Evaluate the differences of companies commonly used in Turkey
INCORPORATED COMPANY
- A joint stock company is a company whose capital is fixed and divided into shares, and which is liable for its debts only with its assets.
- The minimum capital amount is 50,000 Turkish Liras. (For non-public joint stock companies that accept the registered capital system, the initial capital may be at least 100,000 Turkish Liras.) At least one quarter of the nominal value of the shares committed in cash must be paid before registration. The remaining amount is paid within 24 months following the registration of the company. The payment plan can be arranged in the articles of association of the company or it can be determined by the board of directors.
- Shareholders are only liable to the company for the capital shares they have committed.
- Joint stock companies may issue registered and bearer shares to represent the shares. They can also issue bonds and similar debt instruments.
- The joint stock company has a written and registered articles of association in the trade registry where its head office is located.
- A single shareholding company can be established. Natural and legal persons can be shareholders.
- As a rule, the approval of the general assembly is not sought for the transfer of shares. Shareholders can freely transfer their shares to others.
- Joint stock companies are the only companies whose shares are offered to the public and whose shares are traded on the stock exchange.
- Joint stock companies can be established for any economic purpose and subject that is not prohibited by law.
- Joint stock companies operating in certain fields of activity and joint stock companies exceeding the threshold values of the criteria determined according to the total assets, annual net sales revenue and number of employees are subject to independent auditing.
MANAGEMENT IN JOINT STOCK COMPANIES
GENERAL ASSEMBLY As a rule, it is the body where all the shareholders are represented and is exclusively authorized to take some important decisions about the company (for example, amendment of the articles of association, election of the board of directors, election of the auditor, dissolution of the company). , etc.).
BOARD OF DIRECTORS It is the body mainly responsible for the management and representation of the company. It is possible for the board of directors to consist of one member. Members of the board of directors are not required to be Turkish citizens or resident in Turkey.
VARIOUS EQUIVALENT JOINT STOCK COMPANIES IN THE WORLD
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) / Societé Anonyme (SA) United Kingdom / Public Limited Company (plc) Italy / Società per Azioni (SpA) Spain, Mexico, Argentina / Sociedad Anónima (SA)
LIMITED COMPANY
- A limited liability company is a company whose capital is determined and divided into shares and which is liable for its debts only with its assets.
- The capital of the limited company is at least 10,000 Turkish Liras. It is possible to pay the entire capital brought in cash within 24 months from the date of company registration. The payment schedule can be regulated in the company agreement or determined by the managers.
- Shareholders are not responsible for the debts of the company, they are only obliged to pay the capital shares they have committed and to fulfill the additional payment and performance obligations stipulated in the company contract. Shareholders are responsible for capital debts arising from uncollectible public debts in proportion to their capital shares.
- Bearer shares cannot be issued in limited companies.
- The limited company has a written company agreement registered in the trade registry where its headquarters is located.
- A limited liability company can be established with one partner. The number of partners cannot exceed fifty. Partners of limited companies can be natural or legal persons.
- The transfer of limited company shares is subject to the approval of the general assembly.
- Limited companies cannot be offered to the public.
MANAGEMENT IN LIMITED COMPANIES
GENERAL ASSEMBLY As a rule, it is the exclusively authorized body to take some important decisions about the company (for example, amendment of the articles of association, election of the directors, election of the auditor, dissolution of the company, etc.) where all the shareholders are represented.
MANAGER / BOARD OF DIRECTORS The body mainly responsible for the management and representation of the company. It is possible for the company to have only one director. At least one of the members of the board of directors must be a shareholder of the company. It is not required for the managers to be Turkish citizens and to be resident in Turkey.
VARIOUS EQUIVALENT LIMITED COMPANIES IN THE WORLD
United States, Canada / Corporation (Inc., Corp.) European Union / Societas Privata Europaea (SPE) Germany, Austria, Switzerland (German-speaking cantons) / Gesellschaft mit beschränkter Haftung (GmbH) France, Belgium, Switzerland (French) - speaking cantons) / Societé à Responsabilité Limiteé (SARL, SàRL) United Kingdom / Private Limited Company (Ltd, Limited) Italy / Società a Responsabilità Limitata (Srl) Spain / Sociedad Limitada (SL) Mexico, Argentina / Sociedad de Responsabilità Limitada (SRL) , S. de RL)
