One of the most important steps in launching a business in Turkey is preparing the papers needed to register with the Trade Registrar. Because they must include all of the information about the shareholders, including their names, addresses, contributions to the company's share capital, and the number of shares they own in the firm, the Articles of Association are the most crucial documents to write and notarize. The company's management must also be listed in the Articles of Association, including their names, how they are nominated and dismissed, and their roles and liabilities.
The trade name of the Turkish firm, its address in this country, and a description of the activity must all be appropriately provided in the same document. Other portions of the Articles of Association may cover changes that can be made to the company and dispute resolution procedures if there are any disagreements among the shareholders. The Articles of Association must be drafted in accordance with the norms of the Commercial Code.
When starting a sole proprietorship, it's important to remember that a brief application form must be completed with the Trade Register. The partnership deed is important to the creation of partnerships, often known as commandite enterprises in Turkey.
Turkish Corporation Shareholders
The company's founders, or, to put it another way, its owners, are the shareholders. They can be persons or corporations, and they have a wide range of rights and obligations inside the company. A Turkish company must have at least one stakeholder in both private and public companies. These can be Turkish citizens or residents, although foreigners can also act as sole shareholders when founding a company in Turkey.
One of the key responsibilities of shareholders is to contribute to the company's share capital. Depending on their efforts, they will be given more or fewer rights in the company. The most significant advantage for shareholders is that their liability for the company's debts and other obligations is limited to the amount of money they invested. In the case of partnerships, the position of shareholder is filled by the partners or members.
Turkish Business Administration
A Turkish company's managers hold one of the most important roles in the corporation. In the case of a private business, at least one corporate director must be nominated by the shareholders. A board of directors must oversee the operation of a public firm in Turkey. A minimum of one auditor must be assigned to the same organisation type. In the case of private firms, the auditor will be an unbiased third party who will only be consulted when the company's financial documents require auditing. It's worth noting that, regardless of the corporate structure, at least one shareholder must be a director. If a natural person is chosen as a corporate representative, another corporation can fill the managerial position.
You'll need a trade name and a legal address to start a business in Turkey.
The first step in registering your company in Turkey is to choose an acceptable trade name. The name should be unique and not offensive. To make the company name stand out, the applicant can submit three names for approval, from which he or she will choose the most appropriate one based on the demands of the firm. Branch offices must have the same name as the parent company, which investors should be aware of. Another need for a company to be classified as a Turkish resident business is that it have a local address. The registration address of the business must be in the city where it will be functioning.
After you have found your passion and made decisions to create a start-up, the next chapter is legality. Dealing with all these permits and legal procedures might be overwhelming and impossible, but we are here to offer you guidance and services that will make your workload lighter. If you have any questions, we are here to assist you. Legal processes could be confusing, but you are not alone. Contact us and learn more about the start-up permits on istanbul.com
Frequently Asked Question
How easy is it to hire workers in Turkey?
-If a newly founded company in Turkey wants to engage international workers, the procedure may only be completed if the foreign workers have been given a work permit by Turkish authorities. Work permits for foreign employees can be obtained via the Turkish Ministry of Labour or Turkish embassies or consulates in the foreign worker's home country.
In Turkey, how much does it cost to establish a business?
-The cost of founding a company in Turkey is modest, but the cost of company registration, notary fees, and the commission of the Turkish law firm handling the transaction must all be included in (if one is appointed).
How long does it take to establish a business in Turkey?
-Forming a company in Turkey takes around three weeks. The procedure takes longer in the case of a branch office.
What are the most essential considerations for overseas investors?
-International investors are particularly interested in three key special investment zones:
The free zones (20 zones designed specifically to increase the number of export investments, with 100 percent customs duty exemption, corporate income tax for manufacturing enterprises, VAT, income tax on personnel salaries for companies that export at least 85 percent of goods produced here, and the ability to deposit goods for free and transfer profits abroad and to Turkey);
Organised industrial zones (276 zones with low natural gas, water, and communications rates, no municipal tax on buildings or solid waste - the latter, if the zone does not get municipal services, no VAT on land acquisition, and a five-year real estate duty exemption);
Technology development zones (50 zones with significant tax deductions on software development revenue, VAT on software application sales, and pay of R&D professionals - but not more than 10% of total employees - until 2024);
Only 34 technical development zones are now functioning, with the others still being built. You should also know that hair transplantation is a booming business in Turkey. Because there are so many clients who desire medical aesthetic treatments, this business is quite competitive and interesting to investors.
Is a work visa sufficient to live in Turkey?
As long as a work permit is valid, it is considered a residency permit. The work permit and the residential permit have the same expiration date. Foreigners with a work permit can stay in Turkey and continue their businesses until their permission expires.