Type of Companies for Formation in Turkey

Limited Liability Company in Turkey

At least by 1 and maximum 50 shareholders or participations being the real person or legal entity allowed for startup Istanbul by Limited Liability Company (LLC). The capital subscribed are restricted the liability of shareholders and they are only responsible by their shares. The minimum capital of 10,000 Turkish lira (TL) is mandatory for this kind of startup Istanbul. The shares owning by the shareholder must be at least 25 TL or multiple of 25 TL and opposite of Joint Stock companies, no stock certificate is issued.

Joint Stock Company in Turkey

For this type of Startup Istanbul, the capital for JS companies is separated into shares and the shareholder’s liability will be based on his subscribed capital. At least one shareholder being real person or legal entity are required for establishing this company and minimum capital of 50,000 Turkish Lira is compulsory to startup Istanbul by this type of company. According to the current Turkish Trade Law, banks, private finance institutions, insurance companies, financial leasing companies, factoring companies, holding companies, companies operating as foreign currency exchange offices, companies dealing with public warehousing, publicly held companies subject to the Capital Markets Law, companies that are founders and operators of free zones should be established as Joint Stock Associations and these companies are still subject to permit from Ministry of Industry and Trade for their foundations.

Commandite Company in Turkey

These type of startup Istanbul through establishing Commandite companies to operate a commercial enterprise under a trade name. Whereas the liability or responsibility of one or some of shareholders is limited to the capital subscribed and paid by the shareholder (These kind of shareholder called Commanditor), for some shareholders there is no limitation of liability (which is called Commanditee) for construction companies in Turkey. Legal entities can only be Commanditor and Commanditee shareholder have to be individuals. No minimum capital is required for this type of startup Istanbul. The rights and obligations of the shareholders are determined by the articles of association.

Commandite Company

It is the company established to operate a commercial enterprise under a trade name. Whereas the liability or responsibility of one or some of shareholders is limited to the capital subscribed and paid by the shareholder (these kind of shareholder called commanditor), for some shareholders there is no limitation of liability (which is called commanditee) for construction companies in Turkey. Legal entities can only be commanditor and commanditee shareholder have to be individuals. No minimum capital is required. The rights and obligations of the shareholders are determined by the articles of association.