the foreign parent company’s activities. The representative office will not earn any profits.
Free Zone Company registration in Turkey
There is a way to form the Turkish Free Zone Company with ease. This kind of business has numerous benefits. This kind of entity permits capital to be returned to its home country.
Benefits of Turkey Company Registration
Here are a few benefits that registration of a business in Turkey provides:
Growing Economy
Turkey is a rapidly growing economy that welcomes innovations from around the world. It is in the top 30 in terms of protecting investors’ investment by entrepreneurs. According to research, Turkey is one of the countries that are most popular in business. Turkey’s economy is one of the fastest growing around the globe, and in 2023, the GDP is expected to reach trillions of dollars.
Turkish Free Trade Zone
A Turkish investor can incorporate an organization inside Turkey’s Turkish free trade zone. This free zone provides numerous advantages to the incorporation of a business. An entity that is registered within a free zone will benefit from tax incentives and other rewards from the state. Investors can also return funds back to their home country via an arrangement called the Turkish Free Trade Zone.
Customs Union
Even though Turkey isn’t an EU member but it is part of the EU’s customs union. The customs union provides many exemptions to trade and tariffs that apply to Turkish products.
Foreign Direct Investment
Turkey is the country that has the most foreign investments coming from countries like the USA, India, and the UK in Western Asia. This indicates that the Turkish government has opened different areas to foreign investment.
Easy to form business
One director and one shareholder are able to form a business in Turkey. The minimum capital requirement in Turkey for the formation of a company can be EUR 3300. To incorporate a company investors do not need to reside located in Turkey. It is very easy to conduct business in Turkey because of all these reasons.
Transparency
Turkey is in the top 60 nations worldwide when it comes to business trips. In accordance with the Transparency Index, Turkey ranks among the top 70 countries for having the lowest level of corruption. The government isn’t required to interfere in the registration of businesses in Turkey.
Applying for Business in Turkey
Notarization is required for all documents necessary to register a Turkish company. These documents include 3 copies and an original of articles of association, 2 copy signature documents, 2 copy identification documents of firm managers and 3 copies a notification form for establishment. The certificate of registration must be submitted by the company. It will contain the tax number.
Company Formation Cost In Turkey
Turkey is a country where you first need to choose the type of company that you want.
Turkey permits you to establish a company without having more than one shareholder (both LLCs and C-Corps).
It is much easier to set up LLC than C-corp, because it is not necessary to transfer money to the bank.
- Power of attorney for company shareholders using Sworn Translator
- Competition Authority Share
- Process for Trade Registry
- Notary passport translation
- Notary passport translation copy
- Notary for Signature Circulars and Power of Attorney in Name of Company with Sworn Translator
- Applying for Social Security and Tax office
- Open a Bank Account for your company
Total amount: 15000 L (1194712.50 Indian Rupee) excluding professional service fees.
Turkey Rules and Regulations
TCC is the main code that applies to companies. Additional legislation applies to companies that operate in regulated areas. Insurance companies and banks are governed by the Insurance Code. Regulation of companies is also controlled by principal decisions of related regulatory bodies.
Business in Turkey for Foreigner
An independent work permit can be granted to foreigners by the Ministry of Labor and Social Security for those who are able to work on their own. This is provided if they have been in Turkey legally and uninterruptedly for at least five year.
A growing number of foreign investors seek out accounting firms in Turkey which offer value.
Add-on service to help bridge language gaps and provide direction on the type of company they should set up based upon their business plan.
Turkey Compliances for Company Registration
These are the conditions to register your company in Turkey.
Meeting of Shareholders
It is required that shareholders’ meetings be scheduled within three months from the closing of the financial year.
Extraordinary General Meeting
If necessary the Shareholders will convene an additional general meeting.
Board of Directors Meeting
The Statutes of the business must be abided by during Board Meetings.
Filing Tax Returns
Tax returns have to be submitted by the Company in conjunction with the tax authorities that are appropriate. The tax rate for Turkish companies is 20%.
Annual Filings
Companies that have registered in Turkey are required to submit annual filings.
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Conclusion
Investors have numerous reasons to consider Turkey as a place to establish a company. Turkey is situated between Europe and Asia. It is convenient for transportation due to its position.
Even though Turkey isn’t a member of the European Union it still enjoys different types of tariff exemptions within the European Union. Turkey has been a part of the customs union in the EU which lowers the cost of tariffs and customs placed on goods and services.
If you’re planning for a company registration in Turkey, it is suggested to seek assistance from a professional expert to eliminate the chances of errors. We are Odint Consultancy, available here to answer all your queries.
FAQ’s
Foreigners must first receive a tax number from the tax office for this process, and then they must apply to the trade registry office to register it with MERSIS.
The minimum amount of capital needed to register your company for registration in Turkey is as the following:
- The Joint Stock Company in Turkey is the equivalent of 50,000 Turkish Liras (TL).
- However, the capital requirement for Non-Public Joint Stock Companies is TL 100,000.
- The minimum capital amount for a limited or restricted liability corporation is 10,000 TL.
A minimum amount of shareholder needed for incorporation of a company for incorporation in Turkey can be one. There is no maximum limit to the number of shareholders of a company.
The minimum number of directors for the Turkish Company can be one.
The resident director isn’t legally required in Turkey.
Yes, the funds can be returned to the country of origin. The Turkish government Turkey has made it easier to do so.
Yes Foreign investment is permitted in Turkey. The Turkish Government has loosened foreign investment programs in Turkey.
