Understanding the types of companies in Turkey is essential for entrepreneurs, investors, and foreign nationals seeking to establish a business presence in the country. Under Turkish Commercial Code No. 6102, several company types offer varying levels of liability, capital requirements, and flexibility. In this article, ER&GUN&ER Turkish Law Firm, a trusted Istanbul Lawyer Firm, outlines the major company types and their characteristics in Turkey.
Legal Company Types in Turkey
Turkish law recognizes two main categories of companies:
- Capital Companies: Joint Stock Company (A.Ş.), Limited Liability Company (LTD), and Commandite Companies
- Partnership Companies: Collective Company and Cooperative Company
1. Joint Stock Company (A.Ş.)
This is the most suitable company type for large investments and those planning public offerings. Shareholders are liable only for the capital they commit. Minimum capital is 50,000 TL. These companies can issue stocks and be listed on the stock exchange.
2. Limited Liability Company (LTD)
Ideal for SMEs, a limited company can be founded by one to fifty shareholders. Minimum capital is 10,000 TL. Shareholders are only liable for the capital they pledged. This is one of the most commonly used business structures in Turkey.
3. Collective Company
A collective company is formed by two or more real persons who are jointly and severally liable for the debts of the company. No capital requirement exists. These companies are generally used for small-scale family businesses.
4. Limited Partnership (Commandite Company)
This structure has two types of partners: active (unlimited liability) and silent (limited liability). It is less common and used in niche sectors.
5. Cooperative Company
Formed by at least seven individuals, cooperatives serve to fulfill common economic needs. Each partner's maximum share cannot exceed 5,000 TL. These are often used in agriculture, construction, or housing projects.
Business Formation for Foreign Investors
Foreign nationals can establish or partner in Turkish companies under equal terms with locals. Required documents include notarized passports, tax ID numbers, and Articles of Association (AOA). Legal representation from a Turkish business lawyer is essential to ensure compliance with registration and licensing procedures.
How Istanbul Lawyer Firm Can Help
At Istanbul Lawyer Firm, our English-speaking Turkish Lawyers assist both Turkish and foreign entrepreneurs in:
- Choosing the most suitable company structure
- Preparing legal documents and shareholder agreements
- Company registration with the Trade Registry
- Advising on tax, compliance, and restructuring
Read our previous article: What Are Mergers and Acquisitions?