legal entity – Muhasebe News

How to Get Certificate of Residence in Turkey?

MuhasebeNews — Fri, 08 Nov 2019 09:00:15 +0000

How to Get Certificate of Residence in Turkey?

Certificate of residence is an evidentiary formal document of full tax liability in the residing country of an individual or a legal entity.

The provisions of Double Taxation Agreements (DTA) are applied to the residents of the contracting countries. Individuals or legal entities who want to benefit from the agreements may request a certificate of residence showing that they are full liable taxpayers from the competent authority of the country in which they are resident.

In this scope; certificate of residence is obtained by residents in Turkey (taxpayers with a full tax liability) who derive income from a party country to a Turkey’s applicable DTA in order to be taxed according to provisions of the related agreement.

– If you are a foreign individual who is a resident of Turkey;

You may get your certificate of residence by applying to The Presidency of Turkish Revenue Administration Department of European Union and Foreign Affairs with a petition, questionnaire for foreigners and your domicile certificate or a copy of your work permit certificate. (If you apply for the certificate to submit to the competent authority of Azerbaijan, in addition to the documents above, you have to submit the DTA forms (5 forms) which can be obtained from Ministry of Taxes of Republic of Azerbaijan or web site of the Ministry “www.taxes.gov.az” filled in except for the part F.

– If you are a legal entity,

You may get your certificate of residence by applying with a petition to

Large Tax Payers Office Directorate, if you are a taxpayer of this department,
The Tax Office Directorate of Ankara, Antalya, Bursa, İstanbul, İzmir, Kocaeli, Trabzon if you are a taxpayer of these Directorates.
The Presidency of Turkish Revenue Administration, Revenue Administration Department of European Union and Foreign Affairs if you are not one of the above-mentioned taxpayers or you apply for the certificate to submit to the competent authority of Austria, Switzerland and Saudi Arabia.

Your application will be evaluated by the competent authority and your certificate of residence will be sent to your address by post if approved.

Source: GİB-Revenue Administration
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Basic Information about Corporation According to Turkish Code of Commerce

MuhasebeNews — Mon, 22 Oct 2018 13:25:59 +0000

1- What does “Corporation” Mean?
Corporation means a company whose capital is specified and shared and which is in charge of its own assets because of its debits. (Article 329 of the Turkish Code of Commerce)

2- What is the field of activity of a Corporation?
Corporations can be found for all kinds of economic goals and subjects that are not forbidden by law. (Article 331 of the Turkish Code of Commerce)

3- What is the minimum amount of capital for Corporations?
The original capital referring to the committed capital in articles of incorporation cannot be less than 50.000 Turkish Lira. On the other hand, the initial capital in non-public corporations, who accept the registered capital system showing maximum realm of authority given to Board of Directors for capital increase, cannot be less than 100.000 Turkish Lira. (Article 332 of the Turkish Code of Commerce)

4- How many partners are needed in order to establish a Corporation?
There should be one or more than one founders in order to establish a Corporation. (Article 338 of the Turkish Code of Commerce)

5- When should a Corporation make payments for capital in cash?
25% of par value of subscribed capital in cash should be paid before the registration and the rest should be paid within 24 months after the registration. However, the absolute amount of premiums on issued shares should be paid before the registration. (Article 344 of the Turkish Code of Commerce)

6- What is the borrowing prohibition of Corporation shareholders?
Shareholders cannot become indebted to the company until they fulfill liabilities due (which come out because of capital subscription) and the profit of the company (with free reserves) becomes equal to losses of previous periods. (Article 358 of the Turkish Code of Commerce)

7- Members of the Board of Directors in Corporations
There are one or more than one members in the Board of Directors who are appointed with the articles of incorporation or by the Board of Directors. (Article 359 of the Turkish Code of Commerce)

8- What is the term of Office of Board of Directors?
The term of office of Board of Directors should be maximum 3 years. Unless indicated otherwise in the articles of incorporation, the same person can be appointed again. (Article 362 of the Turkish Code of Commerce)

9- Can a member of the Board of Directors be suspended from his/her duty earlier?
Even if they are appointed with the articles of incorporation, members of the Board of Directors can be suspended from their duties earlier on condition that there is a provision related to the agenda or there is a justified reason (even if there is no provision related to the agenda). Legal entity who is a member of the Board of Directors can change the person being the representative on behalf of it. (Article 364 of the Turkish Code of Commerce)

10- Which Board Administrate the Corporation?
A Corporation should be administrated and represented by the Board of Directors. (Article 365 of the Turkish Code of Commerce)

Source: the Turkish Code of Commerce Numbered 6102

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

What is Legal Entity?

