- July 29, 2022
- Posted by: admin
- Category: Blog
All business people are enthusiastic when opening a company in Turkey. However, Many businesses face closure in cases where businesses are not as successful as initially thought, planned sales cannot be made, and expenses are higher than revenues. However, closing a company also has certain procedures. So, we have compiled the details of closing a company in Turkey and how long it takes, the cost of closing the company and the required documents.
Closing a company in Turkey is a very negative situation that no business owner wants to face. However, financial and moral damage to the founders or partners of the enterprises makes the closing of the companies inevitable.
How to Close the Company in Turkey?
Company closure in Turkey is also known as liquidation. Liquidation is the cessation of company operations and closing of company accounts for any reason. With the liquidation process, the relevant records of the companies are deleted, their legal entities are terminated, their activities are stopped and their accounts are closed. Even if the company goes bankrupt, the existence of the company is terminated. Company closure can be done in two different ways. There are different requirements for company closures carried out with or without liquidation.
1- Closure of Liquidated Companies in Turkey:
Liquidated company closures are among the easiest transactions to take place. Limited and joint stock companies are terminated depending on the decisions in the law and company articles of association. Persons who want to close their companies in Turkey should provide information to the relevant tax offices and trade directorates.
The date of commencement of the liquidation of the company is determined as the date when the liquidation of the company is registered with the trade registry. While informing the trade registry, a property declaration containing personal information of the creditors must also be submitted. Upon the approval of the notifications made, the liquidation decision of the relevant company is announced in the registry gazette. Thus, company owners or partners can continue their transactions for 1 year. The company published in the newspaper only makes transactions for the purpose of liquidation during this 1-year period.
2- Company Closure in Turkey without Liquidation:
The decision on closing a company in Turkey without liquidation is taken by the court. The fact that the partners of the company have a disagreement among themselves, that the company’s debts cannot be paid and that the company does not have sufficient resources to continue its continuity is sufficient for a liquidation-free company.
In order to submit a request for company closure in Turkey without liquidation to the court, the partners of the company must not have any faults. If a just cause is found and the company partners are innocent, the application to the commercial courts will be positive and the company will be closed without liquidation. Company closures in Turkey without liquidation take up to 1 year. Failure to pay company debts may prolong this process further. The starting date of the liquidation is determined in accordance with the bankruptcy decision taken in the court.
How Long Does It Take to Close a Company?
For closing a company in Turkey, two different methods can be applied, with or without liquidation. The liquidation process takes approximately 1 year. companies can continue their existence for 1 more year after the liquidation decision. However, in this process, they can only close the company. Company closures without liquidation also take approximately 1 year. However, in case of closing a company without liquidation, the fact that the companies are unable to pay their old debts and that they have existing debts cause this process to be prolonged. With the payment of the debts, the liquidation process is terminated.
How is the Company Liquidation Process in Turkey?
With the emergence of the reasons for the termination of the companies, the liquidation process begins in the companies. In the liquidation process of the company, all of the works and actions that the company started during the working years and could not end yet are completed, all debts and commitments are fulfilled and the creditors are provided to collect their debts, on the other hand, the amounts to be received by the company are collected in the same process, all the assets of the company are converted into money, the debts are completely The remaining share after the payment is distributed among the partners of the company. With the removal of the company from the trade registry, the legal entity also disappears and the liquidation of the company is terminated.