Located between Asia, Europe, and Middle East, Turkey has become a strategic trade location which attracts numbers of foreign and domestic investors. With a great opportunity to enter the trade globally, many public and international companies are established all around Turkey, mostly in Istanbul and Ankara. To attract investors, company formation in Turkey is easier than ever before.
Below is the detail information of how to establish a company in Turkey.
A) Types of company
In order to establish a company in Turkey with legal entity, it is necessary to determine the type of a company.
B) Establishing a company for Foreigners
The most popular form of company among foreigners is Limited Liability Company. Foreigners who want to create this type of company in Turkey should have at least one shareholder with a minimum share capital of TRY 10.000 (USD 1450).
The liability of shareholders is limited to the amount of shared capital invested in the company. Limited liability company is suitable for small size business.
The liability of the members is limited to the amount of invested capital. The capital is divided into stocks, which can be made public when the company is listed on the Stock Market. Joint stock company would be a better choice to make and organize large size business.
Both LLC and JSC share the same formal requirements for establishment. The process will take normally 2 or 3 days providing below documents listed below are complete.
1. A petition signed by authority of the Company.
2. Organization information form shall be filled (3 copies for non-foreign establishments, in case of foreign establishment 4 copies must be filled)
3. Notarized passport translation copies of foreign real person, tax number or residence permit.
4. Articles of association and memorandum are submitted online at MERSİS which is a central information system for carrying out commercial registry processes and storing commercial registry data electronically on a regular basis.
5. Signature Statement of company’s authorized person under the company name.
6. Bank receipt for competition authority fee.
7. Bank letter shown that the share price had been paid by the shareholders at least the minimum amount indicated by the articles of association or articles of law. (It is generally one in four)
8. Chamber registration declaration.
9. The declaration that accepts the duty of being a member of the board of directors for someone who is not a shareholder. For foreign, tax number or ID number for foreign, notarized passport translation and notarized permit of residence if there is.
10. If legal entity is chosen to be a member of the board of direction, a notarized decision of the legal entity with name-surname of the person who act with and on behalf of a legal entity, ID number (If the person is foreign, the tax number is required)
The above mentioned documents shall be given to İstanbul Chamber of Commerce for registration and announcement. The documents shall be registered after delivered to İstanbul Chamber of Commerce.