How to Form a Corporation? – Step by Step 2025 Guide for Starting Inc.

Everyone with an entrepreneurial spirit has dreamed of establishing their own company one day. After all, what could be better than earning good money by doing what you love? In this context, if you want, you can establish your sole proprietorship and get started right away. On the other hand, if your business grows quickly, you want to get investors and need a more comprehensive company type with broad participation, you start looking for the answer to the question of how to start a corporation.

Because, while sole proprietorships are useful for you up to a certain size, capital companies and corporation are for you both to get investors and to grow even more.

Joint-stock companies or corporations are a type of company preferred by large-scale enterprises and whose capital is divided into shares. In this way, the company partners will not be unlimitedly responsible for the entire debt of the company as in sole proprietorships. Corporation companies are a business model in which the partners’ liability is limited.

The advantages offered by this structure minimize the risks of investors while allowing the company to gain prestige in national and international arenas.

Taking the right steps during the establishment process, complying with legal procedures and preparing complete documents play a critical role in preventing future difficulties that the company may face.

What are The Stages of Establishing a Corporation?

In this article, we will discuss in detail the basic concepts of the joint-stock company establishment process, the necessary preliminary preparations, notary transactions, trade registry records and tax-SGK transactions, and other important stages. So, we will understand how to start a corporation.

Thus, we aim to provide the opportunity to establish a business that can achieve long-term success on a solid legal basis.

• Planning and Preliminary Preparation: Creation of a business plan, determination of the company’s field of activity and determination of partners. Clarification of the required capital amount and investment plans.
• Preparation of the Articles of Association: Preparation of the articles of association, which includes the basic structure of the company, partnership rates and management method. Approval of the prepared agreement by all partners.
• Notary Transactions: Approval of the articles of association in the presence of a notary. Preparation of official documents and their certification by a notary.
• Capital Blockage and Opening of a Bank Account: Blocking of the determined capital by depositing it into the relevant bank account. Completion of preparations for opening a commercial bank account in the name of the company.
• Trade Registry Record: Registration of the company in the trade registry with notarized documents. Submission of the necessary documents to the relevant trade registry office for the official completion of the establishment procedures.
• Tax Office Procedures: Obtaining a tax number for the company and completing the registration procedures with the tax office. Issuing a tax plate and initiating official tax liabilities.
• Social Security Institution Registration: Registration of the company with the SGK in the event that it will employ employees. Initiation of the necessary insurance and social security procedures. This is also important to understand how to start a corporation.
• Official Announcements and Licenses: Announcement of the establishment of the company in the Official or Government Gazette, when necessary.

What is a Corporation and Its Basic Features

A joint stock company is a type of company whose capital is divided into shares. In other words, each partner, whether one or ten, must contribute some capital and establish the company in this way. In addition, the liability of the partners for the company’s debts is limited to the amount of capital they undertake to contribute. This is why most banks take the partners’ guarantee when companies use credit. If the partner does not sign the guarantee, the company is responsible for the amount of capital they undertake to contribute to the company from the credit it uses.

For this reason, banks also request the individual guarantee of the company partners in order not to be left out.

Meanwhile, while sole proprietorships do not have a legal entity, as you might guess, joint stock corporations or companies have their own legal entity. In this structure, the company partners become partners in the company through shares and are not held personally responsible for the company’s debts. The company’s management bodies include structural elements such as the general assembly and the board of directors.

When answering the question of how to start a corporation, it should also be noted that; the minimum capital amount and the number of partners determined at the establishment of the company form the building blocks of the joint stock company.

This structure helps investors minimize their risks and ensure that the company’s financial structure is solid. In addition, joint stock companies provide the opportunity to access more financing sources during growth and expansion processes.

A joint stock company offers the potential to operate nationally and internationally. This feature allows the company to draw a more prestigious image in commercial relations and to undertake larger projects. Thanks to legal regulations and audit mechanisms, company activities are carried out in a transparent and reliable manner.

Required Conditions for Establishing a Corporation

At this stage, we would like to reiterate the advice we gave during the establishment of a sole proprietorship. When establishing a joint stock company, you should do some research and spend some money, work with a quality financial advisor or financial consultant, and benefit from their guidance. This will benefit you greatly in the medium and long term. The first step in establishing a joint stock company is to prepare the company’s articles of association.

The articles of association include important information such as the company’s field of activity, capital structure, partnership relations, and management style. This paper is also important in the topic of how to start a corporation.

Since this document forms the legal basis for the establishment of the company, it should be prepared meticulously and support should be obtained from expert advisors when necessary.

Before the establishment, the company partners should be determined and their capital commitments, i.e., the money they will put into the company, should be clarified. When determining the capital contribution, they will make to the company and the distribution of shares, the partners should also consider future management and profit distribution policies. In this way, internal harmony and financial stability are ensured.

During the preparation process, it is of great importance to obtain the documents required for the establishment procedures in full. Having complete and accurate documents for notary transactions, trade registry records, and other official applications speeds up the process and prevents problems. At this stage, getting professional support helps the process go smoothly.

Inc. Starting Steps: Notary and Trade Registry Record

The most important stages in “how to start a corporation” are the notary and trade registry sections. In this context, it should be noted that the first step to establish a joint-stock company is to go to a notary. Because the approval of the articles of association prepared in the previous step is carried out at the notary. The notary confirms the accuracy of the company’s official documents and their compliance with legal requirements. This process provides an important starting point for subsequent transactions by ensuring that the company is established on a legal basis.

After the notary approval, the company is registered in the trade registry. The trade registry record is the basic process that allows the company to gain legal personality and officially start operating. This record, as part of the company’s official documents, serves as a reference in all future legal transactions. If this step is not taken, the company cannot be established.

It is of great importance that the documents are prepared completely and without errors throughout the process. Notary and trade registry offices may disrupt the process if they detect any deficiencies in the documents.

For this reason, it is necessary to ensure that all transactions proceed smoothly by making preparations in advance and, if necessary, receiving expert legal support. Support is important for “how to start a corporation.”

At this stage, let us state that when determining a notary, you should apply to the one closest to your company’s headquarters or office. If you go to a notary in a remote location, it is traditionally customary to go to the same notary when you need to apply to a notary in later transactions. Therefore, it would be a very logical move to work with the notary closest to your company’s headquarters at the very beginning of the process.

How to Start a Corporation? | FAQ and Anwers

Under this heading, we will try to analyse the most frequently asked questions and answers that come to mind in or before the establishment of such capital companies in our country.

Here are the most frequently asked questions and answers regarding the establishment of joint stock company.

• What are the costs of establishing a joint-stock company?

Establishment costs consist of notary fees, trade registry record, tax office transactions, capital blockage and other administrative fees. Costs may vary depending on factors such as the company’s capital amount, the number of partners and the professional support received.

• Who can be the partners of a joint-stock company and what are their responsibilities?

Partners can be real or legal persons and become partners in the company through shares. The liability of partners is limited to the capital they invest in the company; in other words, they are not held personally liable for the company’s debts. This is an important advantage that minimizes the risks of partners. This is important the subject of how to start a corporation.

• How long does the joint stock company establishment process take?

When all documents are prepared completely and correctly, it can take several weeks to complete notary procedures, trade registry registration and tax office procedures. Factors affecting the speed of the process include the completeness of the documents, the volume of applications and the working speed of the relevant institutions. Therefore, each application situation may differ.

• What documents are required for the establishment of a joint stock company?

Documents such as articles of association, circulars of signature, partnership declarations, photocopies of identity cards, tax number, capital block certificate and notary-certified documents are required during the establishment process. The complete and correct preparation of these documents is critical for the smooth progress of the process.