The first step in starting a business in Turkey is to establish a company. The question of “How to establish a company in Turkey” is one of the frequently asked questions by foreigners. In this article, we will explain how to establish a company in Turkey, its terms and necessary documents. Cebeci&Bayram Law provides legal services to its clients in the establishment of a registered company in Turkey. In order to establish a legal basis for the trade of foreigners who want to invest in Turkey. Types of companies are given under general headings in article 124 of the Turkish Commercial Code No. 6102. Accordingly, there are 5 different trading companies. We can list them as follows:
- Joint Stock(Incorporated) Company
- Limited Company
- Collective Company
- Limited Company
- Cooperative Company
Each type of company has its own characteristics, pros and cons. As Cebeci&Bayram Law, we tell our clients which type of company is most suitable for the job they are planning, and we provide legal services during the establishment process of the company. After the company is established, we provide services in the execution of the company in accordance with the Turkish legal rules, preparation of contracts, employee-employer relations and all litigation and legal affairs with a monthly consultancy system.
Our Law Firm provides consultancy services to its Clients in arranging the relations between the companies and the personnel, taking the decisions of the board of partners or the board of directors, and in all other matters that may arise during daily operation.
Our Law Office offers joint venture contracts, share transfer contracts, international and national commercial purchase-sale contracts, debt-receivable liquidation contracts, leasing contracts, management contracts, supply contracts, malpractice contracts, sponsorship contracts, lease contracts, real estate sales promise contracts, legal and other consultancy services contracts, service contracts, work contracts and all other contracts required by the companies, in accordance with the needs of the Clients and in order to eliminate the risks that may arise in the future, and in this context, represents the Clients in the negotiations regarding the contracts.
Our Law Office also provides legal support for the restructuring of companies so that daily operations can continue in a healthy way.
- Company Establishment Procedures
- Merger, Acquisition and Division Transactions
- Termination and Liquidation Procedures
- Registration of Company Shares in the Capital Markets
- Articles of Association Changes
- Capital Increase Transactions
- Preparation of Contracts
- Making and Registration of Decisions of the Board of Shareholders or the Board of Directors Structuring and Registration of General Assemblies of Joint Stock Companies
If foreigners want to find an answer of how to establish a company in Turkey, many laws must be followed. For this reason, before starting a business, foreigners should contact a business lawyer. Since 2003, many regulations have been issued regarding the establishment of companies by foreigners in the Republic of Turkey. The most important of these regulations is the Law No. 4875, which aims to regulate the principles regarding the promotion of foreign direct investment, the protection of the rights of foreign investors, compliance with international standards in the definition of investments and investors, and the transformation of the licensing and approval system into an information system. It is a law that regulates a system for realizing foreign direct investment and increasing foreign direct investment with certain policies. The aforementioned law regulates the business and transactions to be applied to foreign direct investments and investors. In addition to this law, there are a number of other laws that apply to foreigners. Law No. 4875 on the work permits of foreigners and regulating the establishment of companies and commercial activities of foreigners, Turkish Commercial Code No. 6102, Turkish Code of Obligations No. 6098, Regulation on the Implementation of Law No. 4875 and Law No. 4817 are some of them.
Can Foreigners Establish a Company in Turkey 2024?
Foreign nationals can establish a business in Turkey. There is no difference between foreigners and Turkish citizens in terms of establishing a company. The law applicable to foreigners in Turkey is the Law on Foreign Direct Investments, dated 05.06.2003 and numbered 4875, published in the Official Gazette on 17.06.2003.
Previously, the Foreign Capital Incentive Law No. 6224, which entered into force on 18.01.1954, was applied to foreign investors within the borders of Turkey. However, with the entry into force of Law No. 4875, Law No. 6224 was repealed. We recommend foreigners who want to establish a business in Turkey to hire an English speaking lawyer in istanbul. It will make things way easier for investors. So they can focus on their business instead of complex procedures.
Can Foreigners Establish All Their Companies in Turkey?
With the Law No. 6224, foreigners can only establish joint stock companies and limited liability companies. However, with the new Law No. 4875, foreigners are treated equally with Turkish companies and can establish all kinds of companies in Turkey.
