In Turkey, there are several types of business entities that individuals or companies can establish. Each type of business entity has its own characteristics, legal requirements, and implications. Here are the main types of business entities in Turkey:
Limited Liability Company (LLC): A limited liability company, known as "Limited Şirket" or "Ltd. Şti." in Turkish, is the most common form of business entity in Turkey. It offers limited liability protection to its shareholders, meaning that their personal assets are separate from the company's liabilities. The minimum capital requirement to establish an LLC is determined by law.
Joint Stock Company (JSC): A joint stock company, known as "Anonim Şirket" or "A.Ş." in Turkish, is a company whose capital is divided into shares. It allows for the ownership of shares by multiple shareholders, and the liability of shareholders is limited to their share capital.
Cooperative: A cooperative, known as "Kooperatif" in Turkish, is a business entity where individuals or entities with common interests come together to achieve their economic goals. Cooperatives are often established in sectors such as agriculture, housing, or consumer goods, and they operate based on the principles of mutual aid and democratic decision-making.
Collective Company: A collective company, known as "Kollektif Şirket" in Turkish, is a partnership where two or more individuals or entities operate a business together under a common name. In this type of partnership, all partners have joint and unlimited liability for the company's debts.
Commandite Company: A commandite company, known as "Komandit Şirket" in Turkish, is a partnership where there are two types of partners: active partners and silent partners. Active partners manage the company and have unlimited liability, while silent partners contribute capital but have limited liability.
Branch Office: Foreign companies can establish branch offices in Turkey to carry out their activities. A branch office operates as an extension of the foreign company, and it is subject to certain registration and reporting requirements in Turkey.
It's important to note that the establishment and operation of these business entities are regulated by the Turkish Commercial Code and other relevant legislation. The choice of business entity depends on various factors such as the nature of the business, liability considerations, capital requirements, and governance structure. It is advisable to seek legal and professional advice when deciding on the appropriate type of business entity in Turkey.
If you are planning to establish a company in Turkey and need professional support, please contact us: info@baxleycpa.com
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BAXLEY