Expert Assistance for Turkish LLC Formation in Istanbul

Forming a Limited Liability Company (LLC) in Turkey involves a detailed process that requires careful planning and adherence to local regulations. The Turkish LLC formation starts with choosing a unique company name and drafting the Articles of Association in accordance with the Turkish Commercial Code.

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Forming a Limited Liability Company (LLC) in Turkey can be a strategic move for entrepreneurs and businesses looking to establish a presence in the dynamic Turkish market. As a leading Turkish accounting firm based in Istanbul, Finlexia Accounting Firm has been assisting clients since 2017 with comprehensive guidance on LLC formation.

What is Turkish LLC Formation?

A Limited Liability Company (LLC) in Turkey is a popular business structure due to its flexibility and limited liability protection for shareholders. The Turkish LLC is governed by the Turkish Commercial Code, providing a legal framework that is conducive to both domestic and international investors.

This type of company is suitable for small to medium-sized enterprises and can be formed by at least one shareholder.

How to Form an LLC in Turkey

Forming an LLC in Turkey involves several key steps that must be carefully followed to ensure compliance with local regulations. Here are the essential steps for LLC formation:

1. Choose a Company Name: The company name must be unique and comply with Turkish naming conventions. It is advisable to conduct a name search to ensure availability.
2. Draft Articles of Association: The Articles of Association outline the company’s purpose, structure, and operations. This document must be drafted in accordance with Turkish Commercial Code requirements.
3. Obtain a Legal Address: The company must have a registered office address in Turkey. This address will be used for official correspondence and must be a physical location.
4. Deposit Capital: The minimum capital requirement for an LLC in Turkey is 50,000. TL Shareholders must deposit their contributions into a Turkish bank account in the company’s name.
5. Register with the Trade Registry: The company must be registered with the local Trade Registry Office. This involves submitting the Articles of Association, bank receipt for the capital deposit, and other required documents.
6. Obtain Tax Identification Number: After registration, the company must obtain a tax identification number from the local tax office.
7. Register for Social Security: If the company plans to hire employees, it must register with the Social Security Institution.
8. Comply with Additional Regulatory Requirements: Depending on the industry, additional licenses or permits may be required.

Responsibilities of an LLC in Turkey

Once the LLC is formed, it has several ongoing responsibilities to ensure compliance with Turkish laws and regulations. These responsibilities include:

1. Financial Reporting: The company must maintain accurate financial records and submit annual financial statements to the Trade Registry Office.
2. Tax Compliance: The company must file periodic tax returns, including corporate income tax, value-added tax (VAT), and other applicable taxes. Timely payment of taxes is crucial to avoid penalties.
3. Employee Obligations: If the company has employees, it must comply with labor laws, including payroll processing, social security contributions, and employee rights.
4. Corporate Governance: The company must adhere to corporate governance principles as outlined in the Articles of Association and Turkish Commercial Code. This includes holding regular shareholder meetings and maintaining transparency in operations.
5. Regulatory Compliance: Depending on the nature of the business, the company may be subject to additional regulatory requirements. It is important to stay informed about industry-specific regulations and ensure ongoing compliance.

Forming an LLC in Turkey is a strategic step for businesses looking to capitalize on the country’s vibrant economy and strategic location. By following the steps outlined above and adhering to the responsibilities, entrepreneurs can successfully establish and operate an LLC in Turkey. At Finlexia Accounting Firm, we provide comprehensive support to help businesses navigate the complexities of Turkish LLC formation and ensure long-term success.

For personalized assistance with your LLC formation in Turkey, contact Finlexia Accounting Firm today. Our dedicated team is here to guide you every step of the way.

Understanding Turkish Limited Liability Company (LLC)

A Turkish limited liability company (LLC), known as “Limited Şirket” in Turkish, is a widely preferred business structure due to its flexibility and limited liability for its shareholders. The Turkish Commercial Code (TCC) governs the formation and operation of LLCs, providing a stable legal framework that safeguards the interests of both investors and entrepreneurs.

Laws and Regulations

The Turkish Commercial Code (TCC) sets forth the legal requirements for forming an LLC in Turkey. To establish a company, the following key steps must be followed:

1. Company Name Reservation: Choosing a unique company name and reserving it at the Turkish Trade Registry is the first step in the formation process. The name must not be in use by another company and should comply with certain naming conventions.
2. Articles of Association: Drafting the Articles of Association is a crucial step, as it outlines the company’s internal rules, rights, and obligations of shareholders and the structure of the company’s management.
3. Capital Contribution: The minimum capital requirement for an LLC is 50,000 Turkish Liras. Shareholders must contribute their share capital within two years.
4. Shareholders and Management: An LLC can be formed with at least one shareholder, and a manager must be appointed to represent the company. There is no need for a Turkish shareholder or a director.
5. Notarization and Registration: The Articles of Association and other relevant documents must be notarized and submitted to the Turkish Trade Registry for official registration.

Duration and Procedures

The duration of forming a Turkish LLC may vary based on the complexity of the business structure and the efficiency of the registration process. On average, it takes approximately two to four weeks from the submission of the required documents to the issuance of the trade registry certificate.

Our team of experienced lawyers at Finlexia ensures a streamlined and expedited process for your Turkish LLC formation, keeping you informed at every step.

Costs of Turkish LLC Formation

The costs associated with forming a Turkish LLC include:

1. Trade Registry Fees: These fees are payable during the registration process and depend on the company’s capital.
2. Notary Fees: Notarization of the Articles of Association incurs nominal fees.
3. Legal and Professional Fees: Engaging the services of a law firm for legal assistance incurs professional fees.

Our transparent pricing policy ensures that you are fully aware of all the costs involved before initiating the process.

Lawyer Services for Turkish LLC Formation

At Finlexia, we understand that navigating the legal intricacies of company formation in a foreign country can be challenging. Our dedicated team of experienced lawyers specializes in Turkish business law, guiding clients through every aspect of LLC formation. Our services include:

1. Legal Consultation: Personalized legal advice tailored to your business needs.
2. Document Preparation: Accurate and comprehensive preparation of all necessary documents.
3. Company Name Reservation: Ensuring your chosen company name is available and reserving it.
4. Company Registration: Efficient handling of the registration process.
5. Compliance Assistance: Ensuring compliance with all legal and regulatory requirements.

Contact us for Turkish LLC Formation

Forming a Turkish LLC offers numerous advantages for entrepreneurs and investors looking to establish a presence in Turkey. At Finlexia, we are committed to providing you with reliable, professional, and result-oriented legal services for your Turkish LLC formation.

Our team of lawyers & accountants is ready to assist you throughout the entire process, ensuring a seamless and successful company formation experience. Contact us today to get started on your Turkish business venture.