Inactive Company Bank Account

[spiky]

:help: Can anybody please help – I know I have been a foolish and let my heart rule my head. However I purchased a property which is in the restricted zone and had the TAPU placed in a friend’s name that is Turkish. However I have since found out that if anything happens to this friend that the TAPU could go directly to his family and I might loose the property. Therefore I was advised to set up a company and get the TAPU transferred into the companies name, which I have done.


The company will remain inactive and I have appointed an accountant to submit the necessary monthly and yearly tax returns for me. However I have been informed that I would need to transfer £7000 UK pounds into the companies bank account for a couple of days. So that the company can be seen as having a cash flow and this would have to be done once a year before the end of the tax year.

Has anybody else who formed an inactive Turkish company been told this? I am a bit worried because the power of attorney for the company bank account was given to a third party while I returned back to the UK to allow the bank account to be opened. Is this just a matter of changing the POA when I return to Turkey or do I have to place 7k into the company’s bank account.

 

[JohnF]

However I purchased a property which is in the restricted zone and had the TAPU placed in a friend’s name that is Turkish. However I have since found out that if anything happens to this friend that the TAPU could go directly to his family and I might loose the property.

Only if they die intestate, the way round it is for them to leave it to you in their will.

However the interpreter I used for the company formation has informed me that I would need to transfer £7000 UK pounds into the companies bank account for a couple of days. So that the company can be seen as having a cash flow and this would have to be done once a year before the end of the tax year.

I would query the amount. Last time I looked the minimum share capital required was 5,000YTL and if the company is going to be inactive why do you need to show cashflow?

JF

 

[Spike]

Hi Spiky - we must have some ancestors in common!

I set up an inactive company earlier this year, the set up costs and monthly retainer to accountant are all that's required. The 7k requirement I have never heard of, sounds like b******t to me - a company with cash flow of 7k can hardly be described as inactive!

I would be very wary of transferring money into any bank account over which someone I hardly knew held POA and I would make my first priority when next in country to get that POA cancelled. Good luck.

 

[immac]

You do not need to show cashflow - as has been said above, that is the last thing you want. Don't move any money. If it comes to it, the house is an asset worth far more than £7K which is on the company books. I know a number of people who have set up companies to do what you are doing and none of them has been required to put in any cash.

On the other matter it is not a good idea to give POA over a bank account. Most of the big banks do Internet and telephone banking which allows you to manage your account from anywhere in the world - make payments, set up Direct Debits etc. As the account is empty it does not matter, but you must cancel this asap.

Ian

 

[Mag]

We too set up a company for the purpose of purchasing our apartment, and like Ian says, your property is your company's asset, there is absolutely no need to have a cash flow situation. Just a tip.., remember to get your flight and car hire receipts made out to the company as these can be offset in your annual accounts. Good luck!

 

[KKOB]

I would think you might be liable for tax on the 7K too if it goes in and out of the company without a very good reason.

 

[carolandrob]

We too set up a company only 3 weeks ago in Datca and we did not have to transfer any money, I had read that it would be expected but when I mentioned everyone looked a bit puzzled and the company was set up without it.We only paid the setting up fees, and a small amount to the account as we will not be there when the next tax payment is due.

Carol

 

[Helenm150]

We too set up a company for the purpose of purchasing our apartment, and like Ian says, your property is your company's asset, there is absolutely no need to have a cash flow situation. Just a tip.., remember to get your flight and car hire receipts made out to the company as these can be offset in your annual accounts. Good luck!

Margaret

I've set up an inactive company myself recently - and was wondering if you might have contact details of an English speaking accountant by any chance - also an idea on monthly accountancy fees would be much appreciated?

Helen

 

[Helenm150]

We too set up a company only 3 weeks ago in Datca and we did not have to transfer any money, I had read that it would be expected but when I mentioned everyone looked a bit puzzled and the company was set up without it.We only paid the setting up fees, and a small amount to the account as we will not be there when the next tax payment is due.

Carol

Carol

I've set up an inactive company myself recently - and was wondering if you might have contact details of an English speaking accountant by any chance - also an idea on monthly accountancy fees would be much appreciated?

Helen

 

[Helenm150]

Hi Spiky - we must have some ancestors in common!

I set up an inactive company earlier this year, the set up costs and monthly retainer to accountant are all that's required. The 7k requirement I have never heard of, sounds like b******t to me - a company with cash flow of 7k can hardly be described as inactive!

I would be very wary of transferring money into any bank account over which someone I hardly knew held POA and I would make my first priority when next in country to get that POA cancelled. Good luck.

Spike

I've set up an inactive company myself recently - and was wondering if you might have contact details of an English speaking accountant by any chance - also an idea on monthly accountancy fees would be much appreciated?

Helen