Which Legal Entity Types In Turkey Is Best For Your Business?

• Minimum capital requirement: 50.000,00 TL
• Management: A Joint Stock Company is managed by one or more
  director.
• Share Transfer: Share transfers are not subject to any registration procedures.
• Liability: A joint stock company is solely responsible for its debts as an amount of its assets and shareholders are solely responsible to the company and their responsibility is limited to their subscribed shares. (i) “For further information with regard to the liabilities of board of directors or managers, please contact us.”

• Minimum capital requirement: 10.000,00 TL
• Management: A Limited Liability Company is managed by one or more managers. If more than one manager is appointed, at least one of the managers should be a shareholder.
• Share Transfer: Share transfers must be registered with the Turkish Trade Registry.
• Liability: Shareholders can be held liable to the company, to other shareholders and creditors for breaching their liabilities regulated by law and articles of association wrongfully arisen from the law and contract.

• Minimum Capital Requirement: There is no specific capital requirement.
• Management: The branch is managed by the branch representative to be appointed by the parent company. The branch representative represents the branch based on a power of attorney to be issued by the parent company. At least one of the representatives of the branch shall hold Turkish residency permit.
• Share Transfer: N/A
• Liability: Since branch offices are not separate legal entities distinct from their parent company under Turkish law, the parent company directly assumes rights and debts/profits and losses arising from the transactions of the branch.

Foreign Companies can open a liaison office in Turkey.

• To open a liaison office, permission of the Ministry of Economy of Turkish Republic must be obtained. Permits are granted for maximum 3 years upon the first application.
• Liaison offices are not authorized to be engaged with commercial activities, execute contracts and have an income.
• Employee salaries have exemption of Turkish income tax as long as the salary payments are foreign sourced.