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Foundation Law and Foundation Establishment Services in Fethiye & Muğla, Turkey
Foundation law covers the legal regulations of legal entities established for social benefit purposes with dedicated assets. In Turkey, foundations are established and operate within the framework of the Civil Code and Foundations Law. In Fethiye, Muğla, and surrounding regions, establishing and managing foundations operating in education, health, religious services, and social assistance requires careful legal planning.
Our law office, registered with the Muğla Bar Association (Registration No: 1704), manages new foundation establishments, foundation charter preparation, board of directors procedures, and tax exemption processes in Fethiye and Muğla region with 21 years of legal experience in Turkish, English, Russian, and French. For both domestic and foreign clients, we provide comprehensive legal support from religious foundations to educational foundations, from health foundations to cultural-artistic foundations.
Our law office, registered with the Muğla Bar Association (Registration No: 1704), manages new foundation establishments, foundation charter preparation, board of directors procedures, and tax exemption processes in Fethiye and Muğla region with 21 years of legal experience in Turkish, English, Russian, and French. For both domestic and foreign clients, we provide comprehensive legal support from religious foundations to educational foundations, from health foundations to cultural-artistic foundations.
Types of Foundations:
A foundation is a legal entity with asset pools formed by real or legal persons dedicating sufficient assets and rights to a specific and continuous purpose.
- New Foundations (Civil Code Foundations):
- Foundations established under Turkish Civil Code No. 4721
- Private law legal personality
- Under Directorate General of Foundations
- Can be established for public benefit or private purposes
- Annexed Foundations (Mazbut Vakıflar):
- Old foundations from Ottoman period
- Managed by Directorate General of Foundations
- Cannot establish new ones
- Affiliated Foundations (Mülhak Vakıflar):
- Foundations from Ottoman period with their own management bodies
- Under special administration
Foundation Establishment Purposes:
- Education (schools, scholarships, research)
- Health (hospitals, health centers)
- Religious services (mosque, church, synagogue construction and maintenance)
- Social assistance (aid to poor, elderly care)
- Culture and arts
- Environmental protection
- Science and research
New Foundation Establishment Process
To establish a new foundation, procedures must be performed in accordance with Turkish Civil Code and Foundations Regulation provisions.
- Preparation Period:
- Determination of foundation's purpose and activity areas
- Identification of financial resources
- Determination of founders
- Foundation Deed and Charter Preparation:
- Preparation of foundation deed at notary
- Preparation of foundation charter
- Documentation of asset allocation
- Application and Registration:
- Application to Directorate General of Foundations
- Review and approval process (approximately 30-45 days)
- Registration in foundations registry
- Post-Establishment Procedures:
- Tax office registration
- Social Security Institution employer registration (if employing staff)
- Bank account opening
- Organization of board meeting minutes
Our Services:
- Foundation deed and charter preparation
- Establishment application and follow-up
- Tax and social security registration procedures
- First board meeting organization
- Post-establishment legal obligations consultancy
Foundation Charter Preparation
The foundation charter is the fundamental document regulating the foundation's bodies, management, activity areas, and operations.
- Mandatory Elements:
- Foundation's name
- Foundation's center and branches if any
- Foundation's purpose and activities necessary to achieve this purpose
- Foundation's assets
- Board of directors and bodies
- Use and expenditure of foundation's income
- Charter amendment procedure
- Foundation dissolution and liquidation
- Board of Directors Regulations:
- Number of board members (minimum 5)
- Election or appointment procedure for members
- Terms of office
- Meeting and decision quorums
- Representation and signature authority
- Supervision Mechanisms:
- Board of auditors or auditor
- Financial audit procedure
- Annual activity report
Our Services:
- Charter preparation appropriate to foundation's purpose
- Compliance with Directorate General of Foundations standards
- Charter amendment procedures
- Determination of management bodies and authorities
- Special provisions (usufruct right, appointment authority, etc.)
Religious Foundations and Places of Worship
Religious purpose foundations can be established in Turkey and these foundations can construct or operate places of worship.
- Establishment Characteristics:
- Foundation's purpose stated as "religious services"
- Construction, maintenance, repair of places of worship
- Employment of religious officials
- Religious education activities
- Place of Worship Construction and Operation:
- Obtaining permit from municipality
- Compliance with zoning plan
- Building use permit
- Community foundation status (for Greek, Armenian, Jewish communities)
- Special Cases:
- Church and Chapel: Foundation establishment for Christian communities
- Synagogue: Foundation establishment for Jewish communities
- Cemevi: Foundation establishment for Alevi faith
- Key Considerations for Religious Foundations:
- Constitutional guarantee of freedom of religion
- Coordination with local religious authorities
- Compliance with building regulations
- Community representation requirements
- International donor coordination
Our Services:
- Religious foundation establishment consultancy
- Place of worship permit procedures
- Land allocation and usufruct rights
- Relations with metropolitanate and patriarchate
- Receipt and management of international donations
Educational and Health Foundations
Educational foundations can be established to establish schools, universities, scholarship programs, or research centers.
