Types of companies in Turkey

Turkey is a preferred investment destination for many foreigners, and investors looking for profitable investment areas can also settle in Turkey.

Therefore, many investors in Turkey face several problems, especially in establishing companies, due to their lack of knowledge of matters related to the law and conditions and even in the termination of the incorporation processes.

What steps do investors need to start establishing a company in Turkey? What are the types of companies in Turkey, according to the trade law in Turkey?

Types of companies in Turkey in 2022 according to the trade law

1. Personal Company

- A personal company with a tax mandate

- A personal company with a tax mandate and a commercial register

2. Limited liability company (limited Şirketi)

3. Joint-Stock Company (Anonim Şirketi)

4. Joint venture (Kollektif Şirketi)

5. Limited partnership. Komandit Şirketi

6. Limited Partnership Joint Stock Company (Sermayesi Paylara Bölünmüş Komandit Şirket)

Establishing a personal company in Turkey

A personal company with a tax mandate is registered only with the Tax service in the city where the investor wishes to establish his company.

What are the conditions for establishing a personal company in Turkey?

To establish a personal company, several conditions must be met by the company's owner.

First: a valid passport

Second: Availability of the company's headquarters

Third: Appointing an officially chartered accountant to submit all tax data to the department and to follow up on legal affairs on an ongoing basis

A chartered accountant can only do legal and tax-related matters until he obtains a tax company tax plate, ice books, and an official seal in the company's name to issue official invoices legally.

Establishing a personal company in Turkey with a commercial registry

There is no significant difference between setting a private company without a commercial registry or with a commercial registry; the difference between them is that this company can register with the Turkish Chamber of Commerce, and its owner can obtain a merchant card and benefit from economic activities

Advantages of establishing a personal company in Turkey

• Fewer expenses in terms of incorporation, accounting fees, and taxes
• Ease of setup and filtering
• No need to open a bank account
• Making any trade
• Fewer responsibilities compared to other types
• Non-fixed income tax

Establishing a Limited Liability Company in Turkey

This type of commercial company is ideal for owners of small and medium enterprises whose goal is to invest in Turkey. It is one of the preferred types for many investors in Turkey, as it can consist of one or more people. It is prohibited to exceed more than 50 partners and to have a limited liability business. It has a specific trade name that allows commercial activities with a capital starting from 10 thousand Turkish liras. The value of the basic shares is the capital of the company.
 

Advantages of establishing a limited liability company in Turkey

• Ease of setup and filtering
• Low costs in terms of registration and accounting
• The rights of the company to carry out all business and commercial activities with an economic objective
• Flat taxes at 22%
• No need for administrative bodies or boards
• Provide tax data every quarter and a complete annual statement for all partners.
• Opening a bank account in the company's name, provided that the operating capital is legally deposited.
   

Establishing a joint-stock company in Turkey

The capital of a joint-stock company in Turkey is made up of shares, and the liability of the shareholders is limited. The company acquires legal personality from the date of its registration.

The company's capital was determined according to the following: The partners in the memorandum of association pledge to pay the amount of the primary money, which is 50,000 Turkish liras, and the Constituent Council has the right to approve the offering of shares for public subscription, and this claims that the capital is not less than 100,000 Turkish liras as a minimum.

Advantages of establishing a joint-stock company in Turkey

• The possibility of incorporation through one person
• Opening a bank account in the name of the company, provided that the operating capital is legally deposited
• The law does not require the deposit of the money in total, and it is allowed to pay it within 24 months after spending a quarter of the amount upon incorporation
• The company consists of several administrative bodies entitled to supervise the company and its work
   

Establishment of joint venture companies in Turkey

In Articles 211 and beyond, the law stipulates this type of company and defines it, according to this article, as a commercial company established and established by natural persons, the purpose of which is to carry out commercial activities under a commercial name.
 

The general partners are liable to the creditors with unlimited liability. In addition, he is subject to a written form (the company's articles of incorporation), which is documented at the Notar or the Commercial Registry Directorate, provided that the memorandum of association is signed in the presence of the Director of the Commercial Registry.
 

The company is established within 15 days from the date of writing the contract, and the capital amount must be deposited with a minimum value of 10 thousand Turkish liras.
 

Characteristics of the joint venture

• Partners are held personally liable for debts (unlimited liability).
• Income tax is variable and does not have a fixed value (ranging from 15% to 35%).
• It is considered one of the companies with the most financial costs, such as vacancy cases, appointing a new manager, or changing the company's address.
• Unlike the rest of the companies, tax statements are submitted for each quarter of the year, in addition to the final report, for each partner independently of the other for each (a separate tax statement for each partner).

Establishing a Limited partnership company in Turkey

A Limited partnership company is a trading company operating under a commercial name, its purpose is to carry out commercial activities, and it consists of two types of partners

General partners and joint partners, with this joint partner being unlimitedly liable for the company's debts, while the proportion of the contributing partner is considered to be sensitive to a limited extent according to what is agreed upon in the memorandum of association within the legally permissible framework
 

Establishment of a limited partnership joint-stock company in Turkey

Article 564 defines a joint limited partnership company in Turkey as a limited company, its capital is divided into shares, and the partners are responsible for the company's debts to the creditors, the same responsibility as the partners in the joint liability company, each partner is considered fully liable for the debts incurred by the company

Joint-stock partnership companies are similar to simple companies in terms of characteristics, such as the liability of the general partners, tax assignments, and expenses, noting that these types of companies are not wanted by investors recently and are considered among the rare companies according to the characteristics.
 

We at Deal Real Estate try to explain things in detail about the types of companies in Turkey, so if you find helpful information, you can share the article.