Information on Forms of Companies
There are two main forms of companies according to Turkish Law.
Joint Stock Company : The company’s stock capital is divided into shares and the liability of the share holders is restricted with the capital subscribed by the shareholder. Sole shareholder (real person or legal entity) is possible and minimum capital of 50.000 TL is mandatory.
According to the current Turkish Trade Law, banks, private finance institutions, insurance companies, financial leasing companies, factoring companies, holding companies, companies operating as foreign currency exchange offices, companies dealing with public warehousing, publicly held companies subject to the Capital Markets Law, companies that are founders and operators of free zones should be established as Joint Stock Associations and these companies are still subject to permit from Ministry of Industry and Trade for their foundations.
Limited Company: It is the company established with participation of minimum 1 and maximum 50 real person or legal entities. The liability of the shareholders is restricted only to the capital subscribed by the shareholder however representatives and shareholders could be held liable personally concerning uncollected public debts (e.g. social security premiums, taxes and etc.) of the company. Minimum capital of 10,000 TL is mandatory. Unlike Joint stock companies no stock certificate is issued.
In both types of companies the shareholders could be real persons or legal entities where majority or even all shareholders could be foreigners.
The incorporation process is briefly as below;
1. Drafting the Articles of Association according to specific needs of the shareholders,
2. Notarisation of the Articles of Association
3.1/4 of the capital in cash has to be transferred prior to registration,
4. Application to the Trade Registry Office, Registry and Announcement
5. Notarization of the Signature Circular of the Company:
6. Application to the Tax Office
Please note that a permanent seat (Address) for the company is obligatory for the establishment of the company and we are able to provide a “virtual office” or "flexible" office solutions for the Company upon your request.
Please also note that, accounting is obligatory once the company is incorporated even if the company is not active and we are able to provide you accounting solutions.
Please contact us for details including estimated timeline and costs together with list of needed documents for incorporation of a company in Turkey.