Types Of Companies in Turkey

Types Of Companies in Turkey

According to the Turkish Commercial Code, there are five types of companies in Turkey. These are Joint Stock Company, Limited Liability Company, Collective Company, Limited Partnership and Cooperative. In addition to these, also Ordinary Partnerships can be included in company types. 

The Turkish Commercial Code separates the types of companies as capital companies and sole proprietorships. According to these two main headings, we can briefly talk about the types of companies below.

In capital companies, there is responsibility over the capital they put forth rather than the person of the individuals. The responsibilities of the partners of the company are proportional to their capital shares. The company shareholder can be both real and legal persons. Capital companies includes joint stock company, limited liability company and limited partnership divided into shares. 

In sole proprietorship companies, the trust relationship between the partners forms the basis of the company. Partners can only be natural persons. In sole proprietorships, the partners are personally and unlimitedly liable for the debts of the company. Therefore, all partners are subject to the prohibition of competition and have the right to audit the company. The approval of other partners is required for the transfer of company shares. Sole proprietorships are; collective company, ordinary limited partnership and ordinary partnership. 

In sole proprietorship companies, where each partner has only one vote, the company ceases to exist in the event of the death, bankruptcy or restriction of one of the partners. On the contrary, capital companies consisting of shareholders with voting rights in proportion to their shares are independent of the personalities of the partners and do not come to an end as a result of death, bankruptcy or restriction.

In capital companies, the director of the company can be dismissed at any time, whether elected by the company contract or by the decision of the general assembly. In private companies, the partner assigned with the articles of association cannot be dismissed except for the court decision. 

Type change or merger – acquisition is possible between company types when necessary. However, these operations are not always possible. It will vary depending on the types of companies and sometimes establishing a new company in needed type can be easier than changing types.

As Kula Law firm, we understand you and provide comprehensive legal assistance to our clients on choose the most suitable type for their needs and wishes; on establishing the company and fulfilling all necessary obligations regarding this type. For this reason, please do not hesitate to get help from our expert english speaking lawyers in this area where you will need a legal consultancy.

**This study is prepared by Kula Law Office. Please contact by e-mail ([email protected]) or call at +902324350604 for publication of the article in other channels, detailed information and questions about the subject.

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