MOST ASKED QUESTIONS ABOUT A LIMITED COMPANY IN TURKEY
MOST ASKED QUESTIONS ABOUT A LIMITED COMPANY IN TURKEY
We have compiled the most frequently asked questions about the establishment of a limited company in Turkey by our entrepreneur friends and prepared an article in the form of a question and answer as follows. We hope that this study, where you can find answers to many of your questions about limited companies, will be useful for you. Apart from these, you can always contact us for your questions. We will be happy to assist you.
The most curious information about limited liability companies in Turkey
1- Can Foreigners Establish a Limited Company in Turkey?
Yes. Foreign persons can establish a company in Turkey. We establish the company of the foreign entrepreneur who comes with his passport in a few days.
2 - Is a work permit required to establish a company in Turkey?
Limited companies are a separate legal person before the law. For this reason, you do not have to obtain a work permit to establish a limited company in Turkey. With your passport, you can establish a company and engage in commercial activities.
3 – How many days does it take to establish a Limited Company in Turkey?
Unless there is a special case, we complete the establishment procedures of limited companies within an average of 3 – 4 working days. Previously, we have established hundreds of companies. We make all the official records and procedures of the company in the most accurate way.
4 – How much minimum capital of Limited Company established in Turkey?
The minimum capital in which a limited company can be established is 10.000 TL. However, we recommend foreign investors to set up with a capital of at least 100,000 TL.
5 – Is it necessary to invest capital when establishing a Limited Company in Turkey?
When establishing a limited company, you do not need to deposit all or part of the capital in the bank. According to the law, you can open a bank account and deposit the capital within two years after the establishment of the limited company.
6 – Can a single person establish a Limited Company in Turkey?
A single person can establish a limited company. You are not obligated to find a partner.
7- Is a Turkish citizen partner compulsory to establish a company in Turkey?
No. It is not obligatory to find a Turkish citizen partner. Foreign persons themselves can establish a company in Turkey and be the legal representative of the company.
8 – Limited companies can be established with a maximum of how many partners?
Limited companies can be established with a maximum of fifty (50) partners.
9 – How much does it cost to establish a Limited Company in Turkey?
In 2023, with minimum requirements, the establishment cost of the limited company starts from 420 USD. Costs are determined according to the number of partners, the amount of capital, the number of foreign partners, and the number of fields of activity of the company.
10 – What are the monthly expenses of the Limited Company in Turkey?
Even if the limited company does not have any activity, there will be stamp taxes and accounting service fee of the tax returns every month. With the minimum requirements in 2023, you can think of these expenses as approximately 100 USD - 140 USD per month.
11 – Can a Limited Liability Company be established at a virtual business address in Turkey?
There is no legal restriction in establishing a Limited company at a virtual business address. If you do not need a physical workplace, you can establish a limited company at the virtual office address.
Our company providing also virtual business adres services.
12 – Can I establish a Limited Company at the address of the house I live in Turkey?
You can set up a limited company by showing a part of the house you live in as a home office. However, if you live in an apartment, it would be helpful to get written permission from each apartment owner in the apartment. In addition, if your house is rent, after the establishment of the company, an additional withholding payment will be made every month, up to twenty-five percent (25%) of the net rental price.
13 – Can Legal Persons establish a Limited Company in Turkey? Can I become a partner in a Limited Company?
Legal entities can establish a limited company in Turkey. They can become partners in limited companies. There is no legal problem.
14 – Can the address of the Limited Company be changed in Turkey?
You can always change the address of your limited company. For this, it will be sufficient to register the company decision to be prepared with the chamber of commerce and tax office.
15 – Is it compulsory to employ workers in a Limited Company in Turkey?
There is no such legal requirement. If you do not need personnel for your commercial activities in Turkey, you can operate as a sole partner/manager.
16 – Can I get a partner after establishing a limited company?
You can always get a partner to your limited company, remove one of the partners or transfer the company to someone else.
