What should you pay attention to when starting a company? We will examine company types, company registration steps, and required documents in detail in this blog post.
Recently, especially with the effect of the pandemic, people have started to either directly establish their own businesses or look for a second source of income through their existing jobs. Some are looking for ways to earn income by utilizing their knowledge as freelancers, while others are doing e-commerce.
In any case, if you want to start your own business, you need to establish at least a sole proprietorship. If you wish to carry out large-scale commercial activities, it may also be beneficial for you to establish a limited liability or joint-stock company.
In our country, the only way to trade without establishing a company is to benefit from the artisan exemption. The main condition for this is that you produce the products you will sell at home without using industrial-type machinery. Details regarding the artisan exemption are included in Article 9 of the Income Tax Law.
Before establishing your company, don't forget to check your trade name, create an articles of association via MERSu0130S, and make your KOSGEB application prior to the establishment.
Company Registration Steps
The first step in establishing a company is to decide which type of company you will set up. Depending on the needs of your business, you should decide whether to establish a sole proprietorship or closely examine other options.
We can mention different criteria in choosing the company type. Before the establishment, a decision should be made considering these criteria. For example, regarding earnings expectation, if your annual earnings expectation is around 100-200 thousand TL, we can say that establishing a sole proprietorship will meet your needs. If you aim to exceed this amount, it will be more appropriate for you to establish a company subject to corporate tax.
The main situation to consider regarding future issues such as receiving investment, transferring the company, and acquiring real estate is your own special conditions. In other words, while one of the criteria might point you toward establishing a sole proprietorship, you might face a legal restriction saying that only joint-stock companies can perform the specific business you intend to do. According to another example, all criteria might tell you to establish a limited liability company, but if you qualify for the young entrepreneur exemption, you can re-examine the criteria accordingly and decide that establishing a sole proprietorship is more suitable.
Establishment of a Limited Liability Company
The first stage of establishment is the preparation of the articles of association. For this, the company name is determined through the chambers of commerce's MERSIS application and sent to the relevant chamber for approval. Afterwards, the partners, managers, and members of the company are specified in the articles of association. In addition to this information, your company's fields of activity must also be included in the articles of association. After all this information is determined, MERSIS is logged in, and the potential tax number and tax office details are obtained from the system.
Today, the obligation to block a quarter of the capital in Limited liability companies has been abolished. For this reason, it is sufficient that the minimum capital amount required for the establishment of a limited liability company, which is 10,000 TL, is transferred to the company account within 2 years. After all these stages are completed, an appointment must be made with the Chamber of Commerce for the company's trade registry, and this process must be completed.
Establishment of a Joint-Stock Company
The establishment steps can be listed as follows:
u2022 Preparation of the articles of association
u2022 Approval of the articles of association in the trade registry
u2022 Obtaining a potential tax number
u2022 Depositing the relevant portion of the capital into the bank
u2022 Payment of the Competition Authority share in the amount of four ten-thousandths of the capital
u2022 Submission of the required documents for establishment to the trade registry
u2022 Notification of opening to the tax office
u2022 Registration with the relevant chamber, if any (such as chamber of industry, chamber of commerce)
The first stage of establishment, just like in a limited liability company, is the preparation of the articles of association. After the company name is determined, the general assembly and board of directors' members are specified and included in the articles of association. The company's fields of activity must also be indicated in the articles of association.
Actually, when we look at it in a general sense, the establishment of a joint-stock company is almost the same as the establishment of a limited liability company. Except for some minor differences in the process, unlike limited liability companies, one-fourth of the minimum capital amount of 50,000 TL in joint-stock companies (or this amount if your capital is higher) is deposited in the bank and blocked. Then, the relevant documents are submitted to the trade registry.
The chamber of commerce completes the establishment by creating the necessary books. Following the chamber of commerce transactions, the establishment of the company is reported to the relevant tax office, and finally, registration is made with the relevant professional chamber if necessary.
In fact, with the tax audit/verification (yoklama), your company is established. However, of course, immediately after this process, you must decide on the type of invoice you will use and, if necessary, make your agreements with marketplaces.
WorqCompany is a financial technology startup that, after establishing your company, helps you manage all your financial processes such as accountant management, pre-accounting service, e-invoice, income-expense, and capital, developed by software teams in accordance with the needs of your company.
