The second part of the reader's question concerning company law is as follows: “The problem being as far as we know is that a foreign citizen cannot be involved in an ‘adı şirket' unless s/he is a resident of Turkey. That is the sticking point, as I, for one, though a frequent visitor to Turkey, will most likely not be spending enough time there to be considered a resident. Is there a way around this or would we be better to straight away go down the route of a limited company? Any advice would be greatly appreciated. May I kindly ask you not to disclose my name? Hoping you can help. Regards”
Residence permit basics
Foreigners can enjoy their stay in Turkey for a three-month tourist visa period. An extension to the three-month tourist visa may be granted for an additional three months only. Foreigners who wish to stay longer should obtain a residence permit. In order to apply for a work permit in Turkey, applicants should have a residence permit valid for at least six months.
The applicant's nationality is important regarding the process of obtaining a residence permit. Group A countries' citizens and group B countries' citizens are subject to different regulations regarding the residence permit process. Group A countries include EU member countries and members of the Organization for Economic Cooperation and Development (OECD). Group B countries are all countries not in group A.
An incorporated company is the simplest form of company in Turkey. The company is not a legal person and the assets of the company are under the joint possession of the shareholders. All shareholders should act in concert when engaging in transactions involving the company's assets. This is not flexible but is rather difficult to handle in day-to-day business. For instance, if the shareholders of company acquire capital such as real estate, it must be registered in the names of all shareholders in the land registry with consideration to proportion (i.e., how much each shareholder contributed).
The articles of association or the constitution of the company are not subject to any requirement vis-à-vis form and can even be concluded verbally. However, it is a good idea to make a written and signed agreement amongst the partners/shareholders.
Each shareholder in an incorporated company shall have a single vote, and all resolutions should be made unanimously. All shareholders are considered to have an equal proportion of shares if there is no consideration in respect to share proportions in the agreement.
The biggest difficulty with an unincorporated company is that if one shareholder leaves, the company is subject to liquidation.
To sum up, I recommend you pursue the limited company option as it is familiar and easier to manage.
NOTE: Berk Çektir is a licensed attorney at law and available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com. The names of the readers are disclosed only upon written approval of the sender. DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner.
