{"id":2741,"date":"2023-04-23T11:23:09","date_gmt":"2023-04-23T11:23:09","guid":{"rendered":"https:\/\/www.cbhukuk.com\/?p=2741"},"modified":"2026-10-05T10:24:38","modified_gmt":"2026-10-05T10:24:38","slug":"company-types-in-turkey","status":"publish","type":"post","link":"https:\/\/www.cbhukuk.com\/en\/company-types-in-turkey\/","title":{"rendered":"Company Formation in Turkey and Company Types with Requirements"},"content":{"rendered":"<style id=\"cb-bh-css\">h1.cb-bh,h2.cb-bh{text-transform:uppercase}<\/style><section class=\"l-section wpb_row height_small\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-image align_center\"><div class=\"w-image-h\"><img decoding=\"async\" width=\"800\" height=\"400\" 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\/><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto width_full\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column us_custom_e83ffedf has_text_color\"><div class=\"wpb_wrapper\"><style>nav.cb-toc{background:#fff;border:1px solid #8b3516;border-radius:6px;padding:10px 16px;margin:0 0 1.5em;display:table;max-width:100%;box-sizing:border-box;text-align:left}nav.cb-toc summary{cursor:pointer;font-weight:400;font-size:15px;color:#000;list-style:none;display:flex;align-items:center;gap:.5em}nav.cb-toc summary::-webkit-details-marker{display:none}nav.cb-toc summary:after{content:\"\\25BE\";color:#8b3516;transition:transform .2s}nav.cb-toc details[open] summary:after{transform:rotate(180deg)}nav.cb-toc ol{list-style:none;margin:8px 0 0;padding:0}nav.cb-toc ol ol{margin:2px 0 4px 4px;padding-left:14px;border-left:1px solid #e6dcd8}nav.cb-toc li{margin:4px 0;font-size:13.5px;line-height:1.45;color:#000}nav.cb-toc ol ol li{font-size:13px}nav.cb-toc a,nav.cb-toc a:visited{color:#000;text-decoration:none}nav.cb-toc ol ol a,nav.cb-toc ol ol a:visited{color:#444}nav.cb-toc a:hover,nav.cb-toc a:focus{color:#8b3516;text-decoration:underline}h1[id],h2[id],h3[id],h4[id]{scroll-margin-top:120px}html{scroll-behavior:smooth}<\/style><nav class=\"cb-toc\" aria-label=\"Table of Contents\"><details><summary>Table of Contents<\/summary><ol><li><a href=\"#COMPANY_FORMATION_IN_TURKEY_COMPANY_TYPES_FEATURES_AND_FORMATION_COSTS\">Company Formation in Turkey, Company Types, Features and Formation Costs<\/a><ol><li><a href=\"#WHAT_ARE_THE_ELEMENTS_OF_A_COMPANY\">What Are the Elements of a Company?<\/a><\/li><li><a href=\"#WHO_CAN_ESTABLISH_A_COMPANY_IN_TURKEY\">Who Can Establish a Company in Turkey?<\/a><\/li><li><a href=\"#WHAT_ARE_THE_COMPANY_TYPES_IN_TURKEY\">What Are the Company Types in Turkey?<\/a><ol><li><a href=\"#1-_Sole_Proprietorship\">1- Sole Proprietorship<\/a><ol><li><a href=\"#What_Is_the_Difference_Between_a_Sole_Proprietorship_and_a_Personal_Partnership_Company_in_Turkey\">What Is the Difference Between a Sole Proprietorship and a Personal (Partnership) Company in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#2-_Ordinary_Partnership\">2- Ordinary Partnership<\/a><\/li><li><a href=\"#3-_Collective_Company\">3- Collective Company<\/a><\/li><li><a href=\"#4-_Limited_Partnership_Komandit_Sirket\">4- Limited Partnership (Komandit \u015eirket)<\/a><\/li><li><a href=\"#5-_Joint-Stock_Company\">5- Joint-Stock Company<\/a><\/li><li><a href=\"#6-_Limited_Liability_Company_LLC\">6- Limited Liability Company (LLC)<\/a><\/li><li><a href=\"#7-_Cooperative\">7- Cooperative<\/a><\/li><\/ol><\/li><li><a href=\"#HOW_MANY_PEOPLE_ARE_NEEDED_TO_ESTABLISH_A_COMPANY_IN_TURKEY\">How Many People Are Needed to Establish a Company in Turkey?<\/a><\/li><li><a href=\"#HOW_TO_ESTABLISH_A_COMPANY_IN_TURKEY\">How to Establish a Company in Turkey?<\/a><ol><li><a href=\"#1-_What_Are_the_Steps_to_Establish_a_Company_in_Turkey\">1- What Are the Steps to Establish a Company in Turkey?<\/a><\/li><li><a href=\"#2-_What_Is_Needed_To_Start_A_Company_In_Turkey\">2- What Is Needed To Start A Company In Turkey?<\/a><\/li><li><a href=\"#3-_In_Which_Fields_of_Activity_Can_a_Company_Be_Established_in_Turkey\">3- In Which Fields of Activity Can a Company Be Established in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#WHAT_IS_THE_COST_OF_COMPANY_FORMATION_IN_TURKEY_IN_2026\">What Is the Cost of Company Formation in Turkey in 2026?<\/a><ol><li><a href=\"#1-_What_Are_the_Initial_Costs_of_Establishing_a_Company_in_Turkey\">1- What Are the Initial Costs of Establishing a Company in Turkey?<\/a><\/li><li><a href=\"#2-_What_Are_the_Ongoing_Costs_of_a_Company_in_Turkey\">2- What Are the Ongoing Costs of a Company in Turkey?<\/a><\/li><li><a href=\"#3-_What_Is_the_Total_Cost_of_Company_Formation_in_Turkey_in_2026\">3- What Is the Total Cost of Company Formation in Turkey in 2026?<\/a><\/li><\/ol><\/li><li><a href=\"#HOW_LONG_DOES_IT_TAKE_TO_FORM_A_COMPANY_IN_TURKEY\">How Long Does It Take to Form a Company in Turkey?<\/a><\/li><li><a href=\"#WHAT_ARE_THE_CHARACTERISTICS_OF_COMPANY_TYPES_IN_TURKEY\">What Are the Characteristics of Company Types in Turkey?<\/a><ol><li><a href=\"#A_What_is_a_Personal_Company_Sahis_Sirketi_in_Turkey\">A) What is a Personal Company (\u015eah\u0131s \u015eirketi) in Turkey?<\/a><ol><li><a href=\"#Characteristics_of_Personal_Companies_and_Sole_Proprietorships\">Characteristics of Personal Companies and Sole Proprietorships<\/a><\/li><\/ol><\/li><li><a href=\"#B_What_is_a_Limited_Company_in_Turkey\">B) What is a Limited Company in Turkey?<\/a><ol><li><a href=\"#1-_Characteristics_of_a_Limited_Company_in_Turkey\">1- Characteristics of a Limited Company in Turkey<\/a><\/li><li><a href=\"#2-_How_to_Establish_a_Limited_Company_in_Turkey\">2- How to Establish a Limited Company in Turkey?<\/a><\/li><li><a href=\"#3-_Considerations_When_Establishing_a_Limited_Company_In_Turkey\">3- Considerations When Establishing a Limited Company In Turkey<\/a><\/li><li><a href=\"#4-_Can_Limited_Liability_Companies_Establish_A_Home_Office_in_Turkey\">4- Can Limited Liability Companies Establish A Home Office in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#C_WHAT_IS_A_JOINT_STOCK_COMPANY_IN_TURKEY\">C) WHAT IS A JOINT STOCK COMPANY IN TURKEY?<\/a><ol><li><a href=\"#1-_How_To_Establish_A_Joint-stock_Company_In_Turkey\">1- How To Establish A Joint-stock Company In Turkey?<\/a><\/li><li><a href=\"#2-_Things_To_Consider_When_Establishing_A_Joint_Stock_Company_In_Turkey\">2- Things To Consider When Establishing A Joint Stock Company In Turkey<\/a><\/li><\/ol><\/li><\/ol><\/li><li><a href=\"#ADVANTAGES_AND_DISADVANTAGES_OF_COMPANY_TYPES_IN_TURKEY\">Advantages and Disadvantages of Company Types in Turkey<\/a><ol><li><a href=\"#1-_Advantages_of_Sole_Proprietorship\">1- Advantages of Sole Proprietorship<\/a><\/li><li><a href=\"#2-_Disadvantages_of_Sole_Proprietorship\">2- Disadvantages of Sole Proprietorship<\/a><\/li><li><a href=\"#3-_Advantages_of_Establishing_a_Joint-Stock_Company_in_Turkey\">3- Advantages of Establishing a Joint-Stock Company in Turkey<\/a><\/li><li><a href=\"#4-_Disadvantages_of_Establishing_a_Joint-Stock_Company_in_Turkey\">4- Disadvantages of Establishing a Joint-Stock Company in Turkey<\/a><\/li><li><a href=\"#5-_Advantages_of_Establishing_a_Limited_Company_in_Turkey\">5- Advantages of Establishing a Limited Company in Turkey<\/a><\/li><li><a href=\"#6-_Disadvantages_of_Establishing_a_Limited_Company_in_Turkey\">6- Disadvantages of Establishing a Limited Company in Turkey<\/a><\/li><\/ol><\/li><li><a href=\"#THE_DIFFERENCES_BETWEEN_TYPES_OF_COMPANIES_IN_TURKEY\">The Differences Between Types of Companies in Turkey<\/a><\/li><li><a href=\"#WHICH_COMPANY_TYPE_SHOULD_YOU_CHOOSE_IN_TURKEY\">Which Company Type Should You Choose in Turkey?<\/a><ol><li><a href=\"#1-_Limited_Company_or_Joint-Stock_Company_in_Turkey\">1- Limited Company or Joint-Stock Company in Turkey?<\/a><\/li><li><a href=\"#2-_Sole_Proprietorship_or_Limited_Company_in_Turkey\">2- Sole Proprietorship or Limited Company in Turkey?<\/a><\/li><li><a href=\"#3-_Which_Company_Type_Is_Suitable_for_a_Startup_in_Turkey\">3- Which Company Type Is Suitable for a Startup in Turkey?<\/a><\/li><li><a href=\"#4-_How_Are_Company_Types_Taxed_in_Turkey\">4- How Are Company Types Taxed in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#ARE_VIRTUAL_COMPANIES_LEGAL_AND_HOW_IS_A_VIRTUAL_COMPANY_IN_TURKEY_ESTABLISHED\">Are Virtual Companies Legal and How Is a Virtual Company in Turkey Established?<\/a><ol><li><a href=\"#1-_How_Are_Tax_Office_Procedures_Handled_for_a_Virtual_Office_in_Turkey\">1- How Are Tax Office Procedures Handled for a Virtual Office in Turkey?<\/a><\/li><li><a href=\"#2-_How_to_Establish_a_Virtual_Company_in_Turkey\">2- How to Establish a Virtual Company in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#IS_IT_NECESSARY_TO_ESTABLISH_A_COMPANY_FOR_E-COMMERCE_IN_TURKEY\">Is It Necessary to Establish a Company for E-Commerce in Turkey?<\/a><ol><li><a href=\"#1-_Which_type_of_company_is_most_suitable_for_e-commerce_in_Turkey\">1- Which type of company is most suitable for e-commerce in Turkey?<\/a><\/li><li><a href=\"#2-_Where_to_Obtain_Permits_for_Establishing_an_E-commerce_Company\">2- Where to Obtain Permits for Establishing an E-commerce Company?<\/a><\/li><\/ol><\/li><li><a href=\"#WHAT_ARE_THE_REQUIREMENTS_FOR_STARTING_A_STARTUP_COMPANY_IN_TURKEY\">What Are the Requirements for Starting a Startup Company in Turkey?<\/a><ol><li><a href=\"#1-_Differences_Between_Startup_Companies_And_Other_Businesses\">1- Differences Between Startup Companies And Other Businesses<\/a><\/li><li><a href=\"#2-_How_To_Start_a_Startup_Company_in_Turkey\">2- How To Start a Startup Company in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#ESTABLISHING_A_COMPANY_BY_FOREIGNERS_IN_TURKEY\">Establishing a Company by Foreigners in Turkey<\/a><ol><li><a href=\"#1-_Which_Structures_Can_Foreigners_Establish_in_Turkey\">1- Which Structures Can Foreigners Establish in Turkey?<\/a><\/li><li><a href=\"#2-_What_Are_the_Capital_and_Incentive_Conditions_for_Foreign_Investors_in_Turkey\">2- What Are the Capital and Incentive Conditions for Foreign Investors in Turkey?<\/a><\/li><\/ol><\/li><li><a href=\"#FOREIGNERS_ESTABLISHING_COMPANIES_IN_TURKEY_FOR_REAL_ESTATE_ACQUISITION\">Foreigners Establishing Companies in Turkey for Real Estate Acquisition<\/a><ol><li><a href=\"#1-_What_Should_Be_Considered_When_Acquiring_Real_Estate_Through_a_Company_in_Turkey\">1- What Should Be Considered When Acquiring Real Estate Through a Company in Turkey?<\/a><\/li><li><a href=\"#2-_Checklist_for_Acquiring_Real_Estate_Through_a_Company_in_Turkey\">2- Checklist for Acquiring Real Estate Through a Company in Turkey<\/a><\/li><\/ol><\/li><li><a href=\"#PROTECTION_AND_SAFEGUARDING_OF_LEGAL_RIGHTS_OF_FOREIGN_COMPANIES_IN_TURKEY\">Protection and Safeguarding of Legal Rights of Foreign Companies in Turkey<\/a><\/li><\/ol><\/li><\/ol><\/details><\/nav>\n<h1 id=\"COMPANY_FORMATION_IN_TURKEY_COMPANY_TYPES_FEATURES_AND_FORMATION_COSTS\" class=\"cb-bh\">Company Formation in Turkey, Company Types, Features and Formation Costs<\/h1>\n<p><strong>Under Turkish law, the company types are the ordinary partnership and the collective company, limited partnership, joint-stock company, limited liability company and cooperative listed in the Turkish Commercial Code; as of 2026, a limited liability company can be formed with at least 50.000 TL and a joint-stock company with at least 250.000 TL of capital.<\/strong> Although there is no specific provision in the <strong>Turkish Commercial Code<\/strong> defining companies, <strong>the characteristics of a company<\/strong> are determined based on the general definition accepted in the doctrine of <strong>company law in Turkey.<\/strong> According to this general definition, <strong>a company is an agreement in which two or more individuals commit to pooling their capital to achieve a common goal.<\/strong> The presence of elements listed in the law is essential for <strong>establishing a company in Turkey<\/strong>, and the establishment procedure may vary depending on the <strong>company types in Turkey.<\/strong><\/p>\n<p><strong>The fundamental elements of a company in Turkey<\/strong> include partnership, the existence of a common goal, the commitment to pooling capital, the agreement, and the establishment procedures, which vary according to the <strong>types of companies in Turkey.<\/strong> Partnership requires <strong>at least two individuals coming together<\/strong> to unite towards a common objective. The partners focus on a common goal, <strong>such as performing a specific task, conducting commercial activities, or providing services.<\/strong> The commitment to pooling capital means that the partners commit to <strong>combining their capital<\/strong> to achieve this common goal.<\/p>\n<p><strong>The company&#8217;s master contract<\/strong> serves as its constitution, outlining the rights and <strong>responsibilities of the partners, profit sharing, the management structure,<\/strong> and other important matters. The establishment procedures involve following specific legal steps for <strong>starting a company in Turkey.<\/strong> These steps typically include registering with <strong>the trade registry, preparing necessary documents, and applying to relevant authorities.<\/strong><\/p>\n<p>There can be differences in the establishment procedures depending on the <strong>company types in Turkey.<\/strong> For instance, <strong>the establishment procedures for a joint-stock company<\/strong> may differ from those for a limited liability company. However, the presence of a common goal and the commitment to pooling capital are fundamental <strong>requirements to establish a company in Turkey<\/strong> for all types of companies.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_small\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-iconbox us_custom_aea21514 iconpos_left style_default color_secondary align_center no_title\"><div class=\"w-iconbox-icon\" style=\"font-size:2rem;\"><i class=\"fas fa-gavel\"><\/i><\/div><div class=\"w-iconbox-meta\"><div class=\"w-iconbox-text\"><p><strong>Article 124 of the <a href=\"https:\/\/www.mevzuat.gov.tr\/mevzuat?MevzuatNo=6102&amp;MevzuatTur=1&amp;MevzuatTertip=5\" target=\"_blank\" rel=\"noopener\">Turkish Commercial Code<\/a><\/strong><\/p>\n<p>Commercial companies consist of collective, commandite, joint-stock, limited liability, and cooperative companies.<\/p>\n<p>In this Code, collective and commandite companies are considered personal companies, while joint-stock, limited liability, and commandite companies with divided shares are considered capital companies.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto width_full\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column us_custom_275474cc has_text_color\"><div class=\"wpb_wrapper\"><h2 id=\"WHAT_ARE_THE_ELEMENTS_OF_A_COMPANY\" class=\"cb-bh\">What Are the Elements of a Company?<\/h2>\n<p><strong>Under Turkish law, a company has four elements: the personal element, the contract element, the capital element and the common purpose element.<\/strong> <strong>The elements of a company in Turkey<\/strong>, determined within the framework of <a href=\"https:\/\/www.cbhukuk.com\/en\/corporate-law-in-turkey\/\"><strong>company law in Turkey<\/strong><\/a>, generally include four main components:<\/p>\n<ol>\n<li><strong>Personal Element<\/strong>: The partners who want to<strong> establish a company in Turkey<\/strong> can be either <strong>natural or legal persons<\/strong>, except for the limitations specified in the Turkish Commercial Code. To be a partner in a company, <strong>one must have legal capacity<\/strong>, meaning that the founders of the company must be legally competent.<\/li>\n<li><strong>Contract Element<\/strong>: Article 620 of the Turkish Code of Obligations No. 6098 defines an ordinary partnership agreement as <strong>&#8220;a contract in which two or more persons undertake to combine their labour and assets to achieve a common purpose,&#8221;<\/strong> indicating that a contractual relationship is at the core of a company. <strong>The presence of a contract at the establishment of the company in Turkey<\/strong> is essential, and this contract outlines the rights and responsibilities of the partners, profit sharing, the management structure, and other important matters. However, <strong>a company contract<\/strong> may have characteristics different from other types of contracts.<\/li>\n<li><strong>Capital Element<\/strong>: Partners in a company are required to contribute <strong>capital (shares)<\/strong> to the company. <strong>Capital does not have to be in cash<\/strong>; it can include assets, rights, receivables, labor, commercial reputation, and anything of economic value. However, there are certain <strong>legal or practical exceptions.<\/strong> In particular, in <strong>joint-stock and limited liability companies<\/strong>, services, <strong>personal labour, commercial reputation<\/strong> and receivables not yet due <strong>cannot be contributed as capital<\/strong>; in a limited partnership, the limited partner cannot contribute personal labour or commercial reputation either. For example, in a publicly traded joint-stock company, the collected capital must be in cash.<\/li>\n<li><strong>Common Purpose Element<\/strong>: Establishing a company in Turkey is done to achieve a specific goal. In an <strong>ordinary partnership<\/strong>, the purpose generally includes profit sharing, while <strong>a limited partnership<\/strong> may be established with the aim of operating a commercial enterprise. <strong>Joint-stock and limited liability companies<\/strong> can be established for any economic purpose and subject not prohibited by law. It is important to determine the type of partnership based on the intended goal.<\/li>\n<\/ol>\n<p>These elements form the fundamental principles in <strong>the process of forming a company in Turkey<\/strong> and determine the legal status of companies.<\/p>\n<div style=\"max-width: 760px; margin: 20px auto; border: 2px solid #8b3516; border-radius: 8px; overflow: hidden; background: #fff;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 14px; font-weight: 800;\">\u2696\ufe0f FOUR FUNDAMENTAL ELEMENTS OF A COMPANY IN TURKEY<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 620px; border-collapse: collapse; table-layout: fixed; font-size: 12px; line-height: 1.45; color: #333;\">\n<thead>\n<tr>\n<th style=\"width: 25%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">Element<\/th>\n<th style=\"width: 75%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">What does it mean?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83d\udc65 Personal Element<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Shareholders may be <strong>individuals or legal entities<\/strong>; <strong>legal capacity to act<\/strong> is required to become a shareholder.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83d\udcdc Contractual Element<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">A company is based on a <strong>contractual relationship defining the rights and obligations of the shareholders.<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83d\udcb0 Capital Element<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Shareholders contribute <strong>capital (shares)<\/strong> to the company; capital does not have to consist solely of cash. However, in joint stock and limited liability companies, <strong>personal labour and commercial reputation cannot constitute capital.<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83c\udfaf Common Purpose Element<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">A company is established to <strong>achieve a specific purpose<\/strong>; the type of partnership is determined according to that purpose.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"WHO_CAN_ESTABLISH_A_COMPANY_IN_TURKEY\" class=\"cb-bh\">Who Can Establish a Company in Turkey?<\/h2>\n<p><strong>Both natural and legal persons can establish a company in Turkey; however, some company types require the partners to be natural persons, and Turkish civil servants are subject to statutory restrictions.<\/strong> Under the Turkish Commercial Code, <strong>a collective company<\/strong> can only be formed <strong>between natural persons<\/strong>. In <strong>a limited partnership (komandit \u015firket)<\/strong>, the <strong>general partners with unlimited liability must be natural persons<\/strong>; legal persons can join such a company only as <strong>limited partners<\/strong>.