How to Register a Non-Profit Organization in Turkey?

Establishing a non-profit organization in Turkey involves a structured process designed to ensure transparency and compliance with legal standards. To register a non-profit organization, it is crucial to begin by defining the type of organization, whether it is an association (dernek) or a foundation (vakıf) as this will determine the specific requirements and governance structure.

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Drafting a comprehensive charter is a critical step; this document outlines the organization’s objectives, membership criteria, governance, and financial management procedures.

The next phase includes gathering the founding members, holding an initial assembly, and notarizing the necessary documents, which typically comprise the charter, identity documents of founders, board member declarations, and proof of headquarters.

The application, along with these notarized documents, must then be submitted to the local governorship or relevant court for review. Upon approval, the establishment of the non-profit is announced in the Official Gazette, marking the official commencement of operations.

Non-profit organizations in Turkey must adhere to stringent governance practices, including maintaining accurate accounting records, conducting regular audits, and submitting annual reports.

They must also comply with fundraising regulations and ensure proper documentation of all financial activities to retain their tax-exempt status.

For comprehensive guidance on how to register a non-profit organization in Turkey and to navigate the complexities of compliance and governance, Finlexia Accounting Firm offers expert support tailored to your specific needs, ensuring your non-profit organization can operate effectively and fulfill its mission.

How to Register a Non-Profit Organization in Turkey: Overview, Procedures, and Responsibilities

Registering a non-profit organization in Turkey involves several legal and administrative steps. Non-profit organizations (NPOs) in Turkey are established for various purposes, including social, cultural, educational, and environmental.

These organizations operate to serve the public interest rather than to generate profit. Understanding the registration process, required documentation, and responsibilities is essential for anyone looking to establish an NPO in Turkey.

Procedures for Registering a Non-Profit Organization

1. Determine the Type of Non-Profit Organization

In Turkey, non-profit organizations can take several forms, such as associations (dernek) or foundations (vakıf). The choice of structure depends on the organization’s objectives, operational scope, and governance model.

2. Draft the Charter

The organization’s charter (tüzük for associations, senet for foundations) outlines the purpose, structure, and operational rules of the NPO. This document should include:

• Name and headquarters of the organization
• Objectives and activities
• Membership criteria and rights
• Governance structure and roles (e.g., board of directors)
• Financial management and audit procedures

3. Founding Members and Initial Assembly

Associations require at least seven founding members, while foundations can be established by one or more individuals. An initial assembly meeting is held to adopt the charter, elect board members, and approve the organization’s formation.

4. Notarization of Documents

The charter and other necessary documents must be notarized. These documents typically include:

• Charter/senet
• Identity documents of the founding members
• Declaration of acceptance from board members
• Proof of the organization’s headquarters (e.g., lease agreement or property deed)

5. Application to the Local Governorship

Submit the notarized documents to the local governorship (İl Dernekler Müdürlüğü for associations or the relevant court for foundations). The governorship or court will review the application to ensure compliance with Turkish laws.

6. Publication and Announcement

Once approved, the establishment of the non-profit organization is announced in the Official Gazette. This step finalizes the registration process and allows the organization to commence operations legally.

Responsibilities of a Non-Profit Organization

Governance and Management

• Board of Directors: Responsible for the strategic direction and overall management of the organization. They ensure adherence to the charter and oversee financial and operational activities.
• General Assembly: In associations, the general assembly consists of all members and holds periodic meetings to make key decisions, such as approving budgets and electing board members.

Financial Management

• Accounting Records: NPOs must maintain accurate financial records, including income, expenses, and assets. Regular audits are required to ensure transparency and accountability.
• Fundraising and Donations: Organizations must comply with regulations regarding fundraising activities and the acceptance of donations. Proper documentation and reporting of funds are essential.

Compliance and Reporting

• Annual Reports: NPOs are required to submit annual reports to the relevant authorities, detailing their activities, financial status, and compliance with regulations.
• Tax Exemptions: While NPOs are generally exempt from corporate taxes, they must adhere to specific guidelines to maintain their tax-exempt status.

Register Non-Profit Organization in Turkey

In Turkey, non-profit organizations are established as either foundations or associations, governed respectively by the “Law for Foundations” and the “Associations Law” as outlined in the 4721 numbered law.

Turkish associations are non-profit organizations with membership, formed to achieve specific objectives stated in their Statute, and are prohibited from generating profits for their members. A minimum of seven founders is required to establish an association.

Steps Required to Register Non-Profit Organization in Turkey

In Turkey, associations are established with a Statute that includes essential details such as the association’s name and headquarters, objectives, planned activities to achieve these objectives, and comprehensive information about the founders (including their names, professions, addresses, and nationalities).

The Statute also outlines the conditions for obtaining or withdrawing membership, the process for appointing members, and the frequency of meetings of the association’s general council. It specifies the responsibilities and powers of the general council, the methods and forms of voting and decision-making, and the responsibilities and powers of the board of management and the audit board, including the election process.

Additionally, the Statute details the number of permanent and reserve members, provisions for establishing branches (including their number, responsibilities, powers, and representation in the general council), the annual subscription amount, internal audit methods, procedures for amending the Statute, and the distribution of remaining assets in the event of dissolution.

Required Capital To Register Non-Profit Organization In Turkey

In Turkey, the recognition of an association’s statute occurs following the submission of the foundation deed, along with other required documents like the statute itself and a membership list, to the Ministry of Interior’s Department of Associations.

The bodies of associations established in Turkey include the general council, the board of management, and the audit board.

Associations in Turkey have the option to organize into federations, requiring a minimum of three associations, or into confederations, which must consist of at least three federations.

Turkish foundations are non-profit organizations without membership, established to achieve specific objectives outlined in their Statute. They are governed by “The new Foundation Law,” which was adopted and implemented on February 20, 2008.

A minimum of 50,000 Turkish Liras is required to establish a Turkish foundation, and the General Directorate of Foundations is responsible for registering these foundations.

Foundations in Turkey must submit annual reports to this body, and if the foundation engages in activities for the public benefit, reports must also be delivered to the Ministry of Finance.

Reach us to Register a Non-Profit Organization in Turkey

Registering a non-profit organization in Turkey involves a thorough understanding of legal requirements and a commitment to fulfilling ongoing responsibilities. By following the outlined procedures and maintaining diligent governance and financial practices, you can establish a successful non-profit organization that effectively serves the public interest.

For detailed assistance and expert guidance on registering a non-profit organization in Turkey, please contact Finlexia Accounting Firm. We are dedicated to supporting your efforts to make a positive impact through your non-profit initiatives.

You may reach our accountants and lawyers to register a non-profit organization in Turkey by visiting our Contact page.