Most foreign companies entering Turkey choose a limited liability company: it is a separate legal entity, needs TRY 50,000 capital and can be owned 100% by one foreign shareholder. A joint stock company, with TRY 250,000 capital, is needed for licensed financial activities and suits companies with outside investors. A branch trades in the parent's name. A liaison office cannot trade at all.
How do the four structures compare?
Pending lawyer review| LLC (Ltd. Şti.) | JSC (A.Ş.) | Branch | Liaison office | |
|---|---|---|---|---|
| Separate legal entity | Yes | Yes | No | No |
| Minimum capital | TRY 50,000 | TRY 250,000 | None | None |
| Capital payment | Within 24 months | 25% before registration, rest within two years | Not applicable | Not applicable |
| Management | At least one manager | Board of at least one member | Branch representative | Office representative |
| Can sell and invoice | Yes | Yes | Yes | No |
| Tax on profit | 25% | 25% | 25%, plus 15% on transfers to the parent | No commercial income allowed |
| Our fixed price | EUR 3,900 | EUR 5,400 | EUR 3,900 | EUR 3,900 |
Formation rules are published by Invest in Türkiye.
When does each structure fit?
Limited liability company
A sales or service subsidiary, wholly owned, with no plan to raise outside capital in Turkey.
Most commonJoint stock company
Payment, e-money or crypto licences, joint ventures, and companies that will issue shares to investors or employees.
Required for licencesBranch
Project-based work such as construction or engineering contracts, where the parent contracts in its own name.
Parent is liableLiaison office
Testing the market, supervising suppliers or representing the parent before you are ready to sell.
No salesThe structure selector gives a recommendation in three questions.
Common questions
Pending lawyer reviewWhat is the difference between an LLC and a joint stock company in Turkey?
A limited liability company needs TRY 50,000 capital, has 1 to 50 shareholders and is run by one or more managers. A joint stock company needs TRY 250,000, has a board of directors and issues shares, which makes it the form required for licensed financial activities and the easier one for bringing in investors.
Is a branch cheaper than a subsidiary?
A branch has no capital requirement, but it is not a separate legal entity, so the foreign parent is liable for its debts. Profit transferred to the parent carries 15% withholding, subject to treaties.
What can a liaison office do?
Market research, promotion and representation. It cannot sell or invoice. The permit is granted by the ministry for up to three years.
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