Fidelis Law Partners, with the assistance of our expert company formation lawyer team, will accompany you from the moment you contact us until the moment your joint stock company is established. Fidelis Law Partners has been working with English-speaking Turkish Company Formation lawyers, thus, our attorneys are capable to inform you about both the developments in Turkey related to the field of activity of the company you want to establish and how to proceed in establishment process. In this sense, this article will include the general information about the establishment of joint-stock company in Turkey.
You can also check the articles named “Company Formation in Turkey” and “Limited Company Formation in Turkey” in our blog.
BUSINESS SUBJECT OF THE JOINT-STOCK COMPANY FORMATION
According to Turkish Commercial Code (TCC), a joint stock company is a company whose capital is determined and divided into shares, and which is solely responsible for its debts with its assets.
In the same Code, there is no limitation for the subject (business area) of the joint-stock company unless there is a subject against Turkish law.
TYPES OF CAPITAL SYSTEM IN JOINT-STOCK COMPANY FORMATION
There are two types of capital system for joint-stock companies: Registered capital system and prime capital system. Joint-stock companies which accept registered capital system can offer their capital to public and this capital must be at least 100.000 TL. On the other hand, the amount of capital for joint-stock companies that accept prime capital system can be at least 50.000 TL, besides; those companies cannot offer their capital to public.
The capital of the joint stock company can be committed in cash and in kind. According to the TCC, capital can be money as well as intellectual property rights, movables and all kinds of immovable.
FULFILLMENT OF CASH CAPITAL COMMITMENTS IN JOINT-STOCK COMPANY FORMATION
In the possibility that all or part of the joint stock company’s capital is committed in cash, 25% of the committed amount in cash must be paid before registration. the remaining 75% must be paid within 24 months of establishment.
MINIMUM NUMBER OF FOUNDERS IN JOINT STOCK-COMPANY FORMATION
TCC has not set a minimum or maximum limit for the number of founders of joint stock companies. For this reason, it is possible to establish a joint stock company with a real or legal person.
In the event that the company is established by a single person, the name, place of residence and citizenship of the shareholder must also be registered and announced together with the company.
OBTAINING PERMISSION FOR JOINT-STOCK COMPANY FORMATION
According to the TCC, changes in the establishment and articles of association of joint stock companies are not subject to the permission of any authority, except for certain companies that can only be established with the permission of the Ministry of Customs and Trade.
You can contact Fidelis Law Partners for information on which certain companies these are.
TRADE NAME OF THE JOINT-STOCK COMPANY
Joint stock companies must have a trade name. With this title, joint stock companies can perform transactions related to their commercial enterprises and sign promissory notes and other documents related to their business.
There are some rules regarding the title of the joint stock company as follows:
– In the trade name of the joint stock company, the subject of the business must be shown and the phrase “joint stock company” must be present.
– If the trade name needs to be distinguished from a previously registered title in any registry office in Turkey, it must be an addition to the title
– If the trade name includes the name and surname of a real person, the phrase “Joint-Stock Company” should not be abbreviated.
ESTABLISHMENT OF JOINT-STOCK COMPANY
After choosing the most convenient company type for you, our expert company lawyer team will guide you to collect the require documents and will assist you from the beginning of the process until the end.
If you have any further questions please do not hesitate to contact us via WhatsApp or email.
