Company Registration in Turkey
Company Establishment in Turkey
Establishing a company in Turkey can be a strategic move for many businesses due to its dynamic economy and strategic location. This guide will walk you through the key steps and considerations for successful company establishment in Turkey.
Main Legal Instruments Applicable
The Turkish Commercial Code (Numbered 6102) is the primary legislation governing company establishment in Turkey. Depending on the type of company, the Turkish Code of Obligations (Numbered 6098) and the Turkish Civil Code (Numbered 4721) also apply under Article 126 of the Turkish Commercial Code. These legal frameworks ensure that all aspects of company formation are regulated comprehensively.
Legal Personality of Companies
Under Article 125 of the Turkish Commercial Code, commercial companies in Turkey have a legal personality. This means a company acquires its legal personality upon registration with the Trade Registry, making it a separate legal entity. Consequently, all commercial companies can benefit from all rights and undertake obligations within the framework of Article 48 of the Turkish Civil Code. However, those who conduct transactions on behalf of the company before registration may be held personally responsible for those actions.
Can Foreigners Open a Company in Turkey?
Yes, foreigners can establish companies in Turkey. The Foreign Direct Investment Law (Numbered 4875), enacted in 2013, grants foreign investors the same rights as Turkish citizens. This legislation ensures that foreign investors are subject to equal treatment with domestic investors. The principles and standards in the Turkish Commercial Code facilitate the establishment of foreign-led companies in Turkey.
Types of Companies to Incorporate in Turkey
There are five main types of companies that can be established in Turkey according to Articles 42 and 43 of the Turkish Commercial Code:
1. Collective Company
2. Commandite Company
3. Cooperative Company
4. Limited Company
5. Joint Stock Company
Each type has its own set of regulations and requirements, allowing investors to choose the one that best suits their business needs.
How to Register a Company in Turkey
Registering a company in Turkey involves several key steps. Importantly, the incorporation procedures can be carried out electronically through the Central Registry System (MERSİS). The ease of the company formation process is a significant factor in attracting foreign investments to Turkey. The Turkish Commercial Law allows for the establishment of single-shareholder joint stock companies or single-member limited liability companies, further simplifying the process.
Our expert lawyers are ready to assist you in every step of the company registration process in Turkey.
Steps to Establish a Company in Turkey
To establish a company in Turkey, investors must complete several critical actions. Proper preparation, performance, and submission of the necessary paperwork are crucial. The common requirements for company establishment in Turkey include:
· Preparation and signing of the company contract by founders.
· Preparation and approval of the signature declarations of company officials.
· Payment of Competition Authority share and cash capital.
· Submission of relevant documents and completion of the company registration by the Trade Registry.
Taxation Liabilities for Companies in Turkey
In general, companies in Turkey are subject to a standard corporate income tax rate of 20%. However, finance-centric companies, including banks, are subject to a higher rate of 25%. It is important for new companies to understand their taxation obligations to ensure compliance with Turkish tax laws.
Conclusion
Establishing a company in Turkey offers numerous opportunities for investors due to the country's strategic location and dynamic economy. By understanding the legal framework and following the required steps, you can successfully establish your business in Turkey. With the help of expert legal counsel, navigating the company registration process becomes straightforward and efficient. Whether you are considering company registration in Turkey, company formation in Turkey, or company establishment in Turkey, this guide provides a comprehensive overview to help you get started.
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