Turkish Limited Sirket (LS) Company Formation
Over recent years the Turkish government has simplified the procedures required to incorporate a company, both for foreign and domestic investors. A Limited Sirket (LS) is the most common form of company incorporation and is the equivalent to a limited liability company.
The company name must be derived from the primary business activities of the company. Names may be in any language so long as the Registry approves that the Turkish translation is acceptable. Certain words are prohibited and we run a company name check on the proposed company name to ensure it is suitable.
It is mandatory to have a registered office in Turkey which must be a physical address were company correspondence may be sent. We are able to provide a registered address as part of our incorporation package.
Only one director is required to incorporate and there are no restrictions on the nationality or residency of the directors. We will require a copy of the proposed directors’ passports in order to incorporate.
Only one shareholder is required who may be of any nationality or residency. Corporate shareholders are permitted. If the shareholder is an individual we will require a copy of their passport and if a corporate entity we will require a Certificate of Good Standing for that company and the directors’ signature.
The minimum share capital is YTL 5,000 (approximately EUR 1,730) with each individual share being worth no less than YTL 25 (approximately EUR 8.70). Upon incorporation at least 25% of total share capital must be paid up in cash and the remaining paid within three years.
Companies are required to maintain accounts in Turkish language and Turkish Liras. For non-listed companies there is no requirement to file annual financial statements or have accounts audited. All companies must file an annual return and pay the annual government license fee to stay registered.
Typically it takes 10 days to fully incorporate a company, once we have received all necessary documentation including copies of shareholder and director identification documents.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
Travelling to Turkey is mandatory by the director(s) in order to sign the incorporation documents.