GUIDE TO COMPANY REGISTRATION IN TURKEY
What is a Limited Liability Company in Turkish Law?
Limited Liability Companies (LLC) allows business owners to limit their liability to the amount of capital that they invest in their business. In other words, barring certain legal exceptions, only the legal entity of LLC is liable for the debts of the business, and not the business owner individually.
Why Register a Company in Turkey?
Registering an LLC in Turkey offers significant tax advantages. With corporate income tax rates ranging from 20-25%, business owners can enjoy lower taxes compared to the individual income tax ratio of 15-40%. Discover further benefits of company formation in Turkey by following THIS LINK.
How much capital is required to form a company in Turkey?
To open a company in Turkey, the law mandates a minimum capital of 50,000 TL for an LLC. Shareholders have the flexibility to contribute this amount within 2 years of the company’s formation, easing the initial financial burden.
Minimum Personnel to Start a Business in Turkey
An individual entrepreneur can single-handedly establish an LLC in Turkey, serving as both the sole shareholder and director. This streamlined approach facilitates foreigners and locals to register a business in Turkey efficiently.
Can foreigners incorporate in Turkey?
Yes, international investors have the opportunity to start a company in Turkey under the same conditions as Turkish citizens, except in certain sectors related to national security.
Finalizing Your Company’s Incorporation in Turkey
Once the required documents for company formation are procured, before the incorporation, the company must
- Choose a unique title with the help of the attorney,
- Determine its main field of activities with the help of the attorney,
- Determine its share structure, and
- Choose an address as headquarters. This can be done by signing a lease on behalf of the company, which is yet to be incorporated, to become effective upon its incorporation.
Finally, the attorney needs to draft the company’s articles of association (AoA), providing details of the company charter including but not limited to its official title, address, share structure, the field of activities, its representatives, and the powers thereof. The attorney, based on the PoA, can sign this AoA on behalf of the shareholder(s) and the director(s) and finally incorporate the company.
After the incorporation, the director(s) of the company needs to:
- Obtain the company’s tax certificate from the tax office
- Present the incorporation documents to a Turkish notary and obtain a signatory circular for the company director(s)
- Open a bank account in a Turkish bank
- Hire a Certified Public Accountant (CPA)
Antalya Lawyer Baris Erkan Celebi and his Antalya Law Firm offer legal support for company formation in Turkey. These services include but are not limited to limited liability company incorporation in Turkey, joint-stock company incorporation in Turkey and legal support in management, obtaining necessary permits for the company’s relevant fields of operations, applying for and benefiting state incentives that are offered to foreign investors in Turkey.