Changing the Company Type in Turkey
Changing the Company Type in TurkeyUpdated on Saturday 17th December 2022
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Investors who want to expand their business can change the company type in Turkey. This is typically done in the case of sole proprietorships of single member limited liability companies. When the investor wishes to upgrade the company he can form a new legal entity, a limited liability company.
Foreign investors in Turkey are allowed to have the same investment rights as nationals. They can establish any one of the available business forms, according to the needs and size of their business.
Options for investors in Turkey
According to the new Companies Law in Turkey investors may choose to form a single-shareholder joint stock company or a single-member limited liability company. Those investors who want to incorporate a company and be its sole members can do so and register it with the Trade Registry. However, if the business grows and the investor wishes to bring more members he can opt for changing the business structure in Turkey.
A sole proprietorship can also be converted into a single-member limited liability company or a single-shareholder joint stock company. This is a good option when the investor still wishes to do business on his own but wants to have the legal status of a company which is generally better perceived by the public.
Our lawyers in Turkey can help you incorporate the new company and make the asset transfer. You will also need to sign new contracts once the business entity is ready to commence commercial activities.
Those who want a residence permit in Turkey can contact our law firm and benefit from the legal services offered. For a process free of errors and complexity, you can talk to our lawyers who can take care of the correct management of the necessary documents. Immigration authorities require a clear criminal record and require registration with the local municipality. We mention that the whole process can take around 3 months if the presented documents are accepted.
Types of companies in Turkey
The single shareholder joint stock company and the single member limited liability company are smaller versions of the joint stock company and the limited liability company.
The Turkish limited liability company is a popular business form, chosen by most investors who want to open a business in the country. The minimum capital for this business form is TRY 10,000.
The Turkish joint stock company, the A.Ș. is suited for larger businesses and the investor can offer the shares to the public. This is not possible in a limited liability company. The minimum capital for the joint-stock company is larger, at TRY 50,000. The shares can be in cash or in kind.
Our experts can help you incorporate any type of company in Turkey and comply with the ongoing legislation for company formation and management.
For more information please contact our law firm in Turkey.