Turkish laws allow for by the establishment of all kinds of companies on Turkish soil and will learn about the types of companies today in Turkey and what information is needed by the investor before starting the establishment of his company.
Types of companies in Turkey:
- Personal companies.
- The company is limited liability.
- The joint stock company.
- Solidarity Company.
- Simple Recommendation Company.
- Joint Stock Company.
Establishing personal companies in Turkey
Personal companies are the easiest types of companies and the least expensive, and those who wish to establish them directly can do business for them legally.
These companies are divided into two types: companies with tax mandates, companies with tax mandates and a commercial record.
Personal companies with tax commission
The personal tax-mandated company is registered with the Tax Department ( Vergi Dairesi ) In the city in which the investor wishes to carry out his commercial activities and in which the company has its headquarters, it must be noted that the personal company owner can not carry out more than one commercial activity through this company.
In order to establish a personal company, a number of conditions must be met by the owner of the company:
- A valid passport.
- Availability of the headquarters in which he will start work.
- Appoint a certified chartered accountant to provide all tax data to the Tax Department and pay dues.
The owner of the personal company cannot perform the procedures except through the legal mediator (the chartered accountant ) , and ultimately he gets a tax plate that authorizes him to practice his work, in addition to regular billing books and a stamp in the name of the company that enables the issuance of bills in the name of the company legally.
Personal companies with tax assignment and commercial registry
This personal company is identical to the personal company with tax assignment, with an additional difference that is registered in the commercial register so that this company becomes a name in the Chamber of Commerce, and its owner can obtain a merchant card in addition to an activity sheet, and then this company can be used in many economic activities.
The registration of the personal company with the Chamber of Commerce entails the maintenance of commercial books, and the payment of additional expenses for the membership of the commercial registry to carry out the necessary procedures for that. .
Personal companies are recommended companies for small business owners and they do not have much capital for investment.
Characteristics of personal companies
- This type of company is considered the least expensive in terms of establishment fees, tax, and accounting fare.
- Their responsibilities are few compared to other companies.
- Easy to establish, close and filter.
- When establishing it is not necessary to open a bank account in the name of the company or deposit any cash.
- These companies can do any kind of legitimate trade.
- Income tax is not fixed, ranging from15% to 35 %%.
Limited liability companies (Limited Şirketi)
This type of commercial company is typical for owners of small and medium-sized investment projects in Turkey, and it is one of the preferred types among the majority of investors. Article 573 stipulates that this type of company is a limited liability company consisting of one or more natural or legal persons, and it is not permissible to The number of partners exceeds 50 people , whether they are natural or legal persons , and the objective of the establishment of a limited liability company commercially, operating under a certain trade name, in order to engage in commercial activities with a capital of a minimum of 10 thousand, so that the core value of the stock is the company 's capital.
Features of limited liability companies
- It is considered one of the best companies in Turkey, due to its ease of establishment and low costs in terms of registration, accounting, transportation, liquidation and solution.
- A bank account must be opened in the name of the company and the operating capital of the company stipulated in the law must be deposited.
- A quarter of the capital is deposited into the company's bank account and the remainder of the capital is paid over a24- month period.
- The company has the right to do all business and commercial activities, and it can also be created for any other economic goal.
- The partners ’responsibility for the company's debts is a limited liability, and it is only for the amount of the company's capital, and the debts are collected from the company’s account(each partner is responsible for the debts with the amount he shared with the capital). In the event that there is not sufficient balance, the debts are deducted from one of the partners, and this partner has the right to return to the rest of the partners the amounts he paid in excess of his share in the capital.
- It is considered one of the companies where the tax is fixed22%.
- Tax data is submitted for each quarter of the year and a statement for the whole year, and you do not need a tax statement for each of the partners.
- This company does not need bodies or councils, and can consist of one person.
Joint stock companies ( Anonim Şirketi )
The capital of the joint stock company in Turkey is divided into shares, and the responsibility of the shareholding partners is limited. The company acquires a legal person from the date of its registration.
