Company Formation Guide: Limited Company or Joint Stock Company?

Choosing the right company structure is one of the most important decisions for entrepreneurs in Türkiye.

1. Capital Requirements

• Limited Company: Minimum capital of 50,000 TL.
• Joint Stock Company: Minimum capital of 250,000 TL.

2. Liability for Debts

• Limited Company: Partners may be personally liable for public debts.
• Joint Stock Company: Liability is limited to the committed capital.

3. Share Transfer and Tax Advantages

Joint stock companies provide more flexibility and tax advantages for investors.

4. Management and Legal Obligations

Certain joint stock companies are required to employ a contracted lawyer.

5. Which One Should You Choose?

• Limited Company: Suitable for small and medium-sized businesses.
• Joint Stock Company: Better for large-scale growth and investment plans.

Conclusion

The company type directly affects taxation, liability, and investment opportunities.

FAQ

Which is better: LLC or JSC?

It depends on the company's goals and investment plans.

What is the minimum capital for a joint stock company?

250,000 TL as of 2026.

Are partners personally liable in a limited company?

Yes, especially for public debts.

Choosing the correct company structure is critical for legal and financial security.