Cooperatives in Turkey are legal entities formed by individuals or legal entities (including businesses and associations) who come together voluntarily to collectively address their economic, social, or cultural needs and aspirations. Cooperatives in Turkey are regulated by the Turkish Cooperative Law, which provides a framework for their establishment and operation.
Here are some key features and types of cooperatives in Turkey:
|Types of Cooperatives
|Agricultural Cooperatives (Tarımsal Kalkınma Kooperatifleri): These cooperatives are focused on the agricultural sector, including farming, livestock, and related activities. They aim to improve the economic conditions of their members by providing access to resources, technology, and markets.
Credit Cooperatives (Kredi Kooperatifleri): Credit cooperatives provide financial services to their members, including savings accounts, loans, and other credit facilities. They are often established to meet the financial needs of individuals and businesses in specific regions.
Consumer Cooperatives (Tüketim Kooperatifleri): Consumer cooperatives are formed to collectively purchase goods and services for their members. This helps members obtain products at lower prices and with higher quality.
Housing Cooperatives (Konut Kooperatifleri): Housing cooperatives are established to collectively develop and manage housing projects. Members contribute to the construction or maintenance of housing units and common areas.
Worker Cooperatives (İşçi Kooperatifleri): Worker cooperatives are owned and operated by their employees. Each employee typically has an equal say in the cooperative’s decision-making processes and shares in its profits.
Artisan and Craftsmen Cooperatives (Esnaf ve Sanatkarlar Kooperatifleri): These cooperatives are formed by artisans and craftsmen to support their businesses, provide training, and promote their crafts.
|Participation in a cooperative is voluntary, and members typically join for mutual benefit, such as better access to resources, reduced costs, or improved market access.
|Cooperatives in Turkey operate on the principles of democratic decision-making. Each member typically has one vote, regardless of their level of investment or ownership.
|Profit and Surplus Distribution
|In cooperatives, profits and surpluses are often distributed among members based on their level of participation, rather than the amount of capital they have invested. This can encourage active involvement and cooperation.
|Members of cooperatives generally have limited liability, meaning their personal assets are protected from the cooperative’s debts and obligations. However, members may be liable up to the extent of their capital contributions.
|Regulation and Supervision
|The operation of cooperatives in Turkey is subject to regulation and supervision by the Ministry of Trade and other relevant authorities. Compliance with cooperative laws and regulations is essential for their legal recognition and protection.
|To establish a cooperative in Turkey, individuals or entities must draft a cooperative statute, obtain approval from the relevant authorities, and register the cooperative with the Trade Registry Office.
|Cooperatives in Turkey are subject to taxation based on their activities and income. Tax rates and regulations may vary depending on the type of cooperative and its activities.
Cooperatives in Turkey play a significant role in various sectors of the economy, helping individuals and businesses collectively address their needs and challenges. They promote cooperation, mutual support, and economic development, making them an important part of Turkey’s business landscape.
Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.