Comparison Table of Joint Stock Company and Limited Company
TOPIC | JOINT STOCK COMPANIES | LIMITED COMPANIES |
|---|---|---|
Minimum Capital | 250,000 TL
In the registered capital system: 500,000 TL
| 50,000 TL |
Capital Payment Period | 25% of the cash capital must be paid before registration; the remaining must be paid within 24 months. | Cash capital must be paid within 24 months from registration. |
Capital System | A registered capital system is envisaged. | – |
Capital Increase | Capital Increase A conditional capital increase is envisaged. | – |
Nominal Value of Share | The minimum is 1 kuruş. | It could be at least 25 TL. |
Number of Partners | Minimum 1; no upper limit. If there are 500 or more partners, it becomes a public corporation. | Minimum 1; maximum 50. |
Type Requirement | Banks, brokerage firms, investment partnerships, insurance, financial leasing and factoring companies are required to be established as a joint stock company. | They cannot carry out activities prescribed by law, such as banking and insurance. |
Compulsory Bodies | General Assembly and Board of Directors | General Assembly and Board of Managers |
Independent Audit | An independent audit has been organised. | Provisions regarding joint stock companies will be applied during the audit. |
General Assembly Invitation | The general assembly must be invited at least 2 weeks before the meeting date. | The general assembly must be invited at least 15 days before the meeting date. This period may be extended or shortened to 10 days by contract. |
Board Members | All members of the board of directors may be individuals who are not partners of the company. | At least one of the members of the board of directors must be a partner of the company. |
Superior Vote | The chairman is not given a superior vote on the board of directors. | In case of a tie in the voting of the board of directors, the vote of the chairman shall be deemed superior. |
Share Transfer | It is possible to transfer shares by written contract. | For the transfer of shares, a contract must be drawn up at a notary and unless otherwise stipulated in the company’s articles of association, the approval of the general assembly is required. |
Responsibility of Partners | Partners are not liable for company debts. | Partners can only be held liable for the public debts of the company. |
Partners’ Debt | The only obligation of the partners is to pay the capital amount they have committed. | The commitment and non-competition clauses of the partners are regulated. |
Partners’ Right to Termination | Minority shareholders are given the right to file a lawsuit for termination with just cause | Each partner is given the right to file a lawsuit for dissolution for just cause. |
Lawyer Requirement | Joint stock companies with a capital of 1,250,000 TL and above are required to have a lawyer on contract. | – |
Share Transfer Income Tax | If the stock is sold after 2 years from the date of acquisition, it is not subject to income tax. | When shares are sold, the gain is subject to income tax. |