Setting up a Joint Stock Company in Turkey requires navigating complex legal requirements, regulatory compliance, and strategic planning. Whether you’re an international corporation expanding into the Turkish market or an entrepreneur launching a capital-intensive venture, professional legal guidance ensures a smooth formation process and long-term success.
Akkas & Associates Law Firm has been Turkey’s trusted partner for company formation and corporate governance since 1992. Our multilingual legal team has successfully registered over 250 companies with foreign shareholders, providing comprehensive services from initial consultation through full operational compliance. We specialize in Joint Stock Company establishment, corporate structuring, ongoing legal compliance, and corporate governance advisory.
Table of Contents
- What is a Joint Stock Company in Turkey?
- 7 Essential Steps to Establish Your Turkish A.Ş. in 2025
- Step 1: Secure Documentation and Obtain Tax IDs
- Step 2: Draft and Approve the Articles of Association (AoA)
- Step 3: Notarize Key Documents
- Step 4: Capital Deposit and Competition Authority Fee
- Step 5: Final Application to the Trade Registry Office
- Step 6: Post-Registration Formalities
- Step 7: Open a Full Corporate Bank Account
- Governance Structure and Requirements
- Advantages of Joint Stock Company Formation
- Taxation Framework for Joint Stock Companies
- Time and Cost Considerations
- Frequently Asked Questions (FAQs)
- Reach us for Joint Stock Company Formation in Turkey
Turkey’s strategic position as a bridge between Europe and Asia makes it an attractive destination for international investors. Among the various corporate structures available, the Joint Stock Company (Anonim Şirket – A.Ş.) stands out as the preferred choice for medium to large-scale enterprises seeking to establish a robust presence in the Turkish market.
What is a Joint Stock Company in Turkey?
A Joint Stock Company (JSC) represents one of the most sophisticated corporate structures available under Turkish commercial law. This entity type is governed by the Turkish Commercial Code and is characterized by its capital being divided into shares. The company’s liability is limited to its corporate assets, providing shareholders with protection against personal liability.
The JSC structure is particularly suitable for businesses planning to go public, seeking venture capital, or requiring a formal governance framework with a board of directors.
Key Advantages of a Turkish Joint Stock Company (A.Ş.)
The A.Ş. is governed by the Turkish Commercial Code (TCC) and is the preferred structure for large-scale operations, IPOs, and companies with numerous shareholders.
| Feature | Joint Stock Company (A.Ş.) | Advantage for Investors |
| Shareholder Liability | Limited to the committed capital amount. | Maximum Risk Protection for personal assets. |
| Minimum Shareholders | One (1) natural person or legal entity. | Flexibility for sole proprietorship or multi-entity ventures. |
| Minimum Capital | TRY 250,000 (approx. € 6,000 / $ 6,500). | Suitable for Larger Investments and higher credibility. |
| Share Transfer | Generally free and easy, simplifying M&A activities. | Liquidity and ease of exit/entry for investors. |
| Corporate Governance | Formal structure (General Assembly, Board of Directors). | Enhanced Transparency and adherence to international standards. |
7 Essential Steps to Establish Your Turkish A.Ş. in 2025
The incorporation process is streamlined through the Central Registry Record System (MERSİS), but the complexity of document preparation and legal compliance makes expert guidance indispensable.
Step 1: Secure Documentation and Obtain Tax IDs
Before applying to the Trade Registry, every foreign shareholder and board member must obtain a Turkish Tax Identification Number (TIN). This can be done swiftly with the right legal power of attorney.
- Required Documents: Notarized passport translations for foreign individuals, and Apostilled/Consular certified documents (Certificate of Activity, Board Resolution, Articles of Association) for foreign corporate shareholders.
- Akkas & Associates Insight: We manage the entire document certification and translation process in multiple languages, ensuring compliance with Turkish notaries and consulates worldwide.
Step 2: Draft and Approve the Articles of Association (AoA)
The AoA (Ana Sözleşme) is the foundational document defining your company’s name, scope, headquarters, capital structure, and management. It must be drafted precisely according to the Turkish Commercial Code (TCC).
- The draft is submitted and pre-approved on the MERSİS system.
- Crucial Detail: The AoA must clearly outline the company’s purpose and the powers of the Board of Directors.
Step 3: Notarize Key Documents
The AoA and the signature declarations of the company’s authorized representatives must be signed before a Public Notary or the Trade Registry Directorate.
Step 4: Capital Deposit and Competition Authority Fee
The A.Ş. has a minimum capital requirement of TRY 250,000. At least 25% of this subscribed cash capital must be deposited into a blocked bank account in the company’s name before the registration application. The remaining 75% can be paid within 24 months.
A Competition Authority Fee, which is 0.04% of the capital, must also be paid.
Step 5: Final Application to the Trade Registry Office
All finalized and notarized documents, along with the proof of capital deposit, are submitted to the relevant Trade Registry Office.
- Upon approval, the company is officially registered, its details are published in the Turkish Trade Registry Gazette, and the company is granted legal personality. This is typically a very fast process when all documentation is correct.
Step 6: Post-Registration Formalities
Registration is not the final step. To commence legal operations, you must complete:
- Tax Office Registration: Activation of the company’s tax liability and obtaining a tax plate. A tax officer conducts a site visit to the registered headquarters.
