The Popular Company Types In Turkey: What Are The Essential Aspects To Know?
Foreigners wishing to establish their company should know about the types of business entities in Turkey. If you are an entrepreneur, it is pretty normal to get confused about the type of company to select. Turkey has been a preferred investment destination for numerous foreigners.
Investors looking for a good ROI can establish their respective companies. Many foreign investors experience hardships while setting up their organisations in Turkey due to an utter lack of knowledge.
When selecting to open a company in Turkey, the entrepreneur must consider the specifics of each company type. Each type of business entity in Turkey has its USPs. Here are certain aspects to know about the business types in Turkey.
The Top Reasons to Setup Your Business in Turkey
Turkey has long been popular as a tourist destination. However, nowadays, it is also the go-to destination for foreign investors. The Turkish government has implemented certain measures that have made it easier for foreign investors to setup their companies in Turkey. Here are some of the common reasons to establish your business in Turkey.
- Turkey is strategically located close to Europe, Asia, and the Middle East
- It is always among the top 20 strongest economies in the world
- Turkey offers various types of incentives to the foreign investors
- Turkey has a skilled and competent labour force
- Turkey gas world-class infrastructure
If you are on the lookout for company registration in Turkey, it is essential to learn about the company types.
The Prominent Types of Turkish Companies
Here are the most prominent types of Turkish companies you should know.
Limited Liability Company (LLC)
It is one of the most popular types of business entities in Turkey. You can establish an LLC in Turkey with a minimum share capital of TRY 10000 and a board of managers.
This type of company structure is suitable for large-scale organisations. The minimum share capital required to establish a Joint-Stock company is TRY 50000. The liability of the shareholders is limited. The company will acquire legal representation from the date of its registration.
Branches and Subsidiaries
Branches and subsidiaries can be formed in Turkey by the owners of foreign companies. Typically, these establishments operate under the rules and regulations of the LLC firms registered with the Turkish Trade Register.
Partnerships or collective companies can be established by two real foreign investors. In a partnership company model, both partners possess the equal right and responsibility to manage the company separately. On the other hand, the management tasks can be assigned to other partners. Note that there is no need for capital while forming a collective company in Turkey.
Small-time foreign investors can conduct business operations as sole traders in Turkey. In a sole proprietorship, the company owner is always liable for the profits and losses. It is a great business entity type to start a start-up.
As a foreign entrepreneur, it might be difficult for you to understand the intricacies of Turkish company formation rules. You should communicate with a foreign operation consultancy to learn about the processes.