Establishing a Company in Turkey

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Types of Companies in Turkey

According to the Turkish Commercial Code can be installed on five different types of companies in Turkey.

These are:

  1. Joint stock companies companies (JSC)
  2. Limited liability companies (LLC)
  3. Collective companies (CC)
  4. Partnership limited by shares (PLS)
  5. Cooperative associations (CA)

Joint stock companies companies, Limited liability companies and the Collective companies whose capital is divided into shares are capital based companies. The shareholders of a capital company are responsible against the company only with the capital they have committed.

The establishment, basic features and operations of these companies are shown in the Turkish Commercial Code No. 6102.

Approximately all while 82% of companies are limited companies, 13% are joint stock companies and 4% are cooperatives.

Joint stock companies (JSC)

(Corporation; Societas Europea; Aktiengesellshaft; Societe Anonyme; Public Limited Company; Societa per Azioni; Sociedad Anonima)

A Joint Stock Company is the company possessing a trade name, whose capital is determined and divided into shares, being liable for its debts only up to the amount of its estate.

  • Can be incorporated by one of more shareholders
  • Can be established either as a public company or as a private company
  • The company’s stock capital is divided into shares and the liability of the shareholders is limited to the subscribed capital and paid by the shareholder
  • At least one shareholder (real person or legal entity) and a minimum capital of TRY 50,000 are mandatory
  • Shareholders are not liable for the debts of the company in terms of their personal assets
  • A statutory auditor (independent audit firms pursuant to Turkish Accounting Standards) is required

Limited Liability Company (LLC)

(Limited Liability Company; Societas Privata Europaea; Gesellshaft mit beschraenkter Haftung; Seocieta a Responsabilite Limitee; Private Limited Company; Societa a Responsabiliata Limitata; Sociedad Limitada; Sociedad de Responsabilidad Limitada)

A Limited Liability is a company formed by one or more real or legal persons, having a corporate title and a predetermined (fixed) capital and with a liability limited to the corporate assets. The liability of the shareholders is towards the company and is limited with their share of the capital.

  • Can be incorporated by one of more shareholders
  • Number of the shareholders cannot exceed 50
  • The minimum capital requirement is TRY 10,000
  • Not able to offer shares to the public
  • Shareholders are not liable for the debts of the company in terms of their personal assets

Company Establishment Operations in Turkey

Establishment of a company in Turkey can be completed in a very short time. The establishment of a company by foreigners is subject to the same rules as Turkish citizens.

The main contract of the company should be prepared in Turkish. 0,04 percent of the capital should be deposit in the Competition Authority account. In addition, before the registration of the company it needs to be deposited at least 25% of the shares in an opened bank account on behalf of the company.