17 – Can the capital of a limited company be increased later in Turkey?
The capital of the limited company can be increased later. However, there will be a number of procedures and some chamber of commerce registration costs for this.
18 – How long does it take to close a limited company in Turkey?
The closing of limited companies in Turkey is subject to a three (3) month liquidation process. In addition, it takes an average of one month to enter liquidation and post call-to-credit notices. So, in total, it can be closed in at least four months.
19 – Is it advantageous to establish a limited company in Turkey?
Limited companies are very prestigious in Turkey as they are capital companies. In addition, it is the type of company most preferred by entrepreneurs in Turkey, as the establishment procedures and accounting processes are easier and more cost-effective compared to joint stock companies.
20 – What should I pay attention to when establishing a limited company in Turkey?
When you decide to establish a limited company in Turkey, the most important thing to consider is to determine the correct address to receive support during the establishment of the company. An experienced and dynamic team in these matters will complete all establishment processes without any problems. And by guiding you correctly, it will help establish your company on a legally sound basis and protect your business against financial risks.
21 – What taxes does a Limited Companies pay in Turkey?
Corporation tax ; It is paid on the net profit of the company. The corporate tax rate is 20% for 2023. for the year)
VAT (value added tax) every month
Withholding Every Month – If there is a Personnel/Worker, every month
Quarterly corporate tax (It is the declaration in which the annual corporate tax is declared in advance according to the income obtained every quarter.)
22 – How should the title of the Limited Company be determined in Turkey?
The title of the limited company must include at least one industry name. Example sectors; Textile, Food, Automotive, Machinery, Consulting, Software etc. like.
The title of the limited company or with a very similar title must not have been registered with another company before. (This control is done by us.
The company title should be in Turkish as a general rule. Only the first one or two words are allowed in a foreign language.
23 – Can a person who is not a limited company partner be appointed as a manager to the limited company?
At least one of the limited company partners must be a legal representative/manager. However, in addition, someone who is not a limited company partner can be appointed as a director of the company.
24 – Can a limited company registered in Turkey have more than one legal representative/manager?
In limited companies, more than one manager can be appointed. Each of the directors can represent the company individually (individually).
25 – What documents are required to establish a Limited Company in Turkey?
Notarized Turkish Translation of Passport - 3 originals
Turkey tax number (we get)
three photos
If you have a workplace, the lease agreement
26 – Can limited companies operate in more than one sector in Turkey?
There is no legal restriction on the commercial activities of limited companies. For example, with a newly established Limited company, you can trade in textile products while trading construction materials.
However, for some private sectors (such as private security, pharmacy) they can only engage in activities in their own sectors, as separate operating permits are required from the relevant ministries.
27 - Can I open a bank account for my limited company in Turkey?
You can open a bank account for your limited company that you will establish in Turkey. Since limited companies are separate legal persons, an account can be opened in the name of the company.
However, the crowded branches of some banks are not very willing to open accounts to foreign entrepreneurs who do not speak Turkish. For this reason, we advise foreign entrepreneurs to apply to banks that are not crowded.
28 - What are the documents required to open a Limited Company Bank Account in Turkey?
Notarized passport translation of the partner,
Turkey tax number of the partner,
Chamber of Commerce registration certificate of the limited company,
The activity certificate of the limited company,
Tax certificate of the limited company,
Signature circular of the company director,
Stamps of the limited company,
Note: We are preparing all of these documents. We give it all to you after company establishment.
However, some crowded bank branches may request additional documents from foreign entrepreneurs in addition to these. Each bank has different procedures.
29 - I want to establish a limited company in Turkey. Where should I start?
To establish a limited company in Turkey, you can send your request to us via email or whatsapp application.
In the first place, we prepare a detailed cost table for your company free of charge. We send our service offers together with the costs.
When you accept our offers, we start the process.
If you come to our office with your passport, we quickly do all the transactions, including the virtual business address. On average, we complete all transactions within 3-4 business days.
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