Do you need to liquidate a company in Turkey? This article offers you details about the process. You may also collaborate with our Turkish lawyers and explore the key legal services for this procedure.
| Quick Facts | |
|---|---|
| Reasons to liquidate/close a company | If the company was registered for a specific period, if there are financial problems, if creditors are not paid, etc. |
| Types of companies that can be closed | – limited liability companies, – cooperatives, – joint stock companies, – collective companies, – foundations, etc. |
| Legislation observing company liquidation | Company Law in Turkey |
| Voluntary liquidation | After a decision is made at the shareholders’ general meeting |
| Compulsory liquidation | If a petition by creditors is registered at the court |
| Person in charge of liquidation | A professional liquidator & corporate lawyers |
| Can accountants be involved in a company liquidation process? | YES |
| Requirements | – creditors notification, – verification of balance |
| Liquidation request is registered with | The Turkish Trade Register |
| Duration | About 3 months |
| Remaining liquidation procedures | Might add 3 extra months before final notifications. |
| Decision of closing the company | Issued by the Trade Register once the process is concluded. |
| Costs of company liquidation in Turkey | Imply: – fee imposed by the Turkish Trade Register, – for appointed liquidator/accountants/lawyers, etc. |
| Company removal | It is done from the Chamber of Commerce records. |
| Legal services for closing a company in Turkey | Can be provided by our Turkish lawyers. |
Table of Contents
What are the methods to close a company in Turkey?
The liquidation process can be:
- voluntary (as a result of the company’s general assembly decision);
- compulsory or mandatory (after the creditors have filed a petition with a court).
What are the reasons to liquidate a company in Turkey?
- Financial losses,
- Business activity completion,
- Insolvency,
- Company restructuring,
- Mergers/acquisitions, etc.
NOTE: Company shareholders can decide to wind up the company if it no longer serves its purpose or if the firm has an expiration date.
We have prepared an infographic with some of the reasons a company can be closed in Turkey:
Can a company be closed through a court order in Turkey?
Yes.
What types of companies can be closed in Turkey?
- Limited liability company,
- Joint stock company,
- Limited or general partnership,
- Branch office, etc.
REMARK: Each type of business structure follows a specific set of regulations in the liquidation process.
How is a voluntary company liquidation carried out in Turkey?
- the company shareholders approve the dissolution of the company,
- a liquidator is appointed,
- the liquidator is in charge of selling the assets and paying the company’s debts,
- the liquidation financial statements are prepared, alongside the required tax returns,
- the remaining assets are then distributed to the company shareholders.
NOTES:
- once all these company liquidation steps are completed, the deregistration is finalized with the Turkish Trade Register. A notice in this sense will be issued.
- at least one of the liquidators appointed to close a company in Turkey must have a residence in this country. Normally, liquidators can be either natural persons or business entities.
What documents are needed for closing a company in Turkey?
The following documents are necessary to start the company dissolution procedure in Turkey:
- the minutes of the shareholders’ meeting indicating the decision to wind up the company;
- the declaration through which the liquidator who will handle the process is appointed;
- an inventory that shows all the assets of the company is also required;
- the balance sheet showing the company’s financial status must be prepared;
- a declaration of the shareholders through which the inventory and balance sheet are approved.
What is the role of creditors in a company liquidation process in Turkey?
The creditors are officially notified of the company’s liquidation process in Turkey. The Turkish Commercial Code protects creditors in a specific procedure like this.
What is the time frame to liquidate a company in Turkey?
At least 3 months, but it depends on the type of business entity.
In addition to assistance with company liquidation in Turkey, our clients can also receive help with other endeavors. You can contact us for immigration procedures to Turkey. We are here to help foreigners obtain residency in Turkey or maybe even Turkish citizenship by investment. Please contact our law firm in Turkey to learn more about the legal services we offer across a wide range of matters. Our lawyers can also help you set up a business in Turkey in approximately 2-3 weeks.