Types of Companies in Turkey: Which Is Right for Your Business?

Turkey offers several business entity types, each designed to serve different business models, sizes, and investor needs. Choosing the right structure is one of the most important decisions you'll make when starting your business journey in Turkey.

Limited Liability Company (LLC / Ltd. Şti.)

The most popular choice among the types of companies in Turkey is the Limited Liability Company. It requires a minimum capital of 10,000 TRY, can have between 1 and 50 shareholders, and offers limited personal liability. It's ideal for small to medium-sized businesses and most foreign investors.

Joint Stock Company (A.Ş.)

The Joint Stock Company requires a minimum capital of 50,000 TRY (or 250,000 TRY for a public company). It allows shares to be freely transferred and is suitable for larger businesses seeking outside investment or planning an IPO. It has a board of directors and is subject to more regulatory requirements than an LLC.

Collective and Commandite Companies

These partnership-type companies are less common. In a collective company (Kollektif Şirket), all partners bear unlimited liability. In a commandite company (Komandit Şirket), there are both general partners with unlimited liability and limited partners. These structures are rarely used by foreign investors.

Branch Office

Foreign companies can operate in Turkey through a branch office without forming a separate legal entity. The parent company retains full liability. This is often used when testing the Turkish market before starting a business in Turkey as a fully independent company.

Liaison Office

A liaison office can conduct market research and promotional activities but cannot engage in commercial transactions or generate revenue. It must be re-approved every three years. This is a popular option for companies in the information-gathering phase.

Free Zone Companies

Companies established in Turkey's free zones enjoy significant tax benefits and are ideal for businesses targeting expanding into European and Asian markets. These zones offer corporate tax exemptions, VAT exemptions, and simplified customs procedures.

How to Choose the Right Structure

Your choice should be based on: number of shareholders, capital available, liability tolerance, long-term growth plans, and target market. For a complete analysis of costs associated with each type, see our guide on the cost of setting up a company.

Getting legal advice for company setup before making your decision is highly recommended. A legal professional will assess your specific situation and guide you to the most tax-efficient and legally sound structure.

Conclusion

Selecting the right company type in Turkey lays the foundation for a successful business. Once you have made this decision, consult our complete company setup guide to navigate each step of the registration process.