Defterdar - Company Types

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Which company type is more suitable for me?

Company selection depends on your business model, partnership structure, and future growth plans. If you are working alone, a sole proprietorship is suitable, whereas a limited or joint-stock company may be preferable if you have partners.

What is the difference between a sole proprietorship and a limited company?

A sole proprietorship is the fastest and most cost-effective type of company to set up. However, you are personally liable for all debts. A limited company is more structured, and liability is limited to company assets.

Should I choose a joint-stock company or a limited company?

If you are considering large investments and partnerships, a joint-stock company is advantageous. Shares can be transferred, and capital increases are easier. For small or medium-sized businesses, a limited company is more practical.

How long does it take to establish a company?

A sole proprietorship can be set up in a few days, whereas a limited or joint-stock company may take several weeks. Official procedures and notary processes can affect the duration.

What documents are required to establish a company?

Generally, an identity card, residence certificate, tax certificate, and trade registry record are required. Limited and joint-stock companies also need an articles of association and a capital declaration.

Is there a capital requirement?

Yes, there is no capital requirement for a sole proprietorship, but a limited company requires at least 10,000 TL, and a joint-stock company requires 250,000 TL in capital.

How do tax liabilities vary?

Sole proprietorships are subject to income tax, while limited and joint-stock companies pay corporate tax. Additionally, withholding tax and VAT apply to limited and joint-stock companies.

Can I change the partnership structure?

In limited and joint-stock companies, it is possible to add or remove partners. However, sole proprietorships do not have partners, so changing the structure would require establishing a new company type.

What is the process for closing my company?

Closing a sole proprietorship can be done within a few days with a simple application. However, the liquidation process for limited and joint-stock companies is longer and more costly.

Can I change my company type later?

Yes, but rather than a direct conversion, you must close your current company and establish a new one. This process may vary depending on company type and regulations.

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