Limited Liability Company
In order to set up a Limited Liability Company (LLC) in Turkey only one shareholder and a minimum capital of 10,000 TL are required. Shareholders who wish to establish a Limited Liability Company can be an individual or legal entity. All or some of the founders of an LLC can be foreigner. Setting up a Limited Liability Company is ideal due to its flexible structure. To incorporate Limited Liability Company is easier than setting up a joint stock company in Turkey. The liability of shareholders is restricted with their share capital. Unlike joint stock compaines, an LLC cannot issue stock certificates, LLCs have at least two units; the company’ s general meeting and the managing directors.
Joint Stock Company
A minimum of one shareholder is required to set up a joint stock company in Turkey. Individuals or companies can incorporate a joint stock company and each shareholder may be a foreigner. A minimum capital of 50,000 TL is required to open a joint stock company in Turkey, that amount indicates the total amount of capital. Joint stock companies can issue stock certification as opposed to limited liability companies. Investors aiming to set up a company in Turkey should consider that important rule. In joint stock companies, shareholders liability is restricted with their share capital. Joint stock companies must have at least three units: general company meetings, a Board of Directors, and a supervisory board.
Holding companies generally participate in other companies and hold their outstanding shares. This means that holding companies usually do not conduct business by producing goods or services. Larger companies or multi-sector organizations set up holding companies to allow the free flow of capital and ownership transfer.
Companies located abroad, and whose capital is divided into shares can establish a branch office in Turkey. Branch office liability is not restricted with the branch’s capital, it is restricted with the main company’s liability. A foreign legal entity that wishes to open a branch office in Turkey, has to appoint at least one managing director and regarding director must have residence permit in case the director is foreign citizen. Opening a branch office allows foreign companies to enter the Turkish market with minimal operations.
Companies located abroad can open a liaison office in Turkey. Contrary to a branch office, liaison offices cannot conduct any commercial activity or receive any earnings according to Turkish Law. In order to set up a liaison office in Turkey, permission from the Directorate General of Incentive Application and Foreign Capital is required. A liaison office permit is granted for a maximum of three years. After three years the previous year activities and plans for future are considered for an extension.
Free Trade Zone Company
Our firm offers company formation services in a free trade zone, Turkey. Free trade zones have tax plus other advantages, that attract investors, BudakCPA provides efficient solutions for foreign entrepreneurs who plan to start a business in a free trade zone.
Commandite Company (limited partnership)
Commandite companies are set up to conduct business under a trade name. Some shareholders’ liability is restricted with share capital, while other shareholders liability is not restricted. There is no minimum capital requirement.
Collective companies are similar to commandite companies, with the main difference being that only individuals establish collective company. The liability of shareholders is restricted with capital share.