MuhasebeNews — Thu, 22 Feb 2018 14:29:42 +0000

What is Legal Entity?

1- What is legal entity?

Legal entity is a person or a community of commodities that are established with a specific purpose and have an independent legal personality, also the power to possess right, commodity and debt.

2- Which commodities can be given as the examples of legal entities?

Limited Companies

Joint-stock companies

Associations

Foundations

Cooperatives

Unions

Political Parties

Sports Clubs

3-Who represents legal entities?

Real people, who compose the above mentioned legal entities, were chosen and represent the legal entities within a specific frame.

4- How Legal entities are composed?

The real people who compose legal entities come together with a common purpose and they apply to the proper authorities and the community is shaped in the eyes of law.

Are Directors and Shareholders of a Limited Company Responsible for Unpaid SSI Premium Debts in Turkey?

MuhasebeNews — Wed, 11 Oct 2017 13:00:57 +0000

1- ARE DIRECTORS AND SHAREHOLDERS OF A LIMITED COMPANY RESPONSIBLE FOR UNPAID SSI PREMIUM DEBTS?
Directors in Limited Companies are jointly and severally responsible for all debts originating during their term of office with their business legal entity.

On the other hand, Shareholders in Limited Companies are responsible for debts, which cannot be completely or partially collected from assets of legal entities or will not be able collected, at the ratio of their shares.

2- WHAT IS THE RESPONSIBILITIES OF TRANSFEREE/TRANSFEROR IN CASE OF SHARE TRANSFER IN A LIMITED COMPANY?
In case of share transfer in a Limited Company, the transferee and the transferor are responsible for paying overdue premiums and other debts belonging to the period before transfer at the ratio of their shares.

Source: SSI

What is the Partnership and Capital Structure in Corporations?

MuhasebeNews — Mon, 03 Jul 2017 15:20:49 +0000

1- WHAT IS THE CAPITAL STRUCTURE IN CORPORATIONS?
Corporations are established by one or more than one real person or legal entity under a commercial name. Its capital is defined and divided into shares and it is only responsible for its own assets for its debts. Capital base is 50.000 TL for the companies which accept original capital system and each share is worth 1 kurus and the multiples of it.

2- HOW MANY SHAREHOLDERS CAN ESTABLISH A CORPORATION?
Corporations can be established with 1 shareholder. If the number of shareholders exceeds 250, that Corporation will be subject to the regulations of Capital Markets Board.

Source: Turkish Code of Commerce

What is the Partnership and Capital Structure in Limited Companies?

MuhasebeNews — Mon, 03 Jul 2017 14:26:37 +0000

1- WHO CAN ESTABLISH A LIMITED COMPANY?
Limited Companies are established by one or more than one real person or legal entity under a commercial name. The original capital should be determined and that capital consists of total amount of capital stocks. Shareholders are not responsible for company debts. They are responsible for paying capital stocks that they undertake and fulfilling additional payments and subsidiary liabilities that are provided in the articles of incorporation. A limited company can be established for every kinds of economical purpose and subject that are not forbidden by law.

2- HOW MANY SHAREHOLDERS CAN ESTABLISH A LIMITED COMPANY?
It can be a one-man company; however, the number of shareholders should be maximum 50. The company can turn into one-man company afterwards. In this case, this fact should be notified to directors within 7 days. After this notification, directors are supposed to enroll and declare that company has been turned into one-man company. Company cannot acquire its own share in order to be the sole shareholder.

3- WHAT SHOULD BE THE AMOUNT OF CAPITAL OF A CO. LTD?
Minimum amount of capital in limited companies should be at least 10.000 TL and a a share should be at least 25 TL and the multiples of it.

Source: Turkish Code of Commerce

If a Legal Entity Becomes a Partner during Incorporations, What Should be Done?

