Guide for Investors on Company Formation

• Ali Rıza Deniz

Guide for Investors on Company Formation

Turkey, with its strategic location, dynamic economy, and young population, offers significant opportunities for foreign investors. This guide is intended for foreign investors looking to establish a business in Turkey and includes essential information about the company formation process.

Types of Companies and Establishment Requirements The type of company chosen influences the setup process in Turkey. The most common types are Limited Liability Companies (Ltd. Şti.) and Joint Stock Companies (A.Ş.).

Limited Liability Company (Ltd. Şti.):

• Can be established with at least one partner.
• Requires a minimum capital of 50,000 TL.
• The liability of a partner is limited to their share of capital.
• Management can be conducted by one or more persons selected from among the company partners or externally.

Joint Stock Company (A.Ş.):

• Can be established with at least one partner, and the shareholders' liability is limited to the capital invested.
• Requires a minimum capital of 250,000 TL.
• Has bodies such as a general assembly and a board of directors.
• Joint-stock companies can issue shares.

Formation Process The company formation process involves specific procedures that need to be followed step by step:

1. Business Name and Commercial Registry Entry: A name for the company must be chosen and registered with the Commercial Registry Office.
2. Tax Office Registration: Upon establishment, the company must obtain a tax number and register with the tax office.
3. Social Security Institution Registration: It is mandatory to register the company and its employees with the Social Security Institution.

Points to Consider

1. Legal Consultation: Due to Turkey's complex legal and tax regulations, obtaining legal advice from the outset is crucial.
2. Investment Incentives: Various incentives are available for investors in Turkey. Understanding the necessary conditions to benefit from these incentives is essential.

The process of establishing a company in Turkey can be managed effectively and efficiently with proper planning and professional support. At Zeugma Tax & Law, we are here to support foreign investors with all their legal and financial needs throughout their investment process in Turkey.