Turkey – a country of great opportunities with a stable banking system
The Republic of Turkey is actively attracting foreign investment by creating favorable conditions for the development of foreign business in the country. The main advantages of registering a company in Turkey:
- Quick registration process – after submitting all the necessary documents, the company is entered into the register within 1-2 business days
- Possibility to open a bank account in the country of registration of the company
- Large domestic market and strategic location
- A stable banking system that provides the ability to work with multiple currencies (including EUR, USD, RUB)
Main features of registering a company in Turkey:
Legal forms: the most common forms are Limited Şirket (similar to Ltd) and Anonim Şirket (similar to JSC). According to the legislation, the liability of the founders of both forms of companies is limited by the amount of contribution to the authorized capital.
Shareholders: According to the legislation in Turkey, there are no restrictions on the registration of a company by foreign shareholders – 100% foreign ownership is allowed. The founder can be both a foreign citizen and a foreign legal entity. Both Ltd and JSC can be registered with 1 shareholder (for Ltd the maximum number of shareholders is 50).
Director: at least 1, natural person, can be a citizen and resident of any country.
Employment of local citizens: there is no requirement to employ Turkish citizens in the company.
Share capital: For Ltd minimum 10,000 TL (no obligation to deposit capital to the account before the company is registered; the capital must be paid within 2 years from the date of registration). For JSC minimum 50,000 TL (at least 25% must be deposited into a blocked bank account prior to incorporation; after company registration the account will be unblocked; the rest of the capital must be paid within 2 years from incorporation).
Legal address: Every Turkish company is required to have a registered office in Turkey. The company is “attached” to a certain department of the tax service, depending on the address of registration. It is allowed to rent a virtual office or a small room, but not just a mailbox. Our company provides virtual office services in Turkey, as well as assistance in renting office space.
Types of activities: The Company has the right to engage in any type of activity that is not prohibited by law. For some types of activities, only the form of JSC is acceptable (insurance, currency exchange, audit, etc.). All planned activities must be included in the Articles of Association.
After receiving the necessary documents and information, we prepare a package of documents for the establishment of a company and register it in the commercial register. The director of the company needs to come to Turkey for one day to issue a signature circular (imza sirküleri) with a notary, a power of attorney for further servicing of the company (submission of documents to the commercial register, submission of documents to the tax office, etc.) and opening a bank account.
Branch of a foreign company in Turkey
According to Turkish law, a branch of a foreign company is a separate organizational part of the company through which the company operates in accordance with the law. Also a branch:
- It is not a separate legal entity. The term of its existence is limited by the period of existence of the parent company.
- There is no capital requirement.
- Transfer of profits of a branch company is allowed.
Registration of a branch allows a foreign company to seamlessly open an account in one of the banks in Turkey.
The main advantages of opening a branch in Turkey:
- The ideal solution for clients who want to continue doing business with their existing companies;
- A branch of a foreign company has its own tax number and is considered a resident;
- Opening a branch and a bank account takes about 10-15 days.
We provide all the necessary services for registration and further maintenance of a company in Turkey, registration and maintenance of a branch, provision of a virtual office, as well as opening a bank account.
If you are interested in our services, please contact us for professional advice and offer from our specialists.