Set Up a Foundation in Turkey
Set Up a Foundation in TurkeyUpdated on Saturday 15th December 2018
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Foreign enterprisers and companies are allowed to create various types of businesses in Turkey. From structures which can be registered in other countries to business forms which are particularly found in Turkey, the local legislation provides for an environment which favors foreign investments. However, the Turkish legal framework also enables companies and individuals to create organizations for non-profit purposes. The law governing the establishment of non-profit organizations (NGOs) is the Foundations Law which was enabled in 2008.
The Foundations Law offers the definition and the requirements for establishing a foundation or an association in Turkey. Our lawyers in Turkey can offer information on the Foundations Act.
Turkish foundations according to the law
The Turkish law acknowledges two main types of foundations: private and state-owned ones. However, depending on who establishes them and what their purpose is, Turkish associations are further divided into:
- - asset-based foundations;
- - member-based foundation;
- - foundations set up for raising funds;
- - family-sponsored foundations;
- - company-sponsored foundations.
Our law firm in Turkey can offer additional information on the types of non-profits organizations accepted by the Foundations Law.
Requirements to set up a foundation in Turkey
First of all, an individual or a Turkish company will need a minimum amount of 200,000 USD, while the maximum amount accepted is 400,000 USD to set up a foundation. The money must be kept in Turkish banks owned by the state, while the managers of the foundations must have financial qualifications.
How to set up a foundation in Turkey
No matter who opens the Turkish foundation, an agreement which will be signed before a public notary will be drafted. Then the foundation will be entered into the Department of Associations’ evidence by filing the foundation deed.
Foreign NGOs are also allowed to set up operations in Turkey under the form of branch or representative offices. They will need a permission from the Department of Associations in order to become operational.
For information on the requirements related to setting up an association in Turkey, please contact us. You can also rely on our Turkish lawyers if you want to open a company in this country.