<\/p>\n<p><strong>Joint-stock companies and limited liability companies<\/strong> can be established by one or more <strong>natural or legal persons<\/strong>. Unless international agreements or special laws provide otherwise, <strong>foreign natural and legal persons<\/strong> are treated equally with domestic investors and can establish companies in Turkey. The details are covered in the section of this page on foreigners establishing companies in Turkey.<\/p>\n<p>For <strong>civil servants in Turkey<\/strong>, Civil Servants Law No. 657 imposes an important restriction. Under this law, civil servants <strong>cannot engage in any activity that would make them a merchant or tradesman<\/strong> under the Turkish Commercial Code, cannot take up positions in commercial and industrial establishments, and <strong>cannot be a partner in a collective company<\/strong> or <strong>a general partner in a limited partnership<\/strong>. A civil servant should therefore check whether the planned partnership conflicts with this prohibition before <strong>establishing or joining a company in Turkey.<\/strong><\/p>\n<h2 id=\"WHAT_ARE_THE_COMPANY_TYPES_IN_TURKEY\" class=\"cb-bh\">What Are the Company Types in Turkey?<\/h2>\n<p><strong>The business and company types most often encountered in Turkey are the sole proprietorship, the ordinary partnership, the collective company, the joint-stock company and the limited liability company; which one to choose depends on criteria such as the field of activity, the amount of capital, the number of partners and growth targets.<\/strong> Choosing one of the <strong>company types in Turkey<\/strong> <strong>during the establishment phase<\/strong> is the most challenging and crucial part. <strong>The company&#8217;s area of activity, the scope of operations, whether it will own a commercial enterprise, the amount of capital, growth targets, the number of partners, and many other criteria<\/strong> will influence the selection of the type of company in Turkey. It is of great importance to thoroughly analyze these criteria and choose <strong>the most suitable type of company in Turkey<\/strong> within the framework of <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/business-law-in-turkey\/\"><strong>Turkish Commercial Law<\/strong><\/a>.<\/p>\n<h3 id=\"1-_Sole_Proprietorship\">1- Sole Proprietorship<\/h3>\n<p>Although a <strong>sole proprietorship<\/strong> is not technically one of the types of companies, <strong>it is very commonly preferred in Turkey<\/strong> and therefore should be briefly mentioned. <strong>Sole proprietorships in Turkey<\/strong> can be established the quickest.<\/p>\n<p>Because no capital is required <strong>to set up a sole proprietorship<\/strong>, it can be established with much lower costs. <strong>Forming a company as sole proprietorship<\/strong> is straightforward, and its management is free from complex procedures. Professions such as tradespeople, lawyers, doctors, dentists, and certified public accountants generally prefer <strong>sole proprietorships in Turkey.<\/strong><\/p>\n<p>However, <strong>sole proprietorships are subject to a progressive tax system<\/strong>, which means that the tax rate for sole proprietorships can vary <strong>between 15% and 40%<\/strong>. This means that as <strong>the income of a sole proprietorship increases<\/strong>, the amount of <strong>tax paid also increases<\/strong>, unlike joint-stock or limited liability companies. Additionally, since <strong>sole proprietorships in Turkey<\/strong> do not have legal personality, the owner is personally liable for all debts, including <a href=\"https:\/\/www.cbhukuk.com\/en\/tax-liability-responsibility-in-companies-in-turkey\/\"><strong>company tax responsibility<\/strong><\/a>, with their personal assets.<\/p>\n<h4 id=\"What_Is_the_Difference_Between_a_Sole_Proprietorship_and_a_Personal_Partnership_Company_in_Turkey\">What Is the Difference Between a Sole Proprietorship and a Personal (Partnership) Company in Turkey?<\/h4>\n<p><strong>A sole proprietorship in Turkey is the business of a single natural person operating a commercial enterprise in their own name and has no legal personality, whereas a personal company (\u015fah\u0131s \u015firketi) is the group of commercial companies under the Turkish Commercial Code \u2014 the collective company and the limited partnership \u2014 which do have legal personality.<\/strong> In practice the Turkish term &#8220;\u015fah\u0131s \u015firketi&#8221; is often used to mean a sole proprietorship, so the two concepts are frequently confused. The Turkish Commercial Code, however, expressly provides that <strong>commercial companies have legal personality<\/strong>; a natural person who operates a commercial enterprise in their own name becomes a <strong>merchant<\/strong>, but no separate legal entity comes into existence.<\/p>\n<p>This distinction matters above all for <strong>liability and taxation<\/strong>. The owner of a sole proprietorship is liable for all debts of the business with their own assets.<strong> In personal companies such as the collective company and the limited partnership, the company itself is the primary debtor; the partners&#8217; unlimited liability arises in addition to the company&#8217;s assets.<\/strong><\/p>\n<div style=\"max-width: 780px; margin: 20px auto; border: 2px solid #8b3516; border-radius: 8px; overflow: hidden; background: #fff;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 14px; font-weight: 800;\">\u2696\ufe0f COMPARISON OF SOLE PROPRIETORSHIP, PARTNERSHIPS AND ORDINARY PARTNERSHIP<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 720px; border-collapse: collapse; table-layout: fixed; font-size: 12px; line-height: 1.45; color: #333;\">\n<thead>\n<tr>\n<th style=\"width: 19%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">Feature<\/th>\n<th style=\"width: 27%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">\ud83d\udc64 Sole Proprietorship<\/th>\n<th style=\"width: 28%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">\ud83e\udd1d Partnership<br \/>\n(Collective \/ Limited Partnership)<\/th>\n<th style=\"width: 26%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">\ud83d\udcdc Ordinary Partnership<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83c\udfdb\ufe0f Legal personality<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>No<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>Yes<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>No<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83d\udc65 Number of persons<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">One individual<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">At least two partners<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Two or more persons<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\ud83d\udcdd Formation<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Tax office and chamber registration<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Partnership agreement, <strong>registration and announcement<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Partnership agreement; <strong>registration is not required<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">\u2696\ufe0f Liability for debts<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">The owner, with <strong>all personal assets<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">First the company; partners also have <strong>unlimited liability<\/strong> (except limited partners)<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">Partners, with <strong>their own personal assets<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h3 id=\"2-_Ordinary_Partnership\">2- Ordinary Partnership<\/h3>\n<p><strong>An ordinary partnership<\/strong> is a type of company that can be encountered in various forms, from <strong>the simplest daily relationships to the most complex ones.<\/strong> It can include partnerships ranging from individuals operating a commercial taxi together, to relationships between people creating intellectual and artistic works together, <strong>to consortiums and multinational joint ventures.<\/strong><\/p>\n<p>Since an <strong>ordinary partnership in Turkey<\/strong> <strong>does not have legal personality,<\/strong> its establishment is quite easy. When <strong>an ordinary partnership agreement<\/strong> is made, the partnership is formed without the need for additional permissions or registration. If <strong>an ordinary partnership<\/strong> operates <strong>a commercial enterprise<\/strong>, the partners gain the status of merchants.<\/p>\n<p>As the <strong>ordinary partnership<\/strong> lacks legal personality, <strong>the contributed capital belongs to all the partners.<\/strong> In addition to the partnership&#8217;s assets, the partners are also <strong>personally liable<\/strong> <strong>with their own assets<\/strong> for the partnership&#8217;s debts.<\/p>\n<p>Since an ordinary partnership has no legal personality, it also lacks the capacity to be a party to a lawsuit. In its decision <strong>Yarg\u0131tay Hukuk Genel Kurulu, E. 2020\/24, K. 2022\/657, T. 17.05.2022<\/strong>, the Assembly of Civil Chambers of the Court of Cassation held that, where a lawsuit is filed by or against an ordinary partnership, each natural or legal person forming the partnership <strong>must<\/strong> be named in the statement of claim and all partners must act together as <strong>compulsory co-litigants<\/strong>. The decision expresses this principle in the words &#8220;Adi ortakl\u0131k ise t\u00fczel ki\u015fili\u011fi bulunmad\u0131\u011f\u0131 i\u00e7in fiil ve taraf ehliyetini haiz de\u011fildir.&#8221; (an ordinary partnership, having no legal personality, has neither the capacity to act nor the capacity to be a party).<\/p>\n<h3 id=\"3-_Collective_Company\">3- Collective Company<\/h3>\n<p>Although not as common as before, <strong>collective companies<\/strong> are still widely used in Turkey. A typical example of personal companies, <strong>the<\/strong> <strong>establishment of a collective company<\/strong> is relatively easy and inexpensive. According to Article 211 of the Turkish Commercial Code, <strong>a collective company is a company established between natural persons to operate a commercial enterprise under a trade name, where none of the partners&#8217; liability towards the company&#8217;s creditors is limited. The establishment of a collective company in Turkey<\/strong> involves preparing and signing a partnership agreement, followed by registration and announcement.<\/p>\n<h3 id=\"4-_Limited_Partnership_Komandit_Sirket\">4- Limited Partnership (Komandit \u015eirket)<\/h3>\n<p><strong>A limited partnership in Turkey is a personal company formed to operate a commercial enterprise under a trade name, in which the liability of one or more partners towards the company&#8217;s creditors is unlimited, while the liability of the other partners is limited to a specific amount of capital.<\/strong> Partners with unlimited liability are called <strong>general partners (komandite)<\/strong>, and partners with limited liability are called <strong>limited partners (komanditer)<\/strong>. General partners must be <strong>natural persons<\/strong>; legal persons can only be limited partners.<\/p>\n<p>Alongside the limited partnership, the Turkish Commercial Code also regulates the <strong>partnership limited by shares (sermayesi paylara b\u00f6l\u00fcnm\u00fc\u015f komandit \u015firket)<\/strong>. In this company the capital is divided into shares; one or more partners are liable to the company&#8217;s creditors like a partner in a collective company, while the others are liable like shareholders of a joint-stock company. The Code treats the partnership limited by shares as a <strong>capital company<\/strong>, together with joint-stock and limited liability companies.<\/p>\n<h3 id=\"5-_Joint-Stock_Company\">5- Joint-Stock Company<\/h3>\n<p><strong>A joint-stock company<\/strong> holds significant economic and legal importance and is considered one of the cornerstones of commercial life. It is a type of company widely used in many countries <strong>where the capitalist system prevails.<\/strong> <strong>Key features of a joint-stock company<\/strong> include capital divided into shares, limited liability of shareholders, and legal personality status.<\/p>\n<h3 id=\"6-_Limited_Liability_Company_LLC\">6- Limited Liability Company (LLC)<\/h3>\n<p>The most preferred type of company in practice, <strong>a limited liability company<\/strong> is generally defined as a <strong>commercial company established under a trade name<\/strong>, operating in economic matters, with its capital divided into shares, and where <strong>the liability of the partners is limited to the amount of their committed capital shares<\/strong> and is only towards the partnership. The company has a specific capital and the number of partners is limited. However, partners can be held liable, <strong>in proportion to their capital shares<\/strong>, for <strong>public receivables<\/strong> that cannot be collected from the company under Law No. 6183.<\/p>\n<h3 id=\"7-_Cooperative\">7- Cooperative<\/h3>\n<p><strong>A cooperative in Turkey is an entity with legal personality, variable membership and variable capital, formed by natural and legal persons to secure and protect certain economic interests of its members \u2014 in particular the needs of their profession or livelihood \u2014 through mutual assistance, solidarity and surety.<\/strong> Cooperatives are listed among commercial companies in the Turkish Commercial Code, while their formation and operation are governed mainly by <strong>Cooperatives Law No. 1163<\/strong>.<\/p>\n<p>A cooperative is established by articles of association signed by <strong>at least 7 members<\/strong>, and the articles must be signed <strong>before authorised staff of the trade registry office<\/strong>. For this reason, the answer to the question &#8220;which company type requires at least seven people?&#8221; is the cooperative. Housing, consumer and development cooperatives are examples of cooperative types.<\/p>\n<h2 id=\"HOW_MANY_PEOPLE_ARE_NEEDED_TO_ESTABLISH_A_COMPANY_IN_TURKEY\" class=\"cb-bh\">How Many People Are Needed to Establish a Company in Turkey?<\/h2>\n<p><strong>A joint-stock company and a limited liability company can be established by a single shareholder; a collective company and a limited partnership require at least two partners, and a cooperative requires at least 7 members.<\/strong> The number of partners in a limited liability company <strong>cannot exceed fifty<\/strong>, while the law sets no upper limit for joint-stock companies. An entrepreneur who wishes to start alone can therefore consider a <strong>single-member limited liability company<\/strong> or a <strong>single-shareholder joint-stock company<\/strong> in addition to a sole proprietorship.<\/p>\n<p><strong>In single-member companies, this status must be registered with the trade registry and announced.<\/strong> The table below summarises the minimum and maximum number of partners by business and company type in Turkey.<\/p>\n<div style=\"max-width: 700px; margin: 20px auto; border: 2px solid #8b3516; border-radius: 8px; overflow: hidden; background: #fff;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 14px; font-weight: 800;\">NUMBER OF PARTNERS BY BUSINESS AND COMPANY TYPE<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 580px; border-collapse: collapse; table-layout: fixed; font-size: 12px; line-height: 1.45; color: #333;\">\n<thead>\n<tr>\n<th style=\"width: 42%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">Business \/ Company Type<\/th>\n<th style=\"width: 29%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">Minimum<\/th>\n<th style=\"width: 29%; padding: 9px 8px; background: #f6ede9; border: 1px solid #8b3516; text-align: left; color: #8b3516; font-weight: 800;\">Maximum<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Sole proprietorship<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">1 individual<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>1<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Ordinary partnership<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>2 persons<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">No limit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Collective company<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>2 individuals<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">No limit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Limited partnership<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>1 general partner + 1 limited partner<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">No limit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Limited liability company<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>1 individual or legal entity<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>50 partners<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Joint stock company<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>1 individual or legal entity<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">No limit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516; font-weight: bold;\">Cooperative<\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\"><strong>7 partners<\/strong><\/td>\n<td style=\"padding: 9px 8px; background: #fff; border: 1px solid #8b3516;\">No limit (variable membership)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"HOW_TO_ESTABLISH_A_COMPANY_IN_TURKEY\" class=\"cb-bh\">How to Establish a Company in Turkey?<\/h2>\n<p><strong>The process of establishing a company in Turkey is carried out by submitting the necessary documents to the relevant Trade Registry Office.<\/strong> Foreign natural and legal persons are subject to the same rules as Turkish investors when <strong>forming a company in Turkey.<\/strong> However, <strong>specific laws may contain provisions<\/strong> that restrict foreign investors or specially regulate investment conditions. <strong>The required documents for starting a company in Turkey<\/strong> can be found in <a href=\"https:\/\/ticaret.gov.tr\/data\/5d3e935313b87607d8feeffc\/rehber_Tr.pdf\" target=\"_blank\" rel=\"noopener\"><strong>the guide prepared by the Turkish Ministry of Trade.<\/strong><\/a><\/p>\n<h3 id=\"1-_What_Are_the_Steps_to_Establish_a_Company_in_Turkey\">1- What Are the Steps to Establish a Company in Turkey?<\/h3>\n<p>The process of <strong>how to establish a company in Turkey<\/strong> involves several steps, including:<\/p>\n<ol>\n<li><strong>Choosing a Company Name<\/strong>: The first step is to choose a company name. The name must not already be in use by another company.<\/li>\n<li><strong>Obtaining a Tax Number<\/strong>: The next step is to obtain a tax number from the Turkish tax authorities. This can be done online or in person or with a <a href=\"https:\/\/www.cbhukuk.com\/en\/legal-services\/tax-lawyer-in-turkey\/\"><strong>tax attorney in Turkey<\/strong><\/a>.<\/li>\n<li><strong>Opening a Bank Account<\/strong>: In a joint-stock company, <strong>at least 25% of the nominal value<\/strong> of shares subscribed in cash must be paid <strong>before registration<\/strong> into a special account opened at a bank in the name of the company being formed, and the rest <strong>within twenty-four months<\/strong> after registration. In a limited liability company, this 25% pre-payment requirement does not apply.<\/li>\n<li><strong>Preparing the Articles of Association<\/strong>: The articles of association are prepared in writing. In a <strong>limited liability company<\/strong>, the company agreement is signed by the founders <strong>before authorised staff of the trade registry office<\/strong>; in a <strong>joint-stock company<\/strong>, the founders&#8217; signatures may be <strong>notarised<\/strong> or the articles may be signed before the trade registry director or deputy director. This document, prepared within the framework of <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/contract-law-in-turkey\/\"><strong>Turkish Contract Law<\/strong><\/a>, contains the rules and regulations governing the company.<\/li>\n<li><strong>Obtaining a Trade Registry Certificate<\/strong>: The Trade Registry Certificate is obtained from the local Trade Registry Office. This certificate confirms the company&#8217;s registration.