Main Company Types Under Turkish Law

There are two types of limited liability companies under Turkish law, namely, Limited Company and Joint Stock Company.

A. An Outline of Joint Stock Companies

A Joint Stock Company ("JSC") is a limited liability company which acquires legal personality upon registration with the Trade Registry. JSCs may be established by a minimum one real person or legal entity shareholder and require a minimum capital of 50.000 Turkish Liras. A higher initial capital requirement is set for JSCs which adopt the registered capital system (the registered capital system allows the BoD to increase the capital up to the capital cap stipulated in the AoA or specified in a shareholders' resolution) which is 100,000 Turkish Liras at minimum. At least ¼ of the capital must be paid-in at the incorporation stage, whilst the remaining ¾ can be paid within 2 years. The liability of JSC shareholders is limited to the amount of their respective contribution to the share capital. (TCC Art. 329)