Company Establishment Guide Step by Step in Turkey
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Company Establishment Guide Step by Step in Turkey

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# Company Establishment Guide Step by Step in Turkey

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**Article Article Company Establishment Guide**

If you are operating in a commercial area or serving in the industry, establishing a company is among the things you need to do. The process of setting up a company, which imposes the obligation to issue invoices and pay taxes, is a priority issue, especially for entrepreneurs who will start a new business. To learn the step-by-step guide and cost of starting a company, you can research questions such as how to start a company and what to do.

**Company Formation Process**

Companies can be defined as legal entity structures created by one or more people for profit purposes. They can be set up to provide products or services to operate in any industry. Capital, goals, and long-term goals are elements that are influential at every stage of a company’s founding process.

When talking about the process of establishing a company, it should first be noted that it can be detailed according to the type of company. Each type of company may have different establishment conditions and the advantages and disadvantages may be different from each other. In this article, we will discuss the establishment steps of companies in general and the differences between company types from time to time.

The 3 most common types of companies operating in Turkey are:

1.Private company

2.Limited company

3.Joint stock company?

If you have a business idea that excites you, you’re probably thinking about how to implement it as soon as possible. As mentioned, although the conditions of starting a business may vary according to the type of business, as a general rule, the stages of starting a business are as follows:

1\. Deciding which job to start

2\. Preparing the charter and registering it in MERSIS and approving it

3\. Obtaining the possible tax number of the company through MERSIS

4\. Ask the Chamber of Commerce to register the incorporation of the company

5\. Obtaining the signature circular from the notary public

6\. Certification of legal documents by notary public and commercial registry

7\. Execution of Tax Office transactions. At this stage, the company establishment declaration must be filled out and sent to the tax office. This is how the company is registered with the tax office.

8\. Obtaining an operating permit from the municipality to establish a company

9\. Industrial organizations must register with the Chamber of Industry. There may be differences in the process depending on the type of company, field of activity and some other situations. Determining the area, notary transactions, renting a workplace and preparing a business plan are the most important elements when establishing a company.

**Documents Required When Establishing a Company**

In the process of establishing a company, it is important to collect the necessary documents in full. Documents required for each type of company may differ. The documents requested for the establishment of a private, joint stock and limited liability company are as follows:

The documents required to establish a sole proprietorship include a photocopy of the identity card, a certificate of residence, a lease agreement or title deed showing the workplace address, a passport photo, a power of attorney given to a financial advisor, a signature declaration and a personal company establishment form.

The documents required for the establishment of a limited company include the company establishment notification form, the certificate of residence of the partners, the passport photo and identity copies of the partners, the document showing that the capital has been deposited, the contract signed at the notary public, the lease agreement or title deed document showing the company address, the documents showing the capital and shares of the partners, the declarations showing the chamber registration and the documents showing the company management (manager and representatives).

The documents required for the establishment of a joint stock company include the approval of the articles of association, a copy of the identity card for each partner, a certificate of residence for each partner, each partner’s signature declaration, a bank receipt showing that the capital has been deposited, a document showing the company address, a document showing the company representative, the company title, a bank letter proving that 25% of the capital has been blocked, and a room registration document.

**What are the Advantages of Establishing a Company?**

Depending on the type of company, the advantages of starting a company differ. Forming a sole proprietorship, limited liability or joint stock company each has some advantages over the other. The main advantages of establishing a company are:

Private companies are among the fastest and least costly types of companies to set up. Starting a sole proprietorship can speed things up, especially when you’re starting a new business and facing capital constraints. In addition, accounting and financial advisory costs may be less than other types of companies because the transaction volume is usually low.

One of the biggest advantages of limited companies is the payment of taxes at fixed rates. In private companies, there is a gradual tax increase. In limited liability companies, the liability of the partners is limited to their capital, which reduces corporate risks.

Among the main advantages of establishing a joint stock company is that the shareholders can easily transfer their shares. The liability of the partners is again limited to their capital. It is also easy to issue bonds and stock certificates for joint stock companies, and they are considered more prestigious by banks than other types of companies.

A gradual tax increase in sole proprietorships may initially provide an advantage, but over time may create a disadvantage. Joint stock and limited liability companies, on the other hand, are subject to a fixed tax rate, so this rate does not change over time. Entrepreneurs aiming to build a brand from scratch should create their business plans by consulting a financial advisor about the advantages and disadvantages of each type of company.

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