Considering Investment in Turkey? Explore the Options of Limited Liability Companies (LLC).
You have decided to invest in Turkey and are considering the possibility of establishing a Limited Liability Company (LLC), thinking it could be the best choice after comparing the available types of companies in Turkey. Would you like to learn more about Limited Liability Companies in Turkey or find out which type of company in your country is equivalent to a Limited Liability Company in Turkey?
Here are the details:
Characteristics of Limited Liability Companies (LLC) in Turkey:
1- An LLC is a company with specified capital divided into shares, and its liabilities are limited to its assets.
2- A single-shareholder LLC can be established, and the number of shareholders cannot exceed 50. LLC shareholders can be either individuals or legal entities.
3- Shareholders are not liable for the company’s debts, only obligated to pay their committed capital shares and fulfill additional payment and performance obligations specified in the company contract. Shareholders are liable for public debts in proportion to their capital shares if the company cannot cover them.
4- The minimum capital of an LLC is 50,000 Turkish Liras. The entire amount of the cash capital can be paid within 24 months after the company’s registration. The payment schedule can be regulated in the company’s articles of association or determined by the directors.
5- An LLC must have a company contract registered in the trade registry where it is headquartered.
6- Bearer shares cannot be issued by LLCs.
7- LLCs cannot be publicly traded.
8- The transfer of LLC shares is subject to the approval of the general assembly.
Equivalent Company Type in Your Country for an LLC in Turkey:
United States: Limited Liability Company (LLC)
European Union: Societas Privata Europaea (SPE)
Germany, Austria, Switzerland (German-speaking cantons): Gesellschaft mit beschränkter Haftung (GmbH)
France, Belgium, Switzerland (French-speaking cantons): Société à Responsabilité Limitée (SARL, SàRL)
United Kingdom: Private Limited Company (Ltd, Limited)
Italy: Società a Responsabilità Limitata (Srl)
Spain: Sociedad Limitada (S.L.)
Mexico, Argentina: Sociedad de Responsabilidad Limitada (S.R.L., S. de R.L.)
[OUR SERVICES] Simplifying the Process of Establishing a Limited Liability Company (LLC) in Turkey
Forming a Limited Liability Company (LLC) in Turkey is an appealing choice for foreign investors seeking a straightforward, flexible structure with limited risk exposure. However, ensuring compliance with Turkey’s regulations and successfully managing an LLC requires careful planning. Our services are designed to guide you through each stage, providing the expertise needed to set up and operate your LLC smoothly.
- Drafting and preparing the Articles of Association (AoA) in line with Turkish law
- Full support for company establishment, including registration and documentation requirements
- Strategic advice on company location and office selection to optimize operations
- Representation with third parties such as legal bodies, insurance companies, and other business contacts
- Mentorship for accounting staff to ensure ongoing compliance and effective financial management
Feel free to reach out for professional guidance in establishing and managing a compliant, efficient LLC tailored to your needs.
FAQ
1. What is a Limited Liability Company (LTD.) in Turkey?
Answer:
A Limited Liability Company (LTD.) in Turkey is a business entity where the liability of each shareholder is limited to their capital contribution. It is the most common form of company for small and medium-sized enterprises (SMEs) and requires at least one shareholder with a minimum capital of 50,000 TRY.
2. What is the minimum capital requirement for a Limited Liability Company in Turkey?
Answer:
The minimum capital requirement for establishing a Limited Liability Company (LTD.) in Turkey is 50,000 TRY. This capital can be contributed in cash or in kind.
3. How is the management of a Limited Liability Company in Turkey structured?
Answer:
The management of a Limited Liability Company (LTD.) in Turkey is typically handled by one or more managers, who may or may not be shareholders. The managers are appointed by the shareholders and are responsible for the day-to-day operations and representation of the company.
4. Can foreigners own 100% of a Limited Liability Company in Turkey?
Answer:
Yes, foreigners can own 100% of a Limited Liability Company (LTD.) in Turkey. There are no restrictions on foreign ownership, making it an attractive option for international investors looking to establish a wholly-owned subsidiary in Turkey.
5. What are the tax obligations for a Limited Liability Company in Turkey?
Answer:
A Limited Liability Company (LTD.) in Turkey is subject to corporate tax, currently at 25%. The company is also required to pay VAT, withholding taxes on dividends, and other applicable taxes. Annual financial statements must be prepared and submitted to the relevant tax authorities.
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