Establishing a company in the Turkish state allows the investor especially the foreign investor to benefit from the facilities and big advantages granted by the Turkish government to the company owners especially the new ones, Turkish government has put many laws regarding companies in the interest of investors and brings them many benefits.
What are the Types of Companies in Turkey?
- Partnership Company::
These companies is established to run a commercial project with a certain commercial name, the liability of all the shareholders in this company is limited, and without having a minimum capital in order to establish it, also, all the shareholders in this company should be real individuals, and through the main system, shareholders rights and obligations are determined in this company. - Joint-stock company::
The capital in this type of company is divided into shares that are distributed to shareholders or partners, the liability in this company is specific to the shareholders according to the proportion of their shares from the capital which they are considered a contributor partner, in addition to that the founder partners should be 5 with a capital no less than 50 thousand Turkish liras, a quarter of this capital should be paid before the registry of the company, however, in this type of shareholder company, any commercial or industrial activity that is permitted by Turkish law can be carried out, except for some activities and businesses that need permissions exclusively from the Ministry of Industry and Trade, and these companies consist of a supervisory board and a board of directors. - Companies with unlimited Liabilities::
Mostly, permissions topic is difficult in this type of companies, due to the difference of administrative reference that issues permissions and the difference in its conditions, like private banks and financial establishments, financial rental companies, insurance companies, debt collection companies, foreign exchange companies, holding companies, companies dealing with warehouse storage. - Companies with limited Liabilities::
This type of companies is considered a typical type for private companies for small and medium entrepreneurs consisting of:
1. One partner at minimum and 50 partners at most.
2. Fees of establishing this type of companies in Turkey is considered acceptable, as the minimum capital for this company is 10 thousand Turkish liras, or if there are two partners in the company then the minimum capital should be 12500 Turkish liras.
3. Companies with limited liability are not allowed to work in insurance, banking, and currency exchange.
4. This type of companies is managed by two bodies, they are the board of directors and directors.
5. Owners of this company cannot sell shares or offer it in IPO.
6. Partners is considered the guarantee for taxes and public debts that is imposed on the company.
7. The liability of companies is limited according to the proportion of their share of the capital contributed to it.
8. Most investors who are interested in investment in Turkey and owners of small and medium businesses prefer establishing this type of companies.
Procedures Required to Establish a Company in Turkey::
There is no need to having more than one entity in order to establish a limited liability company or more than one person in Turkey, and these companies can be managed by Foreigners in Turkey foreigners in Turkey and that is through extracting a work permit, also their shares in the company can be 100%.
And when establishing a new company, a lawyer should be hired to oversee the establishment process and they should be fluent in the language of the foreign company owner, also, a trusted legal accountant shall be hired to oversee all the financial matters and should be certified by the Turkish government to represent the company, it is also interesting to note that the establishment of the company does not require much time and effort, as it can be established within one week only.
Required Documents to Establish a Company in Turkey::
- Three biometric images.
- A photocopy of the Passport translated to Turkish and certified by the notary.
- Validity of the passport should not be less than six months in addition to the entrance stamp to Turkey.
- Extracting a Tax number that can be extracted from any tax department in Turkey.
What are the Necessary Steps to Establish a Company in Turkey?
- In order to establish a company in Turkey, the main company system should be prepared and certified by the notary and the company address should be attached.
- 2% to 5% of the capital should be deposited in the bank, and the capital should be larger than amount stated in the Turkish law in order to benefit from other permissions that companies with large capital can benefit from therefore, we advise a capital no less than 100 thousand Turkish liras.
- Providing the original main system of the company in addition to two certified copies and should be given to the Commercial Registry Office within 15 days from the date of certification by the Notary Public.
- Regarding limited liability companies they should be compatible with the term 279 from the Turkish commerce law.
How to Extract Health Insurance and Work Permit for Turkish Companies Employees?
After completing all the processes and steps to establish a company legally, the Commerce Registry Office will inform the Social Security Ministry and establish the new company, then all the workers and employees in that company including directors and executives will be registered in the Social Security Ministry, and the company should pay the insurance fees to its employees regularly, and the company accountant should prepare all the legal documents regarding employees and directors and pay the whole amount of the insurance fees, in the event that the insurance is not paid, all previous due amounts must be paid from the first day of the company’s incorporation (the date of registry) the company is also required to pay additional fines for late payment of the monthly insurance value.