<\/li>\n<li><strong>Obtaining a Work Permit<\/strong>: If shareholders or directors who are not Turkish citizens will <strong>actually work in Turkey<\/strong> (for example as a managing partner or board member), they must obtain a work permit from the Ministry of Labor and Social Security. Being a shareholder alone does not require a work permit; the Implementing Regulation of the International Labour Force Law also provides time-limited exemptions for board members of joint-stock companies who do not reside in Turkey and for partners without managerial status.<\/li>\n<li><strong>Registering with the Social Security Institution<\/strong>: The company must register with the Social Security Institution and obtain a social security number.<\/li>\n<li><strong>VAT Registration<\/strong>: <a href=\"https:\/\/www.cbhukuk.com\/en\/vat-in-turkey\/\"><strong>The VAT liability<\/strong><\/a> arising from the invoices issued for the services provided by the company must be recorded and paid to the relevant tax office.<\/li>\n<\/ol>\n<div style=\"max-width: 700px; margin: 20px auto; background: #f6ede9; border: 2px solid #8b3516; border-radius: 8px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 14px; font-weight: 800;\">KEY STEPS IN THE COMPANY FORMATION PROCESS IN TURKEY<\/div>\n<div style=\"padding: 9px;\">\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">01. Choosing a Company Name<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> \u2014<br \/>\n<strong>Result:<\/strong> A name not already used by another company is selected.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">02. Obtaining a Tax Number<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Tax office<br \/>\n<strong>Result:<\/strong> A tax number is obtained.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">03. Opening a Bank Account<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Bank<br \/>\n<strong>Result:<\/strong> For a joint stock company, <strong>at least 25%<\/strong> of the capital is deposited into a special account before registration.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">04. Preparing the Articles of Association<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Trade Registry Directorate (a notary may also be involved for joint stock companies)<br \/>\n<strong>Result:<\/strong> Articles of association signed by the founders.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">05. Obtaining the Trade Registry Certificate<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Trade Registry Directorate<br \/>\n<strong>Result:<\/strong> The company&#8217;s registration is officially documented.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">06. Work Permit<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Ministry of Labour and Social Security<br \/>\n<strong>Result:<\/strong> A work permit is obtained for foreigners who will work in T\u00fcrkiye.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px; margin-bottom: 7px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">07. SSI Registration<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Social Security Institution (SSI)<br \/>\n<strong>Result:<\/strong> A social security number is obtained.<\/div>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #8b3516; border-radius: 5px; padding: 9px;\">\n<div style=\"font-size: 12.5px; font-weight: 800; color: #8b3516; margin-bottom: 5px;\">08. VAT Registration<\/div>\n<div style=\"font-size: 11.5px; line-height: 1.45; color: #333;\"><strong>Relevant authority:<\/strong> Tax office<br \/>\n<strong>Result:<\/strong> VAT liability is registered.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3 id=\"2-_What_Is_Needed_To_Start_A_Company_In_Turkey\">2- What Is Needed To Start A Company In Turkey?<\/h3>\n<p><strong>To start a company in Turkey, you need to decide on the company type, determine the headquarters address and prepare and sign the articles of association, complete the Trade Registry Office procedures and register with the tax office.<\/strong> <strong>The process of starting a company in Turkey<\/strong> can be detailed and time-consuming. <strong>Here&#8217;s a summary of the<\/strong> <strong>requirements for establishing a company in Turkey:<\/strong><\/p>\n<ol>\n<li><strong>Determining the Type of Company<\/strong>: The first requirement for <strong>establishing a company in Turkey<\/strong> is deciding on the type of company to be formed. Subsequently, <strong>an application must be made to register with the relevant Trade Registry Office and to open a tax liability with the relevant Tax Office.<\/strong><\/li>\n<li><strong>Address and Contract Preparation<\/strong>: Determine the address to be shown as <strong>the company&#8217;s headquarters and prepare documents<\/strong> such as the lease agreement.<\/li>\n<li><strong>Signature and Capital Procedures<\/strong>: In a limited liability company, the company agreement is signed <strong>before authorised staff of the trade registry office<\/strong>; in a joint-stock company, the signatures on the articles may be <strong>notarised<\/strong> or made before the trade registry director or deputy director. In a joint-stock company, at least 25% of the cash capital must be paid before registration into <strong>a special bank account opened in the company\u2019s name<\/strong>; no such pre-payment is required for a limited liability company.<\/li>\n<li><strong>Application to the Trade Registry Office<\/strong>: An application must be submitted to the <strong>Trade Registry Office with the required documents.<\/strong> If there are no deficiencies in the documents, <strong>the registration process will be completed within a few days.<\/strong><\/li>\n<li><strong>Second Notary Procedures<\/strong>: Prepare <strong>the company\u2019s signature circular<\/strong> and grant <strong>power of attorney to the financial advisor<\/strong> at the notary. Additionally, notarize the identity cards or birth certificates of the managers for the tax office application.<\/li>\n<li><strong>Tax Office Procedures<\/strong>: The financial advisor will collect <strong>the company\u2019s official books<\/strong> from the Trade Registry and apply for registration with the tax office. <strong>The tax certificate<\/strong> will be obtained, and necessary inspections will be conducted.<\/li>\n<\/ol>\n<p>This process requires a certain level of order and attention. Seeking professional assistance from <a href=\"https:\/\/www.cbhukuk.com\/en\/commercial-lawyer-in-turkey\/\"><strong>a commercial law attorney in Turkey<\/strong><\/a> can help complete the <strong>company establishment process in Turkey<\/strong> faster and smoother.<\/p>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/sirket-kurmak-icin-gerekenler.jpg\"><img decoding=\"async\" class=\"aligncenter size-us_800_400 wp-image-4899\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/sirket-kurmak-icin-gerekenler-800x204.jpg\" alt=\"Forming a company in turkey\" width=\"800\" height=\"204\" \/><\/a><\/p>\n<h3 id=\"3-_In_Which_Fields_of_Activity_Can_a_Company_Be_Established_in_Turkey\">3- In Which Fields of Activity Can a Company Be Established in Turkey?<\/h3>\n<p><strong>Joint-stock companies and limited liability companies in Turkey can be established for any economic purpose and subject not prohibited by law; the company&#8217;s field of activity is written into the articles of association as its business subject, with its essential points specified and defined.<\/strong> The field of activity should therefore be defined clearly and comprehensively before the company is established. Writing the field of activity clearly in the articles of association also matters because the business subject must be shown in the trade name.<\/p>\n<p>Joint-stock, limited liability and cooperative companies can freely choose their trade names; however, <strong>the business subject must be shown in the trade name<\/strong>, together with the words &#8220;anonim \u015firket&#8221;, &#8220;limited \u015firket&#8221; or &#8220;kooperatif&#8221; indicating the company type. In some fields the company type is restricted by law. For example, <strong>banks in Turkey must be established as joint-stock companies<\/strong>, and <strong>insurance and reinsurance companies as joint-stock companies or cooperatives<\/strong>.<\/p>\n<p>In addition, joint-stock companies operating in fields designated by a communiqu\u00e9 of the Ministry of Trade are established <strong>with the Ministry&#8217;s permission<\/strong>, and amendments to their articles of association are subject to the same permission.<strong> Outside those fields, the formation of a joint-stock company is not subject to the permission of any authority.<\/strong><\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\u2696\ufe0f BUSINESS ACTIVITIES AND FORMATION LIMITATIONS OF COMPANIES<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 600px; border-collapse: collapse; font-size: 12px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 30%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Subject \/ Regulation<\/th>\n<th style=\"width: 70%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Explanation<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfe2 Freedom of Business Activities<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Joint stock and limited liability companies may be established for any economic purpose or activity that is not prohibited by law.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcdc Articles of Association<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">The principal points of the company&#8217;s business activities must be specified in the articles of association.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udff7\ufe0f Trade Name<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">The trade name includes an indication of the business activity and the type of company.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Regulated Activities<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">The establishment of joint stock companies in areas designated by the Ministry is subject to official authorization.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516; text-align: left;\">\u2696\ufe0f Company-Type Restrictions<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Banking: joint stock company; insurance\/reinsurance: joint stock company or cooperative.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"WHAT_IS_THE_COST_OF_COMPANY_FORMATION_IN_TURKEY_IN_2026\" class=\"cb-bh\">What Is the Cost of Company Formation in Turkey in 2026?<\/h2>\n<p><strong>The cost of company formation in Turkey in 2026 consists of initial costs and ongoing costs; a limited company requires a minimum founding capital of 50.000 TL and a joint-stock company at least 250.000 TL.<\/strong> <strong>The cost of establishing a company in Turkey<\/strong> can be categorized into two main types:<\/p>\n<h3 id=\"1-_What_Are_the_Initial_Costs_of_Establishing_a_Company_in_Turkey\">1- What Are the Initial Costs of Establishing a Company in Turkey?<\/h3>\n<p>Initial costs cover <strong>one-time expenses<\/strong> incurred during the company formation process in Turkey. These costs include <strong>application, registration, and document procurement fees<\/strong> for forming a company in Turkey. For some company types in Turkey like sole proprietorships, commandite, and collective companies, <strong>initial costs<\/strong> are generally lower because the law sets no minimum capital amount for them.<\/p>\n<p>However, for limited and joint-stock companies, founding capital is required. <strong>As of 2026, the minimum founding capital for limited companies is 50.000 TL, while for joint-stock companies, it is at least 250.000 TL. <\/strong> In non-public joint-stock companies that adopt the registered capital system, the initial capital must be at least 500.000 TL. Existing joint-stock and limited companies whose capital is below these amounts must also increase it <strong>by 31\/12\/2026<\/strong>; otherwise they are <strong>deemed dissolved<\/strong>. The Ministry of Trade may extend this deadline by one year at most twice.<\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83d\udcb0 MINIMUM CAPITAL REQUIREMENTS BY COMPANY TYPE \u2014 2026<\/div>\n<div style=\"padding: 10px;\">\n<div style=\"display: flex; gap: 8px; margin-bottom: 8px;\">\n<div style=\"flex: 1; border: 1px solid #8b3516; border-radius: 5px; overflow: hidden; text-align: center;\">\n<div style=\"padding: 8px 6px; background: #f6ede9; color: #8b3516; font-size: 11.5px; font-weight: 800;\">\ud83c\udfe2 Limited Liability Company<\/div>\n<div style=\"padding: 11px 6px; background: #fff; font-size: 15px; font-weight: 800; color: #333;\">50,000 TL<\/div>\n<\/div>\n<div style=\"flex: 1; border: 1px solid #8b3516; border-radius: 5px; overflow: hidden; text-align: center;\">\n<div style=\"padding: 8px 6px; background: #f6ede9; color: #8b3516; font-size: 11.5px; font-weight: 800;\">\ud83c\udfdb\ufe0f Joint Stock Company<\/div>\n<div style=\"padding: 11px 6px; background: #fff; font-size: 15px; font-weight: 800; color: #333;\">250,000 TL<\/div>\n<\/div>\n<\/div>\n<div style=\"display: flex; gap: 8px;\">\n<div style=\"flex: 1; border: 1px solid #8b3516; border-radius: 5px; overflow: hidden; text-align: center;\">\n<div style=\"padding: 8px 5px; background: #fff; color: #8b3516; font-size: 11px; font-weight: 800;\">\ud83d\udc64 Sole Proprietorship<\/div>\n<div style=\"padding: 10px 5px; background: #fff; font-size: 10.5px; line-height: 1.4; color: #333;\">No <strong>minimum capital requirement<\/strong> prescribed by law<\/div>\n<\/div>\n<div style=\"flex: 1; border: 1px solid #8b3516; border-radius: 5px; overflow: hidden; text-align: center;\">\n<div style=\"padding: 8px 5px; background: #fff; color: #8b3516; font-size: 11px; font-weight: 800;\">\ud83e\udd1d Limited Partnership<\/div>\n<div style=\"padding: 10px 5px; background: #fff; font-size: 10.5px; line-height: 1.4; color: #333;\">No <strong>minimum capital requirement<\/strong> prescribed by law<\/div>\n<\/div>\n<div style=\"flex: 1; border: 1px solid #8b3516; border-radius: 5px; overflow: hidden; text-align: center;\">\n<div style=\"padding: 8px 5px; background: #fff; color: #8b3516; font-size: 11px; font-weight: 800;\">\ud83e\udd1d Collective Company<\/div>\n<div style=\"padding: 10px 5px; background: #fff; font-size: 10.5px; line-height: 1.4; color: #333;\">No <strong>minimum capital requirement<\/strong> prescribed by law<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3 id=\"2-_What_Are_the_Ongoing_Costs_of_a_Company_in_Turkey\">2- What Are the Ongoing Costs of a Company in Turkey?<\/h3>\n<p>Ongoing costs are the expenses <strong>that<\/strong> <strong>must be regularly met to sustain the company&#8217;s operations.<\/strong> These costs typically include <strong>employee salaries and insurance payments, <a href=\"https:\/\/www.cbhukuk.com\/en\/worker-compensation-rights-in-turkey\/\">termination compensations<\/a>, <a href=\"https:\/\/www.cbhukuk.com\/en\/severance-pay-calculation\/\">severance pays<\/a>, <a href=\"https:\/\/www.cbhukuk.com\/en\/notice-pay-in-turkey\/\">notice pays<\/a>, <a href=\"https:\/\/www.cbhukuk.com\/en\/reinstatement-lawsuit\/\">reinstatement compensations<\/a>, taxes, office rent and utility expenses, product procurement expenses, machinery and equipment costs, advertising and marketing expenses, and profit distributions to partners.<\/strong><\/p>\n<h3 id=\"3-_What_Is_the_Total_Cost_of_Company_Formation_in_Turkey_in_2026\">3- <span style=\"font-family: inherit;\">What Is the Total Cost of Company Formation in Turkey in 2026?<\/span><\/h3>\n<p>When <strong>starting a company in Turkey<\/strong>, it is important to consider both the initial and ongoing costs. <strong>Each company&#8217;s costs can vary depending on the size of the business, the sector, and the business model.<\/strong> Excluding the capital itself, when the application, registration and document fees of the formation stage are taken together, <strong>the cost of establishing a company in Turkey in 2026<\/strong> can be estimated to range between approximately <strong>40,000-50,000 TL.<\/strong> <strong>However, these costs can increase or decrease depending on the type and size of the company.<\/strong><\/p>\n<h2 id=\"HOW_LONG_DOES_IT_TAKE_TO_FORM_A_COMPANY_IN_TURKEY\" class=\"cb-bh\">How Long Does It Take to Form a Company in Turkey?<\/h2>\n<p><strong>A sole proprietorship in Turkey can typically be set up within 1 to 2 days, while a limited company and a joint-stock company can be established within approximately 4 to 5 days after the necessary procedures are completed.<\/strong> <strong>The time required to<\/strong> <strong>establish a company in Turkey<\/strong> varies based on the legal structure of the company and the legal regulations. While the <strong>preparation process<\/strong> progresses at the pace determined by the founder, the official establishment times are usually standardized.<\/p>\n<ul>\n<li><strong>Sole Proprietorship<\/strong>: Typically, it can be established within <strong>1 to 2 days<\/strong>. This time is limited to collecting the necessary documents and submitting the application.<\/li>\n<li><strong>Limited Company (Ltd.)<\/strong>: After completing the necessary procedures for establishing a limited company in Turkey, the process can take approximately <strong>4 to 5 days<\/strong>. This period includes steps such as preparing the articles of association, signing them at the trade registry office and registering the company with the Trade Registry Office.<\/li>\n<li><strong>Joint Stock Company (A.\u015e.)<\/strong>: Similarly, the establishment of a joint-stock company can take between <strong>4 to 5 days<\/strong>. Similar steps to those for a limited company need to be followed.<\/li>\n<\/ul>\n<p><strong>The time required to establish a company in Turkey<\/strong> represents a general standard and may vary. Particularly, durations may be extended due to legal procedures or periods of high demand. Therefore, consulting professionals before <strong>starting a company in Turkey<\/strong> is important.<\/p>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/sirket-nasil-kurulur.jpg\"><img decoding=\"async\" class=\"aligncenter size-us_800_400 wp-image-4901\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/sirket-nasil-kurulur-800x240.jpg\" alt=\"rights of foreign companies in Turkey\" width=\"800\" height=\"240\" \/><\/a><\/p>\n<h2 id=\"WHAT_ARE_THE_CHARACTERISTICS_OF_COMPANY_TYPES_IN_TURKEY\" class=\"cb-bh\">What Are the Characteristics of Company Types in Turkey?<\/h2>\n<p><strong>There are various company types in Turkey, including joint-stock companies, limited companies, collective companies, cooperatives, and sole proprietorships.<\/strong> The features and characteristics of <strong>company types in Turkey<\/strong> vary, offering different advantages to business owners.<\/p>\n<h3 id=\"A_What_is_a_Personal_Company_Sahis_Sirketi_in_Turkey\">A) What is a Personal Company (\u015eah\u0131s \u015eirketi) in Turkey?<\/h3>\n<p><strong>A personal company (\u015fah\u0131s \u015firketi) in Turkey is a type of company where the element of partnership is prominent and at least one partner has unlimited liability towards the company&#8217;s creditors.<\/strong> According to the Turkish Commercial Code, there are two types of personal companies: <strong>Collective Company and Ordinary Limited Partnership.<\/strong> In everyday Turkish usage the term<strong> &#8220;\u015fah\u0131s \u015firketi&#8221;<\/strong> is also used for a sole proprietorship, but <strong>a sole proprietorship is run by a single person and is not a company under the Code.<\/strong><\/p>\n<ul>\n<li><strong>Collective Company<\/strong>: A type of company that can be established with at least <strong>two natural persons.<\/strong> The partners have <strong>equal rights<\/strong> to manage the company. If desired, through <strong>a company agreement or majority vote<\/strong>, the management rights can be transferred to one or more partners.<\/li>\n<li><strong>Ordinary Limited Partnership<\/strong>: A type of company that can be established by at least two persons. <strong>The general partner (komandite)<\/strong> has unlimited liability and can only be a natural person. <strong>The limited partner<\/strong> has limited liability and can be either a natural or legal person.