Companies established under a title by one or more persons in real or legal personality are called limited liability companies. Limited companies cannot operate only in the fields of banking and insurance. The basic capital of limited companies is determined. Capital consists of the sum of basic capital shares.
Limited companies type is ideal for medium-sized companies. They are companies that are more closed to the outside than joint stock companies, where it is clear who the partners are. Shares are not offered to the public as in joint stock companies.
A limited liability company with one partner can be established, and the number of partners cannot be more than 50. Limited company partners can be natural persons or legal persons.
The basic capital of the limited company is at least 10,000 Turkish Liras. The entire capital brought in cash can be paid within 24 months after the registration of the company. The payment schedule can be determined by the managers or can be arranged in the company contract.
Limited companies are companies whose capital is determined and divided into shares, and which are only responsible for their debts with their assets. The partners are not responsible for the debts of the company, they are only obliged to pay the basic capital shares they have committed. At the same time, they must fulfill their side performance and additional payment obligations stipulated in the company contract. The partners are responsible for the public debts that cannot be collected from the company in proportion to their capital shares.
Bodies of the Limited Company
Limited company has two organs.
1. General Assembly
As a rule, all shareholders are represented and it is the only authorized body to take some important decisions regarding the company. For example; election of directors, amendment of the articles of association, dissolution of the company, election of the auditor, etc.
2. Board of Directors
Basically, it is the body responsible for the representation and management of the company. It is possible to have only one director of the company. At least one of the directors must be a partner of the company. There is no requirement for the directors to be Turkish citizens or to be resident in Turkey.
Documents Required for the Establishment of a Limited Company
- Chamber registration petition
- Chamber registration statement
- Organization notification form
- Signature statement
- Certificate of residence
- Photocopy of identify card
- Notarized translated passport copies of foreign natural person partners
- Rental contract
- Company articles of association
- If there are non-shareholder members of the board of directors, the declarations of these members that they accept the duty.
- Signature statement
- Payment document showing that the Competition Authority’s share has been paid