Conditions for company registration in Türkiye, part one

Conditions for registering a company in Türkiye: the gateway to a profitable business

Türkiye, as a bridge between Europe and Asia, has always been an attractive destination for investors and entrepreneurs. Economic stability, suitable infrastructure, young workforce and access to multiple markets have made this country an ideal platform for starting a business.

One of the most popular investment methods in Türkiye is company registration. This brings several benefits to investors, including:

• The possibility of obtaining Turkish residence for yourself and your family
• Tax exemptions
• Access to new markets
• Ease of doing business
• Reduction of administrative bureaucracyIn this article, we will examine the conditions of company registration in Türkiye.

General conditions for company registration in Türkiye:

To register a company in Turkey, applicants must meet the following conditions:

• Age: Applicants must be at least 18 years old.
• Citizenship: Citizenship of any country does not prevent company registration in Türkiye.
• Criminal record: No bad criminal record
• Health: Providing a health certificate stating that you are free from infectious diseases

Documents required for company registration in Türkiye:

• Passport: Applicants’ passport must be valid for at least 6 months.
• Certificate of no bad background: This certificate must be obtained from the competent authorities in the applicant’s country of residence.
• Health certificate: This certificate must be obtained from a recognized doctor in Türkiye.
• Company’s Articles of Association: The company’s articles of association must be translated into Turkish.
• Company Registration Statement: This statement must be completed and signed by a lawyer or legal advisor in Türkiye.

Procedures for company registration in Türkiye:

Company registration in Türkiye is a relatively simple and straightforward process that includes the following steps:

1. Choosing the type of company: The first step is to choose the type of company you want. In Turkey, different types of companies can be registered, including limited liability companies, joint stock companies, joint stock companies, and mixed companies.
2. Preparation of documents: After choosing the type of company, you must prepare the required documents. These documents include passport, certificate of no bad background, health certificate, company charter and company registration statement.
3. Opening a bank account: You must open an account in the name of the company in one of the Turkish banks.
4. Go to the Companies Registration Office: With the necessary documents in hand, go to the Companies Registration Office in the city of your choice.
5. Payment of costs: The costs of company registration in Turkey include registration tax, costs related to the translation of documents and attorney’s fees.
6. Obtaining the company registration certificate: After going through the legal procedures and paying the fees, the company registration certificate will be granted to you.

Company registration fee in Türkiye:

The costs of registering a company in Turkey depend on various factors, including the type of company, the number of shareholders, and the amount of investment. However, in general, it can be said that the costs of registering a company in Turkey are between 1,000 and 5,000 euros.

Important points about company registration in Türkiye:

• To register a company in Türkiye, there is no need for the applicant to be present in this country. You can register the company through a lawyer or legal advisor.
• The official language of business in Türkiye is Turkish. Therefore, you must be fluent in Turkish or use a translator to do things related to company registration and business activities.
• The Turkish government supports foreign investment and provides numerous tax exemptions for companies registered in the country.

Registering an investment company in Türkiye:

Registering an investment company in Turkey is a good opportunity for foreign investors to benefit from many benefits, including tax exemptions, access to new markets and the possibility of obtaining Turkish residency.

Part II: Step-by-step guide to company registration in Türkiye

In the first part, we reviewed the general conditions of company registration in Türkiye. In this section, we provide a step-by-step guide for company registration in Türkiye.

First step: choosing the right type of company to invest in Türkiye

Choosing the right type of company is the first step in registering an investment company in Türkiye. Each type of company has its own advantages and disadvantages, and you should choose the right type of company according to the type of activity, the amount of capital, the number of shareholders, and your goals.

Here are some important points in choosing the type of company to invest in Türkiye:

• Type of activity: The first step to choose the type of company is to determine the type of activity of the company. You must specify in what field your company will operate.
• Amount of capital: The amount of your investment is influential in choosing the type of company. For example, if you plan to allocate a small amount of capital to invest in Turkey, registering a limited liability company (LLC) can be a good option for you.
• Number of shareholders: The number of shareholders of the company is also influential in choosing the type of company. For example, if you plan to invest in Turkey on your own, registering a limited liability company (LLC) can be a good option for you.
• Goals: Your goals for investing in Türkiye are also influential in choosing the type of company. For example, if you intend to obtain residency in Turkey through investment, you must choose the type of company that provides you with the possibility of obtaining residency.

In the following, we introduce some types of companies that can be registered in Türkiye for investment:

• Limited Liability Company (LLC): The most popular type of company to invest in Türkiye. The liability of shareholders in this type of company is limited to the amount of their investment. Registering a Limited Liability Company (LLC) in Turkey is a simple and quick process and the costs are relatively low.
• Joint stock company (АО): In this type of company, the capital is divided into shares, and the shareholders are responsible for the obligations of the company to the extent of their shares. Registering a joint stock company (АО) in Turkey is a more complicated process than registering a limited liability company (LLC) and its costs are higher.
• Limited company: In this type of company, all shareholders are fully and jointly responsible for the company’s obligations. Registering a joint venture in Türkiye is suitable for small and family investments.
• Mixed company: It is a combination of joint stock company and joint stock company. In this type of company, some shareholders are fully and jointly responsible for the company’s obligations, and others are responsible for the amount of their shares.

Before registering an investment company in Turkey, it is recommended to consult an experienced lawyer or legal advisor in this field. A lawyer or legal advisor can suggest the right type of company according to your conditions and help you in the company registration process.

