Establishing a Limited Liability Company (LTD) in Turkey

This type of company is considered ideal for owners of small and medium-sized businesses and projects, due to the low cost required to establish a company of this type in Turkey, where the minimum capital for its establishment is ten thousand Turkish lira. The number of shareholders in this type of company can range from a minimum of one person up to a maximum of fifty partners. Unlike joint-stock companies, it cannot be offered to the public.

Owners of limited liability companies are not permitted to operate in the fields mentioned earlier, such as banking and financial institutions, among others. The liability of the shareholders in this type of company is limited in proportion to their share of the capital they have contributed.

Since establishing this type of company in Turkey is the preferred option among foreigners, we walk you through the key steps for establishing a limited liability company in Turkey.

Procedures for Establishing a Limited Liability Company in Turkey

There is no need for all partners to be present if they wish to establish a limited liability company, as a single shareholder is enough to establish it. It is also possible for this type of company to be managed by foreigners, provided they hold a work permit or work residence permit, or obtain one if they do not already have it.

Documents Required to Establish a Limited Liability Company in Turkey

Unlike countries that make things difficult for foreigners when establishing their companies, you will find no difficulty gathering the documents required to establish your company in Turkey, since all that may be asked of you is:

• A copy of a valid passport, translated into Turkish and certified by the notary.

• A tax number (easily obtained from any tax office).

• Three personal photos.

• A rental contract for the company's premises.

Steps to Establish a Company in Turkey

First: preparing the company's articles of association and having them certified by the notary, attached with a report on the company's address.

Second: depositing 25% of the capital in the bank. It is also preferable for the capital to be higher than the amount specified by Turkish law, in order to benefit from the privileges granted to companies with larger capital, since treatment under Turkish law varies according to the value of the capital — for this reason, it is advisable for the capital to be set higher, to make it easier to obtain a work permit and work residence for the company's shareholders or employees.

The specified capital is deposited through a bank account in the company's name, after which the company receives a deposit receipt for the value of the capital deposited. The company's paperwork can then proceed, obtaining approval from the Turkish Chamber of Commerce and receiving the commercial registration.

Third: submitting an original copy and two certified copies to the commercial registry office within 15 days of the date the documents were notarized by the notary.

Fourth: the company's address must be clearly stated in the articles of association, which will be publicly published in the official Trade Registry Gazette, in accordance with Article 279 of the Turkish Commercial Code, which stipulates this. Once the company's establishment is finalized at the commercial registry office, you must register the company with the local tax office, so that you are issued the tax certificate, which must be prominently displayed at the workplace, so that tax office employees can visit the company from time to time to verify the information stated on the tax plate (vergi levhası), as it is known.

Fifth and finally: insurance. After completing all of the above required procedures, the commercial registry office notifies the Ministry of Labor of your company, and accordingly all employees of the company — whether staff or managers — must be registered with the Social Security Ministry, since social insurance is mandatory in Turkey for all workers in all types of companies. The company is expected to pay the insurance premiums monthly for each employee at the company, with the insurance amount currently at approximately 2,100 Turkish lira per employee.

Tips on Establishing a Company in Turkey

Enlist an experienced financial advisor to properly oversee the company's formation.

Hire a competent accountant to handle the company's financial matters, keeping in mind that a certified public accountant is authorized to represent the company before the government and under Turkish law.

Most Frequently Asked Questions About Establishing a Company in Turkey

Q:Can I remove, change, or add new shareholders (partners) to the company?

Yes, you can do this at any time you wish.

Q:Can I change the company's line of business whenever I want?

Yes, you can, but subject to the approval of the shareholders (partners).

Q:Can I change my company's name from one name to another?

Yes, you can, subject to the approval of the shareholders (partners).

Q:Can I deposit the capital in the bank in a currency other than Turkish currency?Unfortunately,

no — you can only deposit the capital in Turkish lira.

Q:Can I change or relocate my company's address from the district it is currently in to another district?

Yes, you can do this within Turkish territory, and this is 100% legal.

At Hallak Turkey Services Company, we provide you with all the facilitation related to licensing and company formation in Turkey, with the best quality and detailed explanations of everything related to companies in Turkey.