Monthly Company Accounting (Bookkeeping)

Who needs regular monthly accounting in Turkey?

Every company officially registered in Turkey — whether a limited liability company (Limited) or a joint-stock company (Anonim) — carries ongoing accounting obligations from the moment it is established, regardless of the actual scale of its activity. Even a company that hasn't started operating yet, or one that has temporarily paused its business, is still required to keep its books and file its periodic returns with the Turkish tax authorities. The idea that "there's no activity yet, so accounting isn't needed" is not legally correct; the obligation begins on the date of registration in the trade registry, not on the date of the first sale or purchase.

This means that any foreign business owner opening a company in Istanbul, even during the initial setup stage before receiving the first client, needs to arrange regular accounting follow-up from day one to avoid unpleasant surprises later with the tax administration.

What are the general accounting obligations for companies in Turkey?

The Turkish Tax Procedure Law (Vergi Usul Kanunu, No. 213) requires companies to keep a set of mandatory commercial books, most notably the journal book, the ledger book, and the inventory book, in addition to other books such as the capital book and the general assembly minutes book for joint-stock and limited companies. These books are now mostly kept electronically through e-book systems approved by the Turkish Revenue Administration.

Turkish law does not allow anyone to file tax returns or keep books on behalf of another company without professional licensing. Under Law No. 3568, this work is restricted to licensed independent financial accountants (SMMM) registered with the relevant professional chambers (TÜRMOB), the semi-official body overseeing this profession in Turkey. Using an unlicensed person to prepare or sign returns does not release the company from its legal responsibility.

Turkish law also requires accounting books and documents to be kept for a legally defined period even after the fiscal year ends; tax law sets a minimum of five years, while the Turkish Commercial Code extends this obligation for a longer period, which can reach up to ten years in some cases.

Important points to know

• Neglecting to keep books or failing to record financial transactions regularly exposes the company — and possibly its responsible manager or partner — to violations and penalties under Turkish tax law, regardless of the scale of activity
• A company with no actual activity is still required to file its periodic returns on time even if they are "zero" returns, and any delay or omission is treated as a standalone violation
• Relying on a person who does not hold an SMMM license to prepare books or sign returns does not protect the company legally; responsibility remains with the company and its legal representative, and this can later complicate any tax audit or review
• Keeping continuous books from day one is far easier than correcting accumulated or incomplete records later, especially since later official transactions such as renewing licenses or opening bank accounts require sound, up-to-date accounting records

Frequently asked questions

Does a company with no activity yet still have to keep up with monthly accounting? Yes. The obligation to keep books and file returns begins from the company's registration date, not from the date it actually starts operating. A dormant company is still required to file its periodic returns on time.

Can the company owner handle bookkeeping themselves? Most types of companies in Turkey, especially limited and joint-stock companies, legally need a licensed accountant (SMMM) to prepare books and file and sign returns; this task is restricted under Law No. 3568 to licensed professionals, and no one else may carry it out on the company's behalf.

What happens if the books aren't kept properly? Failing to keep books, or filing them incompletely or late, exposes the company to tax violations, and can complicate any later audit by the tax administration or any other party requiring proof of financial records, such as banks when opening or renewing accounts.

Are books and documents kept forever or for a set period? The law sets a defined retention period, no less than five years under tax law, which may extend further under the Turkish Commercial Code. The company is required to keep its books and documents during this period and produce them on request.

Last updated: 2026-09-07