The Turkish Ministry of Industry and Trade (the Ministry) issued Communiqué 2003/3 (the communiqué) in July, simplifying the procedures for setting up joint stock corporations and limited liability companies. The Ministry also removed several bureaucratic requirements, thereby eliminating unnecessary obstacles and ensuring a shortened process for setting up companies in Turkey.
One of the most significant amendments by the communiqué is that it is no longer necessary to obtain permission from the Ministry to set up joint stock corporations and limited liability companies. All that needs to be done, once the articles of association have been signed before a notary public, is to register the articles with the trade registry where the company will be established within 15 days. Previously, permission had to be obtained from the Ministry in order to set up any type of joint stock corporation or limited liability company. But the communiqué does provide that certain joint stock corporations must still obtain permission from the Ministry for establishment or for amending the articles of association. Thus, corporations such as banks, private financial institutions, factoring companies, holdings, corporations that run foreign exchange offices, publicly-held corporations and corporations that establish and operate free-trade zones continue to be subject to Ministry permission.
The communiqué also removed the requirement to obtain permission from the Ministry for amendments to the articles of association of a company. Therefore, amendments are directly registered with the relevant trade registry. Also, since Ministry permission is no longer required for amendments to the articles of association, capital increases are now also directly registered with the relevant trade registry.
All of the changes made by the communiqué guarantee a shortened process for setting up companies in Turkey and remove various bureaucratic hurdles by limiting the Ministry's involvement in corporate activities.
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