COMPANY ESTABLISHMENT IN TURKEY
Selim Law Firm: General Information About Company Establishment in Turkey
Company establishment in Turkey is an idea that brings many questions. Especially people who want to invest in a foreign country are faced with many unknowns. That’s why we would like to inform you in detail about company establishment in Turkey before going into the suffocating details.
It is very important to know some details before establishing a company in Turkey. Because if you do not pay attention to these details, you may encounter undesirable results. For example, the choice of company address, age and citizenship are extremely critical.
Selim Law Firm has sufficient experience in this area. However, you may not have as much experience as we do about what to consider before making an investment decision. For this reason, we have prepared a detailed guide for you. You can get detailed information about company establishment in Turkey by reading this guide.
If you have any questions other than the questions below, please do not hesitate to contact us. In order to provide you with the best and corporate service, your e-mails will be answered as soon as possible.
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Can one person be the sole shareholder, director, and officer of a corporation?
Do you have to be a Turkish citizen or a Turkish resident to incorporate and/or own a corporation in Turkey?
Can a person younger than 18 be a director, officer, or owner of a company in Turkey?
Can I establish a company at home office or online address?
Can I operate in more than one commercial area with a company?
Do I have to agree with a financial advisor or lawyer to establish a company?
Can I establish more than one company at the same address?
In how many days will the company be established?
Is it mandatory for companies to use a cash register pos device (payment recorder device)?
Can one person be the sole shareholder, director, and officer of a corporation?
A recent change in law has paved the way for a person to be the sole shareholder, director and officer of a company. You do not need a Turkish partner or investor to establish a company in Turkey.
Foreign investors can establish any type of company they want in Turkey. They can manage these companies on their own. Single share ownership and management is possible, provided that the establishment obligations in the law are complied with.
Do you have to be a Turkish citizen or a Turkish resident to incorporate and/or own a corporation in Turkey?
Turkey’s Foreign Direct Investment Law No. 4875 is based on the principle of equal treatment and allows international investors to have the same rights and obligations as local investors.
allows. Accordingly, international investors can establish all types of companies specified in the Turkish Commercial Code (TTK).
It is not possible for a foreign person to establish a sole proprietorship without a work permit. Residence permit alone is not sufficient, therefore, a sole proprietorship can be established after a 5-year residence permit and only if a work permit is applied for.
In practice, the establishment of a foreign real person firm is not a common form of establishment.
Foreign persons can establish a capital company under the same status and conditions as Turkish citizens. If foreign persons will join the company to be established as partners, the transactions are in the normal course. However, if the foreign partner is a legal person, the execution of this process is quite complex and difficult.
In any case, we recommend that you seek the services of a professional.
Can a person younger than 18 be a director, officer, or owner of a company in Turkey?
Persons under the age of 18 cannot use their legal rights alone because they do not have the capacity to act. For this reason, it is necessary to obtain the permission of the parent or guardian in every work and transaction they will do. All transactions made by the minor are suspended without the consent of the parent or guardian. It only becomes valid after the parent or guardian gives consent.
Since establishing a company and taking on debts in financial matters is a serious obligation, as well as those who are under age can be easily deceived, it is legally required to have parent or guardian supervision.
However, minors can come of age by filing a lawsuit in court in order to use all their rights.
Can I establish a company at home office or online address?
Usually, the tax office wants to verify you by visiting your workplace address. However, it is not easy to realize this in practice. Because the number of taxpayers is high and the number of tax officers is low, it is not possible to carry out this inspection.
For this reason, company owners show their home addresses or virtual office addresses as company addresses if it is not a problem for them. In this case, there is no problem with tax.
Can I operate in more than one commercial area with a company?
You can carry out commercial activities in more than one field with a company. There is no legal obstacle in this regard. However, as we mentioned in our article on “Company Types in Turkey“, some business lines can be done with permission.
We recommend that you seek professional support in obtaining these permits.
Do I have to agree with a financial advisor or lawyer to establish a company?
For the year 2022, it is a legal obligation for joint stock companies with a capital of 250,000 TL or more to have a lawyer. This upper limit figure changes every year. Companies falling under this scope are sent a letter by the Bar Associations in their provinces to present the “Attorneyship Agreement”. Other types of companies do not have such a requirement.
Companies have to get financial consultancy services according to the area they work and their turnover. Since these figures and fields of study are different from each other and change according to the situation, it would not be correct to make a clear comment. However, if the company’s turnover is high, the type of company and the job require working with a financial advisor, it would be appropriate to have a financial advisor sign a contract.
Can I establish more than one company at the same address?
It is possible to establish more than one company at one address. This is the way companies usually work, called holdings. However, this method also has legal risks.
When your creditors take legal action against you, your company at the same address may also assume the debt or liability of a company, even if the companies have different legal entities.
For this reason, if more than one company is to be established at the same address, it would be beneficial to contact a lawyer and take the necessary precautions regarding the issue.
In how many days will the company be established?
If the documents are complete, the establishment of a capital company usually takes 2 business days. These two working days start after the date given by the Chamber of Commerce.
In short, the Chamber of Commerce gives you an appointment for company establishment. You will be ready there at the appointment time. Your application will then be received. It takes 30 minutes to prepare your documents. After your documents are prepared, you sign the company’s articles of association and pay all transaction fees.
After paying the fee, Chamber of Commerce employees prepare your commercial ledger. This process takes about 2 hours. After the completion of this process, transactions such as tax office transactions and issuing the signature circular must also be fulfilled.
If your company will use e-archive invoices, you must obtain an e-seal from the Ministry of Finance. It takes about 2 days for this seal to reach you. In short, if everything is done perfectly, this process takes at least 2 working days. However, things such as traffic, time, government density may prolong the process.
Is it mandatory for companies to use a cash register pos device (payment recorder device)?
Pursuant to Article 1 of Law No. 3100; According to this Law, first and second class merchants who sell the goods sold exactly or after processing to people other than those who sell them (i.e. final consumers) or provide services to the same people are obliged to use a payment recording device.
Except for these people, it is not necessary to use a cash register. The Revenue Administration has summarized the exemptions given in a table for the convenience of taxpayers and Independent Accountants and Financial Advisors.
You can access this table from the link below.
https://ynokc.gib.gov.tr/UploadedFiles/Files/okckullanimindanmuaftutulanlar.pdf
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