Company Formation in Turkey overview by 2019 | AbroadBiz

Company Formation in Turkey 2019

Find an overview of general regulation of company formation in Turkey

The Limited liability company in Turkey is known as Limited Şirketi (Ltd. Şti.) which is similar to the GmbH company type in Germany. The name of the company incorporated in Turkey should be derived from the primary business categories and it can be in any language as required. The name of the company should be acceptable in the Turkish language and it should not be contradict to other company names already in the Turkish market. The company should not be negative in any perspective causing damage to national, cultural and historical aspects of the country. Before choosing the company name that needs to be incorporated in Turkey, the company name has to be searched and ensure that it is suitable for presenting in approval. The name approval can be availed within a few hours of submission. If any name is found to be appropriate then the name can be reserved for 10 days without any additional charges.

HauzBiz will assist you with the name searching to step by step company registration process.

The online company details form has all the required company information that we need. The certified and notarized copy of the Article of Association certificate of the company will be done by us. The process of submitting the incorporation documents to the trade registry office (Türkiye Ticaret Sicili) will also be done by us. The set of documents will include:

  • Certificate of Articles of Association (AoA)
  • Payment receipt received from the bank for the deposit of a capital amount
  • Company officers passport copy notarized and signature declarations
  • Notarized copy of the identified company officers
  • Contract of the rental office address
  • Details of the tax office registration

We, at HauzBiz, shall fulfill the entire process of registering the company at all the ministries and government departments. However, the business operations can be started full-fledged after getting the required approval as well as registration from the Trade and Tax office.

Every company is given a registration number after it is incorporated which is unique and essential for the business processes. The standard time line for the incorporation of the company is 10 days.

We have strong knowledge and experience of more than a decade in enabling foreign clients or investor to set up their companies in Turkey. We have an experienced team of executives who can provide complete step-by-step support of entire process, right from choosing the name of the company and commencing the tax procedures.


Overview

Company Type

Limited Company (LTD.)

Company Name

At the time of choosing the Turkish Limited Company name, ensure that it is unique and un-identical with other companies in the market. There are certain words, letters, and names allowed in the Turkish Company names. The company should end with either ‘Limited’ or ‘Ltd’.

Company Secretary

In order to incorporate a company in Turkey, the appointment of the company secretary is not required.

Registered Address

As per the standard company registration process, it is important that the company incorporated in Turkey should have registered address locally where the legal and official communication can be sent. AbroadBiz offers the service as part of its complete company incorporate package.

Directors

In order to incorporate company successfully in Turkey, it is important to have at least one director, and there is no restriction over the nationality or residency of the company director.

Shareholders

Successful company registration requires at least one shareholder without any restriction on the nationality or residency. The shareholder can be either an individual or an entity of any country. In case the shareholder is an individual then a notarized copy of valid passport is required. If the shareholders are a corporate entity then the certificate of company is required along with the certificate of good standing and the director’s signature.

Share Capital

As per the standard company registration policy, it is mandatory to have at least 10,000 Turkish Lira (TL) or €1,850 at the time of incorporation. The share value of every individual should not be less than 25 TL (i.e. approx. €4.5). After the incorporation of the company minimum, 25% of the shares capital of the company should be paid in cash and the remaining capital can be provided within 2 years. The maximum number of shares of Limited company incorporated in Turkey should be 400 shares and the minimum value of shares should be at least 10,000 Turkish Lira.

Filing Requirements

The books of accounts of the company incorporated in Turkey should be maintained in the local language (Turkish) and the figures mentioned should be written in Turkish Lira. Companies which are not listed, need not submit the annual financial statements or audit the accounts, however, all the companies incorporated in Turkey will have to file an annual return and make the timely payment of government license to stay registered.

Timescale

The maximum time taken for incorporating a company in Turkey is only 10 working days. However, the shareholders will have to be present for at least 5 working days.

Proof of Identity

In order to seamlessly register the company, it is mandatory to submit the valid ID and address proof of the company directors and shareholders. The valid ID considered for the registration is a passport copy.

Taxation

As per the latest tax structure announced in 1 January 2018 the standard rate of tax applicable will be 22%.

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