How to set up Non-Profit Organizations (NPO) in Turkey
General
information
Several Non-Profit Organizations are operating in Turkey
for promoting common objective. According to the Internal Affairs of Turkey,
the number of associations in Turkey raised up to 109549 in 2017 which
increased by 56 percent over the last 14 years. In Turkey, there were 33717
associations for vocational and solidarity associations in 2017 that took first
place among other types of associations. That was followed by sports and sport-related
associations which were about 21116, while the number of association for the
promotion of religious services was slightly lower 18010. The figure of the
associations for children is very few in comparison with other types of
associations which are just 18.
General rules
As it is clearly known that in the Non- profit
Organizations focal point is the realization of the common objective rather
than sharing of profit among members. According to article 56 of the Turkish
Civil Code, the association is “a society formed by unity of at least seven
real persons or legal entities for the realization of a common object other
than sharing of profit by collecting information and performing studies for
such purpose.” This definition written in Turkish civil code clearly shows that
in order to form an association there must be at least 7 persons who can be natural
persons or legal entities. It is explicitly written in Article 57 of the Turkish
Civil Code that everyone has a right to form an association without prior
permission. The founders of the association must have the capacity to act. Each
Association has a statue where the name of the association, its purpose,
sources of income, membership conditions, organs and organization and the
temporary board of directors must be indicated based on the Article 58 of the
Turkish Civil Code. The statutes of the Association cannot be contrary to the
mandatory provisions of the law.
As it is clearly indicated in the article 64 of the Turkish
Civil Code and article 3 of the Law on Associations that every natural person or
legal person who has the capacity to act has the right to become a member of
the associations. More specifically, in order to create children association or
to become a member of children’s associations with permission of legal
representatives, minors must be fifteen years old and have the power to
distinguish. Furthermore, minors who have completed the age of twelve may be
members of children’s associations with the permission of their legal
representatives, but they cannot serve on the management and supervisory
boards. These are in conformity with what is written in Article 3 of Law on
Associations. No one shall be compelled to become a member of any association
and no association shall be compelled to accept members. No one shall be
compelled to remain a member of the association. Each member has the right to
leave the association with written notice.
Members’ rights
Members of the Association have
equal rights regardless of their language, race, colour, sex, religion and
sect, family, social standing. It is forbidden to implement practices that
distort equality or grant privileges to certain members. All of these rights
are clearly indicated in the Article 68 of the Turkish Civil Code. Furthermore,
It is written in the Article 69 of the Turkish Civil Code that each member has
one vote in the general assembly; member must use his or her vote personally.
Obligations of the members
Associations may require both
the entrance fee and the association fee from the members of the association,
which should be specified in the association charter. This obligation of the
members is regulated based on the article 70 of the Turkish Civil
Code and article 4 of the Law No. 5253 on Associations. Another obligation
written in article 71 of the Turkish Civil Code which members of associations
have to pay attention is that they are obliged to obey the order of the association
and to show loyalty to the association. Each member is obliged to act in
accordance with the purpose of the association, and in particular to avoid
behavior that hinders or prevents the realization of the objective.
How do associations acquire legal personality?
According to Article 59 of the Turkish Civil Code, associations
shall acquire legal personality as soon as they submit the declaration of
establishment, association charter and necessary documents to the largest civil
administrative authority of the province. The declaration of the establishment
and the accuracy of the documents and the statutes of the association shall be
examined by the highest authority in sixty days
based on Article 60.
Foreign
associations
Foreign associations, by taking the opinion of the Ministry
of Foreign Affairs and with the permission of the Interior Ministry, may
operate in Turkey and cooperate, open branches, and establish parent
organizations based on Article 92 of Turkish Civil Code and Article 5 of the
Law on Associations. It is worth to note that in terms of international
activities of Turkish associations, in order to achieve the objectives set
forth in their statues they may engage in international activities or
cooperation, may open representative offices or branches abroad, establish
associations or higher organizations abroad or participate in associations or
organizations established abroad. Furthermore, according to article 20 of the
Law on Associations, associations by giving notice to local authority may
receive in-kind and cash assistance from persons, institutions and
organizations abroad.
Do associations
have to pay taxes?
Not all the associations are exempted from taxation in
Turkey. In order to be exempted from taxation, associations must carry the status
of publicly beneficial association; otherwise, they may not enjoy exemption of
taxation. In order for an association to be considered as a publicly beneficial
association, proposal of the Ministry of Interior upon the opinion of the
relevant ministries and the Ministry of Finance and decision of the Council of
Ministers must be common in this way.
Article 27 of the Law on Associations No. 5253 shows that
in order for an association to be considered as a public benefit association;
1.
The Association has to be active for at
least one year,
2.
The purpose of the Association and the
activities undertaken to achieve this objective should be of sufficient quality
and extent to the society.
Publicly beneficial associations are exempted from
value-added tax, inheritance tax, property tax, stump duty, customs duty and
etc.
References:
Türk Medeni
Kanunu
Dernekler Kanunu
Derneklerin Vergilendirilmesi Rehberi, 2012
Turkey: Law No. 5253 of 2004, Associations Law
https://www.refworld.org/docid/4c446a062.html
http://kadem.org.tr/kamu-yararina-calisan-dernek/
https://www.siviltoplum.gov.tr/kamu-yararina-calisan-dernekler
http://www.giresundernekler.gov.tr/sikca-sorulan-sorular
http://www.milliyet.com.tr/gundem/turkiyede-dernek-sayisi-109-bin-549a-ulasti-2410497