<\/li>\n<\/ul>\n<p>In personal companies, <strong>the transfer of partnership shares<\/strong> is also significant for entrepreneurs. Unless the company agreement provides otherwise, <strong>the transfer of partnership shares<\/strong> <strong>requires the consent of all partners.<\/strong> If there is no <strong>unanimous consent<\/strong> from all partners, the sale or transfer of partnership shares cannot be carried out.<\/p>\n<p><strong>Company types in Turkey <\/strong>such as collective companies and ordinary limited partnerships involve <strong>simple processes for establishment<\/strong>, making them among the types that entrepreneurs can establish quickly. The closure process for <strong>sole proprietorships in Turkey<\/strong> is also as simple as the establishment process: <strong>the closure of the company<\/strong> can be easily carried out with a petition prepared by financial advisors. <strong>Collective companies and limited partnerships<\/strong>, by contrast, are <strong>liquidated under the liquidation provisions of the Turkish Commercial Code<\/strong> once one of the statutory grounds for dissolution arises, unless the company agreement provides otherwise.<\/p>\n<h4 id=\"Characteristics_of_Personal_Companies_and_Sole_Proprietorships\">Characteristics of Personal Companies and Sole Proprietorships<\/h4>\n<p><strong>The main characteristics of personal companies and sole proprietorships in Turkey are easy establishment, no minimum capital requirement, income tax liability and the unlimited liability of the partners.<\/strong> <strong>Sole proprietorships in Turkey<\/strong> and <strong>personal companies<\/strong> have several distinguishing features that set them apart from other types of companies:<\/p>\n<ol>\n<li><strong>Easy Establishment<\/strong>: Sole proprietorships in Turkey are the easiest type of company to set up. The formalities are minimal, allowing for quick and straightforward establishment.<\/li>\n<li><strong>No Minimum Capital Requirement<\/strong>: There is no minimum capital requirement for sole proprietorships in Turkey. This means that no specific amount of capital is needed to establish the company.<\/li>\n<li><strong>Number of Partners<\/strong>: A sole proprietorship in Turkey is run by a single natural person. Collective companies and limited partnerships require at least two partners, and a company agreement is drawn up between them.<\/li>\n<li><strong>Income Tax Liability<\/strong>: The owner of a sole proprietorship, the partners of a collective company and the general partners of a limited partnership are subject to income tax; their shares of the profit are treated as personal commercial income. The income generated by the business is therefore taxed as the personal income of these persons.<\/li>\n<li><strong>Unlimited Liability of Partners<\/strong>: The owner of a sole proprietorship is liable for all business debts with personal assets. In a collective company or limited partnership, the company is primarily liable; i<strong>f enforcement against the company fails or the company is dissolved, the partners of a collective company and the general partners have unlimited and joint liability, while the liability of limited partners is limited to the capital they committed.<\/strong> This means that partners may have to use their personal assets to cover the company&#8217;s debts. In its decision <strong>the 12th Civil Chamber of the Court of Cassation<\/strong><strong>, E. 2019\/13326, K. 2019\/16907, T. 25.11.2019<\/strong>, confirmed that the collective company is primarily liable for its debts and that enforcement proceedings cannot be brought against a partner <strong>until enforcement against the company has proved fruitless<\/strong> or the company has been dissolved. The same decision accepted that proceedings started against a partner in breach of this rule may be challenged by a <strong>complaint not subject to any time limit<\/strong>.<\/li>\n<li><strong>Difficulty in Transferring Partnership<\/strong>: If a partner wishes to transfer or sell their share in the company, the consent of the other partners is required. This makes the process of transferring partnership shares quite challenging.<\/li>\n<\/ol>\n<p>These features highlight the simplicity and the personal liability involved in operating <strong>a<\/strong> <strong>sole proprietorship in Turkey<\/strong>, making it <strong>an attractive option for small businesses and individual entrepreneurs<\/strong> while also presenting some significant risks and limitations. These points should be weighed together with <strong>the tax and liability comparisons<\/strong> elsewhere on this page.<\/p>\n<h3 id=\"B_What_is_a_Limited_Company_in_Turkey\">B) What is a Limited Company in Turkey?<\/h3>\n<p><strong>A limited company is a type of company established under the Turkish Commercial Code, bearing a commercial name and formed by at least one natural or legal person.<\/strong> Limited companies in Turkey are generally preferred for medium-sized enterprises and are one of <strong>the most common types of company in Turkey.<\/strong><\/p>\n<p><strong>One of the features of a<\/strong> <strong>limited company in Turkey<\/strong> is transparency in its equity. These companies can be established with a minimum capital of <strong>50,000 TL<\/strong> and can have a <strong>maximum of 50 partners.<\/strong> The liability of partners is <strong>limited to the capital<\/strong> they commit, and while the capital can be divided, shares cannot be divided into fractions.<\/p>\n<p>Limited companies, abbreviated as <strong>&#8220;LTD. \u015eT\u0130.&#8221;,<\/strong> are subject to corporate tax at a <strong>fixed rate of 25%<\/strong> and are classified under <strong>the Corporate Tax regime.<\/strong> A <strong>limited company structure<\/strong> can be used for any economic purpose and subject not prohibited by law; however, <strong>banks and insurance companies cannot be established as limited companies<\/strong>, since banks must be joint-stock companies and insurance and reinsurance companies must be joint-stock companies or cooperatives. Limited companies cannot be publicly traded or issue bonds.<\/p>\n<p><strong>There is no requirement to have a lawyer in limited companies<\/strong>, but it is mandatory to have <strong>directors and a general assembly.<\/strong> The management and representation of the company are regulated by the company agreement and may be given to one or more partners holding the title of manager, to all partners or to third parties, and <strong>all representation and management authority of the company<\/strong> then lies with the manager(s). <strong>The appointed company manager<\/strong> may also be someone from outside the partners; however, <strong>at least one partner<\/strong> must have the right to manage and represent the company.<\/p>\n<h4 id=\"1-_Characteristics_of_a_Limited_Company_in_Turkey\">1- Characteristics of a Limited Company in Turkey<\/h4>\n<p><strong>The key characteristics of a limited company in Turkey are limited liability, a minimum capital of 50.000 TL as of 2026, profit distribution according to capital contributions and the phrase &#8220;Limited \u015eirket&#8221; in the trade name.<\/strong> Here are the <strong>characteristics of a limited company in Turkey<\/strong> listed in bullet points:<\/p>\n<ol>\n<li><strong>Limited Liability<\/strong>: Owners of a limited company in Turkey, as a rule, do not risk their personal assets for company debts. The liabilities of the company are limited to its assets, safeguarding the personal assets of the owners; however, partners can be held liable, in proportion to their capital shares, for <strong>public receivables<\/strong> that cannot be collected from the company.<\/li>\n<li><strong>Flexible Capital Requirement<\/strong>: There is no maximum capital requirement for a limited company, but under the Turkish Commercial Code and the Presidential Decision issued under it, it can be established with a minimum capital of 50.000 TL as of 2026.<\/li>\n<li><strong>Formation Permit and Workplace Licence<\/strong>: Establishing a limited company in Turkey does not require a permit from the Ministry of Trade; the company is formed by a company agreement signed at the trade registry office and by registration with the trade registry. A <strong>workplace opening and operating licence<\/strong> must, however, be obtained from the competent authority, such as the municipality, for the premises where the company will operate.<\/li>\n<li><strong>Profit Distribution<\/strong>: The profit of a limited company is distributed among the partners. The distribution is determined and distributed according to the partnership structure and the provisions of the articles of association. Profit shares are allocated based on the capital contributions of the partners.<\/li>\n<li><strong>Suitability of Name and Trade Name<\/strong>: The names and titles of limited companies must comply with the Turkish Commercial Code. The phrase <strong>&#8220;Limited \u015eirket&#8221;<\/strong> (limited company) or its abbreviation <strong>&#8220;Ltd. \u015eti.&#8221;<\/strong> must be included in the trade name; if the trade name contains a natural person&#8217;s name or surname, the company-type phrase cannot be abbreviated. This indicates the legal status of the company and is used in commercial relationships.<\/li>\n<\/ol>\n<p>These features encompass the fundamental elements essential for the <strong>structuring and operation of a limited company in Turkey.<\/strong> The table below summarises the main characteristics of a limited company described on this page.<\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83c\udfe2 KEY FEATURES OF A LIMITED LIABILITY COMPANY<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 580px; border-collapse: collapse; font-size: 12px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 34%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Feature<\/th>\n<th style=\"width: 66%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Position in a Limited Liability Company<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc64 Founder<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">At least one individual or legal entity<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc65 Number of Shareholders<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Maximum 50<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcb0 Minimum Capital<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>50,000 TL (2026)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\u2696\ufe0f Shareholders&#8217; Liability<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Limited to the capital undertaken<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcb3 Taxation<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">25% corporate income tax<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Management<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Manager(s) and general assembly<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udff7\ufe0f Trade Name<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Includes \u201cLimited \u015eirket\u201d or \u201cLtd. \u015eti.\u201d<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h4 id=\"2-_How_to_Establish_a_Limited_Company_in_Turkey\">2- How to Establish a Limited Company in Turkey?<\/h4>\n<p><strong>A limited company in Turkey is established by collecting the documents, preparing the articles of association, completing tax and banking procedures, registering with the trade registry and notifying the tax office.<\/strong> To summarize the steps for <strong>establishing a limited company in Turkey:<\/strong><\/p>\n<ol>\n<li><strong>Collecting Documents<\/strong>: Gather the necessary documents for the establishment of the limited company in Turkey, typically including identification documents of partners, address declarations, the company&#8217;s articles of association, and other required documents.<\/li>\n<li><strong>Preparing the Articles of Association<\/strong>: The articles of association detail the company&#8217;s objectives, the rights and responsibilities of partners, the capital structure, and other critical details. The articles prevent disputes among partners and regulate the management of the company.<\/li>\n<li><strong>Tax and Banking Processes<\/strong>: Obtain a tax identification number for the company and open a bank account. Apply to the relevant tax office for the tax identification number and proceed with opening a bank account.<\/li>\n<li><strong>Registration in the Trade Registry<\/strong>: The company must be registered in the trade registry. Submit the necessary documents along with the application to the relevant trade registry directorate.<\/li>\n<li><strong>Declaration and Accountant<\/strong>: Complete tax declarations and engage an accountant during the establishment phase. An accountant is crucial for organizing the company&#8217;s financial transactions and fulfilling tax obligations.<\/li>\n<li><strong>Notification to the Tax Office<\/strong>: Notify the tax office of the company&#8217;s establishment. Provide information about the establishment and the tax identification number to the tax office.<\/li>\n<li><strong>Chamber and Municipality Procedures<\/strong>: Depending on the business activities, complete the relevant chamber and municipality procedures. These procedures vary according to the sector in which the business operates and local regulations.<\/li>\n<\/ol>\n<p>Following these steps ensures that <strong>establishing a limited company in Turkey<\/strong> is carried out correctly and comprehensively, <strong>providing a solid legal and financial foundation for the company<\/strong>. Each step should be completed in full, as a deficiency in one step can delay the next.<\/p>\n<h4 id=\"3-_Considerations_When_Establishing_a_Limited_Company_In_Turkey\">3- Considerations When Establishing a Limited Company In Turkey<\/h4>\n<p>When <strong>establishing a limited company in Turkey<\/strong>, the following considerations are important:<\/p>\n<ol>\n<li><strong>Business Plan Preparation:<\/strong> The business plan should outline <strong>how your business will operate<\/strong>, its objectives, and financial projections. Additionally,<strong> conducting market research<\/strong> to study the industry and your competitors is crucial. This helps in defining strategic goals and effectively managing your business.<\/li>\n<li><strong>Selection of Partners and Partnership Agreement:<\/strong> It is important to carefully select your partners when <strong>establishing a limited liability company in Turkey.<\/strong> Prepare a partnership agreement to define roles, responsibilities, capital contributions, and profit sharing among partners. This agreement is essential <strong>to prevent disputes and ensure the smooth operation of the business.<\/strong><\/li>\n<li><strong>Business Name and Registration with the Trade Registry:<\/strong> Choose a business name and register it with the trade registry. When <strong>selecting a business name<\/strong>, ensure it complies with <strong>the Turkish Commercial Code and the Trade Registry Regulation.<\/strong> A correct and descriptive business name can enhance the reputation and recognition of the business.<\/li>\n<li><strong>Tax Obligations:<\/strong> Register the company <strong>as a taxpayer<\/strong> and handle the necessary tax obligations for the business. Contact the tax office to fulfill your <strong>tax liabilities<\/strong> and follow the required procedures.<\/li>\n<li><strong>Legal Consultancy:<\/strong> The establishment and operation of a limited company may involve legal complexities. After the company is founded, it may be necessary to manage <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/file-a-lawsuit-in-turkey\/\"><strong>legal proceedings<\/strong><\/a> and <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/debt-enforcement-in-turkey\/\"><strong>enforcement actions<\/strong><\/a>. Therefore, seeking assistance from <a href=\"https:\/\/www.cbhukuk.com\/en\/online-legal-services\/\"><strong>a legal consultant<\/strong><\/a> is important.<\/li>\n<li><strong>Regular Maintenance of Financial Records:<\/strong> Regularly maintain the <strong>financial records of your company<\/strong> and ensure timely compliance with tax obligations. This promotes transparency and helps you monitor the <strong>financial status of your business.<\/strong> Additionally, conducting regular financial analysis allows you to evaluate the performance of your business.<\/li>\n<\/ol>\n<p>These considerations are important steps to successfully <strong>establish a limited company in Turkey.<\/strong> Getting the partnership agreement and the trade name right at the formation stage, in particular, reduces the cost of later changes.<\/p>\n<h4 id=\"4-_Can_Limited_Liability_Companies_Establish_A_Home_Office_in_Turkey\">4- Can Limited Liability Companies Establish A Home Office in Turkey?<\/h4>\n<p><strong>Limited liability companies in Turkey can be established as a home office or operated from home.<\/strong> A home office is generally preferred in fields such as <strong>software development, consultancy, real estate, event organization services, and especially e-commerce.<\/strong><\/p>\n<p><strong>Requirements to establish a company as a home office in Turkey include:<\/strong><\/p>\n<ol>\n<li><strong>Obtaining Household Documents:<\/strong> Initially, obtain documents related to the residence, such as a lease agreement or photocopy of the title deed. Assistance should be sought from <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/rental-lawyer-in-turkey\/\"><strong>a rental lawyer in Turkey.<\/strong><\/a><\/li>\n<li><strong>Issuing Power of Attorney:<\/strong> From the nearest notary, issue a power of attorney for the establishment of the company and accounting procedures.<\/li>\n<li><strong>Registration with the Tax Office:<\/strong> Register with the tax office and create a password. You will need to obtain a tax identification number. After establishing tax registration, you can track transactions through the Interactive Tax Office.<\/li>\n<li><strong>Company Establishment and Tax Registration Certificate:<\/strong> The remaining procedures include establishing the company and obtaining the tax registration certificate. These procedures are generally completed within a short period.<\/li>\n<\/ol>\n<p><strong>Establishing a company as a home office<\/strong> provides flexibility to business owners. However, it is important to comply with legal and regulatory requirements. Therefore, following these steps correctly and <strong>obtaining the necessary documents are crucial.<\/strong><\/p>\n<h3 id=\"C_WHAT_IS_A_JOINT_STOCK_COMPANY_IN_TURKEY\">C) WHAT IS A JOINT STOCK COMPANY IN TURKEY?<\/h3>\n<p><strong>Joint-Stock Company is a type of commercial company where the capital is divided into shares and the liability of shareholders is limited to their share capital contributions.<\/strong> According to the Turkish Commercial Code, there is <strong>a minimum capital requirement for<\/strong> <strong>establishing joint-stock companies in Turkey.<\/strong> These companies can be publicly traded on the capital markets and are typically preferred for <strong>conducting large-scale business operations.<\/strong> Additionally, the trade name of a joint-stock company must contain &#8220;<strong>Anonim \u015eirket<\/strong>&#8221; or its abbreviation <strong>&#8220;A.\u015e.&#8221;<\/strong>; if the trade name contains a natural person&#8217;s name or surname, this phrase cannot be abbreviated.<\/p>\n<p>In the past, joint-stock companies were required <strong>to have a minimum of 5 shareholders<\/strong>, but with recent updates, they can now be <strong>established by a single natural or legal person.<\/strong> There is no upper limit on the number of shareholders, but <strong>companies with more than 500 shareholders<\/strong> must comply with regulations set by the Capital Markets Board.<\/p>\n<p><strong>In joint-stock companies in Turkey<\/strong>, the company is liable for its debts only with its own assets, and shareholders are liable only towards the company, for the capital shares they have committed. For detailed information regarding <strong>shareholders&#8217; rights to information and inspection<\/strong>, relevant laws and regulations should be consulted.