Limited Company Establishment Process and What to Do

Commercial companies are basically divided into two as individual and capital companies. If we leave out individual companies, which we will not mention for now, capital companies are also divided into two as joint stock companies and limited companies. In fact, we have previously written an article about joint stock companies and answered the question of what they are and how they are established. If you are interested, you can also read our article what is an anonim company. We started by talking about capital companies and joint stock companies first, because we need this information to answer the question of what a limited company is. While a capital of 50,000 TL and at least one up to 500 shareholders are required to establish a joint stock company, these figures are much lower for establishing a limited company. A capital of 10,000 TL is sufficient to establish a limited company and the number of partners can be at least 1 and at most 50. So how is a limited company established? Let’s take a look at the answer to this question in more detail below if you wish…

How to Establish a Limited Company? – Requirements for Establishing a Limited Company

The documents required for establishing a limited company and the company’s liabilities are specified in the Turkish Commercial Code. According to the new regulations, the establishment of a limited company, which can be carried out from a single center, is realized by depositing a capital of 10,000 TL into the bank and blocking 25% of it. However, according to the new regulations, this 25% blocked amount is also deposited back into the company account within two years. The requirements for establishing a limited company can be listed as follows:

• The general assembly of the company must be determined.
• The managers who are involved in the management of the company and represent the company must be determined. The company is managed and represented by the company manager appointed by the general assembly.
• Only one legal entity and one board member are sufficient.

The documents required to establish a limited company are as follows:

• Establishment notification form,
• A contract approved by a notary,
• ID photocopies and biometric photographs of the company partners,
• A receipt showing that the company capital has been deposited into the bank,
• A lease agreement for the workplace where the company will be established,
• Chamber registration declaration,
• Showing the partners’ shares and capital ratios document,
• Document showing the company representative and manager,
• Mersis screen printout,
• Bank receipt deposited for the Competition Authority.

Establishing a limited company is generally the most commonly established type of company due to its low capital requirement and the fact that it can be established with a small number of people. In this respect, it is much more advantageous for small and medium-sized businesses, especially compared to joint-stock companies.

How to Prepare a Limited Company Agreement? – Establishing a Limited Company

One of the issues you will encounter when you set out to establish a limited company is the preparation of the company’s articles of association. After the articles of association are prepared, they must be notarized and entered into the Mersis system. In the limited company agreement;

• Company’s trade name,
• Address,
• Capital amount,
• Shares of partners,
• Name, surname, title and citizenship information of company manager or managers,
• Announcement forms should be included.

After the articles of association are entered into the Mersis system, the Mersis number obtained from the system is the company’s tax identification number. With this number, the company capital must be deposited into the opened company account within two years.

Sending Documents to the Trade Registry and Registration Process – How to Establish a Limited Company?

Another issue you need to deal with during the establishment of a limited company is the documents to be sent to the trade registry. For this, the documents you need to submit to the chamber of commerce you are affiliated with are as follows:

• Mersis screen printout,
• Power of attorney for company establishment,
• Chamber registration and declaration,
• Information form about company partners,
• Bank receipt deposited for the Competition Authority,
• Limited company establishment application form.

Following the application, you should obtain the activity certificate, registration letter and registry certification documents, prepare your company’s books with these documents and certify them at the notary. The limited company establishment process is basically completed with the completion of the registry procedures.

Tax Office Notification – What is a Limited Company, How is it Established?

Although the establishment of a limited company is generally completed, let’s say that there are a few more procedures you need to do. The first of these is to notify the tax office about the establishment of the company. To do this;

• Lease contract
• Registration letter
• Registration certificate
• Opening notification
• And you must submit the partners’ ID, notarized ID copy and residence to the tax office.

After you submit these documents, the tax office performs the inspection and registration process and gives you an inspection slip.

Chamber Registration and Municipality Procedures – How to Establish a Limited Company?

Finally, if your company provides services in the industrial sector, you should register with the Chamber of Industry as well as the Chamber of Commerce. For this;

• Application form,
• Signature circular,
• Trade registry gazette,
• Partners’ identity and residence documents,
• And the articles of association are needed.

In addition, to apply to municipalities;

• Business opening document,
• Business contract,
• Environment and Cleaning Tax receipt,
• Trade registry gazette,
• Tax plate,
• You must submit the registration copy documents given by the chamber of commerce to the municipality where your business is affiliated.

Get Professional Support, Don’t Get Lost Between Procedures!

Although establishing a limited company may be easier compared to other alternatives, it still requires the collection of many documents and submission to the relevant authorities. Therefore, not receiving professional support during the establishment of the company may cause the process to slow down and even be interrupted. At this point, we would like to emphasize that as Fides Consultancy, we provide comprehensive support to our taxpayers during the establishment of a limited company and provide fast and flawless solutions in fulfilling official procedures. Just focus on the productivity of your company, and let Fides Consultancy handle the rest for you!