Company Establishment in Turkey
According to the Turkish Commercial Code, companies that can be established in Turkey are as follows;
> Joint Stock Company
> Limited Liability Company
> General Partnership
> Limited Partnership
> Cooperative
The establishment, basic features and functioning of these companies are regulated in the Turkish Commercial Code No. 6102.
Joint Stock Company and Limited Liability Company are the most common types of companies in Turkey.
Approximately 82% of all companies are Limited Liability companies, 13% are Joint Stock companies and 4% are Cooperatives.
The total of the Collective and Limited Partnership companies is around 1%.
> JOINT STOCK COMPANY <
A Joint Stock company is a company whose capital is definite and divided into shares, and which is liable for its debts only with its assets.
Joint Stock Companies can be established for any purpose and subject not prohibited by law.
The minimum capital amount to establish a Joint Stock Company is 50,000 Turkish Liras.
Joint stock companies are the only type of companies whose shares can go public and whose shares can be traded on the stock exchange.
The joint stock company has a written and registered Articles of Association (AOA) in the Trade Registry where its head office is located.
A single shareholder joint stock company can be established. Real and legal persons can be shareholders.
The Joint Stock Company has 2 organs, the "General Board" and the "Board of Directors".
The General Assembly is the body that is exclusively authorized to take some important decisions about the company (eg, changing the articles of association, election of the board of directors, election of the auditor, dissolution of the company, etc.) where all the shareholders are represented.
The Board of Directors is basically the body responsible for the management and representation of the company. It is possible for the board of directors to consist of only one member. There is no requirement for the members of the board of directors to be Turkish citizens or to be resident in Turkey.
> LIMITED LIABILITY COMPANY <
A limited liability company is a company whose capital is fixed and divided into shares, and which is liable for its debts only with its assets.
The partners are not responsible for the debts of the company, they are only obliged to pay the capital shares they have committed and to fulfill the ancillary performance obligations stipulated in the articles of association. The partners are responsible for the public debts that cannot be collected from the company, in proportion to their capital shares.
The minimum capital of the limited liability company is at least 10.000 Turkish Liras. It is possible to pay the entire capital brought in cash within 24 months after the registration of the company. The payment schedule can be regulated in the articles of association or determined by the managers.
Limited companies cannot go public.
The limited company has a written Articles of Association registered in the trade registry where its headquarters is located.
A limited liability company can be established with a single partner. The number of partners cannot exceed 50. Limited Company partners can be natural or legal persons.
TheLimited Liability Company has 2 organs, the "General Board" and the "Board of Managers".
As a rule, the General Board is the body that is exclusively authorized to take some important decisions about the company (eg, changing the company contract, electing the directors, electing the auditor, dissolution of the company, etc.) in which all the shareholders are represented as a rule.
Board of Managers is basically, the body responsible for the management and representation of the company. It is possible for the company to have only one manager. At least one of the managers must be a partner of the company. There is no requirement for the directors to be Turkish citizens or to be resident in Turkey.
Company Establishment Procedures
It is possible to complete company establishment procedures in Turkey within even one hour if the necessary documents are submitted to the relevant Registry of Commerce.
Company establishment in Turkey is exempt from fees.
The establishment of a company in Turkey by foreign real and legal persons is subject to the same rules as domestic investors.
Trade registry is kept by 238 trade registry directorates operating within the scope of chambers of commerce, under the supervision and control of the Ministry of Commerce.
Deficiencies or mistakes in the establishment of the company can lead to disappointing results in the future of your business.
Vide Law & Consultancy, ensures that your company establishment procedures are completed in a legal manner.
Vide Law&Consultancy
Att. Sude Koyluoglu