Requirements for Starting a Business in Turkey
Understanding the requirements and practical implications of setting up a business in Turkey...
To establish a company in Turkey an application must be made to the relevant trade organisation within 15 days of having articles of association notarised. Three copies of the articles of association, one of which is the original, are needed. To set up a company it is necessary to pay 0.04 percent of the company capital into a bank account of the Turkish Competition Authority. This should be done at the Central Bank of the Republic of Turkey or a state bank.
The following documents are required to support an application to a trade registry:
- Three copies of the articles of association, including one original
- A company establishment petition and a completed notification form (kurulu? bildirim formu)
- Notarised signatures for the people authorised as company representatives
- A letter of commitment in accordance with Article 29 of the Trade Registry Regulation
- A bank receipt as proof of depositing capital with the Turkish competition authority
- Any founders of the company who are foreign must show their passport, or a notarised copy, and submit a copy of it
- Photocopies of identification of all the company founders and residence certificates if any are Turkish citizens
- If any foreign shareholder is a legal entity, then an original of the certificate of activity must be approved by the relevant Turkish Consulate or apostilled. A notarised translation will also be needed
- An expert report on any rights and movable and immovable assets to be used as capital to establish the company
The initial company capital must be placed in a bank account; 25 percent of the total must be paid within three months of the company being formed, the remainder within the first three years. The company's legal books must be certified by the founders on the same day that the company is registered. The notary public is required to inform the tax office of the certification of the commercial books.
Once a company has been established it must be registered at the tax office; this is done by the registry office. The registry office also notifies the district employment office of the establishment of the company, and organises its announcement in the Commercial Registration Gazette within approximately ten days of it being registered.
Once the tax office has been informed of the company's formation a tax plaque must be obtained from it. The registry office also gives notification to the Ministry of Labour and Social Security. A social security number should then be obtained from the relevant Social Security Administration office and all employees registered with it. It is advisable to confirm that both the tax office and social security have received notification of the formation of the company.
The New Turkish Commercial Code
A new Turkish commercial code will be coming into force partly in July 2012 and January 2013. This new code will allow limited liability and joint stock companies to be formed by a single shareholder. The minimum capital needed to establish a limited liability company will increase to TRY 10,000. It will need to be paid in full when the company is established. The minimum capital for a joint stock company will not change. There will also be a requirement on companies to have a website.
- Invest in Turkey guide to starting a business: Click here
- Turkish British Chamber of Commerce and Industry page on starting a business: Click here