Is share transfer subject to registration for Inc’s?
An incorporated company has two partners which are legal persons. One of them is a resident of another country. He transferred his shares through an agreement. The transfer agreement has not been notarized as it was made in the presence of a notary public. Board decision regarding the transfer has been notarized. As I know, in accordance with the new Turkish Commercial Code, share transfer in incorporated companies is not subject to registration. Do we have to make a declaration to the tax authority?
Share transfers after establishment are not subject to registration for incorporated companies. However, reducing to a single shareholder, changing a single shareholder and transition from a single shareholder to multiple shareholders are registered and announced. The transfer must be declared to the revenue administration. It would at least be beneficial in terms of information.
Source: İSMMMO
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