<\/p>\n<p>There is no requirement for <strong>the founder of a joint-stock company to be a natural person.<\/strong> Legal entities and natural persons alike can establish and become shareholders in joint-stock companies. <strong>Foreign individuals can also establish and become shareholders in joint-stock companies.<\/strong><\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83c\udfdb\ufe0f KEY FEATURES OF A JOINT STOCK COMPANY<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 580px; border-collapse: collapse; font-size: 12px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 34%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Feature<\/th>\n<th style=\"width: 66%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Position in a Joint Stock Company<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc64 Founder<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">At least one individual or legal entity<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc65 Number of Shareholders<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">No upper limit; <strong>SPK regulations<\/strong> may apply when the number of shareholders exceeds 500.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcb0 Minimum Capital<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>250,000 TL (2026)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\u2696\ufe0f Shareholders&#8217; Liability<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Shareholders are liable to the company only for the capital amount they have undertaken.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcc8 Going Public<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">May become publicly held subject to the requirements of capital markets legislation.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Management<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Board of directors and general assembly<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udff7\ufe0f Trade Name<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Must include <strong>\u201cAnonim \u015eirket\u201d<\/strong> or <strong>\u201cA.\u015e.\u201d<\/strong>; if an individual&#8217;s name or surname is included, it may not be abbreviated.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udf0d Foreign Shareholders<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Foreign individuals and legal entities may become founders or shareholders of a joint stock company.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h4 id=\"1-_How_To_Establish_A_Joint-stock_Company_In_Turkey\">1- How To Establish A Joint-stock Company In Turkey?<\/h4>\n<p><strong>A joint-stock company in Turkey is established through decision-making and planning, choosing a name, drafting the articles of association, capital contribution, certification of signatures, registration with the trade registry and tax registration.<\/strong> <strong>Establishing a joint-stock company in Turkey<\/strong> involves following specific steps. <strong>The general steps to how to establish a joint-stock company in Turkey include:<\/strong><\/p>\n<ul>\n<li><strong>Decision Making and Planning:<\/strong> The first step is to decide on establishing the company and plan the incorporation process. Basic elements such as the company&#8217;s purpose, capital, and management structure are determined at this stage.<\/li>\n<li><strong>Company Name and Examination:<\/strong> Selecting an appropriate company name is crucial. This name will be published in the Trade Registry Gazette. The name must be unique and comply with legal requirements.<\/li>\n<li><strong>Drafting the Articles of Association:<\/strong> The Articles of Association, which define the company&#8217;s operational and management principles, are prepared. It includes details such as the company&#8217;s purpose, headquarters, capital, management bodies, and other important provisions.<\/li>\n<li><strong>Capital Contribution:<\/strong> At least 25% of the nominal value of shares subscribed in cash must be paid before registration and the rest within twenty-four months after registration. Payments made before registration are deposited into a special account opened at a bank in the name of the company being formed, and the bank releases them to the company only after it acquires legal personality.<\/li>\n<li><strong>Signing and Certification:<\/strong> The articles of association are signed by all founders; the signatures are notarised, or the articles are signed before the trade registry director or deputy director.<\/li>\n<li><strong>Registration with the Trade Registry:<\/strong> The signed articles of association are then filed with the relevant Trade Registry Directorate. Required documents and application fees are submitted during this stage.<\/li>\n<li><strong>Tax Liability:<\/strong> After registration with the Trade Registry, the company must apply for tax liability at the relevant tax office. Required documents are submitted, and a tax number is obtained.<\/li>\n<li><strong>Preparation of Official Books:<\/strong> Official books of the company are prepared based on documents obtained from the Trade Registry.<\/li>\n<li><strong>Publication and Obtaining Documents:<\/strong> After completion of registration in the Trade Registry, the establishment of the company is announced. Additionally, necessary documents for commercial activities are obtained.<\/li>\n<\/ul>\n<p>The process of <strong>establishing a joint-stock company in Turkey<\/strong> can be complex, and seeking expert assistance from a <a href=\"https:\/\/www.cbhukuk.com\/en\/commercial-lawyer-in-turkey\/\"><strong>corporate lawyer in Turkey<\/strong><\/a> or <strong>business consultant<\/strong> to fulfill legal requirements is advisable. This ensures compliance with regulations and smooth establishment of the company in Turkey.<\/p>\n<h4 id=\"2-_Things_To_Consider_When_Establishing_A_Joint_Stock_Company_In_Turkey\">2- Things To Consider When Establishing A Joint Stock Company In Turkey<\/h4>\n<p><strong>Establishing a joint stock company in Turkey<\/strong> requires adherence to regulations and provisions outlined in the law. The main points to consider are as follows:<\/p>\n<ul>\n<li><strong>Company Articles of Association:<\/strong> The articles of association determine the fundamental operations of the company and the rights and responsibilities among shareholders.<\/li>\n<li><strong>Trade Name and Registration:<\/strong> Joint stock companies are established under a trade name, which must be registered in the Trade Registry. The name should reflect the company&#8217;s scope of activities.<\/li>\n<li><strong>Details of Shareholders and Executives:<\/strong> The articles of association should include detailed information about shareholders, members of the board of directors, and managers, including their full names, addresses, and identification numbers.<\/li>\n<li><strong>Capital and Shares:<\/strong> Capital shares are represented by shares. The minimum nominal value of a share is 1 kuru\u015f. Bearer share certificates must be printed by the board of directors within three months after the share price is fully paid; printing registered share certificates is, as a rule, not mandatory unless the minority requests it.<\/li>\n<li><strong>Document Printing:<\/strong> Necessary documents for commercial activities, such as invoices and delivery notes, should be printed by a printing service.<\/li>\n<li><strong>Shares:<\/strong> Joint stock companies have the right to issue shares and bonds. However, bearer share certificates cannot be issued for shares whose price has not been fully paid, and information on bearer shareholders must be reported to the Central Registry Agency (MKK) before the certificates are distributed.<\/li>\n<li><strong>Transfer of Shares and Securities:<\/strong> Shares are considered securities and their transfer is subject to specific procedures. In joint stock companies, the transfer process of shares occurs through the transfer of securities.<\/li>\n<li><strong>Contribution of Capital in Kind:<\/strong> Capital can be contributed in kind under <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/real-estate-law-in-turkey\/\"><strong>real estate law in Turkey<\/strong><\/a>. Real estate contributed as capital in kind must be free of limited real rights, attachments or injunctions, must be valued by experts appointed by the commercial court of first instance, and must be annotated in the land registry.<\/li>\n<li><strong>Trademark Registration:<\/strong> If a joint stock company intends to use a trademark for its products, it should register the trademark to prevent potential loss of rights and <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/trademark-registration-in-turkey\/\">trademark infringements<\/a>.<\/strong><\/li>\n<li><strong>Employment of Foreign Personnel:<\/strong> Foreign nationals can work as employees in joint-stock companies in Turkey. Foreign workers have the same <a href=\"https:\/\/www.cbhukuk.com\/en\/wrongful-termination\/\"><strong>labor rights<\/strong><\/a> as Turkish workers. However, special permits such as <a href=\"https:\/\/www.cbhukuk.com\/en\/residence-permit-refusal-appeal-in-turkey\/\"><strong>residence permits and work permits<\/strong><\/a> must be obtained for foreign workers.<\/li>\n<\/ul>\n<p>When <strong>establishing a joint stock company in Turkey<\/strong>, it is important to adhere to the above points and act in accordance with legal regulations. Observing these points at the formation stage helps prevent disputes that may arise later.<\/p>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/limited-sirket-nasil-kurulur.jpg\"><img decoding=\"async\" class=\"aligncenter size-us_800_400 wp-image-4903\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/limited-sirket-nasil-kurulur-800x224.jpg\" alt=\"establish a limited company in Turkey\" width=\"800\" height=\"224\" \/><\/a><\/p>\n<h2 id=\"ADVANTAGES_AND_DISADVANTAGES_OF_COMPANY_TYPES_IN_TURKEY\" class=\"cb-bh\">Advantages and Disadvantages of Company Types in Turkey<\/h2>\n<p><strong>A sole proprietorship offers easy and low-cost formation but brings personal liability and a progressive tax burden, whereas joint-stock and limited companies provide limited liability but are subject to stricter rules and formation requirements.<\/strong> Depending on the scope and field of activity, <strong>company types in Turkey<\/strong> have both <strong>administrative and financial advantages as well as disadvantages.<\/strong> Below, the types of companies along with their advantages and disadvantages are briefly outlined.<\/p>\n<h3 id=\"1-_Advantages_of_Sole_Proprietorship\">1- Advantages of Sole Proprietorship<\/h3>\n<ul>\n<li><strong>Flexible Decision-Making:<\/strong> Sole proprietorships are not required to answer to a board of directors or shareholder groups, allowing business owners to make decisions independently.<\/li>\n<li><strong>Simplicity:<\/strong> Sole proprietorships are not obligated to disclose detailed financial information like public companies. Additionally, their tax structures are simpler, and management is less complex.<\/li>\n<li><strong>Vision Setting:<\/strong> Unlike public companies, which must adjust their course according to shareholder will, sole proprietorships can adhere to the founder&#8217;s vision without external interference.<\/li>\n<li><strong>Low Costs:<\/strong> Expenses such as setup costs, ledger certification fees, and financial consultancy services are generally lower for sole proprietorships. This results in lower costs for establishing and managing the business.<\/li>\n<li><strong>Easy Setup and Closure:<\/strong> Sole proprietorships can typically be established quickly and become operational within a few days. Likewise, the process of closing the business is usually fast and straightforward, providing an advantage for entrepreneurs<\/li>\n<\/ul>\n<h3 id=\"2-_Disadvantages_of_Sole_Proprietorship\">2- Disadvantages of Sole Proprietorship<\/h3>\n<ul>\n<li><strong>Personal Income Tax Payment:<\/strong> Sole proprietors are required to pay personal income tax, independent of their businesses. This situation may impose an additional tax burden on their personal income from the business.<\/li>\n<li><strong>Disadvantageous for High Incomes:<\/strong> Sole proprietorships can be disadvantageous for businesses with high incomes. Due to their limited resources and growth potential compared to other company types, alternative business structures may be more suitable for businesses aiming for higher income.<\/li>\n<li><strong>Legal Processes:<\/strong> While closing a sole proprietorship is relatively easy, it requires following a specific legal process. This process includes steps such as preparing official documents, notifying tax offices, and removing registrations from the Trade Registry.<\/li>\n<\/ul>\n<h3 id=\"3-_Advantages_of_Establishing_a_Joint-Stock_Company_in_Turkey\">3- Advantages of Establishing a Joint-Stock Company in Turkey<\/h3>\n<ul>\n<li><strong>Formation of Large Capital:<\/strong> Joint-stock companies aggregate small savings that individually may not be significant, thereby creating large capital pools. This provides a significant advantage in financing large-scale projects.<\/li>\n<li><strong>Establishment with Minimum Capital and Limited Liability:<\/strong> Joint-stock companies can be established with minimum capital, and shareholders&#8217; liability is limited to the amount of capital they contribute. Additionally, the transfer of shares is generally easier compared to partnerships.<\/li>\n<li><strong>Ability to Issue Shares and Bonds<\/strong>: Joint-stock companies can easily issue shares and bonds, facilitating rapid capital accumulation through capital increases or borrowing. They can also increase capital through public offerings.<\/li>\n<li><strong>Limited Liability of Shareholders:<\/strong> Shareholders in joint-stock companies are only liable for debts up to the amount of capital they contribute; their personal assets are typically not used as collateral for company debts.<\/li>\n<li><strong>Widening of Private Ownership to the Public:<\/strong> Joint-stock companies contribute to the spread of private ownership to the public. Small savers become partners in large ventures by investing in joint-stock companies.<\/li>\n<li><strong>Ease of Entry and Exit:<\/strong> Entering and exiting joint-stock companies is generally straightforward and cost-effective. While share transfers and changes in partnership require specific procedures, they are typically executed quickly and smoothly.<\/li>\n<\/ul>\n<h3 id=\"4-_Disadvantages_of_Establishing_a_Joint-Stock_Company_in_Turkey\">4- Disadvantages of Establishing a Joint-Stock Company in Turkey<\/h3>\n<ul>\n<li><strong>Shareholder Disinterest and Power Vacuum:<\/strong> Despite having numerous shareholders, many may show little interest in general meetings. This can lead to significant power vacuums and weaknesses in management.<\/li>\n<li><strong>Tendency Towards Monopoly:<\/strong> Due to their substantial economic power, joint-stock companies may incline towards monopolistic practices. This can hinder competition and lead to market imbalances, prompting regulatory authorities to enact measures to prevent monopolies and preserve competition.<\/li>\n<li><strong>Complexity of Decision-Making Processes:<\/strong> With a large number of shareholders, reaching consensus on decisions and management matters can be challenging. This formalizes decision-making processes and may introduce uncertainties in management. Additionally, the management structure is subject to stricter legal regulations.<\/li>\n<li><strong>Difficulty in Company Closure and Liquidation Processes:<\/strong> The closure and liquidation of a joint-stock company involve lengthy and procedural steps. It includes safeguarding shareholder rights, satisfying creditor claims, and fulfilling legal obligations, which can be time-consuming and costly.<\/li>\n<\/ul>\n<h3 id=\"5-_Advantages_of_Establishing_a_Limited_Company_in_Turkey\">5- Advantages of Establishing a Limited Company in Turkey<\/h3>\n<ol>\n<li><strong>Fixed Rate Tax Payments:<\/strong> Limited companies pay taxes at 25% fixed rate. This makes the company&#8217;s tax payments predictable and facilitates financial planning.<\/li>\n<li><strong>Limited Liability:<\/strong> In limited companies, shareholders&#8217; liability for debts is limited to the amount of capital they committed to during the company&#8217;s establishment. As a rule, shareholders are not personally liable for the company&#8217;s debts; the exception for public debts is explained under the disadvantages below.<\/li>\n<li><strong>Flexible Partnership Structure:<\/strong> Limited companies offer a more flexible partnership structure among shareholders. Shareholders can freely negotiate terms regarding profits and management matters.<\/li>\n<\/ol>\n<h3 id=\"6-_Disadvantages_of_Establishing_a_Limited_Company_in_Turkey\">6- Disadvantages of Establishing a Limited Company in Turkey<\/h3>\n<ul>\n<li><strong>Limited Number of Shareholders:<\/strong> Limited companies can have a maximum of 50 shareholders. This limitation can be restrictive for large-scale businesses and may constrain growth potential.<\/li>\n<li><strong>Liability for Public Debts:<\/strong> Limited company shareholders can be held liable for the company&#8217;s public debts up to the proportion of their share capital. This can expose shareholders&#8217; personal assets to risk.<\/li>\n<li><strong>Inability to Issue Bonds and Debentures:<\/strong> Limited companies cannot issue capital market instruments such as bonds and debentures. This limits the company&#8217;s financing options and can restrict capital expansion.<\/li>\n<\/ul>\n<div style=\"max-width: 760px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\u2696\ufe0f ADVANTAGES AND DISADVANTAGES OF COMPANY TYPES<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 700px; border-collapse: collapse; font-size: 11.5px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 22%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Company Type<\/th>\n<th style=\"width: 39%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\u2705 Main Advantages<\/th>\n<th style=\"width: 39%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\u26a0\ufe0f Main Disadvantages<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc64 Sole Proprietorship<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">Flexible decision-making, simplicity, low cost, easy formation and closure<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">Personal income tax, disadvantages at higher income levels, legal procedures upon closure<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Joint Stock Company<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">Ability to raise substantial capital, limited liability, ability to issue shares and bonds, ease of entry and exit<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">Lack of shareholder involvement, difficulty in decision-making, lengthy liquidation process<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfe2 Limited Liability Company<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">25% corporate income tax, limited liability, flexible ownership structure<\/td>\n<td style=\"padding: 9px 8px; border: 1px solid #8b3516; background: #fff;\">Maximum 50 shareholders, liability for public debts, inability to issue bonds<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"THE_DIFFERENCES_BETWEEN_TYPES_OF_COMPANIES_IN_TURKEY\" class=\"cb-bh\">The Differences Between Types of Companies in Turkey<\/h2>\n<p><strong>The main differences between company types in Turkey concern share transfers, public listing, the number of partners, minimum capital, liability for public debts and the limits of the partners&#8217; liability.