New Amendment on Establishing A New Company in Turkey Announced
Ministry of Customs and Trade has declared a revision on company establishment procedures to fasten the establishment processes since preparing the necessary documents regarding the establishment process requires great amount of time and creates great costs. With the announcement being made on December 12, 2016 on the Official Gazette, the amendment made by the Ministry of Customs and Trade has gone in effect.
With the revision and the new amendment, the notaries are taken out from the company establishment processes, leading to save cost and time.
With the new amendment being in effect, the below changes will occur;
- The initial and the most important stage in establishing a new legal entity in Turkey is the Article of Association for the company. Before, the Article of Association had to be notarized for 800 TL. However, with the new amendment, the approval of this document will now be done in Trade Registries and will cost the 10% of the minimum wage.
- The company partners and directors will be able to prepare the circulars of signature regarding their names at the Trade Registries.
- The Article of Association can be sent to approval via the Central Registration System (MERSIS). Instead of having the Article approved at the notary public, the company partners, owners or assigned authorized representatives will need to appear present at the Trade Registry Directorates that is linked with the company address.
- In cases where the company partners, owners or the assigned authorized representatives have an official excuse to conduct the above processes in the Trade Registry, the procedures can be carried on at the notary publics.
- In conducting the necessary stages regarding company establishment, the assigned authorized representatives or the company owners shall represent their Turkish ID cards (if they are Turkish nationals) or shall represent Turkish translated and apostilled passport copies (if they are foreign nationals). Thus, if the process is to be decided to have carried on by a assigned authorized representative, the original PoA (showing the assignation) shall be submitted.
- Before the amendment has been released, the Article of Association was to be examined at the notary public. Now, the document will be examined at the Trade Registry Directorate which will be submitted through the Central Registration System (MERSIS) and if it is compliant with the local regulations, the approval will be granted at the office. One copy of the Article will be kept at the Trade Register. However, in cases where the company owner or the assigned authorized representative fails to submit the petition regarding the establishment to the Trade Registry, within the given three-month period, a Declaration of Intention in regards the process will be required to present by the Trade Registry.
- The company establishment fees, regarding the processes are conducted at once or in separate times will not exceed the 10% of the minimum wage, including the additional governmental fees.
With the amendment announced on the Official Gazette dated Dec. 6, 2016, establishing a company in Turkey has become easier and faster with new directorial changes. Thus, until a second official announcement, the establishment process can also be carried from the notary publics.