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Which Company Type Suits You?

We compare the three structures in terms of liability, capital and shareholding.

Quick start

Sole Proprietorship

No minimum capital requirement

Freelancers, software developers, consultants and those earning side income.

  • Fastest structure to set up and to close
  • No obligation to contribute capital
  • Lighter bookkeeping requirements and running costs
  • Liability is not limited to the business — personal assets are exposed
  • A progressive income tax tariff applies as earnings rise
  • No shareholding or share transfer structure

Most preferred

Limited Liability Company

Minimum capital of TRY 50,000

Start-ups, software companies, trading and service businesses.

  • Shareholder liability is limited to the capital they contribute
  • Provides corporate visibility and a shareholding structure
  • Eligible for incentive and support programmes
  • Share transfers require a notary procedure
  • Shareholders are liable for public debts in proportion to their shares
  • Formation cost is higher than for a sole proprietorship

Investment focused

Joint Stock Company

Minimum capital of TRY 250,000

Ventures planning to raise investment and large multi-shareholder structures.

  • Share transfers are, as a rule, more flexible
  • Shares can be issued, suiting investment processes
  • Open to further steps such as a public offering
  • Governance bodies and general assembly procedures are more formal
  • The minimum capital amount is high
  • An independent audit obligation may arise in certain cases

Foreign shareholders

Company with Foreign Shareholders

Determined by the company type

Foreign individuals or legal entities wishing to set up a company in Türkiye.

  • Foreign individuals and legal entities may set up a company in Türkiye
  • A potential tax identification number is obtained before formation
  • Capital and shareholding structure are arranged according to the company type
  • Documents from abroad require an apostille and sworn translation
  • Work or residence permit processes for shareholders or officers are handled separately

Capital figures are the statutory minimums under the Turkish Commercial Code and are updated whenever the legislation changes. Formation cost varies with notary, trade registry and chamber fees, so it is confirmed during the consultation.

Questions About Formation

The questions we are asked most about company formation.

Should I set up an LLC or a joint stock company?

This cannot be answered on its own. Your number of shareholders, the likelihood of raising outside investment, your share transfer plans and the permits your sector requires are all assessed together. In the meeting we go through these points and explain which suits you, with reasons.

Which documents are needed for formation?

The core documents are the shareholders’ identity details, address declarations, the lease or title deed for the premises to be used as the registered office, and signature declarations. Where there is a foreign shareholder, passports and apostilled documents are added. We draw up the list specific to your formation type.

Can I set up a company with foreign shareholders?

Yes. Foreign individuals or legal entities may set up a company in Türkiye. The process involves additional steps such as obtaining a potential tax identification number and having documents from abroad apostilled and officially translated.

What do I need to do after the company is set up?

After registration come ledger certification, tax office and SGK registration, e-invoice and e-archive applications, and obtaining the financial seal. We handle these as a continuation of the formation; all that is asked of you are signatures and approvals.

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