<\/strong> <strong>To establish a company in Turkey<\/strong>, it is crucial to understand the <strong>differences between types of companies in Turkey<\/strong> and choose the most suitable one for operations. <strong>These differences between types of companies are outlined below:<\/strong><\/p>\n<div style=\"max-width: 780px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\u2696\ufe0f COMPARISON OF JOINT STOCK, LIMITED LIABILITY AND SOLE PROPRIETORSHIP STRUCTURES<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 720px; border-collapse: collapse; font-size: 11px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 22%; padding: 9px 7px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Feature<\/th>\n<th style=\"width: 26%; padding: 9px 7px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\ud83c\udfdb\ufe0f Joint Stock Company<\/th>\n<th style=\"width: 26%; padding: 9px 7px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\ud83c\udfe2 Limited Liability Company<\/th>\n<th style=\"width: 26%; padding: 9px 7px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\ud83d\udc64 Sole Proprietorship<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udd04 Share Transfer<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Easy and fast; registered shares are generally freely transferable<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Written transfer notarized and, as a rule, approval of the general assembly is required<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Unless otherwise provided in the articles of association, consent of all partners is required<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcdc Securities<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">May issue<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">May not issue<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">May not issue<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcc8 Can Go Public<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Possible<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Not possible<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Not possible<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc65 Number of Shareholders \/ Partners<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">No upper limit<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Maximum 50 shareholders<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">No upper limit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Liability for Public Debts<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Not shareholders, but members of the board of directors and managers<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Shareholders in proportion to their capital contributions and managers<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">The owner is personally liable for the business&#8217;s debts<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcb0 Minimum Capital<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">250,000 TL (initial capital of 500,000 TL for registered capital system)<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">50,000 TL<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">No minimum amount prescribed by law<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfaf Business Activities<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Any economic purpose or activity not prohibited by law<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Any economic purpose or activity not prohibited by law; cannot be established as a bank or insurance company<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">No specific business activity limitation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcdd Formation Process<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">More complex and lengthy<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Simpler and shorter<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Simpler and shorter<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\u2696\ufe0f Shareholders&#8217; \/ Partners&#8217; Liability<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Limited to the capital contribution<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Limited to the capital contribution<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Unlimited personal liability<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udcb5 Profit Distribution<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">According to shareholders&#8217; shareholding ratios<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">According to shareholders&#8217; shareholding ratios<\/td>\n<td style=\"padding: 8px 7px; border: 1px solid #8b3516;\">Received by the owner of the business<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"WHICH_COMPANY_TYPE_SHOULD_YOU_CHOOSE_IN_TURKEY\" class=\"cb-bh\">Which Company Type Should You Choose in Turkey?<\/h2>\n<p><strong>The right company type in Turkey depends on the number of partners, the amount of capital, the need to separate the partners&#8217; personal assets from business risks, and plans for share transfers and bringing in investors.<\/strong> For an entrepreneur starting alone with a small volume of business, ease of formation comes first, whereas for a venture aiming at growth and investment, limited <strong>liability and the share structure become decisive.<\/strong> The company type should therefore be chosen with the company&#8217;s situation a few years ahead in mind,<strong> not only its formation cost.<\/strong><\/p>\n<h3 id=\"1-_Limited_Company_or_Joint-Stock_Company_in_Turkey\">1- Limited Company or Joint-Stock Company in Turkey?<\/h3>\n<p><strong>A limited company <\/strong>stands out for small and medium-sized businesses because<strong> it can be formed with lower minimum capital, <\/strong>while <strong>a joint-stock company <\/strong>stands out for businesses aiming at growth and investors thanks to its unlimited number of shareholders, <strong>easier share transfers and the possibility of going public.<\/strong><\/p>\n<p><strong>As of 2026, the minimum capital of a limited company is 50.000 TL and it may have at most 50 partners, while a joint-stock company requires minimum capital of 250.000 TL and has no upper limit on shareholders.<\/strong> In a limited company, the transfer of a capital share must be made in writing with<strong> notarised signatures<\/strong> and, unless the articles of association provide otherwise, <strong>requires the approval of the general assembly;<\/strong> in a joint-stock company, registered shares can be transferred without <strong>any restriction unless the law or the articles of association provide otherwise.<\/strong><\/p>\n<p><strong>In a limited company, even a share transfer agreement concluded before a notary has no effect until the general assembly approves it.<\/strong> In its decision <strong>the 11th Civil Chamber of the Court of Cassation, E. 2023\/4190, K. 2024\/6192, T. 10.09.2024<\/strong>, held that a notarised share transfer agreement remains <strong>suspended<\/strong> <strong>until the general assembly of partners approves it<\/strong> and that the general assembly may <strong>refuse approval without giving any reason<\/strong>, and it <strong>reversed<\/strong> the judgment that had upheld the claim. The decision states this in the words<strong> &#8220;the agreement remains suspended until the general assembly decides to approve the share transfer.&#8221;<\/strong><\/p>\n<p><strong>There is also an important difference regarding public debts.<\/strong> Partners of a limited company can be held directly liable, <strong>in proportion to their capital shares<\/strong>, for public receivables that cannot be collected from the company; in a joint-stock company, this liability is directed at <strong>the legal representatives rather than the shareholders.<\/strong><\/p>\n<h3 id=\"2-_Sole_Proprietorship_or_Limited_Company_in_Turkey\">2- Sole Proprietorship or Limited Company in Turkey?<\/h3>\n<p><strong>For a small-scale business with low income, a sole proprietorship may be more suitable because of its ease of formation and low cost, whereas a limited company may be more suitable once income grows and the owner wishes to separate personal assets from business risks.<\/strong> The income of a sole proprietorship is subject to progressive income tax ranging from 15% to 40%, while a limited company&#8217;s corporate income is, as a rule, subject to 25% corporate tax. In addition, the owner of a sole proprietorship is liable for all debts of the business with their own assets.<\/p>\n<h3 id=\"3-_Which_Company_Type_Is_Suitable_for_a_Startup_in_Turkey\">3- Which Company Type Is Suitable for a Startup in Turkey?<\/h3>\n<p><strong>For startups aiming to bring in investors, allow shares to change hands and possibly go public, the joint-stock company is frequently considered, while the limited company is often considered in early stages when founders start with limited capital.<\/strong> In a joint-stock company, the unlimited number of shareholders and the free transferability of shares, unless the law or articles of association provide otherwise, make it easier to admit new partners in investment rounds. <strong>Which type to choose should be decided in light of the investment plan and the share distribution among the founders.<\/strong><\/p>\n<h3 id=\"4-_How_Are_Company_Types_Taxed_in_Turkey\">4- How Are Company Types Taxed in Turkey?<\/h3>\n<p><strong>The owner of a sole proprietorship, the partners of a collective company and the general partners of a limited partnership in Turkey are subject to income tax, while joint-stock and limited companies pay corporate tax, as a rule at 25%, on their corporate income.<\/strong> Income tax in Turkey is progressive, and under the tariff applied in 2026 the rates range from <strong>15% to 40%<\/strong> depending on the income bracket. The corporate tax rate is, as a rule, <strong>25%<\/strong> regardless of the size of the income; the law provides a different rate for banks and certain financial institutions.<\/p>\n<p>Under the Turkish Income Tax Law, the shares that <strong>partners of collective companies<\/strong> and <strong>general partners<\/strong> of ordinary limited partnerships and partnerships limited by shares receive from the partnership&#8217;s profit are treated as <strong>personal commercial income<\/strong>. In personal companies, <strong>tax is therefore calculated as income tax on each partner&#8217;s share of the profit rather than on the company&#8217;s income.<\/strong> In capital companies,<strong> tax is first levied at company level as corporate tax.<\/strong><\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83d\udcb0 TAXATION BY BUSINESS AND COMPANY TYPE<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 600px; border-collapse: collapse; font-size: 12px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 35%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Business \/ Company Type<\/th>\n<th style=\"width: 35%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Tax Type<\/th>\n<th style=\"width: 30%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83d\udc64 Sole Proprietorship<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Personal income tax<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>15% \u2013 40%<\/strong><br \/>\n<span style=\"font-size: 10.5px;\">Progressive tax rate<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83e\udd1d Collective Company Partners,<br \/>\nLimited Partners<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Personal income tax<br \/>\n<span style=\"font-size: 10.5px;\">(Personal business income)<\/span><\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>15% \u2013 40%<\/strong><br \/>\n<span style=\"font-size: 10.5px;\">Progressive tax rate<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfe2 Limited Liability Company<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Corporate income tax<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>Generally 25%<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">\ud83c\udfdb\ufe0f Joint Stock Company<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\">Corporate income tax<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516; background: #fff;\"><strong>Generally 25%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"ARE_VIRTUAL_COMPANIES_LEGAL_AND_HOW_IS_A_VIRTUAL_COMPANY_IN_TURKEY_ESTABLISHED\" class=\"cb-bh\">Are Virtual Companies Legal and How Is a Virtual Company in Turkey Established?<\/h2>\n<p><strong>Virtual companies become tax payers by invoicing for the services they provide. Therefore, establishing a virtual company in Turkey is completely legal.<\/strong><\/p>\n<h3 id=\"1-_How_Are_Tax_Office_Procedures_Handled_for_a_Virtual_Office_in_Turkey\">1- How Are Tax Office Procedures Handled for a Virtual Office in Turkey?<\/h3>\n<p>For <strong>virtual companies<\/strong> to operate, <strong>tax notification must be made for employees<\/strong> who are tax payers. If an existing office is moved to a virtual address, <strong>the tax number generally remains the same<\/strong>, and only the address changes. In this case, it is necessary <strong>to apply to the tax office to which the virtual office is affiliated.<\/strong><\/p>\n<p>During tax inspections for <strong>establishing a virtual company in Turkey<\/strong>, documents such as <strong>a signature circular, tax certificate, identification document, and insurance records of company employees<\/strong> may be requested. Upon approval by tax officers, commercial activities can be carried out on a legal basis with a tax number.<\/p>\n<p><strong>Rent and other expenses paid for virtual offices<\/strong> are assessed in accordance with <strong>Article 40 of the Income Tax Law<\/strong>. Secretariat services received are also invoiced to users by the office manager, including VAT. For these reasons, it can be stated that <strong>virtual offices operate legally<\/strong> and the services they provide are subject to taxation.<\/p>\n<h3 id=\"2-_How_to_Establish_a_Virtual_Company_in_Turkey\">2- How to Establish a Virtual Company in Turkey?<\/h3>\n<p><strong>The process of establishing a virtual company in Turkey includes the following steps:<\/strong><\/p>\n<ul>\n<li><strong>Determining the Company Type:<\/strong> The first step in establishing a virtual company in Turkey is determining the type of company. Options such as <strong>limited company, joint stock company, or sole proprietorship<\/strong> should be considered.<\/li>\n<li><strong>Chamber of Commerce Registration and Taxpayer Registration:<\/strong> Registration must be made with <strong>the Chamber of Commerce and taxpayer procedures<\/strong> must be completed at the relevant tax office.<\/li>\n<li><strong>Obtaining Necessary Permissions:<\/strong> Joint-stock companies to be formed in fields of activity designated by communiqu\u00e9 of the Ministry of Trade must obtain an <strong>establishment permit<\/strong> from the Ministry; outside those fields, the formation of joint-stock companies and limited companies does not require a permit.<\/li>\n<li><strong>Document Preparation:<\/strong> Necessary documents should be prepared in accordance with the establishment procedures <strong>for establishing a virtual company in Turkey.<\/strong><\/li>\n<li><strong>Collecting Documents:<\/strong> Documents required for a newly established company to open a virtual office typically include: photocopy of ID, stamp stating &#8220;<strong>in the establishment phase,&#8221;<\/strong> residence certificate, and corporate email information.<\/li>\n<li><strong>Signing Contract and Notarization:<\/strong> A contract should be signed with the virtual office company to establish a virtual company. The contract, signed by the financial advisor with <strong>NACE code and company title<\/strong>, is certified by a notary.<\/li>\n<li><strong>Obtaining Tax Number:<\/strong> After notarization, the financial advisor obtains <strong>a tax number from the tax office<\/strong> to which the virtual office is affiliated.<\/li>\n<li><strong>Audit and Commencement of Operations:<\/strong> Tax officials inspect the company according to the registration certificate issued by the Chamber of Commerce, and the process to <strong>establish a virtual company in Turkey<\/strong> is completed.<\/li>\n<\/ul>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 7px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83c\udfe2 VIRTUAL COMPANY FORMATION STEPS<\/div>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%; min-width: 600px; border-collapse: collapse; font-size: 11.5px; line-height: 1.4;\">\n<thead>\n<tr>\n<th style=\"width: 30%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">Step<\/th>\n<th style=\"width: 32%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\ud83c\udfdb\ufe0f Relevant Institution \/ Person<\/th>\n<th style=\"width: 38%; padding: 9px 8px; background: #f6ede9; color: #8b3516; border: 1px solid #8b3516; text-align: left; font-weight: 800;\">\ud83d\udccc Result<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">1\ufe0f\u20e3 Choosing the Company Type<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Founder<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">A limited liability company, joint stock company or sole proprietorship is selected<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">2\ufe0f\u20e3 Chamber Registration and Tax Registration<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Chamber of Commerce, Tax Office<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Registration and tax obligations are completed<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">3\ufe0f\u20e3 Virtual Office Agreement<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Virtual office provider, notary<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">The agreement containing the NACE code and company name is notarized<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">4\ufe0f\u20e3 Tax Number<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Certified public accountant, Tax Office<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">A tax number is obtained<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 8px; border: 1px solid #8b3516; font-weight: 800; color: #8b3516;\">5\ufe0f\u20e3 Inspection<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">Tax officers<\/td>\n<td style=\"padding: 8px; border: 1px solid #8b3516;\">The process is completed following an on-site inspection<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h2 id=\"IS_IT_NECESSARY_TO_ESTABLISH_A_COMPANY_FOR_E-COMMERCE_IN_TURKEY\" class=\"cb-bh\">Is It Necessary to Establish a Company for E-Commerce in Turkey?<\/h2>\n<p><strong>Sales conducted over the internet are subject to tax legislation in Turkey; therefore, individuals engaged in e-commerce must, as a rule, become taxpayers under the commercial income rules, but this tax registration can be set up as a sole proprietorship as well as a company.<\/strong> <strong>E-commerce<\/strong> is a rapidly growing sector today, <strong>starting from home or small-scale businesses<\/strong> and accessible to many individuals. However, the necessity of <strong>establishing a company for e-commerce in Turkey<\/strong> is an important consideration for business owners. Engaging in e-commerce and generating <a href=\"https:\/\/www.cbhukuk.com\/en\/taxation-of-foreign-sourced-income-in-turkey\/\"><strong>income exclusively from overseas<\/strong><\/a> <strong>sales does not mean that establishing a company in Turkey is not required.<\/strong><\/p>\n<p>Sales conducted over the internet <strong>are subject to tax legislation<\/strong>, and any commercial profits must be taxed accordingly. Therefore, individuals engaged in <strong>e-commerce must comply with income tax laws<\/strong> governing commercial profits and become taxpayers, <strong>necessitating the establishment of a company in Turkey<\/strong> or the registration of a sole proprietorship. A commercial structure, such as a company or sole proprietorship, is required for tax purposes. The only exception is the sale over the internet, without opening a workplace, of certain products made in the seller&#8217;s own home: as long as annual sales do not exceed the gross annual minimum wage for that year, such sellers can benefit from the tradesman exemption.<\/p>\n<p>Moreover, <strong>establishing a company for e-commerce in Turkey<\/strong> provides a legal status for the business. This ensures that <strong>the business operates on a legal basis<\/strong> and conducts commercial activities in accordance with the law. From the perspective of customers, <strong>a company status enhances trust and credibility.<\/strong> Additionally, it helps the business acquire a corporate image and establishes a solid foundation for long-term success.