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Topic:

1 Culture.
2 Politics.
3 Economy.
4 Regulatory framework.
- 4.1 Solutions to disputes.
- 4.2 Investment law and real estate law.
- 4.3 Corporate law.
  - 4.3.1 Basics.
  - 4.3.2 The Turkish Ltd. Şti..
  - 4.3.3 Turkish private and public limited companies.
  - 4.3.4 Insolvency.
- 4.4 Social security system.
5 Corporate culture.
6 Building business relations successfully.

Start > You are here: gc.factbook turkey > Regulatory framework > Corporate law

Turkish corporate law

Turkish Corporate Law shows great similarities to the corporate structures also known in Germany, not least because the fundamentals of the German Commercial Code were adopted in 1956; some significant differences are noticeable only after closer study of the legislative details.

Basics of Turkish corporate law

The regulations on Turkish corporate law can be found both in the commercial code and in the law of obligations. Further laws are to be complied with by banks, insurance companies or companies noted on the stock exchange.
Foreign investors especially have to provide a series of documents in order to be able to establish a company.

Introductory information on Turkish corporate lawchaftsrecht

The Turkish Ltd. Şti.

A Ltd. Sti. is a Turkish private limited company similar to the German "GmbH".
In spite of numerous consistencies, there also are important differences.
Two major differences relate to the nominal capital and the number of shareholders. The required nominal capital of a Ltd. Şti. merely amounts to TRY 5,000.00 (as per September 2009, this corresponds to approx. EUR 2,300). In contrast to the German GmbH, a minimum of two shareholders is required.

Information on the Ltd. Şti.

Comparison of the Turkish private limited company and the Turkish public limited company

The Turkish public limited company in comparison to the Turkish private limited company

For banks, insurance companies, leasing and capital investment companies in Turkey, the corporate form of Anonim Şirketi (A.Ş.), a public limited company, is mandatory. The establishment of an A.Ş. requires at least five founder members and a nominal capital of 50,000 TRY. In other areas, the question is whether an A.Ş. or an Ltd. Şti. is the most suitable corporate form. Often, this question is prematurely decided in favour of the foundation of a Ltd. Şti., as this requires less effort, however, without having sufficiently considered the advantages of the A.Ş. with regard to liability issues.

Learn more about the advantages and disadvantages of the two corporate forms

Brankruptcy law vs. insolvency law

The most important of the enforcement options against a debtor provided by Turkish law is the so-called "collective enforcement procedure" (iflas).
The corresponding rules can be found in the law on execution proceedings and the law on bankruptcy (İcra ve İflas Kanunu). During the collective enforcement procedure, the debtor's entire seizable assets are liquidated on the basis of a court resolution issued by the chamber for commercial matters, in order to satisfy the creditors who are to be treated equally.

Learn more about Turkish bankruptcy and insolvency law