LLC vs Joint Stock Company in Turkey: Make the Right Choice
Discover the differences between LLC and Joint Stock Company in Turkey to find the best option for your business needs.
The exact change
Key characteristics include a minimum capital requirement of 10,000 TRY, a shareholder limit of 1 to 50... Key characteristics include a minimum capital requirement of 50,000 TRY... Both structures apply a 10% withholding tax on dividends distributed to shareholders.
Key characteristics include a minimum capital requirement of 50,000 TRY (raised from 10,000 TRY effective January 1, 2024 under Presidential Decree No. 7887), a shareholder limit of 1 to 50... Key characteristics include a minimum capital requirement of 250,000 TRY (raised from 50,000 TRY effective January 1, 2024 under Presidential Decree No. 7887)... Both structures apply a 15% withholding tax on dividends distributed to shareholders (raised from 10% effective 22 December 2024 under Presidential Decree No. 9286).
Suggested change
Updated LLC minimum capital from 10,000 to 50,000 Turkish Lira, Joint Stock Company minimum capital from 50,000 to 250,000 Lira, and the registered-capital-system Joint Stock Company figure from 100,000 to 500,000 Lira (all per a 2024 Presidential Decree). Also fixed the dividend withholding tax rate for non-residents, raised from 10% to 15%.
Why this is better
LLC and Joint Stock Company minimum capital figures were pre-2024 amounts (10,000/50,000 TRY), and the dividend withholding rate was the pre-December-2024 10% rate; both were updated to the current 50,000/250,000 TRY capital minimums and 15% withholding rate.
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