SHOULD I PREFER JOINS STOCK OR LIMITED COMPANY IN TURKEY? OR WHAT MAKES JOINT STOCK COMPANIES MORE DESIRABLE IN TURKEY? MAIN DIFFERENCES BETWEEN LIMITED COMPANY AND JOINT STOCK COMPANY IN TURKEY and COMPARASION OF THEM
In our previous note we explained the joint stock company and limited company. Now lets compare each of them and see main differences between them:
| EXPLANATION | LIMITED COMPANY | JOINT STOCK COMPANY |
| Type of Company | Stock Company | Stock Company |
| Min. Number Of Partners | 1 | 1 |
| Maksimum Number Of Partners | 50 | No Limited |
| Minimum Capital | 10.000 TL (for TL USD rate please click) | 50.000 TL for TL USD rate please click) |
| Company Organs | General Assembly –
Director/Board of Directors |
General Assembly-
Board of Directors |
| Management | Director/Directors | Board of Directors |
| Liability | Shareholders are responsible for debts due to uncollectible public debts (tax, social insurance premium etc.) in the rate of their capital shares. (Law No 6183, Art. 35) | Shareholders are only liable to the company with the capital shares they have committed.
|
| Transfer of Shares | The transfer of limited company shares is subject to the approval of the general assembly. (TCC, Art. 595). Share transfer agreement must be issued in notary. The process must be registered in the trade registry office | For the share transfer, as a ruleno need for approval of general assembly. For the share transfer agreement no need to be issued in notary. No need to disclose the share transfer to the trade registry. |
In Terms Of Purpose And Subject Of The Company Is It Suitable For Special Licensed Company Types (Bank, Insurance, Etc.) |
No | Yes |
In Terms Of Issuance Of Bonds And Dividend Certificates
|
Can not issue bonds. Dividend certificates can be issued in limited liability companies only on condition that this is specified in the Articles of Association. | Can issue bonds. Dividend Certificates can be issued in joint-stock companies. |
| In Terms Of Tax Exemption Of Share Transfer | Whenever company shares are sold, income tax is incurred | if the company share is sold within 2 years after the purchase of the share certificate, income tax is incurred; however, if it is sold after 2 years, no income tax is incurred |
Differences In Terms Of Dividend And Share Groups
|
dividend advances can be distributed to the partners. on the condition that the value of the share differs, the voting right may be limited, and voting privileges may be granted, provided that it is specified in the articles of association. | no dividend advance is distributed to the partners. , different rights may be granted to specific share certificates or share certificate groups in terms of voting rights, representation, Board Membership, dividend, liquidation share, priority rights, etc., under the articles of association |
In Terms Of The Obligation For The Shareholders To Be Managers
|
At least one shareholder must be director. | No such obligation. No shareholder has to be manager/board of the director. |
Documents required for company registration in Turkey are;
- Passport copy of founder
- Photos of founder
- Duly issued power of attorney.
These are all documents we need it for company formation in Turkey. Company formation is so easy.
For further information, please contact info@tercanlegal.com
The content of this article is not a legal advice, it is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
