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General
If you are considering founding a company in Turkey, you can find the main differences between an LTD company and a Joint Stock Company below:
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LTD COMPANY |
JOINT STOCK COMPANY |
|
SHAREHOLDERS |
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| Minimum 1 shareholder maximum 50 shareholders |
Minimum 1 shareholder and no limitation for maximum number |
| CAPITAL | |
| Minimum capital is TL 10.000 |
Minimum capital is TL 50.000 |
|
SHARE TRANSFER |
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| Share transfer agreement should be notarized, approved by General Assembly, registered against Trade Registry records and share ledger |
Private Transfer agreements are sufficient and no need to register Trade Registry Office records |
|
LIABILITY FOR PUBLIC DEBTS |
|
|
Company shareholders are liable for public debts with their personal assets but within the frame value of promised capital share |
Shareholders are only liable for the promised capital share against only the company |
|
TAX EXEMPTION |
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| Income tax applied for the profit gained through share transfers | No income tax is applied after 2 years provided that there are share certificates |
|
CREDITS OF SHAREHOLDERS |
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| All borrowings, funds etc obtained from shareholders are refunded back by the company after all other credits are covered | All borrowings, funds etc obtained from shareholders are refunded back by the company unconditionally. |
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EXCLUSION – QUITTANCE |
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| Shareholders can be excluded by General Assembly with a fair cause (if stated in AoA). Court application is possible for both company and shareholder to exclude /quit | No court application is arranged by law for exclusion or quittance. However deprival from shareholding can be applied if the promised capital is not paid. |
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DISSOLUTION OF COMPANY |
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| It is possible for shareholders to claim the dissolution of the company with a fair cause. | No such right is granted for shareholders. |