Turkey’s geographic location, bridging Europe and Asia, and its dynamic market offer strategic advantages for both local and international investors. One of the most preferred legal business structures for those looking to establish a presence in Turkey is the joint stock company (JSC). In this article, ER&GUN&ER Turkish Law Firm, a reputable Istanbul Lawyer Firm, provides an in-depth overview of how to set up a joint stock company in Turkey.
What is a Joint Stock Company?
A joint stock company (anonim şirket or A.Ş.) is a type of corporation where capital is divided into shares. Shareholders are liable only to the extent of their subscribed capital. It is particularly suitable for medium to large-scale enterprises and offers the potential for public offerings and raising capital through share sales.
Legal Requirements for Establishing a JSC in Turkey
- Company Name: Must be unique and include “Anonim Şirket” or “A.Ş.”
- Minimum Capital: 50,000 Turkish Liras (or 100,000 TL for companies subject to special regulation)
- Articles of Association: Must include company purpose, share structure, governance, and be notarized
- Trade Registry Registration: Submit notarized documents to the Trade Registry Office
- Tax Registration: Apply to the local tax office for a tax ID number
- Bank Account: Open a corporate account and deposit the initial capital
Our Turkish lawyers at Istanbul Lawyer Firm can guide you through each legal step and document preparation for a smooth setup process.
Key Documents Required
- Notarized Articles of Association
- ID/passports of shareholders and directors
- Proof of residential address for shareholders
- Registered business address in Turkey
- Tax ID and passport-size photos
Shareholder Rights in a Joint Stock Company
Shareholders in a JSC have essential rights under Turkish Commercial Code:
- Voting Rights: Participate in general assemblies and key business decisions
- Dividend Rights: Entitlement to profit distribution as approved by shareholders
- Information Rights: Access to financial statements and audit reports
- Pre-Emptive Rights: Priority in purchasing new shares before third parties
Share Types and Transferability
Shares can be registered or bearer and are recorded in the company’s share ledger. Transfers of registered shares must be approved by the board and officially recorded. This structure supports investment flexibility while ensuring legal traceability.
Profit Sharing and Dividends
Dividends are distributed based on general assembly decisions. Shareholders may also vote on reinvestment strategies or bonus share issuance. Profit distribution follows strict compliance with the articles of association and company bylaws.
Why Set Up a Joint Stock Company in Turkey?
- Ideal for medium and large-scale ventures
- Eligibility for public offerings and external investments
- Legal structure suitable for foreign ownership and multi-shareholder governance
Whether you are a Turkish entrepreneur or a foreign investor, forming a JSC in Turkey can be a gateway to corporate growth and legal credibility.
For legal assistance in establishing a joint stock company in Turkey, contact ER&GUN&ER Turkish Law Firm. Our English-speaking lawyers in Turkey are ready to assist with every legal aspect of company formation and compliance.
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