- August 26, 2022
- Posted by: admin
- Category: Blog
Majority of the entrepreneurs who are planning to establish a company in Turkey know about joint stock companies. However, generally they do not know about the procedures and differences from other company types.In this part we are planning to focus more on opening a joint Stock company in Turkey.
In Turkish language Joint Stock companies refer Anonim Sirket. Therefore, opening an Anonim Sirket or its abbreviation opening an A.S. in Turkey or opening an JS in Turkey may sound familiar many investors.
What is a joint stock company in Turkey?
A joint stock company is a type of company that has a title pursuant to Article 269 of the Turkish Commercial Code No. 6762, whose capital is divided into shares and whose debts are solely due to its assets.
Opening a Joint stock company in Turkey is possible for foreginers. It can be established for any purpose that is not against the law. Joint stock companies in Turkey is usually established to carry out larger-scale businesses than limited liability companies. Joint stock company abbreviation is AS, as we are all familiar with.
With how many people is a joint stock company established?
The joint stock companies can be established in Turkey by a single natural or legal person. An upper limit for the number of joint stock companies has not been determined.
Companies with more than 500 partners must comply with the regulations of the Capital Markets Board.
The liability in joint stock companies is different from that of a limited companies in Turkey. Company shareholders are liable for company debts only in proportion to their capital commited to the company.
Who can establish a joint stock company?
As we mentioned, the founder of the joint stock company in Turkey does not have to be a real person. Legal entities can also establish a joint stock company, or become shareholders like real persons.
The situation is the same for foreign nationals; They can establish joint stock companies in Turkey and become shareholder.
Joint stock company establishment procedures in Turkey
Opening a joint stock company in Turkey is more complex and more challenging in terms of legal procedures compared to a limited company in Turkey. Since the steps are more complex compared to limited liability companies we strongly advice you to work with a consultant. Additionally, in this type of company ¼ of the company capital shall be deposited to bank account before the company formation in Turkey. Therefore please do not forget to check the process about bank account opening.
Differences between a joint stock company and a limited company in Turkey
The advantages of establishing a joint stock company are more than a limited company, although the establishment process is more difficult. Let’s examine the differences between joint stock and limited companies over a table.
|JOINT STOCK COMPANY||LIMITED COMPANY IN TURKEY|
|Share transfer is easy and fast.||Share transfer is a long-term process.|
|It can issue securities.||It cannot issue securities.|
|It can be opened to the public.||It cannot be opened to the public.|
|There is no upper limit on the number of partners.||There can be a maximum of 50 partners.|
|Members of the board of directors are responsible for public debts, not shareholders.||Partners are responsible for public debts in proportion to their capital.|
|Joint stock company minimum capital is 50,000 TL.||Limited company capital minimum is 10.000 TL.|
|They can operate in the banking and insurance field.||They cannot operate in the field of banking and insurance.|
Taxes paid by joint stock companies in Turkey
Joint stock companies are subject to corporate tax . Joint stock company in Turkey corporate tax rate is 20% of the tax base. Value added tax return and stamp tax return every month; They are obliged to submit a corporate temporary tax return quarterly. All these declarations are submitted electronically.
Joint stock company employees are obliged to submit a concise declaration and pay income tax withholding in return for the workplaces they rent from real persons and the self-employment services they receive . These concise statements should be submitted quarterly if the number of employees is less than 10, and monthly if not.
For these declarations submitted electronically, fixed stamp duty payments are also required.
How much capital is required to establish a joint stock company in Turkey
The minimum capital amount of the joint stock company has been determined as 50,000 TL. When non-public joint stock companies want to raise capital, the initial capital must be at least 100,000 TL.
According to the law of attorneyship, joint stock companies with a capital of five times or more than the basic capital specified in the Turkish Commercial Code must have a contracted lawyer. In other words, a joint stock company with a capital of 250,000 TL or more is subject to the obligation of a lawyer.
A quarter of the shares committed in cash in the joint stock company capital must be paid before registration, and the remaining within 24 months following registration.