Companixa™ Turkish Company Center offers clients a customer-focused and cost-effective services to Form an Incorporation in Turkey. Here’s the answers of How to Form an Incorporation in Turkey? Companixa™ prides itself on our attentive and personal approach to every client. We work closely with our clients to discover and implement the customized legal solutions that best meet their needs. Companixa™ handles commercial transactions and disputes with the same dedication and intensity whether our client is a Fortune 500 company or a privately held small business.
Our Turkish company formation team is prepared to handle your company formation in Turkey. Our lawyers are experienced in branch office formation, free trade zone company formation, joint stock company, joint venture formation, limited liability company formation, Turkish Liaison Office Formation, holding company formation, and company management and governance in Istanbul, Turkey.
How to Form an Incorporation in Turkey?
A Turkish Joint Stock Company (JSC) can be established for an indefinite period with at least one real person or legal entity shareholder, and an initial capital of at least 50.000.-TL. Under Turkish law, certain activities such as banking or insurance can only be carried out by companies established as a JSC. In addition, only JSC may offer its shares to public, and trade its shares at the Istanbul Stock Exchange. The capital of a JSC is divided into shares, each being separate and conferring equal rights in proportion to their nominal value, except in case of special privileges.
Shares are freely transferable, however certain transfer restrictions may be set forth in the Articles of Incorporation. Share transfer in JSC is effected through endorsement and delivery of the share certificate or provisional share certificate, as the case may be. Furthermore, once a share subscribed is paid in full, the holder of that share may not be expelled.
Services for Incorporation in Turkey
We maintain a unsurpassed practice counseling and representing large and small companies and boards of directors regarding JSC formation and governance matters. We advise our clients on all matters concerning formation of new entities from corporate formalities to tax issues.
We regularly advise clients with respect to the formation of companies. Our services with respect to company formation include advising and drafting documents in connection with the formation of corporations, limited liability companies, and Turkish liaison and branch offices. We provide targeted advice with respect to both the choice of entity and Turkish laws under the entity is to be organized.
Our clients range from small private companies with no internal legal staff to large companies with their own internal compliance teams. For each of our clients we tailor our approach to that client’s unique requirements.
We do perform Turkish company formation and other company governance services for foreign companies. We have extensive experience on limited liability and joint stock companies, liaison office, and branch office formation and governance in Turkey.
An incorporation has several advantages over a limited company. Some of these advantages are;
- A joint stock company is perceived to have a more corporate structure than a limited liability company.
- In a joint stock company, it is possible to transfer of shares between people without requiring the confirmation of the notary public.
- A joint stock company may issue “share to bearer” and may enjoy the advantages related thereon.
- In terms of taxes, if the partner of a joint stock company sells his/her share under a stock share or a certificate after elapse of two years as of the date of acquisition, he/she shall not be subject to the income tax,
- At least one of the partners of a limited liability company should be the “manager”. This means that the manager will be responsible for the tax and insurance premium debts of the company with all his/her property. In a joint stock company, there is not an obligation for at least one partner being a “manager” or a “member of the board”.
- In a limited liability company, the consent of other partners and then registry with the trade registry office and announcement is required for a share transfer. However, these are not required at all for a share transfer in a joint stock company.
- The liability due to tax and insurance premium debts is as follows: In joint stock companies, a partner (who is not a member of the board) does not have a liability of even TL 1 due to the tax and insurance premium debts of the company. In limited liability companies, a partner (who is not a manager) shall be liable due to any tax and insurance premium debt which could not be collected from the company and the manager pro rata his/her share in the company.
Based on the comparison above, it might be said that a joint stock company is more advantageous than a limited liability company. When regarded in terms of taxes, transfer of shares, and liability towards public debts, joint stock companies appear more attractive than limited liability companies.
An incorporation requires minimum one partner and it can be a legal entity or a real person. The partner/partners can be Turkish or foreign as well. Foreigners can own 100% of a company and transfer their profit out of Turkey without any problems. Minimum required capital for a Limited Liability Company is 50,000. -TL (Turkish lira). The capital of the company shall be paid in two years and in four installments.
Partners can apply for a work permit as the shareholder of the company, however if a partner likes to apply for a work permit then the capital is minimum 100,000. -TL and must be paid in full.
Establishing an incorporation generally requires 7 to 10 days preparation after we get all the documents from your side. I also get the documents that you send to us translated and notarized. If the partners don’t have a Turkish Tax ID, we need to obtain Tax ID’s for each partner.
We need the following documents for forming an incorporation;
From real persons;
- Translated and notarized passport copies (3 copies)
- Passport photo
- His signatures circular (2 copies)
- Power of Attorney to us for incorporating the company on his behalf.
From a legal entity if one of the partners is a company;
- The foreign investor (Company) should have a Certificate of Good Standing from the Registrar of Companies. This certificate should contain the information about the current active status of the company and its signature executives.
- Power of Attorney for establishing the company.
- The above-mentioned certificates (Certificate of Good Standing, Power of Attorney) shall be Apostilled.
Moreover, we have established several companies for our foreigner clients from including Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.
We do offer accountant services via an affiliated accountant and some of the companies we established use our accounting service.
We also provide company address services for foreign companies and our rates are very moderate.
Expenses to register a joint stock company:
FEES AND EXPENSES
|Attorney fee for registration of a new company||1,500|
|Opening a bank account||250|
|Tax office registration||250|
|Accounting fees per month||200|
|Company address per month||100|
|Official company registration expenses (Notary expenses for Articles of Association and all other documents)||750|
Please notice that on the above fees are included all out-of-pocket fees (governmental fees etc). You can choose all the above services or some of them as well.
Reach us for How to Form an Incorporation in Turkey?
Since its foundation in 1992, Companixa™ performs company formation in Turkey and provide other company governance services for foreign companies. We have extensive experience on limited liability and joint stock companies, joint ventures, liaison office, and branch office formation and governance in Turkey.We are committed to remaining forward-thinking and preparing for the dynamically changing world of business law. You may reach our experts for How to Form an Incorporation in Turkey by sending an email or through Contact page.