Considering Investment in Turkey? Explore the Options of Joint Stock Companies
You have decided to invest in Turkey and are considering the possibility of establishing a Joint Stock Company, thinking it could be the best choice after comparing the available types of companies in Turkey. Would you like to learn more about Joint Stock Companies in Turkey or find out which type of company in your country is equivalent to a Joint Stock Company in Turkey?
Here are the details:
Characteristics of Joint Stock Companies in Turkey:
1– A joint-stock company is a company with specified capital divided into shares, and its liabilities are limited to its assets. The minimum capital amount is 250,000 Turkish Liras. (For non-public joint-stock companies adopting the registered capital system, the initial capital is twice this amount.)
2– At least one-fourth of the nominal values of the pledged shares must be paid before registration. The remaining amount is paid within 24 months following the company’s registration. The payment schedule can be regulated in the company’s articles of association or determined by the board of directors.
3– Shareholders are only liable for the capital they have committed to the company.
4– Joint-stock companies can be established for any legal economic purpose not prohibited by law.
5– A joint-stock company must have articles of association registered in the trade registry where it is headquartered.
6– Joint-stock companies can issue registered and bearer shares to represent ownership. They can also issue bonds and similar debt instruments.
7– Single-shareholder joint-stock companies can be established. Both individuals and legal entities can be shareholders.
8– Generally, the transfer of shares does not require approval from the general assembly. Shareholders can freely transfer their shares to others.
9– Joint-stock companies engaged in specific business activities or exceeding threshold values determined by criteria such as total balance sheet assets, annual net sales revenue, and the number of employees are subject to independent auditing.
10– Joint-stock companies are the only type of company whose shares can be publicly offered and traded on the stock exchange.
Equivalent Company Type in Your Country for a Joint Stock Company in Turkey:
United States, Canada: Corporation (Inc., Corp.)
European Union: Societas Europaea (SE)
Germany, Austria, Switzerland (German-speaking cantons): Aktiengesellschaft (AG)
France, Belgium, Switzerland (French-speaking cantons): Société Anonyme (SA)
United Kingdom: Public Limited Company (plc)
Italy: Società per Azioni (SpA)
Spain, Mexico, Argentina: Sociedad Anónima (S.A.)
[OUR SERVICES] Expert Guidance for Establishing and Managing a Joint Stock Company in Turkey
Setting up a Joint Stock Company (JSC) in Turkey is an attractive option for foreign investors due to its flexible structure and limited liability benefits. However, navigating the establishment process and ongoing compliance requirements can be complex. We offer comprehensive services to simplify the process, ensuring your JSC aligns with Turkish legal and financial standards from day one.
- Preparing the Articles of Association (AoA) to meet local regulatory standards
- Assistance with company establishment, covering registration and required documentation
- Company location and office selection for strategic and operational advantages
- Representation with third parties, including legal bodies, financial institutions, and business contacts
- Structuring internal control mechanisms to support compliance and efficient management
Don’t hesitate to reach out for assistance in making your investment in Turkey smooth and compliant.
FAQ
1. What is a Joint Stock Company (A.Ş.) in Turkey?
Answer:
A Joint Stock Company (A.Ş.) in Turkey is a legal entity where the capital is divided into shares, and shareholders’ liability is limited to the value of their shares. It requires at least one shareholder and has a minimum capital requirement of 250,000 TRY. This structure is suitable for large-scale operations.
2. What is the minimum capital requirement for a Joint Stock Company in Turkey?
Answer:
The minimum capital requirement for establishing a Joint Stock Company (A.Ş.) in Turkey is 250,000 TRY. For publicly traded companies, the minimum capital is set at 500,000 TRY. The capital must be fully subscribed and at least 25% of it must be paid before registration.
3. How is the management structure of a Joint Stock Company in Turkey organized?
Answer:
A Joint Stock Company (A.Ş.) in Turkey is managed by a board of directors, which must consist of at least one member. The board is responsible for the overall management and representation of the company. Shareholders elect the board members, and the board operates under the company’s articles of association.
4. Can a Joint Stock Company in Turkey issue shares to the public?
Answer:
Yes, a Joint Stock Company (A.Ş.) in Turkey can issue shares to the public, making it a publicly traded company. This requires additional regulatory compliance, including adherence to the Capital Markets Board’s regulations and maintaining transparency through regular financial reporting.
5. What are the tax obligations for a Joint Stock Company in Turkey?
Answer:
A Joint Stock Company (A.Ş.) in Turkey is subject to corporate tax, which is currently 25%. The company also needs to pay VAT, withholding taxes on dividends, and other applicable taxes. Additionally, annual financial statements must be audited if the company meets certain criteria regarding size and revenue.
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