Business structure in Turkey
Incorporating a foreign company
The new Turkish Code of Commerce, in force since July 2012, allows incorporating both public and limited companies with a single shareholder.
Companies established in accordance with other countries’ law are authorised to establish representative offices. Their main limitationis that they cannot perform any activities generating income and all expenses must be covered by contributions from abroad. They are not subject to payment of corporate tax as they do not have any earnings. Representative offices are authorised for renewable three-year periods.
The BS representative office gives its support in the process of incorporating a company in the country and in establishing contacts with local financial entities.
Incorporating a Turkish company is a fast and simple process: one only needs to provide the documents required
A representative authorised to incorporate this has to be appointed, and be a resident in Turkey. The idea of the branch is to keep absolute control over the company’s business with no minority shareholders. Under the present Code of Commerce their interest lies in taking part in tenders.
Incorporating a Turkish company
Under Turkish law there is no difference between companies based on the source of their capital: all have the same rights and obligations.Their company forms are very similar to the ones used in the EU:
at least one partner (natural person or legal entity) and a minimum capital of 50.000 TL.
Limited Liability Company
minimum capital of 5000 TL.