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Closing A Company in Turkey

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Hello Everyone, 

I have started a company a year ago and not doing any business activities at all. Now I'm thinking of closing the company. Since it is a Limited Company I think just will leave it without filing the monthly taxes and not paying any taxes at all "Just Neglect it completely". But my Accountant said that I would be legally asked to pay the company debits when doing any gov related activity or in the airport. Now, I just want to make sure if I Neglect the company, what are the legal consequences? and is it true that I will be asked as my accountant said? because I am confused now! as I know the Limited company is separated from the owners/directors and shareholders. Any advice is welcomed. 

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Hi V4E, 

This is a question that has been raised quite often nowadays, and you all have a point. 

Your accountant statement is correct except the airport part, considering the fact that no matter how much you owe to the state or an individual, police would not have a right to stop you in the airport border becaused of this matter.  This is one of the core rights that has been protected under Constitution of Turkey. 

On the other hand, if you neglect the company by doing no monthly filing and not paying the minimum charges, then after a certain time  (generally between 6-12 months) in most of the cases Tax Office would put your company into a passive list and would stop monitoring your company activities as long as your company keeps its inactive status. 

There are a few exceptions of the preceding paragraph. For instance, Tax Office would keep monitoring your company if your company has had huge volumes of transactions and considerable amount of due tax BUT all of a sudden you neglect your company. In this case, they would send letters to the company and if your company does not pay off, then shareholders of the company would be deemed to be the jointly responsible along the company. Then Tax Office has the right to go over your personal assets here in Turkey. But as I said, this very unlikely if your company has had only a few small transactions and rest of the time it basically didn't operate.

Regards, 

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Thank you for your comprehensive reply. I am so appreciated. So one more question please. For example if I buy a house here in Turkey or if I want to renew my resident permit and at that time my company in an inactive state, in which it owes a penalty for not filing (as my accountant said 6.972 TL for each month) so after 12 months period or more it would be quite a lot of money. so in this case, am I gonna be asked to pay or they would go over my personal assets like my house or my personal back account ? Thank you in advance. 

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I would recommend you to talk to an accountant and discuss if your company's balance sheet allows to successfully complete a liquidation process. It is the case especially when you have future plans in Turkey. 

Should you are in debt against Tax Office or Social Security Inst., yes they could go over your personal assets. 

BR, 

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