Türkiye is characterized by a distinct environment for business and investment incubation. The legal system and local legislation allow investors and entrepreneurs to establish and operate diversified companies in the country.
Establishing and operating businesses is one of the main factors that support economic growth and promote investment and trade. The legal structure and local legislation in Turkey allow individuals and investors to establish and operate different companies according to their needs and business goals. Companies have different rights and responsibilities and are bound by specific legal requirements that are governed by the appropriate regulatory agencies.
In this context, we will learn about some common types of companies in Türkiye. We'll explore the basic characteristics of each type, including ownership structure, financial responsibility, and incorporation and operating procedures. This deeper understanding will help us to identify the available options and choose the appropriate mode to achieve our business goals in Turkey.
Now, let's review the main types of companies in Turkey and learn about their features, requirements and potential benefits.
1. Limited Liability Company (Limited Şirket - LTD):
A limited liability company is the most common form of company in Türkiye. The incorporation and management of this type of company is flexible and simple. Establishing a LTD company requires at least two shareholders, and up to fifty companies. The capital is specified in the Memorandum of Association, as well as the company's fields of work. The company enjoys a legal personality independent of its shareholders, and the shareholders do not bear any responsibility over their contributed capital.
2. A public joint stock company (Anonim Şirket - A.Ş.):
A public joint stock company is similar to joint stock companies in many countries. This company is suitable for large projects that require higher capital and more shareholders. There must be at least five shareholders to establish the company, and the shareholding ratios and the division of shares are determined in accordance with Turkish laws. Shares can be paid or unpaid, the company has a legal personality independent of shareholders, and bears responsibility
They are usually listed on financial markets.
3. Sole Proprietorship (Şahıs Şirketi):
An individual company allows individuals to establish small companies with unlimited liability. The founder bears full personal responsibility for the debts and financial obligations of the company. The capital is specified in the Memorandum of Association, and there is no minimum limit for it. And