According to the recently issued law in Turkey on 07/01/2012, it is now possible for foreign citizens to establish a company in Turkey with no need for a Turkish partner, while it was mandatory under the previous law to have a Turkish partner in order to establish a company.
And it is now possible for people with foreign nationalities to start an incorporated company or a limited company with only one shareholder unlike the old law which had required 5 shareholders in the case of an incorporated company, and 2 shareholders in the case of a limited company. This new law gives foreign investors more facilities to enter the Turkish market, invest and work in it with no constrains at all as it is now possible to establish a company in record time of only two to three days.
Also, this new law does not obligate the company’s directors to physically attend the company’s meetings as it is now possible to hold the meetings and exchange signatures via electronic media. This saves the company a lot of extra charges that they used to spend on travel expenses when coming to Turkey. The new law also requires the registration of the company and the protection of intellectual property rights that no one can infringe. In Turkey there are several types of companies:
Incorporated Company (A.Ş):
In these types of companies, the company’s capital is divided into shares and the legal responsibility of the shareholders are limited to the present capital which the shareholder had paid. This must be through a single shareholder (natural person or legal entity), and the registered capital must exceed 50,000 Turkish Lira. This compulsory partnership includes a general assembly and an administrative board.
Limited Company, and it is the most common type (Ltd):
A company that is established with a minimum of one shareholder (natural person or legal entity), and the legal responsibility of shareholders is limited to the present capital which the shareholder had paid. The minimum compulsory capital for such company is 10,000 Turkish Lira.
A commandite company is a company that is established with the aim of managing a commercial business under a commercial title where only a few partners are unlimitedly responsible for the capital of the company while the other partners are limitedly responsible for the present capital that the shareholders (financers) paid. Only legal entities can be financers and there is no minimum amount for the required capital. The rights and responsibilities of the shareholders are determined by articles of associations.
These type of companies are established with the aim of managing a commercial business under a commercial title where all partners are limitedly responsible for the present capital that the shareholders paid. There is no minimum amount for the required capital and all the shareholders must be natural persons. The rights and responsibilities of the shareholders are determined by articles of associations.
You can also contact us to receive more information regarding how to start a company in Turkey, or to find out about the requirements for doing so.