Market expectations are changing on a daily basis as new technologies are developed. The governmental authorities in Turkey are currently working on new systems to ensure compliance with recent developments and to provide investors a more secure environment.
In light of this approach, the Ministry of Customs and Trade (the "Ministry") launched a new digital system called Mersis last year. The main purpose of the system is to modernise filing procedures and replace manual filing processes, including long and harsh bureaucratic procedures. The system will lead to greater efficiency and synergies, while eliminating paperwork and formalities under Turkish corporate law. Thanks to the new system, many transactions in Turkey, such as establishment of joint stock and limited liability companies, mergers and demergers, change of company type and changing management bodies can be done within a very short period of time. At present, physical application at the Trade Registries is necessary to complete these procedures. The Ministry wishes to develop a system that allows all of these procedures to be completed digitally.
Another reason for the new system is to ensure unity between the practices of the Trade Registries. The system provides users several samples and templates to make complex transactions easier and more understandable. The many guide- lines in the system eliminate the various approaches and practices by different Trade Registries. More digital support will surely lead to less bureaucratic meddling, which is one of the most controversial issues in Turkey over the last decade.
Databank of trade in Turkey
On the other hand, the new system can be seen as an "e-library of companies". Any user who logs into the system can easily find the most up-to-date information, including tax number, registered address, share capital and authorised representative of a company operating under Turkish Law. In this way, companies can enter into transactions in a safer and more secure environment. With the new developments to be made in the system in the upcoming years, it will no doubt be possible to complete many complex transactions with just a click of the mouse.
Although the system allows everybody to obtain corporate information, transactions can only be made by the legal entities' authorised representatives. The Ministry has announced that in the near future users will be obliged to have e-signatures in order to exercise their authority. The system will thus provide its users a safer and more secure environment.
This article was up to date as at the date of going to publishing on 10 December 2018.