Capital and incorporation
For new incorporations from 1 January 2024, minimum capital is TRY 50,000 for limited companies and TRY 250,000 for joint-stock companies. A non-public joint-stock company using the registered-capital system must have initial capital of at least TRY 500,000.
Capital is more than an incorporation threshold: it also represents early working capital and the company's financial position towards creditors. The articles of association should reflect a realistic capital plan, not a merely symbolic amount.
Will the ownership structure change?
For ventures planning investment rounds, employee equity or frequent share transfers, a joint-stock structure may provide more flexibility. Limited-company share transfers may require additional steps such as notarization, general assembly approval and registration.
A limited company may, in contrast, offer simpler management for a closely held, stable structure with few owners. Decide using a three-year capital and exit scenario, not only today's shareholder count.
The critical distinction in liability
Both are capital companies and, as a general rule, company assets answer for company debts. However, there are important practical differences in shareholder and legal representative liability for tax and other public receivables.
Anyone joining a board or becoming a manager should consider signing and oversight responsibilities, not just the title. Choose the structure by evaluating accounting, legal and investment objectives together.