Company Registration in Turkey
Differences in Company Registration in Turkey and Iran
Company Registration in Turkey is slightly different from Iran. There are types of companies in Turkey that are not in accordance with the commercial law of this country and are registered as legal entities, but the types of companies that are subject to Turkish trade law are more or less the same as the types in Iran. The relative company is specific to Iran, while Turkey, like European countries, does not have this type of company. Companies established by Iranians in Turkey are usually 90% of limited liability companies.
Due to the proximity of culture and religion between Iran and Turkey, geographical proximity and the lack of a visa to travel to this country, many people intend to immigrate to Turkey every year.
Increasing international competition in the world plays an important role in deciding to establish foreign companies and investments.
In this regard, Turkey has developed its legal and political plans to encourage investment and strive for globalization.
Here, we will deal with the registration of a company in Turkey.
Benefits of the Registration of a Company in Turkey
- Doing business without the restrictions available for Iranian individuals and legal entities.
- Working and investing in a context where there is growth and international success.
- Taxes in Turkey are much lower than in Europe and the United States.
- Low start-up costs
- Special facilities for foreign companies in Turkey
- You pay less for living in comparison with other European countries.
- You obtain a one-year residence in Turkey and you obtain permanent residence after 5 years.
- You can have a bank account and get a credit card and debit card after registering the company.
- You invested in a country that is not far from Iran.
Documents Required to Register a Company in Turkey
- Passport of each of the partners (valid for more than 6 months)
- Two pieces of photo
- Some selected names for the company
- The field of activity of the company
- Determining the percentage of shares of each of the partners in the company
- Appointing a company manager (one of the partners)
- Determining the address of the company office in Turkey
- Granting power of attorney to a person appointed from the strategic office to register the company
- Minimum capital is 10000 Turkish Lira
Types of Companies to Register in Turkey
Like the laws of the Islamic Republic of Iran, Turkey has also several types of companies, each of which is explained below:
Limited Liability Company
This type of company must be registered and established with a minimum of one person and a maximum of 55 people. The fee needed to register and establish a limited liability company is $ 2100 US (of which two foreign currency accounts are opened, one in the name of the company and another in the name of the company manager) and according to the rules, the share of each shareholder of the company profits and losses depends on the amount of the share of this natural or legal person and the creditor can only claim as much as the shares of the company and not more in case of bankruptcy of the company. The directors of this type of company can be Turkish citizens, foreign nationals and even according to the company articles of association, they are other than the company shareholders.
We have two types of corporation in Turkey, the ones with less than 250 investors called Private Corporation, and the cost of establishment and registration is about 2800 US Dollars and also the other ones with more than 250 investors called public corporation. The shares in corporations are equal, but each shareholder can buy as many shares as he can. The value of profit and loss of each shareholder is calculated depending on the value of these shares, and according to Turkish law, representatives of the Ministry of Commerce must be present at the general assembly held for the company.
In these type of companies, only one or more shareholders (except natural persons) bear the debts and loans of the company and the rest of the shareholders are responsible only for the value of their initial capital.
There is an important point about this type of company. In case of debts and loans for this company, each of the partners is responsible and obliged to pay them, even if the value of these debts is more than the total capital and the value of the company.
Financial Institutions (Exchange)
This type of enterprise is considered a corporation, with the difference that in order to register and establish it, the necessary licenses must be obtained from the relevant authorities. Registering this type of company has its difficulties and complexities that it is necessary to consult with experienced lawyers in this field.
Company in Free Zones of Turkey
First of all, it should be said that this type of company is for those who produce goods. In fact, it is considered an industrial activity that you can buy land in the areas introduced to you at a reasonable price and with suitable facilities. It is also worthwhile for the Turkish government to build a shed in that area. It is interesting to know that Turkey provides you with exceptional facilities for hiring employees and workers in this field, including insurance and tax exemptions.