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GLOBAL INFO

Turkey

COUNTRY:

TURKEY

QUESTION:

ANSWER:

1.      What are the main company forms in your country?

There are five types of company under Turkish Commercial Law.

-        Limited Liability company

-        Joint Stock company

-        Commentate company

-        Collective company

-        Cooperative company

Under Turkish law system, there are also joint ventures are defined as partnerships whereby two or more independent legal entities or individuals come together for the achievement of a common target.

2.      Which is the most preferred company form by foreign investors?

Limited Liability Company

 

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

A minimum capital of TL 10,000 is mandatory.

All of the capital should be committed to an unconditional by shareholders  

At least 25 % of the nominal value of the shares subscribed in cash must be paid before registration with Trade Registry.

 

4.      What are the basic rules of shareholders liability for company debts in this company?

According to Article 35 of the Law No 6183 on Procedures of Collection of Public Debts with the title “Debts of Limited Liability Company”, there is a personal liability regime.  

Liability of the shareholders is limited to the amount of share capital owned in the company and the shareholders are not personally liable for any debt or other liability of the company. However,  shareholders of an Limited Liability Company may be held liable for the public debts of the company, such as tax liabilities.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

Limited Liability Company may be ruled by one or more managers. If there is more than one manager in a Limited Liability Company, one of them should be appointed as the chairman of the board of managers.  

Resident or a nonresident person could be a manager of a limited liability company. According to regulations, Turkish Citizen or a foreigner could be manager but working permission is an obligation for a foreigner.

 

 

6.      How long does the registration procedure of this company take?

The company registration at the trade registry only takes one to three  days and the whole procedure for incorporation of takes less than  two weeks following the submission of documentation.

7.      What are the main costs of formation of this company in local currency?

Articles of Associations: 900,00.-TL

Signature declaration: 100,00.-TL.

Tax : 0.04% of capital

Registration fee : 150 TL 

Manager's signature :555 TL

Publication :500 TL 

Journal : 50 TL

Ledger : 40 TL

Resolution book : 40 TL

Inventory book  : 40 TL

 

8.      What is the average attorney’s fee of the formation of this company in local currency?

 

 3.000-4.000 TL depending on complexity.

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

A limited liability company in Turkey must be registered at the local Trade Register and after this procedure is accomplished, the investor can begin his activity.

The following documents are necessary to incorporate the company:

- letter of undertaking

- articles of association

- proof that the share capital has been deposited

- company establishment statement form

- identification documents for the company founders

- documents for individuals appointed to represent the company

 

 

10.   What are the main auditor requirements?

A statutory auditor is required for a Limited Liability Company  when it has more than 20 partners