The Decision on Increasing the Minimum Capital Amount for Joint Stock and Limited Companies (Decision Number: 7887) (Decision) was published in the Official Gazette No. 32380 dated 25.11.2023. The decision will enter into force on the date of its publication, effective from 01.01.2024. In accordance with the decision, minimum capital amounts will be as follows:

The minimum capital amount for joint stock company registration in Turkey, 50,000 TL to 250,000 TL,
The minimum capital amount for limited registration in Turkey, 10,000 TL to 50,000 TL,
The minimum initial capital amount for non-public joint stock companies that have accepted the registered capital system has been increased from 100,000 TL to 500,000 TL.
According to the announcement dated 27.11.2023 published by the Ministry of Trade, existing companies with capital below these amounts are not obliged to increase their capital. However, the Ministry of Commerce stated that it is beneficial for companies to increase their capital at least in the mentioned amounts in order to strengthen their equity structures.

What are the Necessary Steps for Company Registration in Turkey in 2023?

Step-by-Step Process: How to Register Your Company in Turkey Hassle-Free

Are you considering expanding your business to Turkey? Registering your company in a new country can often be a challenging and time-consuming process. However, it doesn’t have to be that way. In this step-by-step guide, we will walk you through the process of registering your company in Turkey hassle-free.

Whether you are a small startup or an established multinational corporation, understanding the local regulations and legal requirements is essential to ensure a smooth and successful company registration. From choosing the right business structure to obtaining necessary permits and licenses, we will cover everything you need to know to get your business up and running in Turkey.

Our expert team has compiled a comprehensive guide that outlines each stage of the registration process and provides valuable tips and insights along the way. With a user-friendly approach and clear instructions, you’ll be able to navigate the complexities of Turkish company registration with ease.

Stay tuned for our step-by-step guide on how to register your company in Turkey hassle-free and make your expansion dreams a reality.

Understanding the legal requirements for company registration

Setting up a business in Turkey requires adherence to specific legal requirements. Understanding these requirements is crucial to ensure a smooth and hassle-free registration process. The legal framework for company registration in Turkey is governed by the Turkish Commercial Code, which outlines the rules and regulations that businesses must follow.

To register your company in Turkey, you need to be familiar with the different business structures available. The most common types of companies in Turkey are Joint Stock Company (JSC), Limited Liability Company (LLC), and Branch Office. Each structure has its own advantages and considerations, so it’s important to choose the one that best suits your business needs.

When registering your company in Turkey, you’ll also need to consider the industry-specific regulations that may apply to your business. Certain sectors, such as finance, healthcare, and energy, have additional licensing requirements that you need to fulfill. It’s important to research and understand these regulations to ensure compliance from the start.

Choosing the right business structure for your company

Selecting the appropriate business structure is one of the most important decisions you’ll make when registering your company in Turkey. Each structure has its own legal and tax implications, as well as varying levels of liability for the shareholders.

1. Joint Stock Company (JSC): A JSC is suitable for larger businesses that plan to raise capital through the stock market. It requires a minimum capital of 50,000 Turkish Lira (TRY) and is subject to more stringent reporting and auditing requirements.
2. Limited Liability Company (LLC): An LLC is a popular choice for small and medium-sized businesses. It offers limited liability protection for shareholders and requires a minimum capital of 10,000 TRY. An LLC can be established with a single shareholder and has more flexibility in terms of management and decision-making.
3. Branch Office: A branch office is a suitable option for foreign companies looking to establish a presence in Turkey without creating a separate legal entity. It operates as an extension of the parent company and is subject to the same regulations and liabilities.

Consider your business goals, capital requirements, and liability preferences when choosing the right business structure for your company in Turkey. Consulting with a legal professional or business advisor can help you make an informed decision.

Decide your company name

Before starting company registration process, you need to check a unique name for your company. The name checking process in Turkey is handled by the Central Registry Gazette (MERSIS). To check your planned  company name, you’ll need to provide basic information about your business. If you can send us your ideas we can both structure and check the planned name.

It’s important to choose a name that accurately represents your business and complies with the naming rules  set by the relevant regulations. The reservation of the name is not possible before the registration of business in Turkey. However, you can plan name a name by checking the existing company names in the database.

Prepare the necessary documents for registration

To register your company in Turkey, you’ll need to prepare several documents. The specific requirements may vary depending on the business structure you choose, but the following documents are generally required:

1. Articles of Association: This document outlines the internal regulations and governance structure of your company. It includes information about the shareholders, board of directors and company objectives.
2. Notarized Signatory Circular: This document designates the individuals authorized to represent your company and make legally binding decisions on its behalf. This document will be prepared after the company is registered in Turkey.
3. Passport Copies: You’ll need to provide passport copies of the shareholders and authorized representatives of your company. Such copies shall be either apostilled or notarized.
4. Address Confirmation: Proof of address for the company’s registered office, such as a lease agreement or utility bill, may be required. You can get benefit from virtual offices in Turkey.
5. Bank Letter: A bank letter confirming the deposit of the minimum required capital for your chosen business structure. Such requirement is applicable for Joint Stock Companies in Turkey.
6. Potential Tax Number: A unique numbers for foreigners to start the company registration process.

Ensure that all documents are accurately prepared and notarized before submitting them for registration. Working with a professional legal advisor can help you navigate the documentation process smoothly.

Public notaries in Turkey or Turkish consulate around the world can notarize the documents for opening a company in Turkey. Furhhermore, Turkey is the party of Hague Apostille Convention. Therefore the documents which have appostile annotation is valid for the business registration process. For details you can read apostille in Turkey.

 Open a bank account for your company

To operate legally in Turkey, you’ll need to open a bank account for your company. The bank account will be used for various financial transactions, including paying taxes, employee salaries, and managing business expenses.

