Want to set up a company in the financial sector of Turkey? This article is intended to help you with comprehensive information about the business conditions and procedures you have to follow when registering a firm in this important sector. Our experts in setting up a company in Turkey can guide you on the formalities and legal aspects.
What types of financial companies can you open in Turkey?
The financial industry in Turkey is made up of the following sectors:
- banking,
- insurance
- brokerage,
- financial leasing,
- credit institution,
- payment provider,
- pension fund,
- investment banking, etc.
Pension funds and insurance are the categories attracting most of the investors. Our Turkish company formation agents can offer information on the laws governing the financial sector.
How can you register a financial company in Turkey?
The first stage in opening a financial company in Turkey is to prepare the documents related to the business registration and submit them to the Companies Register. This step is the same for all types of companies operating in the financial sector in Turkey. The company’s statutory documents must provide for the objectives of the company. It should be noted that the Banking Law in Turkey provides for all financial companies to be registered as joint stock companies.
Our agents in company incorporation in Turkey can assist with the registration of financial companies with the Trade Register.
How can you obtain a financial license in Turkey?
If you want to open a company in the financial sector of Turkey, you will need a license. This is the financial license in Turkey (PI license), which is issued by the Banking Regulation and Supervision Agency (BRSA). The Capital Market Board in Turkey (CMB) can also accept financial license applications, but the final decision is made by the Central Bank of Turkey. Here are some of the formalities for obtaining a financial license in Turkey:
- only joint stock companies in the financial sector of Turkey, established with a minimum share capital of at least TRY 1 million, are accepted;
- company owners should ensure that their company names include “payment institution” or “e-money institution”, depending on the activities;
- company documents are required: Articles of Association and Certificate of Registration, board of directors’ list, financial statements, etc.;
- qualifications of managers and company personnel are also required;
- other documentation is required if the company in question is a subsidiary of a foreign financial institution;
- a financial license in Turkey can be issued within 6 months from the date of document submission.
We remind you that the support of our team of specialists in company formation in Turkey is essential in order to obtain this license. We can collaborate with the relevant authorities in order to comply with all the conditions and avoid possible complexities.
How can you open a credit institution in Turkey?
Foreign entrepreneurs can open a credit institution in Turkey, respecting all the formalities. Here are some of the most important:
- it is recommended to set up a joint stock company, with TRY 30 million as capital requirements;
- it is mandatory to obtain a financial license from the Banking Regulation and Supervision Agency in Turkey;
- a solid business plan is required for opening a credit institution in Turkey;
- the company will be based on the Articles of Association. A reputation report and the founder’s financial status are also required;
- it is important to know that this credit institution requires management with qualifications, reputation, and experience;
- registration for tax payment in Turkey is mandatory.
This information is important if you want to open a company in the financial sector of Turkey, namely a credit institution.
What are the conditions for opening a crypto company in Turkey?
If you are interested in setting up a cryptocurrency company in Turkey, here is what you need to know:
- you need to prepare TRY 150 million as required capital and open a joint stock company;
- you need to obtain a license from the Capital Markets Board of Turkey;
- it is mandatory to obtain approvals from the Scientific and Technological Research Council of Turkey as part of the licensing process;
- you need to implement Anti-Money Laundering/Combating the Financing of Terrorism and Know-Your-Customer policies. In this regard, you need to register your company with the Financial Crimes Investigation Board (MASAK) in Turkey;
- clear criminal records of crypto company shareholders are required;
- you need to obtain a Virtual Asset Service Provider (VASP) license in Turkey before starting crypto activities.
These are some of the main recommendations, formalities, and procedures to keep in mind if you want to set up a cryptocurrency company in Turkey. Do not forget that it is mandatory to deposit at least 25% of the amount required to establish this business in a Turkish bank account and to prove the origin of the money through documents.
What to expect after obtaining a financial license in Turkey?
If you have obtained a financial license in Turkey, you should know that the authorities issuing this permit reserve the right to inspect the company. These are on-site inspections where the authorities ensure that the company conducts the respective financial activities. The same authorities in charge of business inspection will also ensure that the company benefits from proper organizational management, internal controls, and many more.
You can also ask for accounting services in Turkey when setting up a financial company. Please contact our company formation representatives in Turkey and obtain personalized offers.