Article 332 of the company’s capital has been determined according to the following: The shareholders of the founding contract pledge to pay the amount of the basic capital, amounting to fifty thousand Turkish liras. The constituent assembly has the right to approve the offering of the company's shares for public subscription, in which case the capital must not be less than one hundred thousand Turkish liras as a minimum.
Characteristics of joint stock companies
- Only one person can create this company.
- Opening a bank account in the name of the company, in order to deposit the capital and conduct all banking transactions through this account.
- The minimum capital of the company must be deposited compulsorily upon the incorporation of the company, because this capital reflects the nominal values offered by the company.
- The law does not require the deposit of the full amount of the capital, but a quarter of the amount can be paid upon incorporation, and the remainder of the capital is deposited within twenty-four months.
- The company consists of a number of administrative bodies that are entitled to supervise the company's work and activity, and these bodies are:
- General Assembly, Board of Directors, Supervisory Board.
- The general assembly must meet once every three years as a maximum, and renew the selection of these bodies and councils.
- Joint stock companies can carry out any type of economic activities, whether commercial or industrial.
- The responsibility of the partners for the company's debts in proportion to the contribution of each of them to the capital, and he is not responsible for more than that.
Solidarity companies (Kollektif Şirketi)
It is a company that is established to operate a commercial project under a certain commercial name, and the responsibility of any of the shareholders is limited only to the capital subscribed and paid by the shareholders. And there is no minimum required capital. All contributors must be real people. Shareholders' rights and obligations are defined by the Articles of Association.
A partnership is established by at least one of the real persons or legal entities and fifty at most, and the responsibility of the shareholders is limited to the capital subscribed and paid by the shareholders. A capital of 10,000 new TL is required as a minimum to establish this company for a one-person company, and 12.500 TL for two people.
Solidarity Company features
- Partners are held personally responsible for the debt(unlimited liability.
- Income tax is variable and does not have a fixed value(ranges between 15% and 35%).
- It is considered one of the companies in the most financial costs such as cases of emptiness, the appointment of a new manager or change of company address.
- Unlike the rest of the companies, tax data is submitted for each quarter of the year, in addition to the final statement, for each partner independently of the other for each(separate tax statement for each partner.
Simple recommendation companies ( Komandit Şirketi )
It is a company that is established to operate a commercial project under a certain commercial name. As the responsibility of some shareholders is limited to the capital subscribed and paid by the shareholders (financiers), there are no limits on the responsibility for some shareholders. Only legal entities are funded. There is no minimum required capital. Shareholders' rights and obligations are defined by the Articles of Association.
In this company the company’s capital is divided into shares and the shareholders ’responsibility is limited to the capital subscribed and paid by the shareholders. To establish this type of company, it is necessary to have at least five shareholders (real persons or legal entities) along with a capital of not less than 50,000 TL. The company's mandatory organs include a general assembly, a board of directors, and a supervisory board.
Similar companies recommend both types ( simple contribution ) in terms of characteristics with the company solidarity in terms of the responsibility of the general partners and tax commissioning and expenses, and should be noted that the last three types of companies ( company recommendation contribution, Company Limited Partnership, and the company of solidarity ) are no longer used or desirable It is in the hands of investors, and these companies are considered rare types according to their characteristics.
In general, the establishment of companies of all kinds starts from the Chamber of Commerce and ends with the Department of Social Security, and all companies are charged a tax KDV, Ranging from 1% to 18% , depending on the type of activity of each company.
Accordingly, a foreigner who wishes to transfer his commercial and investment activities to Turkey, or opening a branch of his company that is based outside Turkey, or starting a new investment can choose between the types of partnerships that correspond to the pattern of work to be established, provided that the choice is based on a legal study Financial according to the current or future data that guarantees him the full implementation of the project, and achieve the profit that he seeks for him at the lowest costs.