December 05, 2024
REGISTRATION OF LIMITED LIABILITY COMPANY IN TURKEY
INTRODUCTION
Limited Liability Company (“LLC”), also known as “Limited Şirket” (Ltd. Şti.) in Turkey, is a popular choice for both local and international entrepreneurs due to its simple process of establishment and dissolution, flexibility, and the advantage of limited liability.
An LLC in Turkey can be fully owned by foreign investors. Through a power of attorney, a foreigner who has never visited Turkey can still become a shareholder in a Turkish LLC.
STEPS TO INCORPORATE LLC
Preparing necessary documents: The first step is to prepare the essential documents to establish Limited Liability Company, which will include the name and address of the company for the registration, subject matter of the company, the company’s purpose, capital, management structure, and operational rules.
DRAFT ARTICLES OF ASSOCIATION (“AOA”)
The AOA should include the following:
- Founders’ names, addresses, and citizenship details
- The company’s name and business activity
- The company’s address and capital structure
- Names and nationalities of the directors
APPLICATION TO LOCAL TRADE REGISTRY OFFICE (MERSIS)
- The local Trade Registry Office must receive the Articles of Association, registration form, identification documents, Tax ID, shareholder contact information, evidence of share capital deposit, and other necessary paperwork. A centralized system known as MERSİS (Central Registration Recording System) is used for all company registration procedures.
TAX REGISTRATION
- Once the Articles of Association have been certified by a notary public or the trade registry office, the company must apply to the appropriate tax authority to receive a provisional tax identification number. To open a bank account, you must have this temporary tax identification number.
ENROLLMENT OF E-REGISTRATION
- The company must complete e-notification registration with the tax office within 15 days of tax registration to avoid administrative fines. This process involves enrolling the company in the Electronic Notification System (E-Notification), allowing the company to receive official communications and documents electronically. The registration is done by submitting the necessary documents to the relevant trade registry office, which activates the e-notification feature for the company.
PUBLICATION
- After the company is registered, its establishment must be announced in the Turkish Trade Registry Gazette. You can confirm this by receiving a copy from the registry office. Additionally, a registration certificate will be issued for your company. Once the registration process is complete, the LLC must also be registered with the relevant tax and social security offices.
CONCLUSION
In conclusion, setting up an LLC in Turkey is a clear and simple process that can take approximately 10 days, allowing for 100% foreign ownership. Key steps include preparing documents, registering with the local Trade Registry Office via the MERSİS system, obtaining a tax ID, completing e-notification registration, and ensuring the company’s establishment is published in the Trade Registry Gazette. These steps ensure your LLC is fully compliant and ready for operation in Turkey.
HOW WE CAN HELP?
- We provide comprehensive support throughout the LLC registration process in Turkey, ensuring compliance with all regulations.
- We assist in preparing essential documents and the application for trade and tax registration, ensuring they meet all requirements for incorporation submission for the respective obligations.
- We offer services to help you open a corporate bank account, obtain necessary business licenses, and register for taxes, ensuring your LLC is fully operational.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
