Company Types Under Turkish Law

On January 13, 2011 the Turkish Parliament adopted the new Turkish Commercial Code ¹("TCC"), which governs the commercial transactions as well as the formation and governance of companies. The TCC entered into effect on 1^st of July, 2012 and altered many aspects of Turkish commercial and corporate life. This Memorandum deals with some of the main features of two company types, namely joint stock companies and limited liability partnerships, which can be used by foreign investors in Turkey under the provisions of the TCC.

1. Number of Shareholders

A single shareholder is sufficient to establish a joint stock company ("JSC") and limited liability partnership ("LLP"). A LLP may not have more than fifty shareholders. No such limitation for number of shareholders is applicable for JSC. Under both company types, single shareholder or shareholders may be real persons or legal entities.