What Kind of Companies and Corporate Forms Can Foreigners Establish in Turkey?
Foreign investors are treated the same as domestic investors in Turkey. For this reason, they can establish any company that the Turks can establish.
Types of companies that foreigners can establish;
Sole proprietorships; Collective Partnership, Limited Partnership, Ordinary Partnership, Cooperative Partnership
Corporate companies; Joint Stock Companies, Limited Liability Companies, Limited Liability Companies.
However, it should be noted that these company formats require detailed explanation. Therefore, this article should provide more information about each type of company. It would be more convenient for you to contact us for all the details.
How to Establish a Company in Turkey? What Should Foreigners Do If They Want to Start a Business? What should foreigners who want to establish a company in Turkey do? What is Legal Procedure?
- First of all, preparations should be made for the establishment of the company.
- The type of company to be established by foreigners should be determined.
- The main contract regarding the company’s field of activity should be prepared.
- An application for establishment should be made through the central registration system.
- Preparation and notarization of all documents.
- Procedure for obtaining a tax number for the business to be established.
- Depositing a certain percentage of the capital into the account of the competition institution.
- Depositing a certain amount of the committed capital into the company’s bank account.
- Documentation of the amount deposited into the bank account.
- Application for registration of the company with the relevant authorities.
- Obtaining a tax number from the relevant tax office.
- Social security number application.
- Certification of necessary books on behalf of the company.
- Compliance with the incorporation statement issued by the Trade Registry Office.
- To apply for a company incorporation declaration to the authorized tax office.
- Preparation of signature lists.
- Uploading company-related documents to the system.
- Creation of a VERBIS entry.
- Foreign companies opening branches in Turkey when necessary.
As we have briefly mentioned before, the procedures for establishing a company in Turkey by foreigners are complex. All transactions must comply with the relevant legislation. For this reason, it is beneficial for foreign investors to consult a lawyer who is an expert in the field of company establishment transactions. Foreigners who want to establish a company in Turkey should be informed about the procedure and should implement this complex system in accordance with the law. For this reason, it is important to act in accordance with the laws of the Republic of Turkey in order not to experience legal problems, loss of money and time, and not to punish foreigners.
Do I have to be in Turkey to Establish a Company?
No. With Power of Attorney, our lawyers form a company on our client’s behalf.
Important Information About Services
- A company must act in accordance with the Turkish legal system from the beginning to the end during the establishment phase. In this regard, it is necessary to work with lawyers who are experts in their field. It is important that company establishment procedures are carried out by lawyers who are well-versed in the Turkish legal system and legislation. Companies that are not established in full compliance with Turkish laws and regulations will face legal problems in the future. This leads to time, money and legal problems.
- Foreigners who want to establish a company must also be responsible for data processing in certain conditions and situations. They must be registered in the VERBIS system. This procedure, which was included in the Turkish legal system in 2016, is mandatory. Otherwise, foreigners who want to establish a business in Turkey will face serious sanctions.
- Nationalization or nationalization of foreign direct investment is limited by the laws of the Republic of Turkey.
- Foreign investors are assured that they can freely transfer their profits and other income abroad.
- Foreigners who want to establish a business in Turkey have the right to apply to national or international arbitration or other dispute resolution methods for possible legal problems.
- Foreigners who want to establish a business in Turkey have the right to open a liaison office for foreign companies and branches for foreign companies, just like Turks.
- The Republic of Turkey has signed many international agreements to protect the legal rights of foreign investors.
- There are also many tax advantages for foreign investors. Many advantages such as tax exemption valid for one year are provided for young foreign investors under the age of 29.
- Foreign companies that open branches in Turkey and foreign companies that open liaison offices in Turkey should be assisted by lawyers who are experts in their fields. Otherwise, it is obvious that legal problems will arise.
- As briefly mentioned above, some documents must be prepared and submitted within the scope of legal procedures required for foreigners to establish a company in Turkey. The information in these documents must be correct. For this reason, it is necessary to obtain information from lawyers who are experts in company establishment for foreigners. We provide services such as foreign company lawyer in Istanbul, foreign company lawyer in Ankara, foreign company lawyer in Antalya and foreign company lawyer in Izmir, which are frequently sought in this field.