- Educational Foundation Establishment:Activity Areas:
- Private school and university operation
- Scholarships and student aid
- Educational research
- Library and research center
- Private school opening permit (Ministry of National Education)
- Higher education institution establishment permit (YÖK)
- Health Foundation Establishment:Health foundations can be established to establish hospitals, health clinics, or patient care centers.
Activity Areas:- Private hospital operation
- Nursing homes
- Health research
- Free health services
Our Services:
- Educational and health foundation establishment
- Ministry of Education and Ministry of Health permit procedures
- Investment incentive applications
- Receipt of grants from foreign funds
Foundation Board of Directors Procedures
The board of directors is the foundation's highest decision-making body and represents the foundation.
- Board of Directors Structure:
- At least 5 members (more can be specified in charter)
- Chairman, vice chairman, secretary, treasurer, member
- Term of office: Generally 3-4 years
- Board of Directors Meetings:
- Regular meetings (at least twice a year)
- Extraordinary meetings
- Meeting call and agenda
- Decision quorum (absolute majority)
- Meeting minutes
- Board of Directors Duties and Authorities:
- Execution of foundation's activities
- Budget preparation and approval
- Staff hiring and dismissal
- Management of foundation assets
- Annual activity report preparation
- Board of Directors Changes:
- Member election or appointment
- Resignation and dismissal
- New member registration
- Notification to Directorate General of Foundations
Our Services:
- Board meeting minutes preparation
- Board of directors change procedures
- Board decision books
- Representation and signature circular preparation
Foundation Assets and Income Management
For foundations to operate healthily, regular income sources and asset management are critically important.
- Foundation Income Sources:
- Foundation founders' allocation
- Donations (domestic and foreign)
- Income from foundation activities
- Real estate rentals
- Securities income
- Fundraising campaigns
- Protection of Foundation Assets:
- Registration and protection of real estate
- Establishment of usufruct rights
- Establishment of easements
- Safekeeping of securities
- Financial Management and Reporting:
- Annual budget preparation
- Income-expense tracking
- Independent audit (for foundations of certain size)
- Annual notification to Directorate General of Foundations
Our Services:
- Donation and grant agreements
- Real estate transfer procedures
- Receipt of foreign-sourced aid
- Tax exemption applications
- Financial reporting systems establishment
Tax Exemption and Incentives
Foundations can benefit from tax exemptions and incentives if they meet certain conditions.
- Tax Exemptions:Income Tax Exemption:
- Foundations working for public benefit are exempt from income tax
- Income from commercial activities subject to tax
- Foundations receiving public benefit certificate are exempt
- Commercial gains outside purpose subject to tax
- Education and health services exempt from VAT
- Donations received for aid activities not subject to VAT
- Foundation transactions exempt from stamp tax
- Reduction in court fees
- Public Benefit Certificate:For a foundation to fully benefit from tax exemptions, it must obtain a public benefit certificate.
Conditions:- Having actively worked for at least 1 year
- Providing services open to society
- Not seeking profit
- Being financially transparent
Our Services:
- Public benefit certificate application
- Tax exemption applications
- Annual tax declarations
- Representation in exemption audits
Foundation Establishment by Foreign Nationals
Foreign natural and legal persons can establish foundations in Turkey.
- Establishment Conditions:
- Reciprocity principle (permission for Turkish citizens to establish foundations in their country)
- Residence or operation in Turkey
- Special permission from Ministry of Interior (in some cases)
- Special Situations:
- Additional reviews for religious foundations
- Financial Crimes Investigation Board (MASAK) notification for foreign-sourced funds
- International donation acceptance procedures
- Key Considerations for Foreign Founders:
- Understanding Turkish foundation law differences
- Currency transfer and foreign exchange regulations
- International tax treaty implications
- Cross-border governance structures
- Compliance with both home country and Turkish regulations
Our Services:
- Foundation establishment consultancy for foreigners
- Ministry of Interior permit procedures
- Translation and certification of foreign documents
- Management of international donations and funds
Foundation Dissolution and Liquidation
Foundations can terminate and be subject to liquidation in certain situations.
- Dissolution Reasons:
- Achievement of foundation's purpose or its achievement becoming impossible
- Depletion of foundation's assets
- Occurrence of dissolution conditions provided in charter
- Dissolution by court decision
- Dissolution decision by Directorate General of Foundations (illegal activity)
- Liquidation Process:Liquidation Process:
- Appointment of liquidators
- Collection of receivables and payment of debts
- Conversion of assets to cash
- Transfer of remaining assets to foundation or purpose specified in charter
- Deletion from foundations registry
Our Services:
- Foundation dissolution procedures
- Liquidation management
- Liquidation balance sheet preparation
- Asset transfer procedures
Knowledge Center
Why Choose Atty. Thomas Andreas Di Constantinople?
- 21 years of legal experience, last 10 years in Fethiye/Muğla region
- Service in 4 languages: Turkish, English, Russian, French
- Special expertise in religious foundations and places of worship
- Foreign-sourced funds and international donation management
- Comprehensive foundation charter and legal documentation
- Muğla Bar Association Registration 1704 for reliable service
- Experience with Orthodox and Catholic church foundations