Start a Limited Liability Company

What is a limited company? Limited companies are a type of company preferred by businesses that want to engage in commercial activities and offer certain advantages. The main feature of a limited company is that the partners manage the business by clearly specifying their capital contributions. The limited company type ensures that partners are only liable for the amount of capital they have contributed. Therefore, they are not personally liable for the company's debts. In limited companies, the partnership structure is realized with monetary capital contributions. Debts and payments among partners are subject to legal regulations. Partners have liabilities only in specific transactions such as main capital shares and additional payments. This clarifies the company's debt and responsibility share and establishes more solid relationships among partners.

Limited companies are a special type of capital company for businesses that will engage in commercial activities and have various features. Features of a limited company: It must have a trade name related to its business subject. It is among the capital companies and is established with a minimum capital of 10,000 TL. It can have a maximum of 50 partners at its establishment; if the number of partners exceeds 20, it is mandatory to have an auditor. Partners are liable up to the amount of capital they have committed; they are not personally liable for the company's debts. Decisions are usually made by majority vote, and management is provided by one or more partners. Limited companies are subject to corporate tax and cannot issue shares. Their fields of activity are quite extensive, but they cannot operate in banking, insurance, and similar areas. Limited companies offer advantages such as being established with minimum capital, fixed taxation, the number of people, and cost sharing. However, reasons for dissolution include bankruptcy, a general assembly decision, or other reasons specified in the law.

How to establish a limited company? A limited company begins with the completion of establishment documents. It is important to prepare and sign documents such as the company agreement and signature declarations. These documents specify the rights and responsibilities of the company's founders. Defterdar is with you during the setup process of your limited company. Next, the necessary payments for the company's capital must be made. Competition Authority share and company capital are financial obligations that must be paid during the establishment phase. Applying to the Istanbul Trade Registry Office is also an important step. Applications are made through authorized personnel, and the necessary documents are submitted. For the acceptance of the application and the completion of the processes, identity verification and MERSIS control are carried out. These checks are important to verify the applicant's identity information and to secure the company establishment process. The establishment process is completed by registering the company with the trade registry and submitting the documents. Signing and sealing the documents is important for official recognition.

There are certain conditions and requirements in the process of establishing a limited company. For the establishment of a limited company, a minimum capital of 50,000 TL is required, and there must be at least one partner. The company's title must include the phrase 'Limited Company' and at least one business activity must be specified. The amount of capital that partners will contribute is also determined. Each partner must contribute at least 25 TL or multiples of this amount as capital. These requirements are the basic necessities that must be considered during the legal and official establishment of a limited company.

The documents required to establish a limited company are important for successfully completing the establishment process. Plan your steps by getting detailed information from the Trade Registry Offices in the relevant city. The documents required to establish a limited company include: Establishment notification form, Petition, Notarized agreement (main contract), Chamber registration declaration, Residence certificate, Lease contract, Paid capital receipt. You can establish your limited company by obtaining these documents and completing the necessary processes. Defterdar follows your entire process for the transactions you will carry out in the chamber of commerce. The sample main contract includes the following headings: Establishment and company title, Purpose and subject, Company's headquarters, Duration and capital structure, Management and representation, General assembly operation, Profit distribution and reserve fund financial regulations, Legal provisions and founder's signature.

The advantages of establishing a limited company present a business model preferred by commercial entrepreneurs. Advantages of a limited company: Flexible Partnership Structure: Limited companies have a flexible partnership structure ranging from 1 person to 50 partners. This allows the company to grow and add new partners. Assurance and Legal Certainty: The systematic structure of limited companies operates in accordance with legal regulations. The shares of the partners, the assets of the company, and other details are clearly defined, which provides assurance and stability. Fixed Tax System: A fixed system regarding tax obligations facilitates the company's financial planning and eliminates surprise tax payments. No Obligation to Have a Lawyer: Unlike other types of companies, there is no obligation to have a lawyer in limited companies, which reduces costs. Ability to Establish with Low Capital: A limited company can be established with a minimum capital amount of 10,000 TL. This offers a more accessible starting point for entrepreneurs. Minimum Number of People: Limited companies can be established with at least one partner, allowing businesses to be established more quickly and easily. Protection of Personal Assets: In limited companies, the personal assets of the partners are separate from the company's debts, which provides personal financial security. Cost Sharing: The costs arising from the increase in the number of partners are fairly shared among the partners, which has a balancing effect on the company's financial structure.

Learn the differences between limited companies and joint-stock companies before establishing your company. In limited companies, the liabilities of the partners are limited; they are only liable up to the amount of capital they have contributed. Moreover, the number and identities of the partners are more definite. Profit distribution has a more flexible structure, and management plays a more active role. Establishment costs are lower, which is an advantage for new entrepreneurs. In joint-stock companies, the capital is higher, and partners have unlimited liability. Profit distribution is determined among shareholders, and the board of directors is more distinct. Both types of companies have certain advantages, and the right choice is important for the success of the business. Use Defterdar's services when choosing your company type.

As Defterdar, we are happy to provide you with professional support during the company establishment process. Establishing a company is a big step. However, with the right guidance and an expert team, you can complete this process healthily. With our professional team and extensive experience, we minimize any difficulties you may encounter during the company establishment process. We provide you with reliable, fast, and high-quality service to help you build your business on the most solid foundations.

The cost of establishing a limited company can vary depending on various factors. The trade chamber registration announcement expenses and the company capital fee are calculated as 4,636 TL. Notary expenses are approximately 1,315 TL. An SMMM service fee of 3,749 TL is paid during the company's establishment. Additionally, about 150 TL should be considered for company stamps and lease agreement stamp duty. The total of these costs is the basic expenses you may encounter during the limited company establishment process.

Limited companies are established by at least one person. This means that even a single person can be the founding partner of a limited company. This shows that the limited company has an advantageous structure in terms of flexibility and easy accessibility. However, a broader partnership structure is generally preferred, and the number of partners can go up to 50. If the number of partners exceeds 50, the company must transition to joint-stock company status.

The abbreviation of a limited company, according to the Turkish Commercial Code, is 'Ltd. Şti.' The abbreviation 'Ltd. Şti.' is a common expression used in the names of limited companies and indicates the limited liability structure of the company. This abbreviation is frequently used in the legal and commercial documents of limited companies and is important to indicate the company's status.