Company Types in Turkey 2025: A Comprehensive Guide
Company Types in Turkey 2025: A Comprehensive Guide
Company Types in Turkey 2025: A Comprehensive Guide
Turkey offers a variety of legal structures for companies, making it easier for entrepreneurs, both domestic and foreign, to establish businesses tailored to their specific needs. Each type of company in Turkey comes with its own requirements, advantages, and legal responsibilities. This guide will provide an overview of the main company types available in Turkey in 2025, helping you choose the best structure for your business.
1. Limited Liability Company (LLC) – “Limited Şirket”
The Limited Liability Company (LLC), or Limited Şirket, is the most popular company structure in Turkey, especially for small and medium-sized enterprises (SMEs). It is a flexible option for both domestic and foreign entrepreneurs due to its simple formation process and low capital requirements.
Key Features:
Minimum Shareholders: 1 (up to a maximum of 50).
Minimum Capital Requirement: TRY 50,000.
Liability: Shareholders are liable only up to the amount of their capital contribution.
Management: Managed by one or more directors, who do not need to be shareholders.
Transfer of Shares: Transfer of shares is subject to approval by the shareholders unless otherwise stated in the Articles of Association.
Taxation: Subject to corporate income tax (25% in 2025).
Suitable For:
SMEs and family-owned businesses.
Foreign investors looking for limited liability.
2. Joint-Stock Company (JSC) – “Anonim Şirket”
The Joint-Stock Company (JSC), or Anonim Şirket, is often preferred by larger enterprises, especially those planning to go public or seeking to issue shares. It provides more flexibility for capital markets and larger projects.
Key Features:
Minimum Shareholders: 1 (no upper limit on shareholders).
Minimum Capital Requirement: TRY 250,000
Liability: Shareholders are liable only for the unpaid portion of their shares.
Management: Managed by a board of directors.
Transfer of Shares: Shares can be freely transferred without shareholder approval, unless otherwise specified in the Articles of Association.
Public Trading: JSCs can issue shares publicly and be listed on the stock exchange.
Suitable For:
Larger enterprises.
Companies planning to raise capital from public or private investors.
Multinational corporations setting up subsidiaries in Turkey.
3. Branch Office (Şube)
A Branch Office is an extension of a foreign company. It does not have separate legal status from the parent company but can conduct the same commercial activities as the parent company within Turkey.
Key Features:
No Minimum Capital Requirement: Unlike LLCs or JSCs, branch offices are not required to deposit any minimum capital.
Liability: The parent company is fully liable for the debts and obligations of the branch office.
Management: Managed by a branch manager who represents the foreign company.
Taxation: Subject to the same taxes as a local company, including corporate income tax.
Suitable For:
Foreign companies looking to expand operations into Turkey without establishing a completely new legal entity.
Companies that prefer maintaining full control over their Turkish operations through a central management structure.
4. Liaison Office (İrtibat Bürosu)
A Liaison Office, or İrtibat Bürosu, is designed for non-commercial activities such as market research, customer support, or representation. It is not allowed to engage in any profit-generating activities.
Key Features:
No Commercial Activity: A Liaison Office cannot sell goods or services in Turkey or engage in any other revenue-generating activities.
No Taxation: Since a Liaison Office is not engaged in commercial activities, it is exempt from corporate tax and VAT.
Management: Managed by representatives who report to the foreign parent company.
Approval Required: Foreign companies must obtain approval from the Ministry of Industry and Technology to establish a Liaison Office.
Suitable For:
Companies looking to assess the Turkish market before fully entering.
Firms seeking a presence in Turkey for representation, networking, or research purposes.
5. Sole Proprietorship (Şahıs Şirketi)
A Sole Proprietorship, or Şahıs Şirketi, is the simplest form of business structure. It is owned and operated by a single individual, and there is no legal distinction between the business and the owner.
Key Features:
Ownership: Owned and managed by one person.
Liability: The owner is personally liable for all business debts and obligations.
No Minimum Capital: There are no capital requirements for a Sole Proprietorship.
Taxation: Income is taxed at the personal income tax rate, which ranges from 15% to 40% depending on the income level.
Suitable For:
Freelancers, consultants, or small business owners.
Individuals seeking a simple, low-cost way to operate a business.
6. Commandite Company (Komandit Şirket)
A Commandite Company, or Komandit Şirket, is a form of partnership that includes two types of partners: active partners, who have unlimited liability, and silent partners, who are liable only to the extent of their capital contributions.
Key Features:
Mixed Liability: Active partners are personally liable for the company's debts, while silent partners have limited liability.
Management: Only active partners have the authority to manage the company.
Taxation: The company itself is not taxed; instead, individual partners are taxed based on their share of the profits.
Suitable For:
- Partnerships where some partners want to limit their liability while others are willing to take on full management responsibility.
7. Collective Company (Kollektif Şirket)
A Collective Company, or Kollektif Şirket, is a partnership where all partners have unlimited liability for the company’s obligations. It is commonly used by small businesses that operate in sectors such as retail or small-scale manufacturing.
Key Features:
Unlimited Liability: All partners are personally liable for the debts and obligations of the company.
Management: All partners have the right to participate in management unless otherwise stated in the partnership agreement.
No Minimum Capital: No minimum capital requirement.
Suitable For:
- Small businesses that are jointly owned by partners who want to actively manage the company and share responsibilities.
Summary of Company Types in Turkey 2025
| Company Type | Minimum Capital | Liability | Suitable For |
| Limited Liability Company (LLC) | TRY 50,000 | Limited to capital contribution | SMEs and foreign investors |
| Joint-Stock Company (JSC) | TRY 250,000 | Limited to unpaid portion of shares | Large businesses, companies planning to go public |
| Branch Office | None | Parent company liable | Foreign companies expanding into Turkey |
| Liaison Office | None | No liability (no commercial activity) | Companies testing the market or doing research |
| Sole Proprietorship | None | Unlimited liability | Freelancers, consultants, small business owners |
| Commandite Company | None | Mixed (active partners: unlimited; silent partners: limited) | Partnerships with both active and passive partners |
| Collective Company | None | Unlimited liability | Small businesses with joint management |
Conclusion
Choosing the right company type is essential for ensuring that your business operates smoothly and within the legal framework in Turkey. Whether you are a solo entrepreneur, a large multinational corporation, or a partnership, there is a company structure that will suit your needs in Turkey.
If you need personalized advice or assistance with establishing your company in Turkey, feel free to contact us for expert guidance!
info@ozmconsultancy.com
