In Turkey, the company establishment procedures, if necessary documents submitted the related trade registry offices, can be completed within one hour. In Turkey, establisment of companies is exempt from duties. Establishing a company in Turkey by foreign real and legal entities is subject to the same rules

as domestic investors.

The trade registry is recorded by 238 trade registry directorates operating within the chambers of commerce under the supervision and audit of the Ministry of Trade

Establishment procedures are performed electronically on the Central Registry System (MERSİS

STEPS OF ESTABLISHMENT

• Preparation of the company contract and approval of the signatures of the founders

Users can start the company establishment process by creating a free membership via MERSİS internet address https://mersis.gtb.gov.tr/. In the preparation of the company contract on MERSİS, Turkish citizens can be added with their ID numbers and foreigners with their passport numbers as partner or authorized.

However, for this process, foreigners must first obtain a tax number from the tax office and register it to MERSIS by applying to the trade registry office.

MERSIS directs the user to fill in the legally required elements of the contract and the company contract is prepared byentering the necessary information. The contract is prepared in Turkish. The company’s potential tax number is also automatically assigned by MERSIS. The founders then sign the contract and it is verified by a competent authority, whether the signatures actually belong them or not. For this process, the founders or their authorized representatives are required to go to the relevant organization. In limited companies and cooperatives, this process is carried out at the trade registry directorate where the company headquarters is located. For other companies, it is possible to apply to the trade registry directorate where the company headquarters is located or any notary public. In case the approval process is requested to be made at a notary public, users can apply to any notary public with the tracking number obtained from MERSİS. Since the contract is transmitted to the notary public by MERSİS electronically, there is no need to go to the notary public with physical print out.

2- Preparation of signature declarations of company officials

The signatures of the persons authorized to represent the company under the title of the company shall be approved by the competent authority and signature declarations shall be prepared. This process is carried out in any trade registry offices in Turkey.

3-Payment of Competition Authority Share and Cash Capital

0.04% of the Company’s capital must be deposited in the bank account of the Competition Authority as “Share of the Competition Authority”. There is no need to go to the bank for this transaction. This amount can be paid in trade registry directorate together with other establishment transactions. In addition, at joint stock companies at least 25% of the shares committed in cash must be deposited into a bank account

opened on behalf of the company before the registration of the company.

4- Application to the Trade Registry Directorate for registration

Upon the application of the founders together with the relevant documents to the registry directorate, the trade registry directorate completes the registration process. In addition, in the establishment of joint stock and limited companies and the cooperatives, the commercial books to be kept by these are approved by the trade registry directorate and given to the related party following the registration. It is also possible to carry out the establishment transactions through a representative authorized by a power of attorney.