A Glance at Setting Up Limited Liability Company in Turkey
Setting up a Limited Liability Company in Turkey involves several steps and legal procedures. Here’s an overview of the process:
Choose a Company Name
Select a unique name for your LLC that is not already in use by another company in Turkey. The name should not include any restricted or sensitive words, and it must end with “Limited Şirketi” or its abbreviation “Ltd. Şti.”
Draft Articles of Association
Prepare the Articles of Association (Ana Sözleşme) for your LLC. This document outlines the company’s structure, purpose, shareholders’ rights and responsibilities, management, and other essential details. The Articles of Association must be notarized.
Minimum Capital Requirement
Determine the minimum capital requirement for your LLC. As of my last update, the minimum capital required for an LLC in Turkey is 50,000 Turkish Liras. This capital must be paid within 24 months after registration.
Notarize Documents
Notarize the Articles of Association and other required documents at a notary public in Turkey.
Open a Bank Account
Open a corporate bank account in Turkey and deposit the required share capital. You will need a bank statement as proof of capital deposit during the company registration process.
Trade Registry Registration
Submit the necessary documents, including the notarized Articles of Association, capital deposit certificate, and bank statement, to the Trade Registry Office in the city where your company will be located. Apply for registration and pay the registration fee.
Tax Identification Number
Trade registry will obtain tax identification number for your LLC from the tax office.
Registration with Social Security Institution
Register your company with the Social Security Institution (Sosyal Güvenlik Kurumu) if you plan to hire employees.
Obtain Business Licenses and Permits
Depending on your business activities, you may need to obtain additional permits or licenses from relevant authorities before commencing operations.
Compliance with Legal Requirements
Ensure compliance with all legal and regulatory requirements for operating an LLC in Turkey, including tax obligations, accounting standards, and reporting requirements.
Post-Incorporation Steps
After the company is registered, obtain a company seal , prepare shareholder and board of directors’ resolutions, and fulfill any other post-incorporation requirements.
It’s important to note that the process and requirements for setting up limited liability company in Turkey may vary based on factors such as the company’s industry, location, and specific circumstances. Seeking professional assistance from a local lawyer or consultancy firm experienced in company formation can help ensure a smooth and successful incorporation process.