MuhasebeNews — Fri, 30 Jun 2017 08:58:53 +0000

Legal entities can be assigned to the Board of Directors in Corporations and Limited Companies; however, real person(s) representing legal entities cannot be assigned as a Member of Board or a Director. If a legal entity is assigned, there should be a real person assigned as a representative.

There should be participation decision made by a legal entity. This participation decision should be notarized; furthermore, capitalization and its representative should be stated.

Source: Turkish Code of Commerce

What are the Tax Incentives Applied in Organized Industrial Zones in Turkey?

MuhasebeNews — Tue, 02 May 2017 12:32:15 +0000

Incentives regarding the income and corporate taxpayers located in organized industrial zones are stated in Incentive of Investment and Employment Law numbered 5084. Taxpayers functioning in these regions covering the provinces in scope of the law numbered 5084 are supported with income tax withholding incentive, employer contribution of insurance premium incentive, free investment land allocation and energy support.

1.Income Tax Withholding Incentive
(Law numbered 5084 a.3, a.7/h and General Communiqué of support for investment and employment serial number 1 and number 2)

2.Employer’s Contribution Incentive
(Law numbered 5084, a.4, a.7/h)

3.Free Investment Place Assignment
(Law numbered 5084, a.5)

4.Energy Support
(Law numbered 5084, a.6, a.7/h)

5.Legal entity of organized industrial zones is exempt from all types of tax and fees about the implementation of Organized Industrial Zones Law numbered 4562.
Wastewater fee is not taken from the zones operating a water treatment plant.

(Law n.4562, a.21)

1- Land and work-place deliveries of economic entities formed for the foundation of organized industrial zones are exempt from Value Added Tax (Value Added Tax Law a.17/4-k)

2- Economic entities founded by public body or professional institutions with real and legal entities, using all of its income to meet the requirements of these places, to prepare the infrastructure of organized industrial zones and small industrial sites and to ensure the common requirements such as: land, electricity, gas, steam and water are exempt from corporate tax. (Corporate Tax Law a.4/n)

3- Buildings in organized Industrial regions benefit from real estate tax exemption for the following 5 years after the finish of their construction. (Real Estate Tax Law a.5/f)

4- Allotting or distribution or integration procedures of the real properties in Organized industry or technology development regions are exempt from duties. (Duties Law a.59/n)

5- The buildings and plants constructed at the Organized industry zones, industries, and Small Crafts Sites are exempt from Construction Duty and duty of the certificate of occupancy. (Revenues of Municipalities Law a.80)

Source: Revenue Administration

Getting a Certificate of Residence in Turkey

MuhasebeNews — Mon, 03 Apr 2017 06:40:40 +0000

Certificate of residence is an evidentiary formal document of full tax liability in the residing country of an individual or a legal entity.

The provisions of Double Taxation Agreements (DTA) are applied to the residents of the contracting countries. Individuals or legal entities who want to benefit from the agreements may request a certificate of residence showing that they are full liable taxpayers from the competent authority of the country in which they are resident.

– If you are a foreign individual who is a resident of Turkey;

You may get your certificate of residence by applying to The Presidency of Turkish Revenue Administration Department of European Union and Foreign Affairs with a petition, questionnaire for foreigners and your domicile certificate or a copy of your work permit certificate. (If you apply for the certificate to submit to the competent authority of Azerbaijan, in addition to the documents above, you have to submit the DTA forms (5 forms) which can be obtained from Ministry of Taxes of Republic of Azerbaijan or web site of the Ministry “www.taxes.gov.az” filled in except for the part F.

– If you are a legal entity,

You may get your certificate of residence by applying with a petition to

*Large Tax Payers Office Directorate if you are a taxpayer of this department,
*The Tax Office Directorate of Ankara, Antalya, Bursa, İstanbul, İzmir, Kocaeli, Trabzon if you are a taxpayer of these Directorates.
*The Presidency of Turkish Revenue Administration Revenue Administration Department of European Union and Foreign Affairs if you are not one of the above mentioned taxpayers or you apply for the certificate to submit to the competent authority of Austria, Switzerland and Saudi Arabia.

Your application will be evaluated by the competent authority and your certificate of residence will be sent to your address by post if approved.