How to Establish a Limited Liability Company? Things to Consider When Establishing a Limited Liability Company
Limited liability companies, one of the most common types of companies in Turkey, can be established by one or more real or legal persons under a trade name. The important features of the limited liability company, whose establishment cost is quite low, are as follows:
- Limited company capital must be at least 10.000 TL.
- A limited liability company can have a minimum of 1 and a maximum of 50 partners.
- Limited liability companies may be established for any economic activity and purpose without any legal restriction.
- Limited liability companies cannot go public.
Cost of Establishing a Limited Company
The cost of establishing a limited liability company varies according to the amount of capital your company has. However, based on the fact that the capital of the limited liability company should be at least 10.000 TL, the company establishment costs are at least between 1.750 and 2.500 TL. The costs for the establishment of a limited liability company with a capital of at least 10,000 TL are as follows:
Minimum capital limit: 10.000 TL
Costs 2.000 TL
A. Trade Registry Cost 1.200 TL
– Establishment Certification Fee 1.196 TL
– Competition Authority Share 4 TL
B. Notary Costs: 750 TL
– Signature Circular 400 TL
– Vekaletname 350 TL
C. Other Expenses: 50 TL
What are the Documents Required for Limited Liability Company Establishment?
The documents you need at the first stage of the limited company establishment process are as follows:
- Petition
- Establishment notification form
- Notarized contract
- Chamber registration declaration
- Proof of residence
- Photocopy of identity card
- Lease agreement
- Receipt of deposit of the capital
You may also be interested in these:Should Entrepreneurs Start a Limited Liability Company or a Joint Stock Company?
How to Establish a Limited Liability Company Step by Step?
If you meet all the requirements for the establishment of a limited liability company and have provided all the necessary documents, you can start the company establishment procedures. Limited company incorporation procedures take between 3 and 5 days on average.
You should follow these steps for the establishment of a limited liability company:
- In order to carry out company incorporation, you must first agree with a reliable financial advisor.
- After submitting the necessary documents for company establishment to your financial advisor, he/she will prepare the articles of association on your behalf.
- A potential tax number is obtained by uploading the company’s articles of association to the MERSIS system.
- After the articles of association is uploaded to the MERSIS system and approved, the Chamber of Commerce registration is made by making an appointment with the Trade Registry.
- After your Chamber of Commerce registration is completed, registration letter, registration certificate and activity certificate are obtained.
- Legal books are certified and received at the Chamber of Commerce.
- After the company is officially established, the company manager who will represent the company prepares the signature circular with the signature under the company title in the presence of a notary public. The signature circular is required in all processes related to your company.
- After the company establishment is officially realized, thanks to the power of attorney you have given to your financial advisor, the tax office in the field of activity makes the tax registration of the company on your behalf.
- Tax office officials come to your address to check whether you have actually opened your workplace and issue an attendance slip.
- If you provide services in the field of industry, you must also complete the registration of your company with the Chamber of Industry.
- 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 Limited Liability Company?
For the establishment of a limited liability company, it is not enough to complete the necessary documents and find a reliable financial advisor. There are many points to consider and pay attention to during the company establishment process.
Here are some key points you should pay particular attention to when setting up a limited liability company:
- It is very important to carry out this process with your financial advisor in order to include all the important details that should be included in the articles of association.
- 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.
- After the company establishment, you should open a company account from a bank of your choice as soon as possible.
- It should be noted that the capital share of each company partner in the establishment of a limited liability company should be 25 TL and multiples.
For more information, please visit our Company Incorporation Consultancy service page.
