business structure

Company Formation

Company Formation in Turkey

MersinCPA provides a quick and easy process to set up Limited Liability Company in Turkey. We are able to complete the process within 5 working days. The entrepreneurs who want to start a business in Turkey, mostly aim to open a limited liability company due to its more flexible structure.

Limited Liability Company Formation

Opening a limited company in Turkey requires minimum 1 shareholder and the number of shareholders cannot exceed 50 real persons or legal entities. The liability of the shareholders is restricted only to the capital subscribed by the shareholder. A minimum capital of 10.000 TL is mandatory. Unlike Joint Stock companies, no stock certificate is issued.
Our services include managing every step of the company formation process. Below is the steps that are required for us to begin the process. Once we have all the required documentation, we will begin the process and after 5 days your company would be ready to conduct business in Turkey.

The Steps of Company Establishment in Turkey

  • 1. To manage the documents will be provided from abroad.
  • 2. Preparation of draft documents, to make explanation to clients for notary apostille process abroad.
  • 3. Translation and notarization of the documents in Turkey.
  • 4. Preparing Article of Association
  • 5. Company Registry in Chamber of Commerce
  • 6. Preparation of Official Books for new company
  • 7. Obtaining Tax Number
  • Liaison Office Set Up

    One of the legal services that we offer is setting up liaison office. As public accountant company in Turkey we offer liaison office set up service for the foreign companies, which would like to take place in Turkey to conduct market search. Companies, located abroad can open liaison office in Turkey, on contrary branch office, liaison offices can’t conduct any commercial activity and can’t get any earning.
    For the liaison office, permission of Directorate General of Incentive Application and Foreign Capital is required. Liaison Office permit is granted maximum three years. After three years for extension, previous years activities and plans for future are considered. Generally after 3 years the main company abroad would like to establish limited liability or joint stock company. In that point we assist our clients to set up the company and offer accounting services. By our experience in setting up liaison office we offer quality services and deal with accounting and payroll matters of liaison offices monthly basis.
    Liaison Offices offer some advantages;

  • To get information about new market
  • Performing promotional and market seach activities before starting commercial business in future
  • To conduct feasibility studies
  • Following up business opportunities
  • Liaison Offices employees’ salary is exempt from income tax.
  • Company Structures

    Limited Liability Company
    In order to set up a Limited Liability Company (LLC) in Turkey only one shareholder and a minimum capital of 10,000 TL are required. Shareholders who wish to establish a Limited Liability Company can be an individual or legal entity. All or some of the founders of an LLC can be foreigner. Setting up a Limited Liability Company is ideal due to its flexible structure. To incorporate Limited Liability Company is easier than setting up a joint stock company in Turkey. The liability of shareholders is restricted with their share capital. Unlike joint stock compaines, an LLC cannot issue stock certificates, LLCs have at least two units; the company' s general meeting and the managing directors.
    Joint Stock Company
    A minimum of one shareholder is required to set up a joint stock company in Turkey. Individuals or companies can incorporate a joint stock company and each shareholder may be a foreigner. A minimum capital of 50,000 TL is required to open a joint stock company in Turkey, that amount indicates the total amount of capital. Joint stock companies can issue stock certification as opposed to limited liability companies. Investors aiming to set up a company in Turkey should consider that important rule. In joint stock companies, shareholders liability is restricted with their share capital. Joint stock companies must have at least three units: general company meetings, a Board of Directors, and a supervisory board.
    Holding Company
    Holding companies generally participate in other companies and hold their outstanding shares. This means that holding companies usually do not conduct business by producing goods or services. Larger companies or multi-sector organizations set up holding companies to allow the free flow of capital and ownership transfer.
    Branch Office
    Companies located abroad, and whose capital is divided into shares can establish a branch office in Turkey. Branch office liability is not restricted with the branch’s capital, it is restricted with the main company’s liability. A foreign legal entity that wishes to open a branch office in Turkey, has to appoint at least one managing director and regarding director must have residence permit in case the director is foreign citizen. Opening a branch office allows foreign companies to enter the Turkish market with minimal operations.
    Liaison Office
    Companies located abroad can open a liaison office in Turkey. Contrary to a branch office, liaison offices cannot conduct any commercial activity or receive any earnings according to Turkish Law. In order to set up a liaison office in Turkey, permission from the Directorate General of Incentive Application and Foreign Capital is required. A liaison office permit is granted for a maximum of three years. After three years the previous year activities and plans for future are considered for an extension.
    Free Trade Zone Company
    Our firm offers company formation services in a free trade zone, Turkey. Free trade zones have tax plus other advantages, that attract investors, MersinCPA provides efficient solutions for foreign entrepreneurs who plan to start a business in a free trade zone.
    Commandite Company (limited partnership)
    Commandite companies are set up to conduct business under a trade name. Some shareholders' liability is restricted with share capital, while other shareholders liability is not restricted. There is no minimum capital requirement.
    Collective Company
    Collective companies are similar to commandite companies, with the main difference being that only individuals establish collective company. The liability of shareholders is restricted with capital share.