Business Entities

- Anonim Sirket - A.S. which means corporation
- Limited Sirket - denoted Ltd. Which means limited liability company

Corporations: The A.S. is used commonly because it is easier to raise the necessary capital through equity financing, which is permissible with this form of business entity. The minimum overall capital needed to start an A.S. is TL 50 Billion. Twenty-five percent of the capital must be deposited in a bank before the registration process is completed.

To form an A.S., applications with notarised signatures must be submitted to the Directorate of Companies of the General Directorate of Domestic Trade, in the Ministry of Commerce. The application materials must include six notarised copies of the articles of incorporation, a bank letter stating that the appropriate percentage of the firm's capital has been paid, a document detailing the commercial qualifications of the founders, and bank exchange slips showing any foreign capital that has been converted into liras.

Limited Liability Companies: Ltd.s must have a minimum of two partners and no more than 50. The minimum capital is TL 5 Billion. Ltd.s need not have a board of directors. There is no disclosure requirement or mandatory annual meeting if there are under 20 partners. The Ltd. is less restricted by government regulations and is commonly used by sales and distribution enterprises. The procedure for forming an Ltd. is the same as forming an A.S.

Latest comments about this article

 By jsuira  19.9.2006

Hi...i heard you can create a business with less than 1,000YTL..what can of entity would be then? is there any way to open a business just having licensee without having LTD or A.S? just very simple permission and be able to sell in clothing industry or in another kind of service industry? please need to know..and i live in izmir...thanks.

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