Features of a Limited Liability Company in Turkey
Features of a Limited Liability Company in Turkey – A Limited Liability Company (LLC) in Turkey, known as a “Limited Şirket” in Turkish, is a popular type of business entity among entrepreneurs due to its flexibility and protection features. Here are some key features of an LLC in Turkey:
Limited Liability Protection
Shareholders of an LLC in Turkey have their liability limited to their capital contributions to the company. This means that the personal assets of the shareholders are protected from the company’s liabilities.
Capital Requirements
The minimum capital requirement for setting up an LLC in Turkey is 50,000 Turkish Liras. This capital can be in the form of cash or kind and must be committed by the shareholders at the time of registration.
Number of Shareholders
An LLC in Turkey can be established with a minimum of one shareholder and a maximum of fifty. This makes it suitable for both small and medium-sized enterprises.
Management Structure
LLCs in Turkey are managed by one or more managers who can be shareholders or third parties. The company can appoint a board of managers if it prefers a collective management structure.
Taxation
LLCs in Turkey are subject to corporate income tax on their worldwide income. The current corporate tax rate is 25%. Additionally, dividends distributed to shareholders are subject to dividend withholding tax.
Ease of Setup and Operation
Establishing an LLC in Turkey is relatively straightforward. The process involves registering with the local trade registry, obtaining necessary permits, and complying with local business regulations. Ongoing compliance includes annual financial reporting and tax filings.
Flexible Profit Distribution
LLCs in Turkey have the flexibility to decide on the profit distribution as agreed upon in their articles of association and decisions taken at the general meeting of shareholders, provided it complies with the legal regulations.
Foreign Ownership
Foreign investors can fully own an LLC in Turkey without any restrictions, making it an attractive option for international entrepreneurs looking to establish a presence in Turkey.
These features make LLCs a versatile and popular choice for business owners in Turkey, providing a balance between operational flexibility and legal protections.
Features of Limited Liability Company – If you have any other questions or need more information about LLCs in Turkey, please don’t hesitate to contact us.
