Limited Liability Company Formation

Overall, this article will explore the company establishment in Turkey and establishment of a company in Turkey under the Turkish regulatory framework. The present work is designed as a handbook for investors including foreigners. The establishment of a corporation in line with law involves a set of legal steps that must be followed by relevant foreign or national entrepreneurs.

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.

What are the Main Legal Instruments Applicable

Turkish Commercial Code (Numbered 6102) is the most central legislation enforceable to founding a company in Turkey. In the light of the company type, Turkish Code of Obligations (Numbered 6098) and Turkish Civil Code (Numbered 4721) are also applicable to the Turkish company law under Article 126 of Turkish Commercial Code.

Do Companies Have a Legal Personality? 

Under Article 125 of Turkish Commercial Code, commercial companies have legal personality. To clarify, A company shall acquire a legal personality upon registration with the Trade Registry according to the Turkish Commercial Code. Therefore a company is accepted to be a separate legal person. That necessarily follows that all commercial companies may benefit from all rights and undertake debts within the framework of Article 48 of the Turkish Civil Code. Besides, those who conduct transactions and enter into commitments on behalf of the company before registration may be personally and successively held responsible for these transactions and commitments.

Can Foreigners Open a Company in Turkey?

Can Foreigners Open a Company in Turkey? “Foreigners can establish companies in Turkey. To register a company in Turkey for foreigners, the law numbered 4875 came into effect in 2013, granting foreign investors the same rights as Turkish citizens.

Owing to enactment of Foreign Direct Investment Law (Numbered 4875), the difference between foreign or national investors were eradicated under Turkish legal system in 2013. Presently, it is important to underline that foreign investors shall be subject to equal treatment with domestic investors. Besides, the principles and standards enumerated in Turkish Commercial Code facilitate foreign-led companies in Turkey.

Which Type Of Company To Incorporate In Turkey

Which type of company to incorporate in Turkey?  You can establish five types of companies in Turkey.According to Article 42 and 43 of the Turkish Commercial Code collective company, comandite company, cooperative company, limited company, join stock company five main company types can be formed.

How Can I Register a Company in Turkey?

How can I register a company in Turkey?  Above all, it is critical to take into account that the incorporation procedures can be carried out electronically through the Central Registry System (MERSİS). Markedly, the absence of any hassle in the formation process is of great significance in attracting foreign investments to Turkey.  What is very attractive is that the establishment of a single-shareholder joint stock company or single-member limited liability company is allowed under Turkish Commercial Law. Let us remind you that our office’s expert lawyers will be more than happy to assist you in establishing a company in Turkey.

How to Establish a Company in Turkey?

How to establish a company in Turkey? To summarize, investors should take a number of actions in the formation of a company. Duly preparation, performance and submission of paperwork concerned is critical for the below-mentioned requirements. Common requirements reads as follows for company establishment in Turkey:

• Preparation and signature of of the company contract by founders,
• Preparation and approval of the signature declarations of company officials,
• Payment of Competition Authority share and cash capital,
• Relevant documents submission and the completion of the registration of the company by the Trade Registry.

What are Taxation Liabilities for Companies in Turkey? 

In general, companies are subject to a standard corporate income tax rate of 20% except for finance-centric companies including banks paying 25%.

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