The establishment of companies by foreigners in Turkey is generally governed by the Turkish Commercial Code and the laws and regulations applicable to foreign investment in Turkey.
In order to establish a company in Turkey, foreigners must first establish a domicile or representative office in Turkey. They are then required to follow the procedures for establishing a company according to the Turkish Commercial Code. These procedures include steps such as registering the company name, investing capital, identifying board members and obtaining the company’s certificate of incorporation.
Some of the limitations that foreigners may face when establishing a company in Turkey include regulations on capital investment by foreign investors in Turkey, the types of companies that foreigners may establish in Turkey, and regulations on the establishment of a settlement by foreigners in Turkey.
The place of application can be the Chamber of Commerce or the Chamber of Industry or the relevant authorities.
Which Companies Can Foreigners Establish in Turkey?
In Turkey, foreigners may establish the following types of companies within the framework of the Turkish Commercial Code and the laws and regulations applicable to foreign investment in Turkey:
- Joint Stock Company (JSC): This type of company is the most commonly established type of company. Capital shares in A.S. can be acquired by qualified investors and the capital investment is usually high.
- Limited Company (Ltd. Şti): This type of company has a lower capital investment and requires fewer formalities.
- Collective Company: This type of company is a business run jointly by partners and the partners only participate in the profits/losses of the business.
- Limited Partnership: This type of company is a business run by limited partners. Limited partners participate only in the losses of the enterprise.
- Self-Employed Company: This type of company is a business established by individuals who are self-employed.
- Individual Business: This type of company is a business run by a single person.
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Stages of Company Establishment for Foreigners
The steps to be followed by foreigners when establishing a company in Turkey are as follows:
- Opening a settlement or representative office: Foreigners must first open a settlement or representative office in Turkey. The documents and papers required for these procedures must be submitted to the Chamber of Commerce or Chamber of Industry.
- Company name registration: A name must be chosen for the establishment of the company and the name must be registered by the Chamber of Commerce or Chamber of Industry.
- Capital investment: The amount of capital determined for the establishment of the company must be deposited.
- Board of Directors: The members of the company’s board of directors should be identified.
- Certificate of incorporation: After all these procedures are completed, the company’s certificate of incorporation must be obtained.
- Tax number and SSI registration: The tax number and SSI registration of the established company must be done.
- Business license: A business license must be obtained for the company to start operations.
- Other necessary documents: Other necessary documents and paperwork must be obtained for the company to start its activity.
Documents Required for the Establishment of a Foreign Capital Company
Among the documents to be submitted in the establishment of a company with foreign capital may be the following:
- Company agreement
- Passports or citizenship documents: Passports or citizenship documents of foreign partners are required.
- Signature circular: Signature circulars of foreign partners certified by a notary public are required.
- Documents of the competent authorities giving approval for the establishment
- If the foreign partners are not in Turkey and will send their representatives, a notarized authorization document is required.
- Identity cards: Identity cards of foreign partners are required.
- Address declaration: Address statements of foreign partners are required.
- Declarations of capital: Documents of the capital that must be deposited are required for the establishment of the company.
- Trade registry: If the foreign partners have another company, the trade registry of that company is required.
- Chamber of Commerce or Chamber of Industry registration certificate