LIMITED LIABILITY COMPANIES
Which Type of Turkish Company is Optimal for You?
To sum up, in Turkish Law, a Limited Liability Company may be considered advantageous for being less costly to establish and operate, involves less bureaucracy. On the other hand, a Joint-Stock Company in Turkey can be advantageous for offering some anonymity to its shareholders, strict limitation of liability and the freedom to conveniently trade shares with an added bonus of tax exemption.
Which type of company one should choose in Turkey depends on the purpose of the company. When in doubt, one should ask themselves:
- Do I need to simply limit my liability to a certain capital amount while doing business, or do I aim to grow the business in order to attract investors?
- If you have partners, are you partnering with your family members and/or close associates, or are you partnering with new business partners?
- Do you wish to keep this as a family-owned business, or do you wish to have an Initial Public Offering (IPO) someday in the future and transform your company to a publicly traded and owned entity?
- Do you wish to personally run the company, or do you wish to leave its day-to-day management to professionals?
If the answers to the aforementioned questions affirm the former option, then the answers point out to incorporating a Limited Liability Company in Turkey. However, in case of latter options are preferred, this indicates the necessity of choosing a Joint-Stock Company under Turkish Law.
In Turkey, Limited liability Companies are generally preferred by entrepreneurs and start-ups who are mainly seeking to limit their liability when doing business. On the other hand, Joint-Stock Companies in Turkey are generally preferred by investors and those who seek investment, whether it may be by means of private equity or public offering.
Antalya Lawyer and Antalya Attorney Baris Erkan Celebi and his Antalya Law Firm offer legal support and legal assistance in all types of Turkish corporate law. These services include but are not limited to limited liability company incorporation in Turkey and legal support in management, joint-stock company incorporation in Turkey and legal support in management, obtaining necessary permits for the company’s relevant fields of operations, applying for and benefiting state incentives that are offered to foreign investors in Turkey.