Limited Liability Companies
Limited liability companies are companies with limited and limited capital divided into shares
In this type of company, a limited partnership can be established with one partner, but it is stipulated that the number of partners does not exceed fifty, and the partners can be natural or legal persons.
The capital in this type of company should not be less than 10,000 Turkish Liras. The capital is paid in full in cash within 24 months of the company’s registration. The payment schedule is arranged in the company’s contract or by the company’s managers
Also, the shareholders do not bear any debts on the company, as they are obligated to pay the capital shares that they have pledged and the obligation to pay as stipulated in the company’s contract
Shareholders are also responsible for the company's capital debts due to uncollectible public debts
The limited liability company must own a written contract of the company and be registered with its commercial registry, which is at the company's head office. It is not permissible to issue limited shares to bearer shares
Also, this type of company cannot be presented to the general public, and the transfer of the shares of the limited liability company is subject to the approval of the general assembly
The limited liability company has two devices
Director or board of directors
It is the entity responsible for representing and managing the company, and the board of directors may consist of only one director. It is not required that the members of the company’s board of directors be Turkish, or that they reside in the Republic of Turkey
General Assembly
It is the body responsible for the majority of important decisions in the company, such as changing the company’s contract, choosing the company’s directors, or even closing the company, in which all shareholders are represented.
Advantages and disadvantages of limited liability companies
- Ease of establishing the company.
- Lower set-up costs.
- Ease of closing and liquidating the company.
- Opening a bank account in the name of the company according to the Commercial Companies Law (*mandatory*)
- Depositing the capital in the company’s bank account at the rate of 25% (*this condition has been cancelled*).
- Add all activities in the articles of association.
- Practicing more than one activity under the same trade name.
- The partners’ liability for the company’s debts is limited, and it is only to the extent of the company’s capital.[1]
- It is considered one of the companies in which the profit tax is fixed at 22%.
- Tax statements are submitted through the chartered accountant on a quarterly basis and a statement for the entire fiscal year, and you do not need a tax statement for each of the partners.
- This company does not need bodies or boards, and it can be composed of one person.
A limited liability company is called in foreign countries by the following names:
| Given Name | Country |
|---|---|
| Limited Liability Company | United Stats of America |
| Societas Privata Europaea SPE | European Union |
| Gesellschaft mit beschränkter Haftung GmbH | Germany, Austria and Switzerland (German-speaking cantons) |
| Societé à Responsabilité Limiteé | France, Belgium and Switzerland (French-speaking cantons) |
| Private Limited Company | United Kingdom |
| Società a Responsabilità Limitata | Italy |
| Sociedad de Responsabilidad Limitada (S. L.) | Spain |
| Sociedad de Responsabilidad Limitada | Mexico and Argentina |
Types of companies in Turkey
Limited companies Ordinary partnership is a privately owned company
A personal company is a type of commercial licensing that is well known in Turkey, and it is the most prevalent among owners Turkish professional and commercial activities
This type of business is typical for small and medium-sized business owners in Turkey
Cooperatives are partnerships with variable and joint ventures founded by real and legal persons in order to provide and protect Specific economic interests of the partners
The capital of the joint-stock company in Turkey is divided into shares, and the liability of the shareholders is limited
This company is established to operate a commercial project under a specific commercial name, and the responsibility of any of the shareholders and there is no limit Minimum required capital
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