Banking & Financial Setup
- Opening a Corporate Bank Account in Turkey
To facilitate financial transactions, manage capital, and comply with regulatory requirements, your company must open a corporate bank account in Turkey.- Steps to Open a Corporate Bank Account: Prior to opening a bank account, your company must secure a Turkish Tax Identification Number. This can be done by applying to the local tax office or through the official online portal.
- Prepare Necessary Documentation:
Banks in Turkey require specific documents to open a corporate account. These typically include:- Company registration documents, such as the Articles of Association and the Certificate of Incorporation.
- Tax Identification Number certificate.
- Proof of the company's registered address.
- Identification and proof of address for authorized signatories and major shareholders.
- A resolution from the company's board of directors authorizing the opening of the account and specifying the authorized signatories.
Each bank may request additional documents or specific formats, so it’s important to check with the bank where you plan to open the account.
- Select a Suitable Bank: Research and choose a bank that aligns with your company's needs. Consider factors such as the bank's experience with foreign investors, the range of services offered, fee structures, and the convenience of branch locations.
- Submit the Application: Present all required documents to the chosen bank. Be prepared for the bank's due diligence process, which may involve interviews and additional information requests.
- Deposit the Initial Capital:
- Joint Stock Companies (JSC): A minimum capital of 50,000 Turkish Liras is required. At least 25% of the nominal value of the shares committed in cash must be paid before registration. The remaining amount should be paid within 24 months following the registration of the company.
- Limited Liability Companies (LLC): The minimum capital required is 10,000 Turkish Liras. It is possible to pay all of the capital brought in cash within 24 months after the registration of the company.
- Pay the 0.04% Competition Authority Fee:
- Before completing the company registration, businesses must pay 0.04% of their declared capital to the Turkish Competition Authority.
- This payment is made to the Competition Authority’s designated bank account and is a legal requirement for all new companies in Turkey.
- Obtain Bank Confirmation: After the deposit, request a bank confirmation letter. This document is often required for subsequent steps, such as finalizing company registration and obtaining operational licenses.
- Minimum Capital Requirements
The minimum capital requirement for your company depends on its legal structure:
(Current values according to the official gazette legislation No. 7887)- Limited Liability Company (LLC): As of January 1, 2024, the minimum capital requirement for an LLC in Turkey is 50,000 Turkish Liras (TRY).
- Joint Stock Company (JSC): For a JSC, the minimum capital requirement is 250,000 TRY.
Key Points:- Capital Payment Timeline: For LLCs, the entire share capital must be paid within 24 months following the company's registration.
- Currency of Capital: The capital can be denominated in Turkish Lira or, in some cases, in foreign currency, depending on the company's structure and agreements.
- Proof of Capital Deposit: The bank confirmation letter serves as proof of the capital deposit and is essential for completing the company registration process.
- Financial Compliance and Reporting
Maintaining compliance with Turkey's financial regulations is vital:- Accounting Records: Ensure that your company maintains accurate and up-to-date accounting records in accordance with Turkish accounting standards.
- Financial Reporting: Regularly submit financial statements and reports to the relevant authorities, including annual balance sheets and income statements.