<\/p>\n<p>For these reasons, <strong>individuals interested in e-commerce in Turkey<\/strong> should consider the necessity of <strong>forming a company in Turkey<\/strong> or registering a sole proprietorship and create an <strong>appropriate company structure to operate their business<\/strong> within a legal framework. Seeking professional advice to determine and <strong>establish the most suitable company structure for the business<\/strong> needs is a crucial step towards long-term success.<\/p>\n<h3 id=\"1-_Which_type_of_company_is_most_suitable_for_e-commerce_in_Turkey\">1- Which type of company is most suitable for e-commerce in Turkey?<\/h3>\n<p><strong>There is no single &#8220;most suitable&#8221; company type for e-commerce in Turkey: a sole proprietorship is considered for small-scale businesses, a limited liability company for growing businesses that want to separate risks from personal assets, and a joint-stock company for large-scale businesses or those planning to go public.<\/strong> The question of <strong>which type of company to establish for e-commerce in Turkey<\/strong> requires consideration of various factors such as income level, business volume, future plans, and legal regulations. Therefore, it is not possible to determine a definitive <strong>&#8220;most suitable&#8221;<\/strong> company type for e-commerce in Turkey. However, business owners typically <strong>evaluate the following company types<\/strong> based on the size of their operations and commercial objectives:<\/p>\n<ul>\n<li><strong>Sole Proprietorship:<\/strong> If the e-commerce business is small-scale with low income, establishing a sole proprietorship may be logical to benefit from tax advantages. In this case, there is no distinction between personal assets and business assets.<\/li>\n<li><strong>Limited Liability Company (Ltd.):<\/strong> If the e-commerce business is growing in size and income level, and there is a desire to separate personal assets from business risks, forming a limited liability company may be more appropriate.<\/li>\n<li><strong>Joint Stock Company (JSC):<\/strong> If the e-commerce business operates on a large scale, plans to go public, or operates internationally, establishing a joint stock company may be sensible. A joint stock company is a type of commercial entity where capital is divided into shares represented by stock certificates. This company type can offer advantages in terms of corporate image and international business relations.<\/li>\n<\/ul>\n<h3 id=\"2-_Where_to_Obtain_Permits_for_Establishing_an_E-commerce_Company\">2- Where to Obtain Permits for Establishing an E-commerce Company?<\/h3>\n<p><strong>In the process of establishing an e-commerce company in Turkey, the places where permits are required are generally similar to those for general company formation.<\/strong> However, due to their simpler operational structures, e-commerce firms often undergo shorter bureaucratic processes. For a sole proprietorship, the first step in <strong>opening a business location<\/strong> is applying to the tax office; a capital company must first be registered with the trade registry. For <strong>sole proprietorships<\/strong>, this may involve applying to trade or professional chambers, while for capital companies, it typically requires application to a <strong>chamber of commerce.<\/strong><\/p>\n<p>In cases where personnel are employed, it is crucial to complete <a href=\"https:\/\/www.cbhukuk.com\/en\/employment-termination-codes\/\"><strong>Social Security Institution (SGK) applications<\/strong><\/a> in accordance with <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/labor-law-in-turkey\/\"><strong>Labor Law in Turkey<\/strong><\/a>. <strong>The opening of a business location and insurance procedures<\/strong> for employees must be conducted in compliance with legal regulations.<\/p>\n<p>Additionally, depending on which <strong>e-commerce platform<\/strong> will be used to offer services, <strong>registration must also be completed<\/strong> with the relevant platform. During this registration process, documents such as <strong>the company&#8217;s trade registry certificate, signature circulars, and articles of association<\/strong> may need to be submitted. Platforms generally request these documents to verify that businesses are <strong>legally established<\/strong> and operational. In addition, e-commerce service providers and intermediary service providers must register with the <strong>Electronic Commerce Information System (ETB\u0130S)<\/strong> through the e-Government portal before starting operations.<\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 2px solid #8b3516; border-radius: 8px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83d\uded2 COMPANY FORMATION PROCESS FOR E-COMMERCE IN TURKEY<\/div>\n<div style=\"padding: 12px;\">\n<div style=\"border: 1px solid #8b3516; border-radius: 6px; background: #fff; padding: 9px 11px;\">\n<div style=\"font-size: 11px; color: #8b3516; font-weight: 800;\">01 \u00b7 \ud83d\udc64 CHOOSING THE COMPANY TYPE<\/div>\n<div style=\"font-size: 10.8px; color: #333; line-height: 1.4; margin-top: 4px;\">A sole proprietorship, limited liability company or joint stock company is selected for the e-commerce activity.<\/div>\n<\/div>\n<div style=\"text-align: center; color: #8b3516; font-size: 18px; font-weight: 800; line-height: 20px;\">\u2193<\/div>\n<div style=\"border: 1px solid #8b3516; border-radius: 6px; background: #fff; padding: 9px 11px;\">\n<div style=\"font-size: 11px; color: #8b3516; font-weight: 800;\">02 \u00b7 \ud83c\udfe2 COMPANY FORMATION AND REGISTRATIONS<\/div>\n<div style=\"font-size: 10.8px; color: #333; line-height: 1.4; margin-top: 4px;\">Company formation, chamber registration and tax registration procedures are completed with the Chamber of Commerce and Tax Office.<\/div>\n<\/div>\n<div style=\"text-align: center; color: #8b3516; font-size: 18px; font-weight: 800; line-height: 20px;\">\u2193<\/div>\n<div style=\"border: 1px solid #8b3516; border-radius: 6px; background: #fff; padding: 9px 11px;\">\n<div style=\"font-size: 11px; color: #8b3516; font-weight: 800;\">03 \u00b7 \ud83d\uded2 E-COMMERCE PLATFORM REGISTRATION<\/div>\n<div style=\"font-size: 10.8px; color: #333; line-height: 1.4; margin-top: 4px;\">Registration with the relevant e-commerce platform is completed using the trade registry certificate, signature circular and articles of association.<\/div>\n<\/div>\n<div style=\"text-align: center; color: #8b3516; font-size: 18px; font-weight: 800; line-height: 20px;\">\u2193<\/div>\n<div style=\"border: 1px solid #8b3516; border-radius: 6px; background: #fff; padding: 9px 11px;\">\n<div style=\"font-size: 11px; color: #8b3516; font-weight: 800;\">04 \u00b7 \ud83c\udf10 ETB\u0130S REGISTRATION<\/div>\n<div style=\"font-size: 10.8px; color: #333; line-height: 1.4; margin-top: 4px;\">Before starting e-commerce activities, ETB\u0130S registration is completed through e-Government via the Ministry of Trade.<\/div>\n<\/div>\n<div style=\"text-align: center; color: #8b3516; font-size: 18px; font-weight: 800; line-height: 20px;\">\u2193<\/div>\n<div style=\"border: 1px solid #8b3516; border-radius: 6px; background: #fff; padding: 9px 11px;\">\n<div style=\"font-size: 11px; color: #8b3516; font-weight: 800;\">05 \u00b7 \ud83d\udc65 EMPLOYEE AND SSI PROCEDURES<\/div>\n<div style=\"font-size: 10.8px; color: #333; line-height: 1.4; margin-top: 4px;\">If employees are hired, workplace notification and social security procedures are completed with the Social Security Institution (SSI).<\/div>\n<\/div>\n<div style=\"margin-top: 9px; padding: 8px 10px; background: #fff; border: 1px solid #8b3516; border-radius: 5px;\">\n<div style=\"font-size: 10.5px; font-weight: 800; color: #8b3516;\">\ud83d\udccc STARTING E-COMMERCE ACTIVITIES<\/div>\n<div style=\"font-size: 10.3px; color: #444; line-height: 1.4; margin-top: 3px;\">E-commerce activities may be carried out once the company formation and required registration procedures have been completed.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 id=\"WHAT_ARE_THE_REQUIREMENTS_FOR_STARTING_A_STARTUP_COMPANY_IN_TURKEY\" class=\"cb-bh\">What Are the Requirements for Starting a Startup Company in Turkey?<\/h2>\n<p><strong>Starting a startup in Turkey first requires an innovative business idea, market research, a business plan, funding and a good team.<\/strong> <strong>A startup company<\/strong> typically involves a new business idea or product, <strong>aiming for rapid growth,<\/strong> often focused on technology and innovation. The term <strong>&#8220;startup&#8221;<\/strong> is commonly used to describe <strong>newly established companies with growth potential.<\/strong><\/p>\n<p>Startups often begin with limited funding, seeking investment to expand and grow their markets. <strong>The primary requirement to start a startup<\/strong> is a viable business idea. <strong>Startups offer innovative products or services<\/strong> that have the potential to fill a gap in an existing market or fulfill a new need.<\/p>\n<p><strong>Success for a startup company<\/strong> is generally measured by <strong>its growth potential, market fit, and sustainability.<\/strong> In the initial stages, startups typically test their <strong>business models, develop their products, build customer bases, and work on marketing and business development<\/strong> <strong>strategies<\/strong> to expand.<\/p>\n<h3 id=\"1-_Differences_Between_Startup_Companies_And_Other_Businesses\">1- Differences Between Startup Companies And Other Businesses<\/h3>\n<p>There are several significant differences that distinguish <strong>startup companies from other businesses.<\/strong> These differences are as follows:<\/p>\n<ul>\n<li><strong>Innovation and Originality:<\/strong> The first requirement to start a startup is finding an innovative idea. While other businesses typically operate based on existing markets, startups adopt a completely new approach.<\/li>\n<li><strong>Rapid Growth and Progress:<\/strong> Startups aim for rapid growth and development. They focus on quickly launching their products to market, expanding their customer base, and increasing their revenues. This often requires innovative business models and marketing strategies.<\/li>\n<li><strong>Flexibility and Adaptation:<\/strong> Startups have the ability to adapt to rapidly changing market conditions. Their flexibility allows them to make quick decisions and change strategies when necessary, which supports growth and provides a competitive advantage.<\/li>\n<li><strong>Risk-taking and Trial-and-error Process:<\/strong> Startups often embrace risk-taking and a trial-and-error approach. They test new ideas, learn from failures, and continuously improve their products or services with a flexible mindset.<\/li>\n<li><strong>Global Impact:<\/strong> Startups typically aim to create a global impact. They strive to gain a significant market share and achieve international recognition. Therefore, they often target international markets for expansion and growth.<\/li>\n<\/ul>\n<h3 id=\"2-_How_To_Start_a_Startup_Company_in_Turkey\"><span style=\"font-family: inherit;\">2- How To Start a Startup Company in Turkey?<\/span><\/h3>\n<p><strong>A startup company in Turkey is started by developing an original idea, conducting market research, creating a business plan, fundraising, building a team, developing the product, focusing on growth and defining an exit strategy.<\/strong> <strong>Starting a startup company in Turkey<\/strong> can be a complex process, but below is a step-by-step roadmap for <strong>how to start a startup company in Turkey:<\/strong><\/p>\n<ul>\n<li data-path-to-node=\"2\"><b data-path-to-node=\"2\" data-index-in-node=\"0\">Developing an Original Idea:<\/b> The foundation of starting a startup rests on having a <b data-path-to-node=\"2\" data-index-in-node=\"84\">unique idea that fills a market need<\/b>. This idea can be a product or service that simplifies daily life, solves a specific problem, or offers a novel experience.<\/li>\n<li data-path-to-node=\"3\"><b data-path-to-node=\"3\" data-index-in-node=\"0\">Conducting Market Research and Competitor Analysis:<\/b> Evaluating the viability of an idea requires <b data-path-to-node=\"3\" data-index-in-node=\"97\">comprehensive market research<\/b>. Analyzing existing <b data-path-to-node=\"3\" data-index-in-node=\"147\">market gaps<\/b> and understanding current competitor solutions are essential steps in identifying the core requirements for launching a startup.<\/li>\n<li data-path-to-node=\"4\"><b data-path-to-node=\"4\" data-index-in-node=\"0\">Creating a Business Plan:<\/b> A business plan outlines the corporate structure and key strategic objectives. An effective business plan must encompass the <b data-path-to-node=\"4\" data-index-in-node=\"151\">organizational structure, marketing strategies, revenue models, and long-term goals<\/b>.<\/li>\n<li data-path-to-node=\"5\"><b data-path-to-node=\"5\" data-index-in-node=\"0\">Securing Fundraising:<\/b> Financial resources are vital for growth and product development. Capital can be raised through <b data-path-to-node=\"5\" data-index-in-node=\"118\">personal savings, friends and family, angel investors, or venture capital firms<\/b>.<\/li>\n<li data-path-to-node=\"6\"><b data-path-to-node=\"6\" data-index-in-node=\"0\">Building a Team:<\/b> Assembling a team with <b data-path-to-node=\"6\" data-index-in-node=\"40\">complementary skills and a shared vision<\/b> significantly impacts the startup&#8217;s ultimate success. Collaborative dynamics form the backbone of an effective founding team.<\/li>\n<li data-path-to-node=\"7\"><b data-path-to-node=\"7\" data-index-in-node=\"0\">Developing and Marketing the Product or Service:<\/b> Transforming an idea into reality involves <b data-path-to-node=\"7\" data-index-in-node=\"92\">developing the actual product or service<\/b>. Subsequently, strategic marketing and promotional campaigns are deployed to <b data-path-to-node=\"7\" data-index-in-node=\"210\">effectively reach the target audience<\/b>.<\/li>\n<li data-path-to-node=\"8\"><b data-path-to-node=\"8\" data-index-in-node=\"0\">Focusing on Growth:<\/b> Continuous optimization is critical for long-term scalability. Products or services must be <b data-path-to-node=\"8\" data-index-in-node=\"112\">regularly refined and enhanced<\/b> based on direct customer feedback.<\/li>\n<li data-path-to-node=\"9\"><b data-path-to-node=\"9\" data-index-in-node=\"0\">Defining an Exit Strategy:<\/b> Establishing a clear <b data-path-to-node=\"9\" data-index-in-node=\"48\">exit strategy<\/b> from the outset is essential. This strategy may involve <b data-path-to-node=\"9\" data-index-in-node=\"118\">selling the startup or executing a merger (M&amp;A)<\/b> with a larger enterprise after reaching a certain stage of maturity.<\/li>\n<\/ul>\n<p><strong>Startup founders<\/strong> should demonstrate flexibility and determination to quickly bring their ideas to life and grow them. Along this journey of what is needed to <strong>start a startup company in Turkey<\/strong>, experiences of both success and failure are common, <strong>but determination and the learning process<\/strong> increase the chances of success.<\/p>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/company-law-in-turkey-scaled.jpg\"><img decoding=\"async\" class=\"aligncenter size-us_800_400 wp-image-3253\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2023\/04\/company-law-in-turkey-800x219.jpg\" alt=\"Starting a company in turkey\" width=\"800\" height=\"219\" \/><\/a><\/p>\n<h2 id=\"ESTABLISHING_A_COMPANY_BY_FOREIGNERS_IN_TURKEY\" class=\"cb-bh\">Establishing a Company by Foreigners in Turkey<\/h2>\n<p><strong>Foreign investors can establish a limited liability company or a joint-stock company in Turkey in compliance with the Turkish Commercial Code, become partners in existing capital companies, or, as foreign companies, open a liaison office in Turkey.<\/strong> Globalization has facilitated <strong>foreign companies to establish themselves across different countries<\/strong> worldwide. Turkey is among these countries, offering opportunities for <strong>foreigners to establish companies in Turkey.<\/strong><\/p>\n<p>Turkey has become <strong>a significant business center for foreign investors<\/strong> due to its strategic geographical location, large market, advanced logistics infrastructure, and skilled workforce. Consequently, <strong>the establishment of companies by foreigners in Turkey<\/strong> has increased in recent years. <strong>To establish a company in Turkey,<\/strong> foreigners must adhere to Turkish business and commercial laws, conduct company activities in accordance with <strong>Turkish Corporate Law,<\/strong> avoid engaging in any actions that are contrary to <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/turkish-citizenship\/\"><strong>foreigner law<\/strong><\/a>, comply with tax regulations, and maintain accurate and regular accounting records.<\/p>\n<h3 id=\"1-_Which_Structures_Can_Foreigners_Establish_in_Turkey\">1- Which Structures Can Foreigners Establish in Turkey?<\/h3>\n<p>There are specific conditions and procedures for <strong>foreigners to establish companies in Turkey<\/strong>. Foreign investors can establish various types of companies <strong>such as Limited Liability Company (Ltd. \u015eti.) or Joint Stock Company (A.\u015e.) in compliance with the Turkish Commercial Code.<\/strong> Foreign companies also can establish a <a href=\"https:\/\/www.cbhukuk.com\/en\/establishing-a-liaison-office-in-turkey\/\"><strong>liaison office in Turkey<\/strong><\/a> without setting up a company.<\/p>\n<p><strong>Liaison offices<\/strong> do not have a separate legal entity and <strong>operate to carry out the foreign company&#8217;s representation,<\/strong> hospitality, communication, and promotional activities. Employees working in liaison offices and <a href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/\"><strong>receiving their salaries from abroad<\/strong><\/a> are exempt from income tax on those wages, provided they are paid in foreign currency out of the employer&#8217;s earnings outside Turkey.<\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 1px solid #d9c4bb; border-radius: 8px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83c\udfe2 TYPES OF BUSINESS STRUCTURES IN TURKEY<\/div>\n<div style=\"padding: 10px;\">\n<table style=\"width: 100%; border-collapse: separate; border-spacing: 7px; table-layout: fixed;\">\n<tbody>\n<tr>\n<td style=\"width: 50%; padding: 12px; background: #fff; border: 1px solid #d9c4bb; border-top: 3px solid #8b3516; border-radius: 6px; vertical-align: top;\">\n<div style=\"font-size: 12px; font-weight: 800; color: #8b3516; margin-bottom: 6px;\">Limited Liability Company<\/div>\n<div style=\"font-size: 10.8px; color: #444; margin-bottom: 6px;\"><strong>Ltd. \u015eti.<\/strong><\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">A capital company established under the Turkish Commercial Code.<\/div>\n<\/td>\n<td style=\"width: 50%; padding: 12px; background: #fff; border: 1px solid #d9c4bb; border-top: 3px solid #8b3516; border-radius: 6px; vertical-align: top;\">\n<div style=\"font-size: 12px; font-weight: 800; color: #8b3516; margin-bottom: 6px;\">Joint Stock Company<\/div>\n<div style=\"font-size: 10.8px; color: #444; margin-bottom: 6px;\"><strong>A.\u015e.<\/strong><\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">A capital company established under the Turkish Commercial Code.<\/div>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%; padding: 12px; background: #fff; border: 1px solid #d9c4bb; border-top: 3px solid #8b3516; border-radius: 6px; vertical-align: top;\">\n<div style=\"font-size: 12px; font-weight: 800; color: #8b3516; margin-bottom: 6px;\">Branch<\/div>\n<div style=\"font-size: 10.8px; color: #444; margin-bottom: 6px;\"><strong>Foreign Company Structure<\/strong><\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">A branch of a foreign company established in Turkey.<\/div>\n<\/td>\n<td style=\"width: 50%; padding: 12px; background: #fff; border: 1px solid #d9c4bb; border-top: 3px solid #8b3516; border-radius: 6px; vertical-align: top;\">\n<div style=\"font-size: 12px; font-weight: 800; color: #8b3516; margin-bottom: 6px;\">Liaison Office<\/div>\n<div style=\"font-size: 10.8px; color: #444; margin-bottom: 6px;\"><strong>No separate legal personality<\/strong><\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">Carries out representation, hosting, communication and promotional activities.