Joint Stock Company Set Up in Turkey
A joint stock company is a company whose capital is determined and divided into shares, and is liable only for its debts with its assets. It is possible to be established with a single shareholder. Shareholder/s are liable only to the capital shares they have committed and to the company. The capital of the company must be determined as at least 50.000-TL and at least 1/4 of this amount must be deposited in the bank account during the registry of joint stock companies. The remaining amount will need to be completed within 24 months.
This type of companies may be established for any economic purpose or subject not prohibited by law. However, they may need to obtain special permissions from public institutions in certain areas of it’s purpose. Since the legal person is a trader, the joint stock company must be established under a trade name and must register this title in the trade registry. The trade name should also be related to the subject of the job, and the abbreviated version of the phrase "Joint Stock Company/ Anonim Şirket" in Turkish at the end of the title should take place as “A.Ş.”.
Mandatory organs are the general assembly and the board of directors in the registry of joint stock companies. General assembly is the organ in which all shareholders are represented and exclusively authorized to take some important decisions regarding to the company. Board of directors is the organ responsible for the management and representation of the company.
Unless otherwise stated in the articles of association, shares can be transferred in writing without being subject to notary approval, no trade registry approval or publication is required.
In joint stock company type, labor and commercial reputation cannot be invested as company capital by shareholders. The management of the joint stock company can be done by one or more of the partners, or someone who is not a shareholder can be appointed as a director.
When choosing your company type, it is important to make many evaluations in terms of who you want to manage the company, the amount of your capital share (in some cases, it will need to be above certain amounts), the main subject of your company, the way of transferring the shares and the responsibilities of the partners and determine the type accordingly.
As Kula Law Firm, we are at your side to provide the best service by offering you the appropriate options in all of these matters. Please do not hesitate to contact us to get information about the process from our English speaking expert lawyer team at Kula Law Firm.