What is the Process of Winding Up a Company in Turkey?

Winding up a company in Turkey—formally called voluntary liquidation (tasfiye)—is a structured legal process governed by the Turkish Commercial Code. Whether you’re a foreign investor or local business owner, understanding the correct steps to close a company is essential for avoiding penalties, safeguarding your reputation, and completing your exit cleanly. This guide breaks down the full procedure with practical insights and SEO-rich keywords to help you dominate search results for "what is the process of winding up a company in Turkey."

Legal Framework for Company Liquidation in Turkey

The process is governed by the Turkish Commercial Code (TCC, No. 6102). All types of legal entities—Limited Liability Companies (LTD) and Joint Stock Companies (A.S.)—must undergo a formal liquidation process if shareholders vote to dissolve the business. Voluntary liquidation applies when the company is solvent and chooses to cease operations intentionally.

Upon registration of the liquidation, the company name must be updated to include "tasfiye halinde" (in liquidation), and a liquidator is officially appointed. At least one liquidator must be a Turkish citizen residing in Turkey.

Step-by-Step Process of Winding Up a Company in Turkey

1. Shareholders' Resolution

The process starts with a notarized General Assembly resolution to liquidate the company and appoint a liquidator. This must be filed with the Trade Registry Office.

2. Register Liquidation Status

Once the resolution is registered, the company enters formal liquidation status. Its name in the registry is changed to include "tasfiye halinde."

3. Opening Inventory & Balance Sheet

The liquidator prepares an opening balance sheet and a detailed inventory of assets and liabilities. These are submitted for shareholder approval.

4. Creditor Notification

The liquidator:

• Notifies known creditors via registered mail

• Publishes three public notices in the Turkish Trade Registry Gazette

This starts a mandatory 3-month waiting period for creditors to submit claims.

5. Settle Debts & Liquidate Assets

The liquidator collects receivables and pays debts in legal order of priority. Assets may be sold to fund debt payments. All transactions must be recorded transparently.

6. Prepare Final Balance Sheet

After all obligations are met, the liquidator drafts a final liquidation balance sheet and activity report. Shareholders must approve these in a final general assembly.

7. Company Deregistration

The final resolution and liquidation report are submitted to the Trade Registry. Once approved, the company is officially deregistered, and its legal existence ends.

Timeline for Winding Up a Company in Turkey

• Minimum duration: 6 months (due to the 3-month creditor claim window)

• Typical duration: 6–9 months

• Foreign-owned companies may require additional time for apostille, translations, and cross-border coordination.

Required Documents

• Notarized shareholders’ resolution

• Liquidator’s acceptance and appointment

• Opening inventory & balance sheet

• Public announcements

• Final liquidation report

• Final shareholders’ approval

• Tax office and SGK (social security) clearances

Who Should Handle the Process?

Although legally possible to manage liquidation independently, most foreign investors appoint a professional firm. This ensures:

• A qualified local liquidator (as required by law)

• Proper filings and document compliance

• Timely coordination with Turkish authorities

• Accurate financial reporting and tax closure

Get Expert Support to Close Your Company in Turkey

At OZM-CONSULTANCY, we specialize in winding up companies in Turkey for foreign investors. We provide end-to-end support—from preparing your legal documents to acting as your local liquidator and securing tax clearance. Our multilingual team ensures a stress-free experience, whether you're closing a dormant LLC or exiting a trading entity.

Ready to close your company in Turkey the right way?

info@ozmconsultancy.com