Want To Invest In A Collective Company in Turkey? Know the Basic Strategy

In the Turkish government, the commercial code regulates an advanced form of ordinary partnership, also known as a general partnership. At least two individual partners must ally. It is also known as the collective company. This type of company formation in Turkey gives the right and responsibility to both the partners to manage the company separately. However, they can assign the management duties to several other partners forming a majority of partners or by company agreement. The company’s partners hold second-degree unlimited liable to the company’s investors. And there is no capital required to form a collective company.

How to Form a Collective Company?

The actual persons create an ordinary partnership through a written contract form with their notarised signatures. A general partnership generally does not possess the ownership (as founders) by any legal persons from a corporation or another company. 

The partnership contract must contain the following details of the partners during company registration in Turkey:

• The authorised names and family names
• Addresses of the founders
• Founder’s nationality
• Name of the trade
• Business centre
• Partnership subject matter
• Authorised representations, including the family names of the entitled persons representing the partnership
• Sign as an individual or joint signatures
• The capital submission by each partner
• The value attributed to capital and its evaluation method
•  If the contribution of wealth by the partner’s work
• The scope or nature of such a project

Provides Collective Administration Facility

All partners get equal treatment if there are no proceedings of an agreement, irrespective of the contribution of capital in the partnership. All partners are free to administer the league on their own. Each partner possesses the right to analyse and scrutinise the partnership projects and affairs. In the case of including a new partner, it needs a unanimous decision of the partners. The retirement process of any partner also requires approval by the partners who wish to continue the partnership. For further details and queries, Foreign Operation Consultancy can help you with their expertise in Turkey’s company formation field.