In Turkey there are 2 popular forms of incorporation as a company, "a joint stock company: and a "limited liability company".
Joint Stock Company (with the suffix of A.S. in Turkey)
- A minimum of 5 shareholders is required to found the company.
- The shareholders may be individuals or a limited company.
- The liability of the owners of the company is limited to the sum of capital invested.
- The total capital must be at least YTL 50,000.
- The shares may be registered in the name of their owners or negotiable shares (bearer shares).
- The company nominates a 'board of directors'.
- The manager of the company may be a shareholder or any other citizen.
- An annual general meeting of the shareholders must be held.
- Companies that are traded on the stock exchange operate in this form.
- Companies in Turkey that are owned by foreign investors are usually A.S. companies.
Limited Liability Companies (with the suffix STI.LTD. in Turkey)
- The minimum of number of shareholders is -2. The maximum number of shareholder - 50.
- Shareholders may be individuals or companies.
- The minimum capital for a company - YTL 5,000.
- Shares are not negotiable. A share may be sold only with the consent of at least 75% of the shareholders.
- A limited liability company may not engage in banking or insurance.
- There is no obligation to hold an annual general meeting of the shareholders.
