HANGİ ŞİRKET TÜRÜ DAHA AVANTAJLI? ŞAHIS, LİMİTED, ANONİM

WHICH TYPE OF COMPANY IS MORE ADVANTAGEOUS? SOLE PROPRIETORSHIP, LTD, JOINT STOCK COMPANY

Sole Proprietorships

Sole proprietorships, can be established by a single person or multiple persons. The company has a legal personality, and the liabilities of its partners are unlimited. It is a difficult process to transfer the partnership because the partnership share cannot be transferred or sold to other individuals without the approval of all partners. The company partners are responsible for all the company's debts with all their assets. The company is not a taxpayer, but its partners are income taxpayers.

According to the Turkish Commercial Code (TCC), sole proprietorships are divided into three categories:

1. Limited Partnership
2. General Partnership
3. Collective Partnership

What is a limited liability company?

Limited liability companies are a type of company that is established by one or more real or legal persons under a trade name. They have a certain capital, and this capital consists of the total of the capital shares. Partners are not responsible for company debts; they are only responsible for the amount of capital they have committed.

Limited liability companies can be established for any legally permissible economic purpose and subject. They cannot issue stocks or bonds, and capital is divided into shares rather than stocks. The company itself is responsible for taxes and is a corporate taxpayer. The number of partners cannot exceed 50, and the main capital must be at least 10,000 TL.

What is a joint stock company?

It is the most suitable type of company for carrying out significant economic activities. Establishing a joint stock company is mandatory for some commercial activities. Examples of these are banking, insurance, and financial leasing institutions. The trade name of a joint stock company must include the abbreviation "A.O." (Joint Stock Company) or "A.Ş." (Joint Stock Company). According to the Turkish Commercial Code, joint stock companies can go public or issue bonds to raise capital. Shareholders have no additional payment obligations and are only liable to the company for the amount of capital they have committed.

The company's liability to third parties is limited to the company's assets, while the liability of the company's partners to third parties is limited to the amount of capital they have provided to the company. The basic capital of the company is certain and divided into equal shares. The number of partners must be at least one real or legal person, and the main capital must be at least 50,000 TL.

Note: E-commerce and factoring companies can be established as a capital company, which includes joint stock and limited liability companies, or as a sole proprietorship.

Differences Between Joint Stock And Limited Liability Companies

• The differences between limited liability companies and joint stock companies arise in terms of the number of partners, the responsibilities of the partners, and share transfers.
• While there is no restriction on the number of partners in joint stock companies, there is a maximum of 50 partners in limited liability companies.
• In joint-stock companies, shareholders are not responsible for public debts after paying their capital debts, while in limited liability companies, shareholders are responsible for public debts, such as SGK premiums and tax debts, proportional to the capital they have committed.
• Share transfers are more challenging in LTDs than in joint-stock companies. While share transfers in limited liability companies are made in the presence of a notary public, a share transfer agreement is sufficient for joint-stock companies.

Which type of company is advantageous?

Commercial enterprises in Turkey vary depending on whether they have legal personality. In addition to having legal personality, sole proprietorships, joint stock companies, and limited liability companies have significant differences. The first difference is that sole proprietorship partners are responsible for all their assets for the company's debts, while the company itself is responsible for its assets and debts in limited and joint stock companies. Sole proprietorships are easy to establish, easy to close, and have lower establishment costs than others.

For individuals and investors who want to own a company, limited or joint-stock companies can be considered the most advantageous type of company, depending on commercial risk and business volume. However, if you are in the initial stages and aim to start your idea on a small scale and benefit from tax advantages, a sole proprietorship will be a good start.

Facilitate Your Company Management with Ifasturk!

Ifasturk is always with you during your company establishment and financial processes. With Ifastürk, you can quickly establish your company. You can use the E-BOT web assistant to get more detailed information.

Related Articles:

• Everything About Setting Up a Company
• How to Establish a Company?
• Transforming Individual Companies into Joint Stock or Limited Companies
• What Is Limited Company? How to Establish?
• How to Establish an Online Company?
• What to Consider When Establishing a Company
• How Much Does It Cost to Establish an Individual Company?
• Company Establishment
• Limited and Joint Stock Company Establishment
• Which Type of Company Is More Logical to Establish?
• How to Establish a Foreign Partnership Company?
• Establishing a Courier Company, Profits of Motorcycle Courier