- Social Security Institution (SGK) Enrollment: Mandatory registration if the company will hire employees.
- Certification of Legal Books: The company’s legal books (e.g., Journal, Ledger, Share Ledger, General Assembly Minutes Book) must be notarized before use.
Step 7: Open a Full Corporate Bank Account
The initial blocked capital account must be converted into a fully operational corporate bank account, which is essential for all commercial transactions.
Governance Structure and Requirements
Joint Stock Companies in Turkey must maintain a formal governance framework that includes:
Board of Directors: Responsible for strategic management and representing the company. Board members can be Turkish or foreign nationals, though at least one must have a Turkish tax identification number and registered address.
General Assembly: The supreme decision-making body comprising all shareholders, meeting at least once annually to approve financial statements and major corporate decisions.
Auditing Mechanisms: Companies exceeding certain size thresholds must appoint independent auditors in accordance with Turkish Financial Reporting Standards.
Advantages of Joint Stock Company Formation
Access to Capital Markets: JSCs can issue various types of shares and bonds, facilitating capital raising from public markets or institutional investors.
Credibility and Prestige: The A.Ş. designation signals stability and professionalism, enhancing business relationships with banks, suppliers, and large corporations.
Flexible Share Transfer: Unless restricted by the articles of association, shares can be freely transferred without requiring approval from other shareholders.
Professional Management: The separation of ownership and management allows for hiring professional executives while shareholders maintain oversight through the board.
Perpetual Existence: The company continues to exist regardless of changes in shareholding, ensuring business continuity.
Taxation Framework for Joint Stock Companies
Turkish JSCs are subject to corporate income tax at a rate of 25% on worldwide income (for resident companies) or Turkish-source income (for non-resident companies). Additionally, companies benefit from:
- Double taxation treaties with over 80 countries
- Various investment incentives based on region and sector
- Technology development zones with significant tax advantages
- R&D incentive programs
For comprehensive information on corporate taxation, consult the Turkish Revenue Administration website.
Time and Cost Considerations
The entire JSC formation process typically takes 1-4 weeks from document preparation to full operational status. Costs vary based on capital amount and professional fees, but generally include:
- Notary fees: Approximately EUR 1,000-3,000
- Trade registry fees: Based on capital (approximately 0.4% of capital)
- Legal and consultancy fees: EUR 2,500-5,000
- Government stamps and taxes: Variable
Frequently Asked Questions (FAQs)
Q1: Can a single shareholder establish a Joint Stock Company in Turkey?
Yes, Turkish law permits single-shareholder Joint Stock Companies. This structure is particularly advantageous for foreign investors who wish to maintain complete control while enjoying the benefits of limited liability and corporate structure.
Q2: What is the difference between a Joint Stock Company (A.Ş.) and a Limited Liability Company (Ltd. Şti.)?
The primary differences lie in capital requirements, governance structure, and growth potential. JSCs require a minimum capital of TRY 250,000 versus TRY 50,000 for LLCs. JSCs have mandatory board structures and can access public markets, while LLCs offer more flexible, informal management suitable for smaller operations.
Q3: Do foreign shareholders need to be physically present in Turkey for company formation?
No, physical presence is not mandatory. Foreign shareholders can execute all necessary documents at Turkish consulates in their home countries with proper apostille certification. However, at least one authorized signatory should obtain a Turkish tax identification number for banking and operational purposes.
Q4: How long does it take to establish a Joint Stock Company in Turkey?
The complete formation process typically requires 1-4 weeks, assuming all documents are properly prepared. This timeline includes capital deposit, notarization, trade registry approval, tax registration, and chamber membership. Expedited services may reduce this timeframe to approximately 2 weeks.
Q5: Are there any restrictions on foreign ownership in Turkish Joint Stock Companies?
Generally, foreign investors can own 100% of a Turkish JSC without restrictions. However, certain regulated sectors such as broadcasting, aviation, and maritime transport may have specific ownership limitations or require special licenses. Most commercial and industrial activities remain fully open to foreign investment.
Q6: What ongoing compliance requirements apply to Joint Stock Companies?
JSCs must conduct annual general assembly meetings, prepare audited financial statements (if applicable), file annual tax returns, maintain corporate books and records, report any structural changes to the trade registry, and ensure timely social security payments for employees. Non-compliance can result in administrative fines and legal complications.
Reach us for Joint Stock Company Formation in Turkey
The journey of company establishment in Turkey can be complex, involving meticulous document preparation, compliance with the Turkish Commercial Code, and registration with the Istanbul Trade Registry. For foreign investors, navigating the specific requirements for a Joint Stock Company (A.Ş.) setup requires the expertise of an experienced Turkish corporate law firm.
Akkas & Associates Law Firm, with our decades of experience in full-service company formation and governance, is uniquely positioned to ensure your A.Ş. incorporation is efficient, compliant, and ready for success. Don’t let bureaucratic hurdles delay your entry into the lucrative Turkish market.
Contact Akkas & Associates Law Firm today to streamline your Joint Stock Company set up in Turkey and receive expert, multilingual legal support.
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