Regulation on Turkish Business
Key points of Incorporating in Turkey
- Timescale – The time taken for incorporating the company will be 10 days
- Company’s Directors – the minimum requirement of the director is only one and he can be of any nationality
- Company’s Shareholders – The limited liability companies in Turkey need to have only one shareholder as per the Turkish Commercial Code
- Company’s share Capital – The minimum share capital requirement is only 1,850 Euro or 10,000 TL
- Guidance – With our extended support we assist you in each and every step during incorporation of your Turkish Business in Turkey
- Travel – It is mandatory for the director of the company to visit Turkey for a minimum period of five days to sign the company’s documents
- There are nearly twenty-one unrestricted trade zones in Turkey which offers an inviting business provision with the help of tax exemptions
- The company’s directors or shareholders can be from any nationality and there is no restriction on that.
The following are required to commence incorporation of your Turkish Business
- The name of your company
- Each and every director’s full name, DOB date of birth, nationality, and address for communication
- Every shareholder’s address and full name.
- The main aim of the company, pointing out the primary action
- The total capital amount and the number of shares authorized to each and every shareholder
Mandatory documents to be provided
- Identity proof such as a copy of your passport, national identity card and driving license with photo affixed.
- Residential address proof like as gas bill/ electricity bill, or any other proof like credit/debit card bank statement for a period of last three months.
- In case of the directors or shareholders or even the corporations, they have to submit a Certificate of Good Standing for the company and it should be arranged by the appropriate specialist in the depositor’s country. The contents of the certificate should be about the present ongoing position of the concern and the signature of its directors’
Registered Office of the LLC Company
According to the Turkish law, it is mandatory to have a registered office in Turkey where the legal documents of the company are exchanged. This address of the office should have been registered on the date of registration of the company or even before the same. The certification for the authorized books of accounts are given by a Public Notary and also a number for the tax registration will be issued.
The company should submit the contract of rent which is certified by the Public Notary to the associated tax office and also the Circular of Signatory.
In our Standard Company Formation, you will be entitled with a suitable office space
Requirement of Share Capital
A Turkish company can be incorporated purely only with the foreign capital. The least capital amount of the company should be 10,000TL which is equal to 1,850. By default, each value of the share amount should be 25TL and it should be in multiplies of 25 shares.
The payment for the incorporation can be done in parts like ¼ of the amount should be paid fully during incorporation and the remaining should be paid up within 2 upcoming years.
Recording of Incorporation notice for your Turkish business at the Trade Registry Office
The following will be submitted to the Trade Registry Office by the Formacompany like incorporation notice form, chamber registration statement inclusive of a letter of commitment. For each and every non-resident shareholder of a Turkey company, their copy of a passport has to be notarized by a Turkish notary officer.
- Formation notification form of three copies
- Articles of Association which is notarized by the Notary- three copies
- From the Competition Authority Account, they should submit the bank deposit receipt which is 0.04% of the company’s capital
- The authorized company members should sign an undertaking (taahhütname)
- Two copies of the signature of the each and every person who is acknowledged to substitute the owners of the Limited Liability Company
The notification for the Tax Office and District Employment Office with regards to the formation of a new company will be done by the Commercial Registry Office. Within the time span of ten days from the date of registration a declaration is to be done in the Commercial Registration Gazette which is arranged by the Registry.
The main work of the accountant will be applying for the tax identification plaque from the local tax office and also from the Social Security Administration office they should receive an appropriate security number.
Managing Directors of a Turkish Business
Nevertheless, of your citizenship and nationality, you can incorporate your Turkish company. It is not mandatory for the Turkish company to have the directors or managers of the same nationality, they can be foreigners also. The law for the local Turkish companies and foreign investment-based companies are equal, there are no discriminations.
Shareholder of limited company
A minimum of one shareholder is enough to incorporate a Turkish company and he can be of any nationality.
Legal books that should be certified by the Notary are
The following commercial books has to be certified:
- Journal book
- Ledger book
- Book for Inventory
- Record for General meeting
- Book of the share of the company
The authorized books of the company should be certified by the owners on the day of incorporation of the company. The commercial book certification will be reported by the notary public to the Tax Office about the certification.
It is not mandatory to have an AGM for the Turkish company. The main aim of these meetings will be to review the administration of the board of the directors if they are not the same and to support them to take major decisions of the company. To have a review on the matters of the company’s accounts and associated matters almost all the companies have this Annual General Meetings AGM’s. When there is an emergency the directors can call for an EGM that is Extraordinary General Meetings (EGM’s) at any time of the year. Eventually, at all times the entire control lies with the shareholders, except in few cases they are same as the directors, the main aim of the board of directors are the day to day executive decisions.
Financial prerequisite and Annual Audit
Each and every Irish company, irrespective of its position i.e. trading or not, they are indebted to file an annual return every year with the particulars of the directors and the shareholders at the Companies Registration Office. It is mandatory for all the companies to have an auditor, and each year the accounts should be filed with the Companies Registration Office.in case of the Small companies they should provide abbreviated accounts, which does not need to take in the turnover level. After the incorporation of the company after 6 months the company becomes due for filing the first annual return with the Companies Registration Office. Financial records essentially be appropriated to the next and succeeding annual returns.