Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Turkey. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Execute and notarize articles of association, signature declaration of the managers and commercial books. | 1 day | Paper cost: YTL 118.13 Notary services: YTL 296.65 Total = YTL 414.78 |
| 2 | Deposit a percentage of capital to the account of Competition Authority | 1 day | 0.04% of capital |
| 3 | Deposit the initial capital in a bank and obtain the certificate of paid-in capital | 1 day | no charge |
| 4 | File the incorporation notice form, commitment letter, and Chamber registration statement at the Trade Registry Office | 2 days | YTL 150 (initial registration fee of Chamber of Commerce) + YTL 695 (commercial registration including first manager’s signature) + YTL 246.20 (for each additional manager) + YTL 0.30 per word for publication+ YTL 2 (Trade Registry Gazette fee)+ YTL 50 (fee for start-up announcement) |
| * 5 | Have a notary certify the legal books | 1 day (simultaneous with previous procedure) | TL 206 (4 books) |
| 6 | Follow up with the tax office on Commercial Registry’s notification | 1 day | no charge |