Quick answer: Türkiye’s business-form landscape should not be presented as one flat list. The main Turkish Commercial Code company forms include joint-stock company (A.Ş.), limited liability company (Ltd. Şti.), collective company, commandite company and partnership limited by shares. Cooperatives operate under their own statutory framework, while a sole proprietorship and an ordinary partnership are different business arrangements and should not be described as equivalent TCC corporate forms.
This guide covers broad legal-form taxonomy. For a direct LLC-vs-JSC decision, use LLC vs Joint Stock Company in Turkey. For a foreign individual comparing sole proprietorship, LLC and JSC by scenario, use Sole Proprietorship vs LLC vs JSC in Turkey. For foreign-parent structures, use Subsidiary, Branch or Liaison Office in Turkey.
Under Türkiye’s foreign-direct-investment framework, international investors generally have the same rights and liabilities as local investors and may use the company forms available under the Turkish Commercial Code, subject to sector-specific restrictions. Foreign ownership therefore does not by itself create a general Turkish-shareholder requirement.
Company and Business Forms in Turkey: The Correct Map
| Form |
Legal character |
Typical reason to consider it |
| Limited Liability Company (Ltd. Şti.) |
Capital company |
Closely held SME, founder-led company, service/trading/software business |
| Joint-Stock Company (A.Ş.) |
Capital company |
Formal governance, investment/share mobility, public-offering potential or sector requirement |
| Collective Company |
Personal company |
Closely connected real-person partners accepting unlimited liability framework |
| Commandite Company |
Personal company with general/limited partner roles |
Niche partnership structure with different liability roles |
| Partnership Limited by Shares |
Capital-company form with commandite characteristics |
Rare specialist structure; requires case-specific legal analysis |
| Cooperative |
Separate cooperative statutory framework |
Member-based economic/social collaboration |
| Sole proprietorship |
Individual business, not a separate capital company |
Eligible individuals carrying on business personally |
| Ordinary partnership |
Contractual partnership, not a separate company legal entity |
Project/joint-operation relationships where the parties do not create a separate company |
Structure rule: Do not ask only “Which is cheapest to establish?” Ask whether you need a separate legal entity, limited liability, outside investors, transferable shares, a board structure, multiple owners or a project-only arrangement.
Workon coordinates company formation and connected operational steps according to the chosen structure and agreed scope.
1. Limited Liability Company (Limited Şirket / Ltd. Şti.)
The LLC is one of the most commonly used Turkish capital-company forms. It can have one to 50 shareholders and is managed by one or more managers. Current Ministry of Trade guidance requires at least one shareholder to be appointed as a manager with management and representation authority; non-shareholders can also be appointed as additional managers.
Current Ministry of Trade guidance sets minimum statutory capital at TRY 50,000. Subscribed capital may generally be paid within 24 months after registration; the former general 25% pre-registration cash-capital rule does not apply to LLCs.
Often considered when
- ownership will remain relatively concentrated;
- the business is founder-led or a closely held subsidiary;
- the company does not need public-offering capability;
- a relatively straightforward management model is preferred.
Important limitations
- maximum 50 shareholders;
- share-transfer procedure is more formal than the general JSC model;
- public offering is not available;
- manager/shareholder/public-debt exposure should be analysed separately where relevant.
2. Joint-Stock Company (Anonim Şirket / A.Ş.)
The JSC is a capital company governed by a board of directors. It can start with one shareholder and supports a broader shareholding model than the LLC.
Current statutory minimum capital is TRY 250,000. For a non-public JSC using the registered-capital system, the current minimum starting capital is TRY 500,000. At least 25% of subscribed cash capital is generally paid before registration and the balance within 24 months; where the registered-capital system applies, its separate starting-capital and system rules must also be satisfied.
Often considered when
- outside investment or multiple financing rounds are expected;
- share-transfer flexibility matters;
- formal board governance is required;
- public offering or capital-market access may become relevant;
- a regulated activity requires or favours the JSC form.
Do not assume every large business must be a JSC or every small business should be an LLC. Use the future ownership/governance model as the main decision driver.
3. Collective Company (Kollektif Şirket)
A collective company is a personal-company form used to operate a commercial enterprise under a trade name. Official Ministry of Trade guidance states that only real persons can be partners and that partners are not protected by a limited-liability structure against company creditors in the same way as capital-company shareholders.
There is no general statutory minimum capital requirement. Because the liability and partner-management model is fundamentally different from an LLC or JSC, this form should not be recommended merely because it looks inexpensive to establish.
4. Commandite Company (Komandit Şirket)
The commandite company includes at least one general partner (komandite) with unlimited-liability characteristics and at least one limited partner (komanditer) whose liability is tied to the committed contribution under the statutory framework.
It is a niche structure and is much less common than the LLC or JSC for ordinary foreign-market entry. The governance and liability split should be reviewed carefully before use.
5. Partnership Limited by Shares (Sermayesi Paylara Bölünmüş Komandit Şirket)
This is a specialist form combining elements of commandite and joint-stock structures. The Turkish Commercial Code applies commandite rules to key partner relationships and JSC rules to other matters unless otherwise provided.
Because of its specialised structure, it should not be treated as a standard alternative to an LLC or JSC without specific legal advice.
