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Joint Stock Company ()

Anonim Şirket

Company formation in Turkey

Best Answer

The AŞ is best suited for: Larger enterprises planning to access Turkish capital markets, Companies that intend to go public on Borsa Istanbul, Joint ventures and multi-investor structures, Businesses in regulated sectors requiring an AŞ structure. AŞ companies are taxed identically to Ltd Şti entities: 25% corporate income tax on worldwide income. Dividends paid to non-resident shareholders are subject to 15% withholding tax, reducible under double tax treaties. The AŞ is eligible for the same tax incentives, including technology development zone exemptions and R&D deductions. AŞ companies above certain revenue thresholds must have their financial statements independently audited under Turkish Financial Reporting Standards.

Who this is for
  • Larger enterprises planning to access Turkish capital markets
  • Companies that intend to go public on Borsa Istanbul
  • Joint ventures and multi-investor structures
  • Businesses in regulated sectors requiring an AŞ structure

Key Facts

Min. Shareholders1
Max. ShareholdersUnlimited
Min. Directors1
Minimum CapitalTRY 50,000 (at least 25% paid up at formation)
LiabilityLimited liability
Setup Timeline5–7 business days
Annual CostTRY 60,000 – 200,000+ depending on audit requirements and activity

Step-by-Step Formation Process

1

Register on MERSIS and draft articles of association

Prepare the articles of association covering company name, purpose, share capital structure, board composition, and shareholder details. AŞ articles tend to be more detailed than Ltd Şti articles due to governance requirements.

2

Notarise the articles and appoint the board of directors

Have the articles notarised. Appoint at least one board member. If the company has a capital above TRY 250,000, an independent auditor must also be appointed.

3

Deposit share capital at a Turkish bank

Deposit at least 25% of the stated capital (minimum TRY 12,500) into a blocked bank account. The remainder must be paid within 24 months of registration.

4

File with the Trade Registry Office

Submit all documents to the Trade Registry and obtain the trade registry number. Publication in the Turkish Trade Registry Gazette completes the legal establishment.

5

Tax and social security registration

Register with the tax office for corporate tax and VAT, and with the Social Security Institution (SGK) if employing staff. Obtain the company's official books from a notary.

Required Documents

  • Passport copies of all founders (apostilled if foreign)
  • Notarised articles of association
  • Board of directors appointment resolution
  • Bank deposit receipt for minimum share capital
  • MERSIS registration printout
  • Registered office lease agreement or ownership document
  • Independent auditor appointment letter (if capital exceeds TRY 250,000)
  • Power of Attorney (notarised and apostilled, if applicable)

Cost Overview

Cost Breakdown (USD)
Annual Cost
TRY 60,000 – 200,000+ depending on audit requirements and activity
Country Formation Range
TRY 15,000 – 60,000 ($500 – $2,000)

Tax Treatment

AŞ companies are taxed identically to Ltd Şti entities: 25% corporate income tax on worldwide income. Dividends paid to non-resident shareholders are subject to 15% withholding tax, reducible under double tax treaties. The AŞ is eligible for the same tax incentives, including technology development zone exemptions and R&D deductions. AŞ companies above certain revenue thresholds must have their financial statements independently audited under Turkish Financial Reporting Standards.

Pros & Cons

Advantages
  • No upper limit on number of shareholders — suitable for large investor groups
  • Shares are freely transferable, enabling easier investment and exit
  • Required structure for listing on Borsa Istanbul
  • Higher credibility with Turkish banks and large corporate clients
  • Can issue bonds and other debt instruments
Disadvantages
  • Higher minimum capital requirement (TRY 50,000) than Ltd Şti
  • Mandatory independent audit above certain thresholds adds annual cost
  • More complex governance requirements — general assembly, board minutes, statutory auditor
  • Ongoing compliance and reporting obligations are heavier
  • Formation process is slightly longer and more expensive than Ltd Şti

Other Structures in Turkey

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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.