On March 10, 2018 Law on Amending Certain Laws for Enhancing Investment Environment w. no. 7099 ("Omnibus Law") was published in the Official Gazette. The Law is important because it cuts down certain costs and shortens/simplifies the procedure of establishing a company in Turkey. Below are the two most significant changes;
- Prior of the enactment of the Omnibus Law, companies were required to authenticate their commercial books and signature declarations before the notary public. This requirement was creating extra costs and was complicating the procedure. With the new Law, authentication of these documents can now be made by the trade registry officials at the local trade registries.
- Pursuant to Turkish Commercial Code, shareholders were required to pay in 25% of the share capital of a newly formed company prior to registration of the company with the local trade registry. With the Law, this requirement has been repealed for Limited Companies. Please note that this requirement will still be in force for Joint Stock Companies.
These changes will enter into force today (March 15, 2018) therefore it is possible to state that establishing a company in Turkey will require less effort and resources as of today.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.