How to set up business in Turkey

How to set up business in Turkey

How to Set up a business in Turkey

Setting up a business in Turkey is an intense process. It combines the excitement of a new project with the expectation of financial gain. It also entails a number of bureaucratic requirements. However, despite the bureaucratic requirements, business opportunities in Turkey are significant. To help you through this process, this article provides you with information on the main steps involved in establishing a company in Turkey.

Limited Liability Company is the most common form for business in Turkey

A Limited Liability Company (LLC) is a business structure registered in Turkey. It is a legal entity that can be registered by a natural person or a legal entity. The business entity can be either private or public and can be formed in a variety of ways. In Turkey, a Limited Liability Company (LLC) can be registered by a natural person, a legal entity, or a non-resident.

A Limited Liability Company is similar to a sole proprietorship and is a good option for small to medium-sized businesses. A LLC can have a registered capital of up to $100,000 USD and can have one to 50 owners. The share capital must be at least 10,000 Turkish lira. The founders of a Limited Liability Company are responsible for only their share of company debts. Transfer of shares is prohibited unless there is a majority vote at a general meeting of the company.

Upon registering an LLC, the founders will need to fill out several documents. The registration process will take several weeks. The company will have to register with the relevant social security and tax offices. Once its business has been registered, it will be reported in the Turkish Commercial Registry Gazette.

A limited liability company is preferred by many overseas investors due to its simplicity of setup. This type of company in Turkey is suitable for small to medium-sized companies. A limited liability company must have a board of directors and an executive committee. Lawyers in Turkey can guide you through the registration process and taxation system.

Turkey’s New Commercial Code requires all companies to have a permanent address in the state they are operating in. This address can be either a rented or an owned office. However, certain types of business activities can be conducted from a home office. The registration process is also easier and more convenient when you can use a single-window system.

A Limited Liability Company can be established in Turkey by two partners. Both partners must be natural persons. The partners can manage the company individually or delegate management tasks through the articles of association or the majority of partners. The partners of a Limited Liability Company are liable to third-party creditors to the extent of their second-degree insolvency. This business structure is regulated under Article 124 of the Turkish Commercial Code. Once the company is registered with the trade registry, it gains legal personality.

Articles of Association should be drafted in accordance with the Commercial Code

When setting up a company for business in Turkey, articles of association must be legally drafted and follow the rules of the Turkish Commercial Code. These documents are required for incorporation of all types of companies, including joint stock companies and private limited liability companies. They should include all the main details of the founders and the legal status of the company.

The Turkish Commercial Code grants certain rights to shareholders. Shareholders who represent at least one tenth or twenty percent of the issued or paid capital of the company are entitled to vote. The company must hold regular and extraordinary general meetings of its shareholders. These meetings must be held in accordance with the Commercial Code and must be attended by a representative of the Ministry of Trade.

Foreign investors may choose to establish a new company, participate in a joint venture, or buy a part of an existing company. While Turkey does have restrictions regarding foreign investment, the country’s business climate and liberal business regulations make it an excellent location for foreign investors to set up business in Turkey. The most common type of business structure in Turkey is a limited liability company, but foreigners can also set up a joint stock corporation or a communal or commandite business. For those who want to conduct their business on their own, they can set up a sole proprietorship.

The Articles of Association of a company should be drafted in accordance with the Turkish Commercial Code to avoid any legal complications in the future. The commercial code specifies that meeting quorums must be higher for major decisions. The managing body of an LLC is composed of a director who represents the interests of the company to third parties. The director can be a Turkish citizen or a foreigner who has a valid work permit in Turkey. Directors can be dismissed by resolution of the general assembly.

Turkish laws also require that shareholders be real or legal individuals. The capital of a Turkish LLC can be paid within two years. Unlike LLCs in the US, shareholders can be non-residents. Previously, it was mandatory for two shareholders to form an LLC, but the new commercial code makes it possible for a single shareholder LLC. The name of the shareholder should be registered with the trade registry office, and details such as citizenship must be reported.

Registration with the Trade Registry System (MERSIS)

MERSIS is a system that facilitates registration and trade. It is part of the Ministry of Customs and Trade and is accessible through a username-password. MERSIS can be accessed online for free. To begin the process, you need to create an account on the website.

To create an account, you need to provide some basic details about your company. Once you’ve submitted your basic information, MERSIS will prompt you to fill out the legally required elements of your company’s Article of Association. The system will also automatically assign your company a tax number. Once the Article of Association is approved, the founders must sign it. Authorized representatives must also submit their signatures. This process is done at a trade registry office in Turkey.

MERSIS is intended to speed up the registration process for companies. However, there have been some problems with the migration process. The most common issue has been with consolidated articles of association. MERSIS often ignores bespoke provisions and reduces them to a template, so companies should check these carefully before registering with the trade registry.

MERSIS is different from the traditional paper registration system. If you are registering a company, you need to create a MERSIS account. Once you do, you’ll be provided with a Mersis number. This number is similar to a tax number, but it is specific to the business. It is used in registration processes for corporations, sole proprietorships, associations, foundations, and more.

Registration with MERSIS takes just a few minutes to complete. Once you’ve completed the necessary documents, the Trade Registry Office will notify the Social Security Institution and tax office. If you are establishing a new company, you must also register with the chamber of commerce and industry where you are located. MERSIS is mandatory for all newly-established limited liability companies.

If you are a Turkish citizen, your T.R. ID number will suffice for MERSIS identification. However, if you are a foreign investor, you must obtain a tax number from the tax office before you register with the trade registry system. In addition, you need to obtain a trade registry directorate’s registration to register your company. MERSIS will determine the potential tax number for your business.

Time frame for establishing a company in Turkey

Establishing a company in Turkey requires the preparation of documents. The “Company Agreement” is one of the main documents to be completed. It must state information on shareholders, managers, and their duties and powers. This document must be notarized and translated if necessary.

During this process, you need to register with the Trade Registry. The next step is to fill out a simple application form. This is necessary to form a limited liability company or a partnership. Turkey offers many incentives to foreign investors, including double tax agreements and Free Trade Agreements with other countries. Some of these agreements allow foreign companies to trade freely without paying customs duties.

The name of your company is important because it carries great significance in commercial activities. As a business, you want to make a good first impression. A solid identity and infrastructure will give you an edge over your competition. You should choose the right name for your company, which is reflected in your corporate message. The Turkish Commercial Code provides incentives for joint-stock companies.

The minimum time frame for establishing a company in Turkey is 10 working days. Turkey has 21 free trade zones, which make the process easier for foreign companies. Moreover, shareholders and directors can be of any nationality and residence. To register a company in Turkey, you need to provide a full name and address and information about the nature of the business. You also need a local address where you will operate. If you plan to hire a local worker, you will have to submit a copy of the employment contract.

After deciding on your business structure, you will need to prepare all the necessary documents and apply for the appropriate licenses. You will also need to deposit a legal minimum share capital and designate a board of directors. Once you have all these documents completed, you must file them with the Commercial Register.

A foreign investor can register a limited liability company in Turkey after obtaining the necessary work visa. A limited liability company requires a capital of at least 10,000 Turkish lira and a joint stock company requires a capital of at least 50.000 TL. You should also obtain tax and VAT numbers and register with the tax office for social security purposes.

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