ComparisonTTK Art. 329 ff., 573 ff.; Law No. 6183 Art. 35 (Commercial Code)
LLC or Joint Stock Company in Türkiye? Key Differences
When setting up a new company or reviewing an existing structure, the most common question is: LLC or joint stock company?
Comparison
| Limited company (LLC) | Joint stock company | |
|---|---|---|
| Minimum capital | TRY 50,000 | TRY 250,000 (higher for registered capital) |
| Number of shareholders | 1 to 50 | At least 1, no upper limit |
| Share transfer | Notarised written contract and general assembly approval | Easier, depends on the type of share certificate |
| Management | Manager or managers | Board of directors |
| Public debts | Shareholders may be liable in proportion to their shares | As a rule the statutory representatives are liable |
| Public offering | Not possible | Possible |
The minimum capital amounts are updated from time to time by Presidential decision. Check the current figure before incorporation.
Which one in which situation?
A limited company is usually enough for businesses with few shareholders, no expected outside investment and low capital needs.
A joint stock company suits companies that plan to bring in investors, make share transfers easier or go public later. That shareholders carry no personal risk for public debts is another important advantage.
The choice should be made on the basis of the ownership structure and growth plan, not only on incorporation cost.
Frequently asked questions
Can an LLC later be converted into a joint stock company?
Yes. Under the change-of-type provisions of the Turkish Commercial Code, a limited company can be converted into a joint stock company without being liquidated.
Can a company be formed by one person?
Yes. Both a limited and a joint stock company can be formed with a single shareholder.
This article is for general information only and is not legal advice. Every case must be assessed on its own facts. It reflects Turkish law as of the publication date.