Second step: Preparation of documents

After choosing the type of company, you must prepare the documents required for company registration in Türkiye. These documents include the following:

• Passport: Applicants’ passport must be valid for at least 6 months.
• Certificate of no bad background: This certificate must be obtained from the competent authorities in the applicant’s country of residence.
• Health certificate: This certificate must be obtained from a recognized doctor in Türkiye.
• Company’s Articles of Association: The company’s articles of association must be translated into Turkish.
• Company Registration Statement: This statement must be completed and signed by a lawyer or legal advisor in Türkiye.
• Office rental agreement: If the company intends to rent an office, it must submit the rental agreement along with the documents.

Step 3: Opening a bank account

You must open an account in the name of the company in one of the Turkish banks. This account should be used to deposit the company’s initial capital and perform other financial transactions.

Fourth step: Refer to the Companies Registration Office

With the necessary documents in hand, go to the company registration office in your desired city. At this stage, you must complete the company registration forms and submit them along with the required documents.

Fifth step: Paying the investment company registration fees in Türkiye

Payment of fees is one of the important steps in the process of registering an investment company in Türkiye. The costs of registering an investment company in Turkey depend on various factors, including the type of company, the number of shareholders, the amount of investment and the location of the company.

In general, the costs of registering an investment company in Türkiye include the following:

• Registration tax: Registration tax must be paid to the Companies Registration Office. The amount of registration tax is different for different types of companies.
• Costs related to the translation of documents: Your documents must be translated into Turkish and you will be responsible for the translation costs.
• Lawyer’s fees: If you use a lawyer or legal advisor to register the company, you must also pay their fees.
• Costs related to opening a bank account: To open a bank account in Turkey, you must go to one of the banks in this country and pay the costs related to opening an account.Costs related to renting an office: If the company intends to rent an office, it must also pay the costs related to the rent.
• Costs related to obtaining necessary permits: To operate in some fields in Turkey, it is necessary to obtain special permits from competent authorities. The cost of obtaining these permits will be borne by the applicant.

How to pay investment company registration fees in Türkiye:

Investment company registration fees in Turkey can be paid by cash, credit card or bank transfer. To pay the fees, you must go to the company registration office or registration service offices.

Important points about paying investment company registration fees in Türkiye:

• Before registering an investment company in Türkiye, you should know the exact amount of costs.
• Be sure to use valid documents such as invoices or receipts for payment.
• If you have any doubts or questions about the payment of fees, you can consult with the experts of the Companies Registration Office or registration service offices.

Step 6: Get the company registration certificate

Obtaining the company registration certificate is the last stage of the investment company registration process in Türkiye. This certificate shows that your company is legally registered in Turkey and can start its activity.

Procedures for obtaining a company registration certificate:

1. Full payment of company registration fees: Before going to the Companies Registration Office to get a company registration certificate, you must make sure to pay all company registration fees in full.
2. Submission of necessary documents: To receive a company registration certificate, you must submit the following documents to the Companies Registration Office:
   • Application form for company registration certificate
   • Deposit slips related to the payment of company registration fees
   • Company Statute
   • company Registration disclosure
   • Certificate of non-bad background of shareholders
   • Documents related to the address of the company
   • Other required documents (depending on the type of company)
3. Review of documents: The experts of the Companies Registration Office will review the documents provided by you. If the documents are complete, the company registration certificate will be granted to you.

Duration of company registration certificate issuance:

The duration of issuing a company registration certificate is usually a few working days. However, in some cases, it may take more time to issue a company registration certificate.

Important points about obtaining a company registration certificate:

• Be sure to make sure that your documents are complete before going to the Companies Registration Office.
• Read and keep the company registration certificate carefully.
• If you have any questions or doubts about obtaining a company registration certificate, you can consult the experts of the company registration office or registration service offices.

Receiving the company registration certificate does not mean the end of the investment company registration process in Türkiye. After receiving the company registration certificate, you must apply for other necessary licenses for your company’s activities. You should also open a bank account for the company, hire labor and take other necessary steps to start your company.

Part 3: Advantages of company registration in Türkiye

Company registration in Turkey brings many benefits to investors and entrepreneurs, some of which are mentioned below:

• Tax exemptions: The Turkish government has provided several tax exemptions for companies registered in this country. For example, the corporate income tax rate in Turkey is 20%, which is low compared to many other countries.
• Access to new markets: Turkey is located at the intersection of Asia and Europe with its strategic geographical location. This allows companies registered in this country to Access new markets around the world.
  
• The possibility of obtaining Turkish residence: One of the advantages of registering a company in Turkey is the possibility of obtaining Turkish residence for yourself and your family. By registering a company in Turkey and creating employment for Turkish nationals, you can apply for permanent residence in this country after some time.
• Ease of doing business activities: The Turkish government has taken several measures to facilitate doing business activities in this country. For example, the process of registering a company in Turkey is very simple and fast, and administrative bureaucracy is minimized in this country.
• Lower costs: The cost of living and starting a business in Türkiye is lower compared to many European countries. This can lead to more profitability of companies registered in this country.

Registering a company in Turkey is a great way to enter new markets, expand business activities and increase profitability. If you plan to start a business in Türkiye, registering a company in this country can be a good option for you.

Kargar Company, with more than 14 years of brilliant experience in the field of consulting and investment in Turkey, is ready to provide you with its services regarding company registration in Turkey. Our experienced experts in this company will help you in all stages of company registration and prevent any problems.

You can contact us for more information about company registration conditions in Turkey and Kargar company services.