Turkey offers a diverse legal infrastructure for entrepreneurs, investors, and international corporations looking to establish a business presence. The types of companies in Turkey are primarily regulated under the Turkish Commercial Code (Law No. 6102) and offer flexible legal personalities suited for different commercial goals, risk appetites, and governance structures. Choosing the correct legal form is one of the most critical decisions foreign investors must make, as it directly affects tax liability, shareholding flexibility, and operational governance.
At ER&GUN&ER Law Firm, our corporate advisory team regularly assists foreign and domestic clients in selecting, registering, and restructuring various types of legal entities in Turkey. Whether you're looking to launch a small family-run business or establish a multinational joint venture, our English speaking Turkish lawyers provide tailored legal guidance at every stage. Recognized as a best lawyer firm in Turkey for company formation and investment structuring, our firm delivers clarity, regulatory insight, and long-term legal risk mitigation through every step of incorporation.
Main Legal Forms of Companies in Turkey
There are five principal company types regulated by Turkish law, each offering distinct characteristics in terms of liability, capital, and management:
- Limited Liability Company (LTD)
- Joint Stock Company (A.Ş.)
- Commandite Company (Komandit)
- Collective Company (Kollektif)
- Cooperative Company
The most common forms used by both local and foreign investors are the Limited Liability Company (LTD) and the Joint Stock Company (A.Ş.). Each of these entities can be 100% foreign-owned and is suitable for different strategic objectives. At our Turkish Law Firm, we guide clients through the comparative legal and tax advantages of each model, taking into account their capital structure, compliance preferences, and industry-specific requirements.
Also see: step-by-step guide to setting up a company in Turkey
Limited Liability Company (LTD) in Turkey
The Limited Liability Company (LTD) is the most frequently chosen company type among foreign entrepreneurs and SMEs entering the Turkish market. It offers a streamlined governance structure, reduced bureaucratic load, and minimal formation capital compared to joint stock entities. An LTD in Turkey may be established with as few as one shareholder, and the minimum capital requirement is ₺50,000. The liability of shareholders is limited to their capital contributions, which makes this structure attractive for investment protection.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers handle all aspects of LTD company formation—from drafting the Articles of Association to securing tax registration, chamber registration, and opening corporate bank accounts. As a proactive Turkish Law Firm focused on international clients, we also assist with virtual office arrangements, power of attorney structuring, and notarization of multilingual documentation. A best lawyer firm in Turkey will ensure that the company is incorporated not only quickly—but also cleanly, and with foresight for compliance and future growth.
Joint Stock Company (A.Ş.) in Turkey
The Joint Stock Company (A.Ş.) is the preferred corporate form for larger scale enterprises, foreign holding companies, and businesses planning to attract outside investment or go public. The minimum capital requirement is ₺250,000, and corporate governance must involve a Board of Directors and General Assembly. Unlike LTDs, shares in an A.Ş. can be freely transferred unless otherwise restricted in the company charter.
Our Turkish Law Firm advises international holding groups and institutional investors on setting up A.Ş. structures optimized for shareholding flexibility, dividend distribution, and capital injection planning. With the assistance of our English speaking Turkish lawyers, clients can draft high-standard corporate governance rules that align with Turkish Capital Markets Board requirements and EU corporate best practices. We are widely recognized as a best lawyer firm in Turkey for mergers, restructurings, and shareholding strategy in joint stock frameworks.
Also see: share purchase agreement requirements in Turkish joint stock companies
Other Company Forms: General Overview
While LTD and A.Ş. remain the most practical choices for foreign investors, Turkish law also allows for other company types. Collective and commandite companies are often used by family-run or partnership-based local businesses and are governed by more rigid liability regimes. Cooperative companies, on the other hand, are ideal for community-based or agricultural initiatives but require specialized statutory oversight.
Our English speaking Turkish lawyers provide full legal analysis on the suitability of each form, especially when clients are entering niche sectors or operating under government-backed investment programs. As a well-established Turkish Law Firm, we help clients navigate licensing, sectoral compliance, and cooperative structuring. If your business model demands legal precision and regulatory harmony, you need a best lawyer firm in Turkey at your side from day one.
For regulatory insight: company types suitable for e-commerce and digital operations
Judicial Interpretation of Company Liability and Governance
The Turkish Court of Cassation (Yargıtay) has set key precedents on how different company types are treated in terms of liability, management accountability, and shareholder protections. One of the fundamental principles upheld by the court is that shareholders in an LTD or A.Ş. are not personally liable for the debts of the company beyond their subscribed capital, unless fraud or misrepresentation can be proven. However, Yargıtay also warns that formalities in incorporation and ongoing compliance must be observed strictly—failure to do so may lead to the "lifting of the corporate veil" and personal liability of directors or dominant shareholders.
At ER&GUN&ER Law Firm, our litigation and corporate advisory teams regularly represent clients in shareholder disputes, board liability claims, and company liquidation proceedings. As a best lawyer firm in Turkey for commercial and corporate law, we ensure that all our clients' company structures are not only compliant but also legally defensible in the event of legal scrutiny. With the support of our experienced English speaking Turkish lawyers, our clients operate confidently and sustainably across all sectors in Turkey.
Frequently Asked Questions (FAQs)
- Which company type is best for foreign investors in Turkey? Either an LTD or A.Ş., depending on capital size, operational goals, and governance preferences.
- Can a foreigner fully own a company in Turkey? Yes. Foreign nationals can own 100% of Turkish companies unless operating in restricted sectors.
- How long does company formation take? Typically 5–10 business days if documents are complete and notarized correctly.
- Is there a residency requirement for shareholders? No. Foreign shareholders are not required to reside in Turkey, but a local tax representative may be required.
- Can one person establish a company in Turkey? Yes. Both LTD and A.Ş. can be founded by a single individual.
- What are the annual obligations for Turkish companies? Tax declarations, commercial registry updates, and general assembly meetings are mandatory.
- Do I need a lawyer to set up a company? Legally not mandatory, but working with a Turkish Law Firm ensures accuracy, speed, and long-term risk mitigation.
Choose the Right Company Structure with Our Turkish Law Firm
Forming a company in Turkey is a strategic investment decision, and choosing the right legal structure can significantly impact your operational efficiency, taxation, liability exposure, and future exit strategy. Whether you are launching a startup, expanding into a new market, or restructuring existing operations, having the right legal partner is critical to your long-term success.
At ER&GUN&ER Law Firm, our team of English speaking Turkish lawyers is here to assist you at every stage of business incorporation and restructuring. As a trusted best lawyer firm in Turkey, we turn complex legal frameworks into actionable corporate strategies—tailored to your goals, industry, and international obligations.