LEGAL ENTITIES IN TURKEY
"There are several forms of legal entities which the investors must strategically decide on"
LLC Limited Liability Company (LTD.)
- 1- 50 shareholders
- Minimum capital 10.000 TL
- Corporate Income Tax Payer
- No obligation to have a lawyer by LLC capitals
- At least one shareholder is required to be on board of directors (BoD)
- Shareholders are responsible for public debts in proportion to their own capital.
- Mandatory legal books: journal book, general ledger, inventory book, share book, general assembly meeting book, board of managers book
- Notary/Trade registry is required on share transfer processes
Joint Stock Company (A.S.)
- 1- 500 shareholders
- Minimum capital 50.000 TL
- Corporate Income Tax Payer
- Easy procedures on share transfer processes
- >250.000 TRY capital entities must assign lawyer
- Shareholders are not required to be on board of directors (BoD)
- Mandatory legal books: journal book, general ledger, inventory book, share book, general assembly meeting book, board of directors book
Liaison Office
- Single foreign investor (Sole Shareholder)
- No capital requirement
- Excepted from CIT, income tax and stamp tax
- Excepted from payroll taxes
- Salaries must be paid based on foreign currency
- Allowed only for marketing and research activities
- Simple establishment procedures
- Most favorite setup type for foreign investment start-ups
- Legally not allowed to gain any income from operational activities in Turkey
Branch Office
- Single Foreign Investor
- No Capital Requirement
- Corporate Income Tax Payer
- Salary Tax Payer
- Simple set up process
- Not allowed for any stock option
Unlimited Company (Privat)
- Partnership of natural persons
- No capital requirement
- Individual income tax payer
- Simple set up process
- Low cost on establishment step
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