Establishing a Foundation in Turkey: Essential Steps to Register

Establishing a foundation in Turkey involves navigating through specific legal and administrative procedures. As a leading Turkish accounting firm based in Istanbul, Finlexia Accounting Firm has been assisting clients with their foundation registration needs since 2017. Our expertise ensures a smooth and compliant process for your foundation’s establishment.

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How to Register a Foundation (Vakıf) in Turkey: A Comprehensive Guide

Establishing a foundation in Turkey involves a series of legal and administrative steps that ensure compliance with the Turkish Civil Code and regulations set by the General Directorate of Foundations. The process begins with the preparation of a foundation charter, which must clearly outline the foundation’s objectives, governance structure, and management protocols.

This charter requires the approval and signatures of the founders, who can be either individuals or legal entities. Following this, the application is submitted to the General Directorate of Foundations, accompanied by essential documents such as the founder’s identity details and proof of financial commitment to the initial capital.

The application undergoes a thorough review to ensure all legal requirements are met. Upon approval, the foundation’s establishment is published in the Turkish Official Gazette, conferring legal personality to the foundation.

The next step involves registering with the local civil court and obtaining a tax identification number from the local tax office, both of which are crucial for the foundation’s financial and operational activities. Additionally, opening a bank account in the foundation’s name is necessary to manage its funds.

Compliance with ongoing reporting requirements, including annual financial statements and activity reports to the General Directorate of Foundations, is essential to maintain the foundation’s good standing.

At Finlexia Accounting Firm, we provide comprehensive support throughout this entire process, ensuring that every legal and administrative detail is meticulously handled, allowing you to focus on your foundation’s charitable mission.

What is a Foundation (Vakıf)?

A foundation, or vakıf, in Turkey is a non-profit legal entity established to manage and allocate resources for charitable purposes, such as education, healthcare, culture, and social services. Foundations are governed by the Turkish Civil Code and are subject to oversight by the General Directorate of Foundations.

Steps to Register a Foundation in Turkey

Preparation of the Foundation Charter

• Draft a foundation charter (tüzük) outlining the foundation’s objectives, organizational structure, governance, and management.
• Ensure the charter is compliant with Turkish laws and regulations.

Initial Approval from the Founders

Obtain the signatures of the founders on the charter. A minimum of one founder is required, and they can be either individuals or legal entities.

Application to the General Directorate of Foundations

• Submit the foundation charter and other required documents to the General Directorate of Foundations (Vakiflar Genel Müdürlüğü).
• Include the founder’s identity documentation, proof of address, and financial commitment to the foundation’s initial capital.

Review and Approval Process

• The General Directorate of Foundations reviews the application for compliance with legal requirements.
• The review process may involve additional inquiries or requests for further documentation.

Publication in the Official Gazette

• Upon approval, the foundation’s establishment is published in the Turkish Official Gazette (Resmi Gazete).
• The foundation gains legal personality following this publication.

Registration with the Local Court

• The foundation must be registered with the local civil court within its jurisdiction.
• Submit the approval from the General Directorate of Foundations and the publication in the Official Gazette to the court.

Obtaining a Tax Identification Number

• Apply for a tax identification number from the local tax office.
• This number is essential for the foundation’s financial and administrative operations.

Opening a Bank Account

• Open a bank account in the foundation’s name to manage its financial transactions.
• The initial capital must be deposited into this account as stipulated in the foundation charter.

Compliance with Reporting Requirements

• Ensure ongoing compliance with reporting requirements, including annual financial statements and activity reports.
• Submit these reports to the General Directorate of Foundations and other relevant authorities.

Why Choose Finlexia Accounting Firm?

At Finlexia Accounting Firm, we understand the intricacies of establishing a foundation in Turkey. Our comprehensive services include:

• Legal and Regulatory Guidance: Expert advice on the legal framework governing foundations in Turkey.
• Document Preparation: Assistance with drafting and reviewing the foundation charter and other necessary documents.
• Application Management: Handling the submission and follow-up of your application with the General Directorate of Foundations.
• Tax and Financial Advisory: Guidance on obtaining a tax identification number, managing financial transactions, and ensuring compliance with tax regulations.
• Ongoing Support: Continuous support for compliance with reporting requirements and other regulatory obligations.

Contact Us for Establishing a Foundation in Turkey

Creating a foundation (vakıf) in Turkey requires a meticulous process that ensures full compliance with national regulations. The journey begins with drafting a detailed foundation charter, which must define the foundation’s purpose, governance, and management framework.

For expert assistance with registering a foundation in Turkey, contact Finlexia Accounting Firm. Our team is dedicated to providing professional, reliable, and efficient services to help you achieve your philanthropic goals.