Limited Company

In order to set up a limited company in Turkey, at least two shareholders are required. Minimum capital of 5.000 TL is required to found. The shareholders, who wish to establish a limited company, can be individual or legal entity. As well as all or some of founders of limited Company can be foreigner. Setting up limited company is most chosen by foreing nationals due to its flexible structure. To incorporate limited company is easier than to set up joint stock company in Turkey. The liability of shareholders is restricted with their share capital. Limited companies can not issue stock certificate unlike on contrary joint stock companies. Limited companies have at least 2 organs ; the company general meeting and the managing directors.

Joint Stock Company

Minimum five shareholders are required to set up a joint stock company in Turkey. Individuals or companies can incorporate joint stock company. Each shareholder, who aim to establish joint stock company can be foreigner. In order to found a joint stock company in Turkey, minimum capital of 50.000 TL is required, that amount indicates the total amount of capital. Joint stock companies can issue stock certificate on contrary limited companies. The investors, aim setting up a company in Turkey should consider that important rule. In joint stock companies, shareholders liability is restricted with their share capital. Joint stock companies must have at least 3 organs ; the company general meeting and the directors’ board, supervisory board.

Holding Company

Holding companies generally participate in other companies and hold their outsanding shares. It refers that, holding companies usually do not conduct business by producing goods and services. For larger companies or multi-sector organization to set up holding company to allow the free flow of capital and ownership transfer.

Branch Office

Foreign companies, which are located abroad and whose capital is divided into the share can establish branch office in Turkey. For seting up a branch office, the permission of Ministry of Industry and Commerce is required. Branch office liability is not restricted with branch’s capital, it is restricted with main company’s liability. The foreign legal entity, which wish to incorporate a branch office in Turkey, has to appoint at least one managing director. To open branch office allows foreign companies to enter the Turkish market with minimal operations.

Liaison Office

Companies, located abroad can open liaison office in Turkey. On contrary branch office, branch offices can not conduct any commercial activity and can not get any earning. According to Turkish Law this is an obligation. In order to open a liason Office in Turkey, the permission of General Directorate Foreign Investment of Undersecretariat of Turkish Treasury is required. Liaison Office permit is granted maximum three years. After three years, for extention, previous years activities and plans for future are considered.

Commandite Company

Commandite companies are set up to conduct business under a trade name, some shareholders liability is restricted with share capital, on other hand some shareholders liability is not restricted. There is no minimum capital requirement.

Collective Company

Collective companies are similiar with commandite companies, main difference is that only individiuals establish collective company. The liability of shareholders is restricted with capital share.

Non Profit Organization (Foundation, Associations, NGOs)