Determining the Appropriate Type of Company for the Business Structure
Determining the type of company that best suits your line of business and capital structure is the first step in planning your financial processes:
- Sole Proprietorships: It is often chosen by entrepreneurs starting businesses in fields such as e-commerce and the service sector. Under the relevant legislation, incorporation procedures can be completed using an electronic signature or a mobile signature.
- Limited Liability Company (Ltd. Şti.): This is a type of company with legal personality in which the partners are liable for the company’s debts only to the extent of the capital they have committed. It can be established with a single partner and is widely used by small and medium-sized enterprises (SMEs) due to its legal obligations and tax structure.
- Corporation (A.Ş.): This corporate structure is suitable for companies with large capital bases and multi-partner ventures. It is subject to various provisions of the Turkish Commercial Code (TCC) regarding legal regulations on the transfer of shares and corporate governance standards.
Incorporation Procedures for Foreign Nationals and Investors Residing Abroad
Under the Direct Foreign Investment Law, foreign nationals and legal entities have the right to establish companies in Turkey. The legal and administrative procedures for investors falling under this scope are as follows:
- Remote Incorporation (Power of Attorney Method): Registration and filing procedures can be carried out without the need to travel to Turkey, through legal powers of attorney issued by diplomatic missions (consulates) or via documents bearing an apostille.
- Potential Tax Identification Number: The issuance of provisional tax identification numbers—a legal requirement for foreign partners and representatives of legal entities—is handled by the relevant authorities.
- Work Permit Procedures: Work permit applications for foreign nationals who will actually serve as managers or executives at the company are coordinated in accordance with the International Labor Force Act and the relevant financial criteria.
Stages of Company Formation and Registration
Company incorporation procedures are completed through the following legal steps, in accordance with the relevant legislation and bureaucratic procedures:
- Preliminary Assessment and Financial Planning: The business’s line of business (NACE Code), name, and capital structure are evaluated in accordance with tax legislation to determine its legal status.
- Articles of Association and MERSIS Procedures: The company's articles of association are drafted in accordance with the provisions of the Turkish Commercial Code and submitted for official approval through the Central Registry System (MERSIS).
- Commercial Registry and Notary Services: Registration procedures are carried out with the relevant Commercial Registry Office, and the necessary legal documents—such as the signature circular and the certification of ledgers—are finalized.
- Tax Office and e-Transformation Activation: The establishment of tax liability, the acquisition of e-Notification passwords, and the transition to mandatory e-Document systems such as e-Invoices and e-Archive Invoices are carried out in accordance with the relevant regulations.
Financial Consulting and Representation Under Law No. 3568
Company incorporation procedures are not merely a matter of registration; they involve establishing the business’s legal and financial infrastructure. During this process, we identify and file administrative applications for legal exemptions under tax legislation (such as the Young Entrepreneur Exemption) and Social Security Institution (SGK) employment incentives on behalf of taxpayers who meet the legal requirements.
Our goal is to ensure that, as you begin your business operations, all your legal filings and incorporation procedures with the relevant authorities are handled accurately, transparently, and completely under the full responsibility of a fully licensed Certified Public Accountant (CPA).