Joint Stock Company Establishment Process and What to Do

Joint stock companies are basically companies with a certain capital and divided into shares, and therefore only have liability in the form of assets in cases such as debts etc. Joint stock companies that can be established for any purpose are bound by certain rules during the establishment phase.

Now that we have answered the question of what is a joint stock company, let’s take a detailed look at how to establish a joint stock company. If you want to learn more about establishing a joint-stock company, continue reading our article…

How to Establish a Joint-Stock Company? – Requirements for Establishing a Joint-Stock Company

The necessary conditions for establishing a joint-stock company are specified in the Turkish Commercial Code. We can list these conditions as follows:

• A joint stock company is established with the permission of the Ministry of Customs and Trade.
• The place where the company is established is recorded in the trade registry within 30 days from its establishment.
• The establishment phase of the company is completed with its publication in the Trade Registry Gazette.

However, of course, there are various details for these three stages we have listed to establish a joint stock company. First, we tried to explain the establishment process for you, starting with the documents.

Documents Required to Establish a Joint Stock Company – How to Establish a Joint Stock Company?

In order to answer the question of how to establish a joint stock company, the first point we need to focus on is the documents requested during the company establishment phase. The documents required to establish a joint stock company can be listed as follows;

Company owners;

• Residence document
• Notarized identity document
• Three passport photos

Company;

• Headquarters address
• Workplace lease agreement
• Title
• Capital amount (Minimum 50,000 TL)
• Capital shares/ratios
• Legal representative/manager of the company

Apart from this, the articles of association of the company must also be prepared during the establishment phase of the joint-stock company.

Articles of Association and Its Elements – What is a Joint Stock Company, How is it Established?

The articles of association required for the establishment of a joint stock company must be made in writing, signed by all partners and approved by a notary. According to the Turkish Commercial Code, the following matters should be included in the articles of association:

• Company’s trade name,
• Location of the headquarters,
• Subject of business of the company,
• Nominal value of shares in the company’s capital and the method of payment for these,
• Share certificates,
• Privileges granted to shares,
• Transfer restrictions,
• Rights and similarities other than money attached to the capital and their values,
• Benefits to be obtained from the company’s profits by the founders and board members,
• Board members,
• General assembly meetings and voting rights,
• Company duration, if any,
• How company announcements are made,
• Type and amount of capital shares,
• Company accounting period.

The joint stock company must be established with at least one real person. After the company agreement is prepared, it is registered in the MERSIS system and a registration number is obtained. The MERSIS registration number must also be forwarded to the notary. In addition, the signature declaration to be forwarded to the Trade Registry Office is also prepared at the notary. Similarly, a notarized copy of the ID is also required.

Another thing that must be obtained after registration with MERSIS is the potential tax number. With this number, which is automatically generated in the MERSIS system, the relevant documents must be prepared by going to the notary, then a bank account must be opened and 25% of the capital must be deposited into this account and blocked.

After these procedures, the documents that need to be submitted to the Trade Registry are as follows:

• Notarized company articles of association (3 copies/4 copies for foreign capital companies)
• Signature declaration of the company manager (2 copies)
• Chamber of Commerce registration declaration (with photo)
• Company registration application form (3 copies)
• Founding shareholders information form
• Capital blocking letter received from the bank
• Competition Board share payment (to be paid from the Chamber of Commerce cashier)

Then, in order to open a joint-stock company, the following documents must be submitted to the tax office must be submitted:

• Notarized company articles of association
• Notarized company director’s signature circular
• Lease agreement (or Title Deed copy)
• Company document and trade registry certificate
• Residences of founding partners
• Original or Certified Copies of Identity Documents of Partners
• Business opening notification
• Tax office password request form
• Electronic notification form

If the company needs to register with the Turkish Chamber of Commerce and Industry according to its type for the establishment of a joint stock company, the following documents are required must apply to the relevant authority:

• Chamber of Commerce application form
• Trade Registry Gazette
• Manager signature circular
• Notarized articles of association
• Copies of the identity cards of the company partners
• Residence documents of the company partners

Finally, the relevant documents for municipal transactions can be submitted and the company activities can be started:

• A business opening and operating license must be obtained from the municipality
• Environmental and cleaning tax must be paid
• A lease agreement, if you are a business owner, a title deed sample must be submitted
• Chamber of Commerce registration copy must be submitted
• Company tax plate
• Trade Registry Gazette

Working with Experts Shortens the Joint Stock Company Establishment Process!

Naturally, there are many details and procedures in the joint stock company establishment process that the company owners or partners do not know the details of. Therefore, if you do not want the establishment process of the company to be slowed down by these procedures, getting service from a financial consultancy office that is an expert in the field will make your job much easier.As Fides Consultancy, we provide comprehensive support to our taxpayers during the company establishment phase, ensure that the official procedures are completed quickly and that their companies start operating as soon as possible. If you are wondering how to establish a joint stock company and what the required documents are, you can contact us and benefit from our services.