Limited Company or Joint Stock Company?

Which type of #company should you start or continue your #business with in Türkiye?

Which of the most preferred types of capital companies should be established under the Turkish Commercial Code (TCC) No. 6102: a limited company or a joint stock company? Their basic features and differences are outlined below.

Features	Limited company	Incorporated company
Number of Partners	1-50	1 - Unlimited
Minimum Capital	50,000.00 TL	250,000.00 TL
Governing Body	Director / Board of Directors	Board of Directors
Share Transfer	Notarized / registered announcement is mandatory	No notarization / no registration requirement
Public Offering and Stock Exchange	No	Yes
Stocks	None	There is
Liability for Public Debts ( Law No. 6183 on the Procedure for Collection of Public Receivables )	Partners in proportion to their shares	The board of directors is responsible and the liability of the partners is limited only to the capital they have committed but not paid.
Reason for Choice	New entrepreneurs, family businesses	Those who want to establish a holding company, those who want to enter the stock market, those who want to attract investors, those who care about corporate governance awareness and think globally, those who want to have a say in the international arena,
***Secret Partnership	None	There is
Tax Management	25% Institutions	25% Institutions

The "Secret Partner" concept in joint-stock companies is a preferred type of company among some angel investors who prefer to remain in the background and avoid being listed in the Turkish Trade Registry Gazette. These partners prefer to operate under the umbrella of a joint-stock company because they fund the company and prefer to remain in the background (they don't like to be in the spotlight).

Across Türkiye, we encounter limited companies that continue to operate companies inherited from families. We also encounter generations that have converted companies into joint-stock companies (changed their type) as part of their corporate governance awareness.

In new ventures, limited companies are established initially, and after the ventures achieve success, they are converted into joint stock companies in order to move to the next level.

As a result, the type of company directly affects your #mission #vision and strategic perspective.

Did you consciously establish the company you own, or did you inherit it from your family and continue as is?

Keywords

#corporategovernance #company #limited #jointstock #holding #stock #exchange