Types of companies and establishing a company in Turkey
Turkey provides facilities to all investors. In addition, it allows international investors to have the same rights and liabilities as local investors. All of that is to enhance the investment environment. Therefore, investors may establish any form of company set out in the Turkish Commercial Code. In this article from Ebla Real Estate, we will ralk about establishing a company in Turkey and types of companies.
An introduction:
The establishment of an accredited company in Turkey is a fundamental and pivotal point in the world of investments. Moreover, Turkish laws facilitate investment and commercial events, support investors in Turkey, and provide them with all administrative, service and technical facilities.
The concept of the company in the commercial custom:
The company is a binding contract between two or more persons. Moreover, the basis of which is: the agreement to contribute to the company in some form. Additionally, its goal is profit. Furthermore, its reality is sharing the resulting profits and losses.
Types of companies in Turkey:
Turkish laws allow investors to establish any form of company set out in the Turkish Commercial Code. Moreover, each company has its own characteristics and advantages.
Joint Stock Company:
A joint stock company is a company in which the company’s capital is divided into shares distributed among its shareholders. Furthermore, shareholders are only liable to the company with the capital shares they have committed. For establishing a joint stock company, the number of partners must be five or more. Additionally, the minimum capital amount is 50,000 Turkish Liras. In addition, at least one quarter of the nominal value of the shares committed in cash must be paid before registration. The remaining amount shall be paid within 24 months following the registration of the company.
Moreover, the joint stock company in Turkey is allowed to practice all commercial and investment events permitted by Turkish laws. Bearing in mind that there are some industrial and commercial activities that need permission from the Ministries of Commerce and Industry in Turkey, and the company’s board of directors is liable for legal guarantees for taxes and debts.
Sole Proprietorship / Limited Partnership Companies (Collective Companies and Commandite Companies):
collective and commandite companies are referred to as sole proprietorship / limited partnership companies. Moreover, partnership companies are legal entities where the shareholders have unlimited liabilities. Furthermore, they usually consist of a limited number of partners uniting for a common economic interest.
Cooperatives:
Cooperatives are partnerships with varying partnerships established by real and legal persons in order to provide and protect the specific economic interests of partners Moreover, the cooperative company is not a private company or a capital company, but a commerce company. Additionally, the obligations, rights and privileges are divided among the shareholders in accordance with the company’s contract and the articles of association of the cooperative company.
Limited Liability Company (LLC):
A limited liability company in Turkey is an ideal opportunity for those wishing to establishinvestment and commercial projects on a large and small scale. Moreover, a limited company is a company whose capital is definite and divided into shares and is responsible for its debts only with its property holdings.
The shareholders are not liable for the debts of the company, they are obliged to pay only the capital shares they have committed and to fulfill the additional payment and performance obligations stipulated in the company contract. Shareholders are responsible for capital debts due to uncollectible public debts in the rate of their capital shares. A single shareholder can establish a limited company.
How to establish a company in Turkey:
Of course, the procedures for establishing any type of company common in Turkey are the same in administrative and routine terms, with the difference in the amount of capital required for each company or the number of people obligated to register in the company data.
- A founder represents the name of the company.
- A capital of 10 thousand Turkish liras and above for the limited liability company or 50 thousand and above for the joint-stock company.
- A foreigner has the right to own 100% of the company’s shares.
- A foreigner can be an official and accredited director of the company and obtain a work permit in Turkey.
- The company must appoint a certified chartered accountant in Turkey.
- For the company’s license, a translated passport valid for no less than 6 months and a copy of it notarized by a notary.
- Extracting a tax number.
- The contract, articles of association of the company and the address of the company shall be submitted to the notary public.
- A quarter of the company’s capital is deposited in the bank.
- The company’s registration procedures are carried out in the Chamber of Commerce. Moreover, after the completion of the company’s registration in the Commercial Register; The company will have a legal status.
- In addition, all employees of the company have to register in the Social and Pensions Insurance Department.
Thus, people who want to set a company in Turkey can contact Ebla Real Estate in Bursa to take the necessary directions and advice.
Edited by: Ebla Group Real Estate
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