How to Establish a General Trade Company in Turkey?

A general trade company in Turkey, also known as a general trading company, is a business entity that engages in the purchase, sale, and distribution of various goods. It operates within the framework of Turkish commercial laws and is a popular choice for entrepreneurs looking to enter the Turkish market due to its flexibility and broad scope of activities.

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How to Establish a General Trade Company in Turkey: Process and Responsibilities

Establishing a general trade company in Turkey offers a myriad of opportunities for both local and international entrepreneurs. The process involves several steps and requires compliance with Turkish commercial laws and regulations. This guide outlines the key aspects of establishing a general trade company in Turkey, the necessary steps, and the responsibilities involved.

What is a General Trade Company in Turkey?

A general trade company in Turkey operates within the scope of the Turkish Commercial Code (TCC). It is a business entity engaged in a wide range of commercial activities, including buying, selling, importing, and exporting goods and services. Such companies can be set up by both Turkish citizens and foreign investors, providing a platform for diverse business operations.

Steps to Establish a General Trade Company in Turkey

Choose the Type of Company:

• Limited Liability Company (LLC): A common choice for small to medium-sized enterprises, offering flexibility and simpler management.
• Joint Stock Company (JSC): Suitable for larger businesses, requiring more formalities but providing benefits such as the ability to offer shares to the public.

Prepare the Articles of Association:

Draft the articles of association outlining the company’s purpose, structure, and operational guidelines. This document must comply with the TCC.

Register the Company Name:

Ensure the chosen company name is unique and not previously registered. This can be verified through the Turkish Trade Registry Gazette.

Notarize Required Documents:

Notarize the articles of association, signatures of the founders, and other necessary documents.

Deposit the Initial Capital:

For an LLC, deposit at least 25% of the initial capital into a bank account in the company’s name before registration. The remaining amount can be deposited within two years.

Register with the Trade Registry Office:

Submit the notarized documents and the bank deposit receipt to the local trade registry office. This step officially establishes the company.

Obtain a Tax Identification Number:

Apply for a tax identification number from the local tax office. This number is essential for tax and social security registrations.

Register for Social Security:

Enroll the company with the Social Security Institution (SGK) to comply with employment and social security regulations.

Open a Bank Account:

Open a corporate bank account to manage the company’s financial transactions.

Publish in the Trade Registry Gazette:

Announce the company’s establishment in the Turkish Trade Registry Gazette, a mandatory step to complete the registration process.

Responsibilities of a General Trade Company in Turkey

Compliance with Legal Regulations:

Adhere to the TCC and other relevant laws, ensuring all business activities are lawful and transparent.

Financial Reporting:

Maintain accurate and up-to-date financial records. Prepare and submit annual financial statements to the relevant authorities.

Tax Obligations:

Fulfill all tax obligations, including corporate tax, value-added tax (VAT), and other applicable taxes. Submit regular tax returns and make timely payments.

Employment and Social Security:

Comply with labor laws and social security regulations. Ensure employees are registered with the SGK and their rights are protected.

Corporate Governance:

Implement sound corporate governance practices. This includes conducting regular board meetings, maintaining proper records, and ensuring accountability and transparency in all operations.

Import and Export Regulations:

For companies involved in international trade, adhere to import and export regulations, including customs duties and trade compliance requirements.

Establishing a general trade company in Turkey involves a structured process and a commitment to ongoing compliance with legal and regulatory requirements.

By following these steps and fulfilling the associated responsibilities, entrepreneurs can successfully set up and operate a general trade company in Turkey, leveraging the country’s strategic location and vibrant economy to achieve business success.

For detailed assistance with establishing a general trade company in Turkey, contact Finlexia Accounting Firm. Our Turkish accountants team is dedicated to providing comprehensive support throughout the entire process, ensuring a smooth and efficient establishment of your business.

General Trade Company in Turkey

Moreover, we have established more than 260 general trade companies for our foreign clients including Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.

How Many Days Needed for Establishing a General Trade Company in Turkey?

We can form your general trade company and open bank accounts and get online banking in 1-2 days if partners are in Turkey and the company formation process will be faster and cost less.

We can form your general trade company remotely if you are not in Turkey, however, the setup process will be longer and cost more.

Steps for Establishing a Limited Company in Turkey

According to the Turkish Commercial Code, a limited company (LLC) requires a minimum of one partner and it can be a legal entity or a real person, there can be a maximum of 50 shareholders. The partner/partners can be Turkish or foreign as well. Foreigners can own 100% of a company and transfer their profit out of Turkey without any problems.

The minimum required capital for a limited liability company is 50,000. -TL (Turkish lira). The capital of the company shall be paid in two years and up to four installments.

Roadmap for Establishing a Company in Turkey

• Partners’ passport translation and notarization
• Obtaining tax ID numbers for the partners
• Getting Power of Attorney from the partners for company formation before the Notary Public
• Determining and reserving the company title
• Signing a lease contract for the company address
• Preparing online company establishment procedures
• Filing company details at the Istanbul Chamber of Commerce online
• Filing company Articles of Incorporation online and getting it approved
• Filing all the documents at the Istanbul Chamber of Commerce and paying official company registration fees
• Obtaining a company registration certificate from the Istanbul Chamber of Commerce
• Getting signature circular notarized at Notary Public
• Giving Power of Attorney to an accountant on behalf of the company
• Opening company bank account

We Need the Following Documents for Establishing a Company in Turkey

From Real Persons;

• 2 Translated and notarized passport copies
• 2 Passport photos
• Power of Attorney to us for incorporating the company from each shareholder

Bank Account Opening for Your Company

We open bank accounts for companies established in Turkey. Nowadays, there is a huge demand for bank account opening by foreign companies in Turkey. We assist you in opening company bank accounts.

We need the below documents for the company bank account:

• Company articles of incorporation.
• Shareholders’ and directors’ passport copies and their addresses prove documents such as a utility bill.
• Turkish tax ID number for each shareholder (we will get it).
• Signature circular for the company.
• Company stamp.

Reach us for Establishing a Trade Company

Setting up a general trade company in Turkey requires comprehensive knowledge of local regulations and meticulous planning. At Finlexia Accounting Firm, our experienced team can guide you through every step of the process.

With Finlexia Accounting Firm, you can establish your general trade company with confidence. Contact us today to discuss your business needs and let us help you navigate the complexities of starting a business in Turkey.

You may reach us to establish a general trade company in Turkey through our Contact page.