How to Establish a Joint Stock Company? Things to Consider When Establishing a Joint Stock Company
A joint stock company, which is one of the most common types of company in Turkey, can be established by one or more real or legal persons under a trade name. The important features of the joint stock company, which is the company type preferred especially by entrepreneurs waiting for investment and enterprises that will generate high income due to the advantage of a fixed tax rate, are as follows:
- The share capital of a joint stock company must be at least 50.000 TL.
- The minimum number of shareholders in a joint stock company is 1 and the maximum number is 500.
- Joint stock companies may be established for any economic activity and purpose without any legal restriction.
- Joint stock companies have the right to issue shares and bonds.
Cost of Establishing a Joint Stock Company
The cost of establishing a joint stock company varies according to the amount of capital your company has. However, based on the fact that the capital of the joint stock company should be at least 50.000 TL, the company establishment costs are at least between 2.000 and 5.000 TL. The costs for the establishment of a joint stock company with a capital of at least 50,000 TL are as follows:
Minimum capital limit: 50.000 TL
Costs 3.000 TL
A. Trade Registry Cost 2.000 TL
– Establishment Certification Fee 1.980 TL
– Competition Authority Share 20 TL
B. Notary Costs: 950 TL
– Signature Circular 550 TL
– Power of Attorney 400 TL
C. Other Expenses: 50 TL
What are the Documents Required for Incorporation?
The documents you need at the first stage of the joint stock company establishment process are as follows:
- Petition
- Approval of articles of association
- Signature declaration for all partners
- A copy of the identity card of all partners
- Chamber registration declaration
- Receipt of deposit of the capital
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How to Establish a Joint Stock Company Step by Step?
Joint stock companies may be established for any economic purpose and subject not prohibited by law. However, in this process, you need to work with a reliable financial advisor both in the process of completing your documents and in the process of company establishment.
You should follow these steps for the incorporation of a joint stock company:
1. As a first step, you should hire a financial advisor to handle the incorporation process on your behalf.
2. You need to submit the documents required for company establishment to your financial advisor.
3. After receiving the documents, your financial advisor will prepare the articles of association on your behalf.
4. The articles of association of the company is uploaded to the MERSIS system and a registration number is obtained at the approval stage.
5. After obtaining the MERSIS registration number, the registration number is submitted to the notary and the articles of association is signed by all partners and notarized.
6. The signature declaration of the authorized person representing the company at the notary public and notarized copies of identity cards that must be submitted during the notification of commencement of work at the tax office are also prepared.
7. With the potential tax identification number obtained from the MERSIS system and the documents obtained from the notary public, a company bank account is opened in a preferred bank and at least 25% of the capital is deposited into this account and blocked.
8. Receive a document from the bank about the capital blocking. The capital in the bank is unblocked after the official establishment of the company and can be withdrawn by the company in cash.
c9. All the documents prepared up to this point are taken to the Chamber of Commerce and the company is registered.
10. After your Chamber of Commerce registration is completed, registration letter, registration certificate and certificate of activity are obtained.
11. Legal books are also certified and received at the Chamber of Commerce.
12. After the company is officially established, the company becomes a legal entity and the company official prepares the signature circular with the signature under the company title in the presence of a notary public together with the company documents obtained from the Chamber of Commerce. The signature circular is required in all processes related to your company.
13. After the company is officially established, the tax office in the field of activity will register the company on your behalf with the tax office thanks to the power of attorney you have given to your financial advisor.
14. Tax office officials will come to your address to check whether you have actually opened your workplace and issue an attendance slip.
15. If you provide services in the field of industry, you must also complete the registration of your company with the Chamber of Industry.
16. Finally, after completing the procedures for your company by going to the municipality, you can now start to operate commercially in your company.
What to Consider When Establishing a Joint Stock Company?
As in every company establishment process, it is not enough to collect the necessary documents and find a reliable financial advisor for the establishment of a joint stock company. There are many important points to be considered during the company establishment process.
Some of the main points to be considered when establishing a joint stock company are as follows:
- You should carry out this process together with your financial advisor for all important details that should be included in the articles of association.
- Joint stock companies must be established under a trade name, as legal persons are merchants, and the trade name must be registered in the Trade Registry.
- Since it is a capital company, the trade name of the joint stock company must be related to the subject matter of the business that the company serves.
- The company’s articles of association must include the names and surnames of all shareholders, board members and managers, as well as their residence, citizenship status and Turkish Republic ID numbers (foreign ID numbers in case of foreign citizenship).
- The articles of association of the company must include the trade name of the company and the location of its headquarters, the company’s field of activity with details, the names, surnames, titles and citizenship information of the directors, the nominal amount of the capital, the number of capital shares, their nominal values and the groups of capital shares, and the form of announcements to be made by the company.
- You should print documents such as invoices, delivery notes, collection receipts, expense receipts that you will use in your commercial activities through a printing house.
- In the establishment of a joint stock company, the value of a capital share may be at least 1 Kurus.
- Joint stock companies have the right to issue shares and bonds. However, joint stock companies do not have the right to issue bearer shares unless the entire capital of the company is paid in full.
- The process of share transfer in a joint stock company is realized through the method of changing hands as a security. However, it is not possible to sell the share certificates received in return for the capital placed in kind such as goods or property during the establishment of the company before two years have passed.
For more information, please visit our Company Incorporation Consultancy service page.