<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h3 id=\"2-_What_Are_the_Capital_and_Incentive_Conditions_for_Foreign_Investors_in_Turkey\">2- What Are the Capital and Incentive Conditions for Foreign Investors in Turkey?<\/h3>\n<p><strong>Foreign investors<\/strong> are not subject to a minimum capital requirement different from that of domestic investors to <strong>establish a company in Turkey<\/strong>; foreign investors are treated equally with domestic investors. The statutory minimum capital for the chosen company type applies, and special laws may impose additional conditions in certain sectors. There is no general obligation for foreign investors to allocate <strong>a portion of their investments in Turkey<\/strong> <strong>to Turkish citizens and residents<\/strong>; however, when a work permit is granted to a foreign partner or manager, factors such as the investment&#8217;s effect on the economy and employment and the foreign partner&#8217;s capital share are taken into account.<\/p>\n<p>Furthermore, foreign investors can benefit from <strong>investment incentives<\/strong> when they <strong>establish companies in Turkey.<\/strong> Investment incentives in Turkey vary based on the sectors invested in, the region where companies operate, and the <strong>amount of investment<\/strong>. To benefit from <strong>investment incentives<\/strong>, companies must meet specific criteria and complete the application process.<\/p>\n<p>Foreign legal entities and individuals can either<strong> establish companies in Turkey<\/strong> or <strong>become partners in existing capital companies.<\/strong> Depending on the sector of operation, there may be restrictions on foreign investors, <strong>as well as sector-specific incentives<\/strong>. Therefore, foreign investors should seek legal and sectoral consultancy before <strong>establishing companies or making investments in Turkey.<\/strong><\/p>\n<h2 id=\"FOREIGNERS_ESTABLISHING_COMPANIES_IN_TURKEY_FOR_REAL_ESTATE_ACQUISITION\" class=\"cb-bh\">Foreigners Establishing Companies in Turkey for Real Estate Acquisition<\/h2>\n<p><strong>Because of restrictions on foreign companies&#8217; direct acquisition of real estate, foreign investors often establish companies in Turkey to acquire property; however, a foreign-capital company can acquire property only for its field of activity, and this method brings legal obligations such as examining the title deed, the risk of title deed cancellation lawsuits and rules on tenanted properties.<\/strong> In recent years, Turkey has become <strong>an attractive real estate market<\/strong> for foreign investors. However, legal regulations concerning <strong>real estate acquisition by foreigners include various restrictions.<\/strong><\/p>\n<p>Specifically, due to certain <strong>prohibitions and limitations on foreign companies&#8217; direct acquisition of real estate<\/strong>, foreign investors often <strong>establish companies in Turkey to bypass these restrictions.<\/strong> However, this method brings with it specific legal obligations and various factors that must be carefully considered. Companies established in Turkey in which foreign natural or legal persons hold 50% or more of the shares, or control the management, may acquire real estate only <strong>to carry out the fields of activity stated in their articles of association<\/strong>, and acquisitions in military prohibited and security zones require additional permission.<\/p>\n<h3 id=\"1-_What_Should_Be_Considered_When_Acquiring_Real_Estate_Through_a_Company_in_Turkey\">1- What Should Be Considered When Acquiring Real Estate Through a Company in Turkey?<\/h3>\n<p><strong>The main considerations when foreigners establish a company in Turkey for real estate acquisition include:<\/strong><\/p>\n<ul>\n<li><strong>Title Deed and Legal Status<\/strong>: The title deed should be carefully examined for any <a href=\"https:\/\/www.cbhukuk.com\/en\/title-search-process-in-turkey\/\"><strong>annotations, declarations, or restrictions<\/strong><\/a>. Elements like <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/mortgage-in-turkey\/\"><strong>mortgages<\/strong><\/a>, liens, or usufruct rights can affect the future use of the property.<\/li>\n<li><strong>Risk of Title Deed Cancellation Lawsuits<\/strong>: Companies purchasing real estate may face lawsuits related to inheritance fraud <strong>(<a href=\"https:\/\/www.cbhukuk.com\/en\/stolen-inheritance-and-fraudulent-conveyance\/\">concealing assets from inheritance<\/a>)<\/strong> or <strong>misuse of power of attorney<\/strong>, which could lead to <a href=\"https:\/\/www.cbhukuk.com\/en\/title-deed-cancellation-and-registration-lawsuit\/\"><strong>title deed cancellation and registration lawsuits<\/strong><\/a>. Therefore, it is crucial to thoroughly examine the property&#8217;s past title deed transactions and legal status, assessing potential risks in advance.<\/li>\n<li><strong>Rental Income and Rent Increase Rates<\/strong>: Determining rental income and <a href=\"https:\/\/www.cbhukuk.com\/en\/rent-increase-rate-calculation-in-turkey\/\"><strong>rent increase rates<\/strong><\/a> is of significant importance. According to the Turkish Code of Obligations, <strong>annual rent increases for residential and commercial leases<\/strong> are subject to certain limitations, and these rates cannot be exceeded. <a href=\"https:\/\/www.cbhukuk.com\/en\/rack-rent-in-turkey\/\"><strong>Disputing rent increases<\/strong><\/a> that do not comply with the law is a tenant&#8217;s right.<\/li>\n<li><strong>Legal Status of Tenanted Properties<\/strong>: If the acquired property is tenanted, the new owner is considered a party to the existing lease agreement. This situation imposes specific limitations regarding the <a href=\"https:\/\/www.cbhukuk.com\/en\/tenant-eviction-process-in-turkey\/\"><strong>tenant&#8217;s eviction<\/strong><\/a> and rent increases. For example, the new owner can only increase the rent within the current legal limits. In a <a href=\"https:\/\/www.cbhukuk.com\/en\/rent-determination-in-turkey\/\"><strong>rent determination lawsuit<\/strong><\/a> filed before five years have passed, the rent set by the court cannot exceed the change in the twelve-month average of the consumer price index for the previous rental year; for leases longer than five years or renewed after five years, the judge sets an equitable rent also taking comparable rents into account. Thus, <a href=\"https:\/\/www.cbhukuk.com\/en\/tenants-rights-in-turkey\/\"><strong>the tenant&#8217;s legal rights<\/strong><\/a> are protected by the law.<\/li>\n<li><strong>Tenant Eviction<\/strong>: The new owner can request <a href=\"https:\/\/www.cbhukuk.com\/en\/tenants-rights-when-landlord-sold-property\/\"><strong>the eviction of the tenant from a tenanted property<\/strong><\/a> only on statutory grounds. If the new owner needs the property as a <strong>residence or workplace<\/strong> for themselves, their spouse, descendants, ascendants or dependants, they may terminate the lease by a lawsuit filed <strong>six months<\/strong> after notifying the tenant in writing <strong>within one month<\/strong> of acquisition, or by a lawsuit filed within one month after the end of the lease term. In addition, if the tenant gave the previous owner a valid <a href=\"https:\/\/www.cbhukuk.com\/en\/tenant-eviction-in-turkey-evacuation-letter\/\"><strong>eviction agreement<\/strong><\/a>, the new owner can rely on this agreement and initiate the eviction process. In its decision <strong>Yarg\u0131tay 3. Hukuk Dairesi, E. 2017\/6001, K. 2017\/14179, T. 19.10.2017<\/strong>, the 3rd Civil Chamber of the Court of Cassation stated that an eviction lawsuit based on a written undertaking must, as a rule, be filed by the landlord, but that the new owner, as the <strong>successor<\/strong> of the previous owner and landlord, may file the lawsuit based on an undertaking given during the previous owner&#8217;s ownership. The same decision emphasised that the lawsuit must be filed, or enforcement proceedings based on the undertaking must be started, <strong>within one month<\/strong> from the date undertaken for eviction.<\/li>\n<\/ul>\n<p>In conclusion, it is crucial for foreign investors to have a thorough understanding of the legal framework when <a href=\"https:\/\/www.cbhukuk.com\/en\/foreigners-buying-property-in-turkey\/\"><strong>acquiring real estate in Turkey as a foreigner<\/strong><\/a>, conduct a detailed legal review, and seek assistance from a specialized <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/real-estate-lawyer-in-turkey\/\"><strong>real estate attorney in Turkey<\/strong><\/a>. Otherwise, there is a risk of encountering legal disputes after the property acquisition.<\/p>\n<h3 id=\"2-_Checklist_for_Acquiring_Real_Estate_Through_a_Company_in_Turkey\">2- Checklist for Acquiring Real Estate Through a Company in Turkey<\/h3>\n<p>The review carried out before <strong>acquiring real estate through a company in Turkey<\/strong> should cover both <strong>the title deed and the lease relationship on the property.<\/strong> The table below summarises the points listed above together with why they matter.<\/p>\n<div style=\"max-width: 680px; margin: 20px auto; background: #fff; border: 1px solid #d9c4bb; border-radius: 8px; overflow: hidden;\">\n<div style=\"padding: 10px 14px; background: #8b3516; color: #fff; text-align: center; font-size: 13px; font-weight: 800;\">\ud83d\udd0e CHECKLIST FOR ACQUIRING REAL ESTATE THROUGH A COMPANY<\/div>\n<div style=\"padding: 10px;\">\n<div style=\"margin-bottom: 7px; padding: 9px 11px; background: #fff; border: 1px solid #8b3516; border-radius: 6px;\">\n<div style=\"font-size: 11.5px; font-weight: 800; color: #8b3516; margin-bottom: 4px;\">01 \u00b7 \ud83d\udcdc TITLE DEED RECORD AND ENCUMBRANCES<\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">Records such as mortgages, attachments and usufruct rights may affect the use of the property.<\/div>\n<\/div>\n<div style=\"margin-bottom: 7px; padding: 9px 11px; background: #fff; border: 1px solid #8b3516; border-radius: 6px;\">\n<div style=\"font-size: 11.5px; font-weight: 800; color: #8b3516; margin-bottom: 4px;\">02 \u00b7 \u2696\ufe0f RISK OF A TITLE DEED CANCELLATION ACTION<\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">Claims of collusion between a decedent and an heir or abuse of a power of attorney may put ownership at risk.<\/div>\n<\/div>\n<div style=\"margin-bottom: 7px; padding: 9px 11px; background: #fff; border: 1px solid #8b3516; border-radius: 6px;\">\n<div style=\"font-size: 11.5px; font-weight: 800; color: #8b3516; margin-bottom: 4px;\">03 \u00b7 \ud83d\udcb0 RENTAL INCOME AND INCREASE RATE<\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">Annual increases in residential and commercial leases are subject to statutory limitations.<\/div>\n<\/div>\n<div style=\"margin-bottom: 7px; padding: 9px 11px; background: #fff; border: 1px solid #8b3516; border-radius: 6px;\">\n<div style=\"font-size: 11.5px; font-weight: 800; color: #8b3516; margin-bottom: 4px;\">04 \u00b7 \ud83c\udfe0 TENANTED PROPERTY<\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">The new owner becomes a party to the existing lease agreement.<\/div>\n<\/div>\n<div style=\"padding: 9px 11px; background: #fff; border: 1px solid #8b3516; border-radius: 6px;\">\n<div style=\"font-size: 11.5px; font-weight: 800; color: #8b3516; margin-bottom: 4px;\">05 \u00b7 \ud83d\udeaa EVICTION OF THE TENANT<\/div>\n<div style=\"font-size: 10.8px; line-height: 1.45; color: #333;\">The new owner may file an eviction action based on a genuine need within the statutory periods; a valid eviction undertaking may also be relied upon.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 id=\"PROTECTION_AND_SAFEGUARDING_OF_LEGAL_RIGHTS_OF_FOREIGN_COMPANIES_IN_TURKEY\" class=\"cb-bh\">Protection and Safeguarding of Legal Rights of Foreign Companies in Turkey<\/h2>\n<p><strong>The rights of companies in Turkey are protected mainly by the Turkish Code of Obligations No. 6098 and the Turkish Commercial Code No. 6102; specialised commercial courts are competent in company disputes, and arbitration and mediation are also available; mediation is mandatory before filing commercial money claims.<\/strong> <strong>Both Turkish Code of Obligations (Code No. 6098) and the Turkish Commercial Code (Code No. 6102),<\/strong> along with other regulations and notifications, legally safeguard <strong>the rights of foreign companies<\/strong> in Turkey. In case of disputes concerning companies, <strong>the specialised commercial courts of first instance (asliye ticaret mahkemesi) are competent<\/strong>, and resorting to arbitration and <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/mediation-process-in-turkey\/\">mediation<\/a><\/strong> is also possible. In commercial cases concerning the payment of a sum of money \u2014 receivables, compensation, annulment of objection, negative declaratory and restitution actions \u2014 applying to a mediator before filing the lawsuit is <strong>a mandatory precondition<\/strong>. Furthermore, from an administrative perspective, organizations such as <strong>Chambers of Commerce, Industry Chambers, professional associations, and others<\/strong> aim to standardize companies according to sector, thereby enhancing the reliability and quality of commercial life.<\/p>\n<p>It is crucial to <strong>protect and safeguard rights of foreign companies in Turkey<\/strong> while conducting their operations. Therefore, taking correct steps in legal processes is essential <strong>to protect and secure a company&#8217;s rights.<\/strong><\/p>\n<p><strong>Here are some measures companies can take to protect and safeguard their legal rights under company law in Turkey:<\/strong><\/p>\n<ul>\n<li><strong>Preparation of Articles of Association:<\/strong> The articles of association document details the entire operation and legal status of the company from its establishment onward. <strong>It is a fundamental document that defines the rights and responsibilities of the company.<\/strong> Therefore, the articles of association should be prepared correctly and comply with the necessary legal standards under company law.<\/li>\n<li><strong>Trademark Registration:<\/strong> Company trademarks are crucial assets that enhance <strong>the company&#8217;s recognition and reflect<\/strong> <strong>its image<\/strong>. Therefore, companies should <strong>register their trademarks<\/strong> to protect their right to use the brand and secure their legal rights of <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/ip-law-in-turkey\/\"><strong>intellectual property.<\/strong><\/a><\/li>\n<li><strong>Contract Drafting:<\/strong> Companies engage in contracts in commercial transactions. Contracts are documents that define <strong>the rights and responsibilities of the parties<\/strong> involved and serve as references for dispute resolution. Therefore, <strong>companies should draft their contracts correctly<\/strong> and comply with the necessary legal standards.<\/li>\n<li><strong>Compliance with Personal Data Protection Law (KVKK):<\/strong> Protecting and maintaining the confidentiality of <strong>personal data of customers, employees, and business partners<\/strong> is crucial in the modern business world. Under the Turkish Personal Data Protection Law (KVKK), often compared to the EU <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/data-protection-in-turkey\/\"><strong>GDPR<\/strong><\/a>, companies are obliged to meticulously protect personal information.<\/li>\n<li><strong>Taking Correct Steps in Legal Processes:<\/strong> Companies can successfully protect their legal rights by taking correct steps in <strong>legal processes in Turkey<\/strong>.<\/li>\n<\/ul>\n<p>Protecting and safeguarding <strong>the legal rights of foreign companies in Turkey<\/strong> is important for them to operate successfully. The measures mentioned above are some steps companies can take <strong>to protect and safeguard their legal rights.<\/strong> However, since every company&#8217;s needs may differ, it is important for companies to develop <strong>legal protection plans<\/strong> tailored to their own needs.<\/p>\n<p>Furthermore, <strong>due to the complexity and variability of legal processes<\/strong>, it is recommended that companies seek <strong>legal consultancy services<\/strong> to take correct steps and <strong>obtain expert support in protecting their legal rights.<\/strong> This way, companies can effectively protect their rights and secure their operations during legal processes.<\/p>\n<p>Lastly, protecting and safeguarding <strong>the legal rights of foreign companies in Turkey <\/strong>is not only crucial for the companies themselves but also <strong>for other parties associated with the companies.<\/strong> Therefore, managing company legal processes correctly under company law and <strong>protecting their rights are essential for both the company and other associated parties&#8217; safety and legal protection.<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-html\"><div class=\"cb-legal-box\">\n    <div class=\"cb-legal-inner\">\n        <p class=\"cb-legal-text\">\n            You can explore our other <a href=\"https:\/\/www.cbhukuk.com\/en\/blog\/\" class=\"cb-legal-link\">articles<\/a> or contact us for your legal support inquiries.\n        <\/p>\n        <div class=\"cb-legal-action\">\n            <a href=\"https:\/\/www.cbhukuk.com\/en\/contact-us\/\" class=\"cb-legal-btn\">Contact Us<\/a>\n        <\/div>\n    <\/div>\n<\/div>\n\n<style>\n.cb-legal-box {\n    background: #ffffff;\n    border: 2px solid #8b3516; \n    border-radius: 8px;\n    padding: 30px;\n    margin: 30px auto;\n    width: 100%;\n    box-sizing: border-box;\n    font-family: Arial, Helvetica, sans-serif;\n    box-shadow: 0 4px 15px rgba(0, 0, 0, 0.05);\n}\n\n.cb-legal-inner {\n    display: flex;\n    align-items: center;\n    justify-content: space-between;\n    gap: 30px;\n}\n\n.cb-legal-text {\n    margin: 0;\n    font-size: 19px;\n    color: #333333;\n    line-height: 1.5;\n    flex: 2;\n}\n\n.cb-legal-link {\n    color: #8b3516;\n    text-decoration: underline;\n    font-weight: bold;\n}\n\n.cb-legal-action {\n    flex: 1;\n    text-align: right;\n}\n\n.cb-legal-btn {\n    display: inline-block;\n    background-color: #8b3516;\n    color: #ffffff !important;\n    padding: 14px 28px;\n    border-radius: 5px;\n    text-decoration: none !important;\n    font-weight: bold;\n    font-size: 16px;\n    transition: all 0.3s ease;\n    border: 2px solid #8b3516;\n    white-space: nowrap;\n}\n\n.cb-legal-btn:hover {\n    background-color: #000000;\n    border-color: #000000;\n}\n\n\/* MOB\u0130LDEK\u0130 G\u00d6R\u00dcNT\u00dcY\u00dc D\u00dcZELTEN KISIM *\/\n@media (max-width: 768px) {\n    .cb-legal-box {\n        padding: 20px 15px; 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All content on this website is for general information purposes only, does not constitute legal advice and does not create an attorney-client relationship. The information may have become outdated due to changes in legislation and case law; for your specific legal situation, always seek legal assistance from a lawyer.<\/p><\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"COMPANY FORMATION IN TURKEY, COMPANY TYPES, FEATURES AND FORMATION COSTS Under Turkish law, the company types are the ordinary partnership and the collective company, limited partnership, joint-stock company, limited liability company and cooperative listed in the Turkish Commercial Code; as of 2026, a limited liability company can be formed with at least 50.000 TL and...","protected":false},"author":1,"featured_media":4897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[85],"tags":[],"class_list":["post-2741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts\/2741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/comments?post=2741"}],"version-history":[{"count":0,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts\/2741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/media\/4897"}],"wp:attachment":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/media?parent=2741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/categories?post=2741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/tags?post=2741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}