If you are planning to do business in Türkiye, selecting the most suitable company structure aligned with your strategic goals is essential. Proper legal and tax structuring of your company plays a critical role in the long-term sustainability and success of your operations.
As SonsözPartner, we provide end-to-end consultancy services for both local and foreign investors in Türkiye, covering company formation, legal structuring, and operational processes.
Key Considerations for Company Formation in Türkiye
Legal Framework and Foreign Investments
In Türkiye, domestic and foreign investors are subject to the same rights and obligations. The rights of foreign investors are safeguarded under the Foreign Direct Investment Law No. 4875.
Foreign investors are free to make direct investments in Türkiye, are treated equally with domestic investors, and their investments cannot be expropriated except for public interest and with due compensation.
Expropriation and Nationalization
Direct foreign investments cannot be expropriated or nationalized unless required by public interest and provided that fair compensation is paid in accordance with applicable legislation.
Capital and Profit Transfers
Foreign investors may freely transfer abroad:
- Net profits and dividends
- Proceeds from sale or liquidation
- Payments under license, management, or similar agreements
- Principal and interest payments of foreign loans
through banks or authorized financial institutions.
Company Types in Türkiye
Under the Turkish Commercial Code No. 6102, companies are classified into two main categories:
Capital Companies
- Joint Stock Company (Anonim Şirket – A.Ş.)
- Limited Liability Company (Limited Şirket – Ltd. Şti.)
- Limited Partnership Divided into Shares
In capital companies, shareholders’ liability is limited to the capital they have committed.
Personal Companies
- Collective Company
- Ordinary Limited Partnership
In personal companies, partners bear unlimited and secondary liability for company debts.
Cooperatives
Cooperatives are governed by the Cooperatives Law No. 1163 and must be established by at least seven partners. Their primary purpose is to protect and promote members’ economic interests through mutual assistance and solidarity.
Companies Subject to Ministry Approval
The establishment of certain companies requires prior approval from relevant ministries or public authorities, including:
- Banks and insurance companies
- Financial leasing and factoring companies
- Asset management companies
- Foreign exchange offices
- Holding companies
- Independent audit firms
- Capital Markets Law–regulated entities
- Free zone founder and operator companies
Joint Stock Company (Anonim Şirket – A.Ş.)
A Joint Stock Company is a capital company whose capital is divided into shares and which is liable for its debts solely with its assets.
Key Characteristics
- Minimum capital: TRY 250,000
- Initial capital under registered capital system: TRY 500,000
- Minimum 1 shareholder, no upper limit (over 250 shareholders subject to Capital Markets Law)
- Shareholders are not liable for public debts
- Board members are secondarily liable for unpaid public debts
Mandatory Corporate Bodies
General Assembly
The supreme decision-making body, authorized to amend the articles of association, elect board members, and decide on dissolution.
Board of Directors
Responsible for management and representation of the company. A single-member board is permitted. There is no nationality or residency requirement.
Equivalent Forms of Joint Stock Companies in Different Countries
| Country / Region | Equivalent Company Type |
|---|---|
| European Union (General) | Societas Europaea (SE) |
| United States, Canada | Corporation (Inc., Corp.) |
| Germany, Austria, Switzerland (German-speaking) | Aktiengesellschaft (AG) |
| United Kingdom | Public Limited Company (plc) |
| France, Belgium, Switzerland (French-speaking) | Société Anonyme (SA) |
| Spain, Mexico, Argentina | Sociedad Anónima (S.A.) |
| Italy | Società per Azioni (SpA) |
Limited Liability Company (Limited Şirket – Ltd. Şti.)
A Limited Liability Company may be established by one or more real or legal persons and is one of the most commonly preferred company types in Türkiye.
Key Characteristics
- Minimum capital: TRY 50,000
- Number of shareholders: 1 – 50
- Cannot be publicly traded
- Shareholders are liable for public debts in proportion to their capital shares
Mandatory Corporate Bodies
General Assembly
The body where shareholders exercise decision-making authority on essential company matters.
Board of Managers
Responsible for management and representation. At least one manager must be a shareholder.
Equivalent Forms of Limited Liability Companies in Different Countries
| Country / Region | Equivalent Company Type |
|---|---|
| European Union (General) | Societas Privata Europaea (SPE) |
| United States, Canada | Limited Liability Company (LLC) |
| Germany, Austria, Switzerland (German-speaking) | GmbH |
| United Kingdom | Private Limited Company (Ltd) |
| France, Belgium, Switzerland (French-speaking) | SARL / SàRL |
| Mexico, Argentina | S.R.L. / S. de R.L. |
| Italy | Srl |
| Spain | S.L. |
SonsözPartner – Secure Business Structuring in Türkiye
SonsözPartner is a trusted consultancy partner for domestic and foreign investors in Türkiye, offering professional guidance in company formation, legal structuring, taxation, and accounting processes.
We support you throughout company type selection, establishment, licensing, contractual structuring, and operational setup.