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Differences Between Joint Stock and Limited Liability Companies in Turkey

Joint stock companies (JSCs) and limited liability companies (LLCs) are the two most common types of companies in Turkey. There are a number of key differences between these two types of companies, which entrepreneurs should be aware of when choosing the right business structure for their needs.

Ownership

One of the key differences between JSC and LLCs is the way in which ownership is structured. In a JSC, ownership is divided into shares, which can be held by individuals or legal entities. In an LLC, ownership is divided into membership interests, which can only be held by individuals.

Liability

Another key difference between JSCs and LLCs is the liability of the owners. In a JSC, shareholders have limited liability, meaning that they are only liable for the debts and liabilities of the company up to the amount of their investment. In an LLC, members have unlimited liability, meaning that they are personally liable for the debts and liabilities of the company.

Capital

The minimum capital requirement for a JSC is 50,000 Turkish liras. The minimum capital requirement for an LLC is 10,000 Turkish liras.

Management

JSCs are managed by a board of directors, which is elected by the shareholders. LLCs are managed by members or managers.

Transparency

JSCs are required to disclose more financial information than LLCs. This is because JSCs are publicly traded companies, and their shares are traded on the stock exchange.

Which type of company is right for you?

The best way to choose the right business structure for your needs is to consult with an experienced business lawyer. A lawyer can help you to assess your specific needs and goals, and recommend the business structure that is best for you.

Here are some general guidelines to help you choose between a JSC and an LLC:

  • If you are looking for a business structure with limited liability, then a JSC is a good option.

  • If you are looking for a business structure that is simple to set up and manage, then an LLC is a good option.

  • If you are planning to raise capital from outside investors, then a JSC is the best option.

  • If you are looking for a business structure that is more transparent, then a JSC is the best option.

Conclusion

JSCs and LLCs are two of the most common types of companies in Turkey. Each type of company has its own advantages and disadvantages. The best way to choose the right business structure for your needs is to consult with an experienced business lawyer.



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