Are you choosing between a Joint Stock Company (JSC) and a Limited Liability Company (LLC) to set up a company in Turkey? This 2025 updated guide outlines the essential differences in legal structure, capital requirements, liability, taxation, and fundraising potential—helping you decide which entity best suits your business goals.
Introduction
As of 2025, new capital thresholds, governance obligations, and tax rules have made it more important than ever to choose the right business structure when you set up a company in Turkey. Whether you’re launching a startup or expanding your operations, understanding the differences between a general partnership, JSC, and LLC is critical for compliance and growth.
This comprehensive comparison highlights the advantages, disadvantages, and practical implications of each structure under Turkish Commercial Law.
| Criteria | General Partnership (Adi Ortaklık) | Joint Stock Company (JSC – Anonim Şirket) | Limited Liability Company (LLC – Limited Şirket) |
|---|---|---|---|
| Legal Status | No separate legal entity | Separate legal entity | Separate legal entity |
| Liability | Partners have unlimited personal liability | Shareholders’ liability limited to capital investment | Shareholders’ liability limited to capital investment |
| Minimum Capital Requirement (2025) | No minimum capital required | 250,000 TRY (previously 50,000 TRY) | 50,000 TRY (previously 10,000 TRY) |
| Establishment Process | Simple agreement (verbal or written) | Trade Registry registration required | Trade Registry registration required |
| Taxation | Personal income tax on profits | Corporate tax + dividend withholding tax | Corporate tax + dividend withholding tax |
| Management | All partners have decision-making authority | Managed by a Board of Directors | Managed by one or more managers |
| Business Continuity | Dissolves upon partner’s departure unless agreed otherwise | Continues despite shareholder changes | Continues despite shareholder changes |
| Fundraising Options | Limited to personal funds & loans | Can issue shares, bonds, and go public | Can accept capital contributions but cannot issue shares |
| Investor Appeal | Not attractive for investors | Suitable for large-scale investments | Suitable for SMEs and family businesses |
| Regulations & Compliance | Governed by Turkish Code of Obligations | Governed by Turkish Commercial Code (TCC) | Governed by Turkish Commercial Code (TCC) |
| Legal Personality | No separate legal personality | Has legal personality | Has legal personality |
Which Business Structure is Right for You?
✅ Choose a General Partnership if:
- You want a simple and cost-effective structure.
- You have a trusted business partner.
- You can manage the risk of personal liability.
✅ Choose a Joint Stock Company (JSC) if:
- You need a scalable business with investment opportunities.
- You plan to go public or raise capital through shares.
- You require a structured governance model.
✅ Choose a Limited Liability Company (LLC) if:
- You want a flexible company structure with limited liability.
- You run a medium-sized or family business.
- You don’t need public share offerings but may seek investor funding.
Choosing the right entity structure is essential when you set up a company in Turkey. This guide serves as a practical resource to help you evaluate your options in terms of legal protection, tax efficiency, and business growth potential under 2025 regulations.