Business Administration in Turkey

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Limited Sirket is a limited liability company.
 
 
500 million TRY, fully paid up at its constitution
2 partners minimum. 50 maximum.
 
 
Liability is limited to the amount of capital contributed.
Execution and Authentication of the documents: TRY 750; Signing of the declaration: TRY 30 ; Deposit of a percentage of capital to local authorities: 0.04% of the capital; Inscription in the Trade Registry: TRY 150 + additional charges; Certification of the commercial books: TRY 46.
The Anonim Sirket is a public limited company.
 
 
5 billion TRY minimum, fully paid up at its constitution
5 partners minimum
 
 
Liability is limited to the amount of capital contributed.
Execution and Authentication of the documents: TRY 750; Signing of the declaration: TRY 30 ; Deposit of a percentage of capital to local authorities: 0.04% of the capital; Inscription in the Trade Registry: TRY 150 + additional charges; Certification of the commercial books: TRY 46.
General partnership
 
 
A capital base must be set up, but no minimum amount is required.
2 partners minimum
 
 
The liability which is on the partners is joint and indefinite.
Execution and Authentication of the documents: TRY 750; Signing of the declaration: TRY 30 ; Deposit of a percentage of capital to local authorities: 0.04% of the capital; Inscription in the Trade Registry: TRY 150 + additional charges; Certification of the commercial books: TRY 46.
Individual company
 
 
The notion of capital does not exist. The assets of the company are merged with those of the head of the company.
1 person
 
 
The businessman is indefinitely liable for the professional debts on the whole of his assets.
Execution and Authentication of the documents: TRY 750; Signing of the declaration: TRY 30 ; Deposit of a percentage of capital to local authorities: 0.04% of the capital; Inscription in the Trade Registry: TRY 150 + additional charges; Certification of the commercial books: TRY 46.
General partnership (SCS) or joint-stock company (SCA)
 
 
SCS: Contrary to joint-stock companies (SA, SAS, SCA), no minimum capital is required to constitute an SCS.The partners decide freely the amount of capital to be paid up at the constitution.
SCA: The same rules as for an SA.
The SCS - SCA is made up of two distinct categories of partners: the active partners and the silent partners.
 
 
The silent partners are the shareholders of the company, and are only liable for debts according to the amount of capital they have contributed. The shares are registered. The silent partners' assembly follows the same rules as in a public limited company (SA).
The active partners have the status of traders, and are appointed by the silent partners. They are indefinitely and jointly liable for debts on their own property.
Execution and Authentication of the documents: TRY 750; Signing of the declaration: TRY 30 ; Deposit of a percentage of capital to local authorities: 0.04% of the capital; Inscription in the Trade Registry: TRY 150 + additional charges; Certification of the commercial books: TRY 46.
 
Business Setup Procedures
The articles must be drawn up by notarial deed and approved by the Ministry of Industry and Commerce.The registration of the company must be carried out after the Ministry's approval at the Register of Commerce in the place where the company has its headquarters. For further details, click here.
The Competent Organization
The Chambers of Commerce and Industry in each region where the headquarters of the company have been set up:
Istanbul ( ITO) ; Izmir ( IZTO) ; Bursa ( BTSO) ; Ankara ( ATO)

Return to top

Working Conditions

Legal Weekly Duration
45 hours. For further details concerning work regulations, click here.
Retirement Age
50 for women and 55 for men.
Working Contracts
The work contract is first and foremost governed by individual negotiation.
The formality of the work contract and the conditions of dismissal are rigid. Dismissals have to be justified only if the number of employees in the firm is more than 30.

Return to top

Cost of Labor

Minimum Wage
305 EUR / month
Average Wage
The average monthly gross earnings in Turkey was USD 1,168 in 2007.
Social contributions
Social Security Contributions Paid By Employers: 19.5 %.
Social Security Contributions Paid By Employees: 14%

Return to top

Social Partners

Social Dialogue and Involvement of Social Partners
In general, the power of the unions is not at all strong.
Unions
DISK
Hak-Is
Turk-Is
KESK
BASK
HAKSEN
Unionization Rate
The unionization rate in Turkey is quite low. The unions are stronger in the public or semi-public sectors.
Labor Regulation Bodies
Ministry of Labor
Employers' confederation
Employers' confederation

Return to top

Any Comments About This Content? Report It to Us.

 
 
Find more on GlobalTrade.net about Operating a Business in Turkey.
 
Read more See less
Experts Views (5)
Hot Tips (1) Go Top
Events (1) Go Top
Post your content

WANT TO APPEAR ON THIS PAGE?

Post content about Business Administration in Turkey and you will be listed here to receive requests for offers.

Contact our expert contributors
  • Alpina Spices Company

    Spices Manufacturer, Turkey

  • Bicak Law Firm

    Turkish Law, Turkey

  • American-Turkish Council

    A Business Association dedicat,

  • JPA International Turkey

    Auditing, Accounting, Taxes, Turkey