ESTABLISHING A LIMITED (LTD) COMPANY IN TURKEY
Company formation in Turkey is generally a complex issue, if you want to start a commercial life in Turkey and your knowledge about commercial life in Turkey is limited, company formation can be a troublesome task for you.
At this stage, as Baltasglobal, we answer your questions free of charge and help you with company establishment. If you do not want to get consultancy, we think that you can easily set up your company by reading our article to the end.
How many typies of companies we have in Turkey ?
According to the Turkish Commercial Code, 5 different types of companies can be established in Turkey:
1- Incorporated Company
2- Limited Company
3- Collective Company
4- Limited Company
5- Co-operatives
- *Incorporated Company, * Limited Liability Company and * Limited Partnership Limited by Shares are capital companies. In capital companies, the partners are only liable to the company with the capital they have committed.
Ordinary limited partnership and collective company are sole proprietorships. In sole proprietorships, the principle of second degree and unlimited liability of the partners for the debts of the company is valid
The types of companies that are generally common in Turkish commercial life are Limited Liability Companies with 83% and Incorporated Companies with 12%.
In this article, we will give you information about Limited Companies.
Do you have any questions? Please feel free to contact us from the contact section. Your questions are answered confidentially and quickly.
LIMITED COMPANY
The establishment of Limited Liability Companies is regulated in detail in the Turkish Commercial Code. In Turkey, a limited liability company may be established by a single person. The number of partners may not exceed 50 persons, and the partners may be real persons or legal entities (Art. 574 TCC).
A person who is a Turkish citizen or a foreigner can establish a Limited Liability Company alone. However, foreign nationals are advised to complete the company establishment process through a lawyer resident in Turkey. You can establish your company with the help of BaltasGlobal’s expert lawyers.
The responsibilities of the partners of the Limited Liability Company are limited. Limiting the liability of the partners means that the partners are only liable for the debts of the company with the amount of capital they have committed. However, partners are also liable with their personal assets in relation to public debts that cannot be collected from the company. For example; due to the company’s tax debt to the state, you may lose your assets and your house may be sequestrated.
Limited Company Capital Amount
According to the presidential decree numbered 7887, the capital of the limited liability company has been increased from 10,000 Turkish Liras to 50,000 Turkish Liras as of 1 January 2024. This amount must be paid to the bank within at least 2 years from the establishment of the limited liability company. However, if you want your company to have a reputable place in the opening of company accounts in banks and in the functioning of commercial life, it is of great importance to show the capital amount high here.
Limited Company Establishment Process
We can say that the company incorporation process in Turkey takes between 2 – 3 days on average. In this section, we will explain the establishment procedures of the company in detail.
Company establishment in Turkey is exempt from fees, but people pay for many items when they go to the trade registry directorate. Trade registry contract publication fee, book fees, etc. Payments made at the trade registry directorate vary between 6000 TL – 8000 TL for January 2024.
Foreign real and legal persons to establish a company in Turkey is subject to the same rules as the citizens of the Republic of Turkey. However, if the foreign person who will establish a company in Turkey does not speak Turkish, this person must be accompanied by a sworn translator during the establishment of the company.
We have tried to give you information about the process of setting up a company for foreigners in Turkey and give you information that you can understand the process in your head:
Limited liability company formation process for foreigners in Turkey;
1-Foreigners do not need a work permit or residence permit for company formation in Turkey. Foreigners can establish a company in Turkey without the need for any Turkish citizen alone and the sole partner of the company can also be the director.
2-The passport of foreigners must be translated from a sworn translator and this document must be among the required documents. It must be registered in the trade registry directorate system.
3- A temporary tax number must be obtained from the Interractive tax office for the foreign person.
4-It is necessary to go to the Ministry of Commerce Mersis website and start the company establishment process by making an online application for the foreign person’s company. Before the online application process, some preliminary preparations related to the establishment of the company should be made.
*The address of the company must be determined. Virtual address can be rented or an office can be rented.
*The shareholders of the company must be determined.
*The title of the company must be determined.
*The company’s field of activity and the appropriate ance codes for this field of activity should be prepared.
*Contact information of the company should be determined.
5-An online application is made from the Mersis address and after this application is approved, it gives you an appointment for about 2 days later.
6-The company’s documents must be prepared on the appointment day. The documents of the company to be established for the foreigner are submitted to the Trade Registry Directorate and the documents are submitted. The documents are delivered to the official of the Trade Registry Directorate and after the necessary checks are made, the company is published in the trade registry newspaper in about 5 hours and the company is established.
Conditions to be considered about the appointment; Before going to the appointment, it is necessary to deposit the necessary fees for the company and not to be late for the appointment time. It is recommended to bring cash with you to pay the fees during the appointment, credit card payments cannot be made.
Important note: If the person who will establish the company does not speak Turkish, a sworn translator must be present at the Trade Registry Office together with the foreigner. Normal unofficial interpreter is not accepted.
7-Now the company has been established but we still need a few steps for the company.
*Signature circular for the representative of the company, giving power of attorney to Baltasglobal for the accounting of your company.
*Opening of the company’s commercial bank account
*Starting tax registration by applying to the tax office and obtaining the necessary online transaction passwords.
*Making the tax inspection by being ready for the tax officers at the company address.
What do we do for you?
-What We establish your company in Turkey for you and provide services regarding your company’s tax opening, accounting transactions and operation. You will carry out all your transactions from a single point, working with reliable lawyers who are experts in their fields.
For more detailed information about company establishment, please click here.
