Purchasing a Company in Turkey
Purchasing a Company in TurkeyUpdated on Sunday 26th January 2020
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Many businessmen worldwide choose to buy a company in Turkey instead of registering one, due to many benefits this kind of entity has to offer. Our Turkish lawyers can provide you with the necessary information and guidelines, besides the legal assistance if you want to purchase a company in Turkey, like a limited liability company, joint stock or partnership.
How to legally purchase a company in Turkey
The Turkish Commercial Code is the fundamental legislation which oversees the proper transfer of shares. Before the negotiation process, the parties will need to agree upon the new structure of the company, the purpose and the assets involved. In this matter, the “Letter of Understanding” (LOU) and the “Share Purchase Agreement” (SPA) are the main documents involved in a company transfer or acquisition in Turkey.
The Letter of Understanding is made under certain conditions and terms and contains details about the new owner of the company in Turkey, about the financial statements, the payment of the purchase, technical due diligence and requirements associated with the access to the enterprise’s accounts. The Banking Regulatory Supervision in Turkey will control and analyze the bank statements and the transactions involved when purchasing a company.
Why purchase an already registered company in Turkey?
If you buy a registered business in Turkey you will obtain its trading history, the personnel (not mandatory, but recommended) that already knows how things run and also you will have access to the database of clients. Such business is definitely a proper investment with many advantages and considering its history you will analyze if there are changes to be made or if you can improve certain areas for a better understanding of the necessities, in order to align according to the requests on the market.
As a recommendation from our lawyers in Turkey, it is necessary to hire a local accountant who can value the business and analyze the assets before making any decision. You can solicit help for VAT registration in Turkey.
Make sure to contact our law firm in Turkey for additional information about how to purchase a company in Turkey.