Do you wish to establish a business in Turkey as an international entrepreneur? Fortunately, there are many opportunities for overseas traders to operate in Turkey. These include partnerships, joint stock companies, and limited liability companies.
The Turkish Trade Code is followed for every type of corporate entity. The Turkish joint-stock company is occasionally referred to as a “public limited liability corporation” because the investors’ responsibility is confined to the sum they paid to the equity. To learn more about Turkish JSC and its registration procedures, continue reading.
Joint Stock Company
In Turkey, one or more limited companies may establish an enterprise with any sum of capital. No regulation in Turkey sets a cap on the number of investors. The entire joint-stock corporation may be owned by a foreign entity.
Turkish law does not require approval from any agency to establish an enterprise. However, the Department of Commerce must approve several entities, including banks, insurance firms, consumer credit businesses, and holdings.
However, the Department of Ports and Commerce will only get involved with these businesses when there is a dispute with the Turkish Business Code’s mandatory norms and restrictions. Turkish Business Law states that, aside from these businesses, an establishment founded in Turkey doesn’t need approval from any authorities.
Conditions to establish JSC
Many conditions must be met by foreign entrepreneurs who want to form an enterprise. A minimum of one shareholder, who might be a natural person or a business, is required for the creation. A joint-stock firm must be founded with at least 50,000.00TL, of which at least 25% must be contributed before the business can be established.
For this kind of firm, there must be a Board of Governors, which may consist of one or more people. Serving on the Board of Directors is not a requirement for investors.
A corporation that has more than 250 investors and trades on the financial exchanges must comply with the State Exchange Board’s regulations. These businesses can also create investment products. Although they do not need approval, international investors must meet several conditions before they can establish a syndicate. These consist of:
- One shareholder;
- The minimum share capital of 50,000.00 TL;
- 25% of the amount submitted before the incorporation, and
- Board of directors.
Steps to register the JSC
The process of creating a joint stock corporation in Turkey entails various steps that must be carefully completed without making any mistakes. These consist of:
- Creating articles of association
The first step is to create the company’s constitution that contains all essential details of the company such as its capital amount and shareholder’s details. This act must be notarized before submission.
- Decide and register the enterprise’s name
Check the company’s name validity through the online portal of company registration. After checking if the name is acceptable, you can register or book it with a registrar.
- Open a bank account
Open a corporate bank account and submit the capital amount in it. Then obtain the bank statement as proof for officials.
Documents required
The documents required at the time of the registration are listed below:
- Request application;
- Three copies of the syndicate’s articles of incorporation;
- Chamber registry statement;
- Bank receipt;
- Bank statement;
- The agreement between shareholders and JSC; and
- An authorized letter by the trade ministry.
It could take a few weeks to register a joint stock corporation in Turkey. Once the filing procedure is complete, the JSC’s incorporation is announced in the Turkish Business Record. A joint-stock corporation must hold yearly general gatherings every three months starting at the end of the calendar year of registration.
