Last Updated on 20/04/2023
Turkey’s strong economic performance and structural reforms during the last 2 decades have drawn numerous international investors’ attention. Despite the consequences of Covid-19 in the previous 2 years, Turkey became the 9th most popular FDI destination in overall Europe in 2020 with over 160 projects. Besides, it increased its share in Europe from 3% in 2019 to 3.1 %in 2020.
Moreover, Turkey succeeds in attracting around 225 Billion USD of Foreign Direct Investment between 2003 and 2020. These investments were mostly in the Sector of finance with 33%, manufacturing with 24%, and the energy sector constituting 11% of the FDI in the same period.
Turkey has been appealing to many international investors from different parts of the world. Netherland, USA, UK, and Gulf countries were the top 4 origins of Foreign investments in Turkey between 2003 and 2020.
Facing these encouraging statistics, we highly recommend Foreign investors willing to open a company in Turkey be aware of the whole procedure and get advisory from trustworthy consultancy companies before taking any step.
Types of Company in Turkey
Interested investors who wonder how to open a company in Turkey should in a first place be aware of the different company types in Turkey. Thus, they can decide the most appropriate one for their business. The Turkish Commercial Code divides the Companies into 6 categories.
– Joint Stock Company
This type of company is established for economic aims, including any legal business allowed by Turkish law. It has a fixed capital divided into shares, only liable for debts incurred through its property holdings. Besides, shareholders are only responsible to the corporation for the capital shares they have pledged. This corporation can be formed with a single share and natural persons as shareholders.
The minimum capital amount to establish a JSC is 50,000 TL. Investors willing to open a company in Turkey should also know that the beginning capital of non-public joint-stock firms that accept the registered capital system must be at least 100,000 Turkish Liras.
– Limited Company
A limited corporation has a fixed capital divided into shares, only accountable for debts with its property assets. One shareholder can form a limited corporation. Yet, the total number of shareholders must not exceed 50, and they must be natural legal persons. They are only required to pay the capital shares they have committed.
To open a limited company in Turkey you should provide a written contract registered with the local trade registry. Besides, Its capital must be at least 10,000 TL. It has to be paid in cash within 24 months of the company’s registration. The payment schedule might be specified in the contracts or decided by the company’s directors.
– Collective Company
Collective companies can be formed by two partners who must be real people. Both of them have the right and the authority to manage the business independently. Shareholders must transfer the management business to one or more additional partners by corporate agreement. These partners have unrestricted second-degree liability to the company’s creditors.
– Limited Partnership Company
Limited partnership companies include two categories; an ordinary limited partnership ( private ) and a limited partnership ( Capital company).
It can be founded by at least two people. One of them is the active partner with unlimited liability, and he must be a natural person. However, the other one is the statistic partner with restricted liability, and he might be either a physical person or legal entity. İts obligations are limited to the capital he invested, and he cannot control the company.
– Cooperatives
This is a commerce firm formed by at least seven partners. Each one of them receives at least one and up to 5,000 shares. The partnership share is worth 100 TL. The cooperative general assembly is open to all partners except those who became partners before less than three months.
Opening a Company in Turkey for Foreigners
Any natural or legal persons have the right to establish a company in Turkey. Whether Turkish citizens or foreign nationals residents or not, both males and females can legally open a company in Turkey with the same rights and duties; however, natural persons willing to open a company in Turkey must be between 25 and 55 years old. Yet, shareholders under the age of 29 and creating a company on their own can profit from the tax deduction and many other incentives from the government while setting up their business.
How to Register a Company in Turkey
Regardless of the type of company to form, shareholders must determine many facts before starting the legal procedure. Investors who wonder how to open a company in Turkey must first decide the name of the company and its activities. They also must designate the partners and the managers and allocate them their responsibilities. furthermore, investors must decide the company’s location too. In fact, it must have a registered address. Moreover, the capital and shares and the board of directors should all be determined before proceeding with the formation process.
Furthermore, choosing a lawyer with professional competence in the field during the establishment procedures will provide significant convenience in transaction security and speed up the process. MEO Consultants offers you a complete legal advisory for business establishment.
After these preliminary decisions, the investor can proceed with the company establishment process following these instructions:
- Setting up a corporate bank account and depositing the necessary funds.
- Selecting the company leaders in accordance with Turkish law.
- submitting the establishment’s documents to the Trade Registry Office, as well as the shareholders’ and managers’ identity details;
- Obtaining tax and VAT identification numbers
Online Company Registration in Turkey
If you are curious about how to open a company in Turkey you should know that this procedure is possible online. The Central Registration System (MERSIS) platform, an electronic registration and information system run by the Ministry of Trade, allows online company registration in Turkey. Follow these steps to know how to open a company in Turkey online.
- Register with the MERSIS platform: To access the system, you must register with the MERSIS platform and receive a password. By going to the MERSIS website and going through the registration process, you can accomplish this.
- Choose a business category: Choose whether you wish to register a Limited Liability Company (LLC), a Joint Stock Company (JSC), or a Sole Proprietorship.
- Prepare required paperwork: Depending on the sort of company you are registering, you will need to prepare the required documents for registration. Generally speaking, you will have to present identification, address verification, and other legal documents.
- Application submission: After assembling the necessary paperwork, you can send your application through the MERSIS system.
- Pay the registration fees: You must use a valid credit card or bank account to pay the registration fees using the MERSIS platform.
- Receive Confirmation: After your application has been processed, you will receive confirmation of your business’s registration as well as the appropriate documentation, such as the certificate of company registration and tax identification number.
Establishing a company in Turkey is a procedure that requires several instructions. So to create your business on solid basics, you might need the support of a consultancy company. Meo Consultants offer complete assistance while starting your new business in Turkey. Contact us today: +90 (539) 935 07 56
FAQ
How to get business license turkey?
In order to get a business license in Turkey you should determine your business type and name and register it at the Trade Registry Office.
What is Turkey company registration certificate?
It is a legal document that attests to a company’s registration with the Turkish Trade Registry Office. It is also referred to as the Turkish Commercial Registry Certificate or just as the certificate of company registration.
How to open a limited company in Turkey?
To open a limited company in Turkey you should first know the features of this type of company. It is established for economic aims, including any legal business allowed by Turkish law. It has a fixed capital divided into shares with a minimum capital of 50,000TL.
How much does it cost to open a company in Turkey?
Taking into account the aforementioned conditions and statistics from 2021, the legal costs for forming a business in Turkey range from 1500 to 2000 USD, excluding the service fee.
