Type II membrane proteins do not have a cleavable N-terminal signal sequence, translation initially occurs in the cytoplasm, an internal ER targeting sequence is then recognized by SRP and directed to ER translocon, this internal targeting signal also doubles as an anchor signal: a "signal-anchor sequence", once the SA sequence is embedded, it is moved laterally along the bilayer and ribosome continues co-translation into ER lumen, reverse topology compared to Type I membrane proteins
There is an adaptor complex, the signal recognition particle SRP, which binds to both the large ribosomal subunit and the signal sequence of the growing peptide
Same topology as Type I but translocation mechanism is similar to Type II, does not have a cleavable N-term signal sequence, uses a signal-anchor sequence but positioned very close to N-terminus, recognized by SRP, brought to translocon and anchored into the membrane but in reverse orientation to Type II (hence reverse topology), orientation of signal anchor sequence determined by position of positively charged flanking residues which prefer to remain on the cytosolic face, possible to artificially "flip" Type II and Type III membrane proteins by changing position of positively charged residues to reverse topologies
Initial steps are identical to translocation of secreted proteins (i.e., SRP recognition and signal cleavage), insertion into the membrane requires a "stop-transfer anchor" (STA) signal, hydrophobic stretch of amino acids (20-25 aa) that embeds into the lipid bilayer
There is a receptor for SRP in the ER membrane, translation is halted until the ribosome gets to ER translocon, docking of the SRP to its receptor opens up a channel allowing the translocation of the newly synthesized peptide