Establishing A Company in Turkey

Foreigners who want to establish a company in Turkey have many different advantages. State support to foreign investors comes first among these advantages. However, during the establishment of a company in Turkey by foreigners, many questions such as the legal process, how to start a business company, and which company type to choose must be answered. In this article, we will look for answers to these questions together!

Company Formation in Turkey?

Foreign individuals can establish a company in Turkey, but there are certain laws and rules that they must abide by and follow. At the beginning of these laws for registry a company in Turkey, is the Foreign Direct Investors Law No. 4875. According to this statute, investment is generally complimentary and everyone, domestic or foreign, has equal rights. First of all, it should be noted that after the law numbered 4875, the two most important laws are the Turkish Commercial Code numbered 6102 and the Turkish Code of Obligations numbered 6098. Apart from these, there are also regulations regarding the implementation of Law No 4875. It is mandatory and very important for foreigners to comply with these laws, so foreigners must follow these laws and not miss the innovations.

Which Companies Can Foreign Persons Establish in Turkey?

There are various types of companies in the Turkish Commercial Code No. 6102. Following the principle of equality based on the law numbered 4875, foreign individuals can establish any type of company in Turkey that local persons can establish. In the old system, only foreign persons were allowed to establish joint-stock and limited companies, but with the latest updates, there is no longer any restriction for foreign persons to establish a company. Any type of company in the Turkish Commercial Code and the most appropriate type of ordinary company in the Turkish Code of Obligations can be established. However, each of these established companies is quite different from the other in terms of established processes and features.

Foreign persons can establish the following types of companies:

• Joint-stock company
• Limited company
• Collective company
• Cooperative company
• Limited partnership
• Private person company

What Procedure Should Foreign Persons Follow for Company Establishment?

Foreigners must make preliminary preparations regarding the establishment of the company before the official application procedures are carried out. Among these preparations, the type of company should be determined, the activity should be decided, the main contract should be prepared and physical needs should be met.

The basic procedure to be followed after these operations is as follows:

1. Meeting with the client and then duly preparing the company's articles of association.
2. Entering and sending the minutes and articles of the association through MERSIS.
3. Arrangement of documents and their notarization.
4. The company potentially obtains a tax number.
5. Depositing a specific part of the existing capital into the Competition Authority bank account and documenting it.
6. Application to the Trade Registry Office for company registration in Turkey procedures.
7. Keeping some legal books about the company.
8. Requesting a company establishment statement from the tax office.
9. Arrangement of signature circular.
10. Entering some company-related documents into the e-TUYS system and transferring everything here.

While following these steps, some documents may be requested by institutions and organizations to open a company in Turkey. These documents are as follows:

• Company agreement
• Identity information of the company manager
• The required activity document about the current status of the company and the authorized signatories.
• Authorized corporate governance decisions demonstrating the legal entity shareholders' approval for the establishment.

After these documents are completed, foreign people and local people can open companies in turkey with equal rights.