You can sell either the business alone or the business and the company running it. See our Guide to Buying a Business in Turkey for the advantages and disadvantages of these two methods.
You can learn about business in Turkey by watching this full-length interview (below) with Turkish lawyer Başak Yıldız Orkun, and by scrolling down and reading the detailed guide that she has written with us.
The video guide below is a playlist – split into several parts. One part will play right after the other.
Selling a business in Turkey
If you decide to sell your company, under Turkish law you will still have an open-ended responsibility for your actions during your period of ownership. This is subject to the usual legal prescription period (five or ten years), after which time your responsibilities expire. If you were a director of the company, and you did anything wrong in terms of your responsibilities as a director, your responsibility for that wrongdoing also remains, even after you’ve sold the business.
In order to sell your business, you are likely to need the following:
- All your business paperwork (annual reports, tax returns etc.), which must be completely up-to-date
- Accurate business accounts
This is, for many businesses in Turkey, a problem. Historically (though much less so today) businesses never declared the full amount of their income or profit. Huge and popular restaurants declared an income of TRY50,000 per year! When they came to sell the business, and produced their accounts showing such modest profits, it was difficult to establish the proper value of the business.These days have, by and large, gone: but if you wish to obtain full value for your business when you sell it, you will need to make sure that your accounts accurately reflect the turnover and profitability of the business.
- Employee rights
The rights of your employees may transfer to the new business and they will have to sign paperwork accepting or declining that transfer.
- A proper contract of sale for the business
Depending upon the size of the transaction and the complexity of the contract, this will be prepared either by your accountant or your lawyer.