Choose a reputable bank in Turkey and provide the necessary documentation to open the account. The required documents usually include your company’s certificate of activity, notarized signatory circular, passport copies of shareholders and authorized representatives, proof of address for the registered office, tax plate of the company and potential tax numbers for the shareholders.

Once your bank account is set up, you can deposit the minimum capital required for your chosen business structure. For limited companies in Turkey, you do not have to deposit the minimum capital amount. However, for the JSC such ¼ of the capital amount must be blocked for starting the company registration process. The bank will issue a letter confirming the deposit, which you’ll need to submit during the registration process.

Submit your application for company registration

With all the necessary documents prepared, it’s time to submit your application for company registration. You shall do this online through the Central Registry Gazette (MERSIS) system to get an appointment. Appointments for company registration in Turkey is given generally in 2 days after the application.

The appointment process typically involves completing an application form, attaching the required documents, you submitted online and paying the registration fees. Once your application is submitted, it will be reviewed by the trade registry office, and if everything is in order, your company will be registered.

The publish of the registration usually takes couple of hours, depending on the workload of the trade registry office. During this time, it’s important to monitor the progress of your application and address any additional requirements or inquiries promptly.

 Obtain your tax number and register for VAT

After your company is registered, you’ll need to obtain a tax number. The tax number is used for various tax-related obligations, such as filing tax returns and issuing invoices.

To obtain your tax number, your company registration process need to be finalized. Please do not mix up the potential tax number and company tax number. Potential tax numbers are for the shareholders of companies and the tax number is for the companies registered in Turkey.

Issue Signature Circular

Signature circular is a legal document in Turkey that shows the authorized signatories. You can be eligible for signature circular for your company in Turkey once the registration is published. The process of issuance the signature circular is taken place in notary publics. If you are not in Turkey and need to issue a signature circular such transaction can be done in Turkish Embassies or consulates.

The process is briefly you put your signature specimen in front of notary to prove that such signature really belongs to you.

Register with the relevant authorities

Depending on the nature of your business, you may need to register with additional authorities or obtain specific licenses and permits. For example, if you’re operating in the food and beverage industry, you may need to register with the local health department and obtain a food service permit.

Research the industry-specific regulations that apply to your business and ensure compliance with all necessary requirements. Failing to register with the relevant authorities or obtain required permits can result in penalties or even the suspension of your business operations.

Conclusion: Successfully registering your company in Turkey

Registering your company in Turkey doesn’t have to be a daunting process. By understanding the legal requirements, choosing the right business structure, and following the step-by-step process outlined in this guide, you can register your company hassle-free.

Remember to consult with legal professionals or business advisors to ensure compliance with all regulations and to address any specific requirements for your industry. With the right guidance and preparation, you can navigate the complexities of company registration in Turkey and embark on a successful business venture in this dynamic and vibrant market.

So, what are you waiting for? Start your journey to expanding your business in Turkey today!

Conclusion: Successfully registering your company in Turkey

Now you  are ready to embark on a new chapter of your business journey. The process may have seemed daunting at first, but by following this step-by-step guide, you’ve navigated the complexities of Turkish company registration with ease.

Remember, compliance with local regulations and ongoing legal and financial responsibilities are essential for the continued success of your business in Turkey. Stay informed about any changes in laws or regulations that may affect your operations and seek professional advice when needed.

We hope this guide has provided valuable insights and guidance for registering your company in Turkey hassle-free. Good luck with your expansion plans and may your business thrive in the vibrant Turkish market!

Now for your further questions please read our FAQ section below, check our blog and watch our videos.

Forget the procedures, focus on your business in Turkey. Because setting up a business in Turkey is easier than you think.  Besides that, if you want to establish a company in Turkey, initial consulting is completely free. Please feel free to ask us.

How Long Does it Take to Register a Company in Turkey ?

The requirement of an office for your Company

To establish a company a legal address is required. However, virtual office or home office is acceptable by Turkish law. The average monthly fee for virtual office is lower than the other countries. We do not have a virtual office service, however we do let you connect our partner virtual office provider without any markup. Our partner virtual office provider is one of the most economical in the market.

The requirement of a resident permit after company formation in Turkey

If you are going to live in Turkey, you also require to have a resident permit. However, this is a separate process. Company formation does not automatically grant you resident permit, however having a company will make your resident permit process easier. We also give you a service for a resident permit, please consult is with this regard.

The requirement of a work permit after company formation in Turkey

If you are the single shareholder and director of the company, you do not need work permit. However, if you are going to employ a foreigner, you require a work permit.

The minimum required capital for Company Formation in Turkey

The minimum capital required is 50.000-TL for LLC (from 01.01.2024). However, you do not need to make this payment at the beginning. You can make this payment within 2 years.

Commercial Bank Account Opening in Turkey

For this type of bank accounts, company registration in Turkey is required. Commercial bank account opening in Turkey can be done by an authorized company director. Firstly, the tax number should be obtained for the company. The registered company in Turkey does not need to be operational.

What is Required to open a commercial bank account in Turkey ?

Besides, the company in Turkey does not need an office. So, in order to open a commercial bank account in Turkey, the address is sufficient. The company director should apply the bank with the required documents. Such documents should show the authority of the company director. Besides, the documents should be notarized. The notarization can be done by a public notary in Turkey or Turkish Consulates.

Personal Bank Account Opening in Turkey

Firstly, the applicant should define a notification address. Some banks require resident permit, some banks do not. This requirement depends on the internal policies of the banks. Secondly, the applicant should obtain potential tax number. Finally, with the passport, address and the tax number the applicant can open a bank account.

Above mentioned procedures may vary depends on the banks. In order to get consulting company registration in Turkey and Bank account opening please contact us.