6. Cooperative (Kooperatif)
A cooperative is not simply another founder-owned startup vehicle. Cooperatives operate primarily under the Cooperatives Law and are designed around member participation and a shared economic or social purpose.
They can be relevant for agriculture, housing, production, transportation, consumer or other member-based models. Governance, membership and surplus-distribution rules differ materially from standard capital companies.
7. Sole Proprietorship (Şahıs İşletmesi)
A sole proprietorship is an individual carrying on business personally; it should not be labelled as a separate LLC-style company entity. The owner and business are not separated in the same way as a capital company.
This can be a practical model for eligible freelancers or very small individual businesses, but foreign-founder eligibility depends on immigration, tax registration, activity and work-authorisation facts. Do not assume every non-resident foreigner can simply open a sole proprietorship using the same route as a Turkish resident.
See Virtual Office for Freelancers in Turkey: Sole Proprietorship vs Company.
8. Ordinary Partnership (Adi Ortaklık)
An ordinary partnership is a contractual relationship between parties for a shared purpose. It does not create a separate corporate legal entity comparable to an LLC or JSC.
This can be relevant for joint projects or collaborations, but liability, tax, contract, tender and operational consequences should be evaluated on the actual arrangement rather than treating it as an “easy company type.”
Foreign Parent Company: Subsidiary or Branch?
An overseas company entering Türkiye often faces a different decision from an individual founder:
- Turkish subsidiary: a separate Turkish legal entity owned by the foreign parent.
- Branch: an extension of the foreign parent rather than a separate legal entity.
- Liaison office: a non-commercial representative presence requiring Ministry permission and not permitted to conduct commercial activity in Türkiye.
These are market-entry structures, not additional Turkish company types to mix into the LLC/JSC list. Use the dedicated foreign-parent structure guide.
Which Form Is Usually Relevant for a Foreign Founder?
| Founder scenario |
Usually worth comparing first |
Why |
| Single founder / small service business |
LLC vs eligible sole-proprietorship route |
Entity separation, work status, tax model and growth needs |
| Startup expecting investors |
LLC vs JSC |
Share mobility, governance and future financing |
| Foreign corporation entering Türkiye |
Subsidiary vs branch |
Separate entity vs parent extension |
| Non-commercial representative presence |
Liaison office |
Commercial activity is not permitted |
| Member-based collective activity |
Cooperative |
Member-governance purpose differs from ordinary shareholder company |
Questions to Ask Before Choosing
- Do you need a separate legal entity?
- How many owners will there be now and later?
- Will outside investors enter?
- How important is share-transfer flexibility?
- Who will manage and sign for the business?
- Does the sector impose a specific legal form or capital rule?
- Will the foreign founder actively work in Türkiye?
- Will an overseas parent own the Turkish operation?
- Is the business intended to be permanent or a project-based collaboration?
- What liability and tax consequences require professional advice?
How Workon Coordinates Company-Structure Setup
Workon supports foreign founders and overseas companies with company-formation and operational-readiness coordination. Depending on the agreed scope, this can include structure/file planning, foreign-document sequencing, registered address/workspace, MERSİS/Trade Registry coordination, corporate bank-account application preparation, licensed CPA/SMMM onboarding coordination and connected operating requirements.
Legal and tax conclusions requiring regulated professional judgement are handled by appropriately licensed professionals.
Review Workon’s company registration and operational coordination service.
Official Reference Points
Last reviewed: 17 September 2026. The Ministry of Trade’s current company-information page confirms the TRY 50,000 LLC minimum, TRY 250,000 JSC minimum and TRY 500,000 minimum starting capital for a non-public JSC using the registered-capital system. This guide provides general structural information and does not replace case-specific legal or tax advice.
The Turkish Commercial Code company forms include the limited liability company, joint-stock company, collective company, commandite company and partnership limited by shares. Cooperatives use a separate statutory framework, while a sole proprietorship and ordinary partnership are different business arrangements rather than equivalent TCC corporate forms.
The current general minimum statutory capital is TRY 50,000 for an LLC and TRY 250,000 for a JSC. A non-public JSC using the registered-capital system has a current minimum starting capital of TRY 500,000. LLC subscribed capital may generally be paid within 24 months after registration, while a JSC generally requires at least 25% of subscribed cash capital before registration.
No. The decision should follow ownership concentration, governance, investor plans, share-transfer needs, capital-market ambitions and sector requirements rather than company size alone. Closely held businesses often consider LLCs, while a JSC can be more suitable where formal board governance or investment flexibility matters.
Generally yes. Türkiye’s foreign-direct-investment framework is based on equal treatment, so international investors generally have the same rights and liabilities as local investors and can use the company forms available under the Turkish Commercial Code, subject to sector-specific restrictions and work-authorisation rules.
No. A Turkish branch is an extension of a foreign parent rather than a separate legal entity, while a liaison office is a non-commercial representative presence requiring Ministry permission. They are market-entry structures rather than additional Turkish company forms.
Not automatically. A sole proprietorship is an individual business rather than a separate capital company, and foreign-founder feasibility depends on the person’s tax, residence, work-authorisation and activity facts. The route should be checked before registration.
Yes. Current Ministry of Trade guidance requires at least one shareholder to be appointed as a manager with management and representation authority. Additional managers may be non-shareholders; this rule does not itself require the manager to be a Turkish national.
