Joint Stock Company Formation in Türkiye in 2026: A Comprehensive Guide

As Türkiye continues to strengthen its position as a strategic commercial hub, Joint Stock Company (JSC) formation remains one of the most preferred corporate structures for foreign and domestic investors. At Finlexia Turkish Accounting Firm, we provide end-to-end company formation and corporate governance services, offering fully compliant legal solutions for entrepreneurs, multinationals, and investment groups operating in Türkiye.

Joint stock companies (Anonim Şirket – AS) represent one of the most sophisticated and prestigious business structures available for entrepreneurs and investors looking to establish operations in Türkiye. Since 2017, Finlexia Turkish Accounting Firm has been guiding domestic and international clients through the complex process of company formation in Istanbul and throughout Türkiye, making us uniquely positioned to provide comprehensive insights into this corporate structure.

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Understanding Joint Stock Companies in Türkiye

A joint stock company is a capital-based commercial entity where ownership is divided into shares that can be publicly or privately traded. This structure is particularly attractive for businesses planning significant growth, seeking public listing opportunities, or requiring substantial capital investment.

Unlike a limited liability company formation, which is more suitable for small to medium enterprises, joint stock companies are designed for larger operations with complex ownership structures.

The Turkish Commercial Code regulates joint stock companies extensively, ensuring investor protection and corporate transparency. These companies offer limited liability protection to shareholders, meaning personal assets remain protected from business debts and obligations—a critical consideration for any serious business venture.

Capital Requirements and Share Structure

One of the defining characteristics of joint stock company formation in Türkiye is the minimum capital requirement. As of 2026, the minimum registered capital for a joint stock company is 250,000 Turkish Lira for privately held companies (non-public AS) and significantly higher for publicly traded entities. This capital can be divided into shares of equal nominal value, providing flexibility in ownership distribution.

The share capital must be at least 25% paid-in at the time of establishment, with the remaining balance payable within two years. Shares can be issued in various classes, including preferred shares with different voting or dividend rights, making this structure ideal for sophisticated investment arrangements and shareholder agreements.

Governance Structure and Management Requirements

Joint stock companies require a more comprehensive governance framework compared to other business structures. The mandatory corporate bodies include:

Board of Directors: Minimum of one member for non-public companies, though three or more members are recommended for effective governance. The board is responsible for strategic decisions and overall company management. Our corporate governance services help establish robust board structures that comply with Turkish regulations while meeting international best practices.

General Assembly: Comprising all shareholders, this body holds ultimate decision-making authority on fundamental matters such as amendments to articles of association, profit distribution, and appointment of board members.

Auditors: Depending on company size and structure, internal audit mechanisms or external auditors may be mandatory, ensuring financial transparency and regulatory compliance.

For companies considering a multi-tiered corporate structure, establishing a holding company formation with joint stock subsidiaries can provide additional strategic and tax benefits.

Step-by-Step Formation Process

The process of establishing a joint stock company in Türkiye involves several critical stages that require meticulous attention to legal detail:

1. Name Reservation and Approval: The proposed company name must be unique and approved by the Turkish Trade Registry. We conduct comprehensive name searches to ensure availability and compliance with naming regulations.

2. Preparation of Articles of Association: This foundational document outlines the company’s purpose, capital structure, share classes, management framework, and operational guidelines. Our multilingual legal team prepares articles of association in Turkish while ensuring all stakeholders understand the content in their preferred language.

3. Capital Deposit and Documentation: The required initial capital must be deposited into a blocked bank account. All required documents must be prepared, notarized, and authenticated, including founder identification, address verification, and capital deposit certificates.

4. Trade Registry Registration: Complete application packages are submitted to the relevant Trade Registry Office. Upon approval, the company receives its registration certificate and unique Turkish tax identification number.

5. Tax Office Registration and Final Steps: Registration with the local tax office finalizes the establishment process. Additional registrations may be required depending on the business sector, including special licenses or permits.

The entire process typically takes between one to two weeks, though expedited services are available for urgent requirements. Understanding costs & fees upfront helps clients budget appropriately for the establishment process.

Why Choose a Joint Stock Company (A.Ş.) in Türkiye?

A Joint Stock Company is fundamentally a capital company characterized by its fixed capital divided into shares. It is the gold standard structure for businesses intending to scale, raise significant capital, and potentially go public.

The key advantage of the A.Ş. structure is the limitation of shareholder liability to the capital they have committed. This separation of corporate debt from personal assets provides a strong safeguard that is highly attractive to both domestic and international investors. While the limited liability company formation is suitable for smaller enterprises, the A.Ş. is designed for ambitious, large-scale operations.

Minimum Capital Requirement

As of the latest updates, the minimum required initial capital for a non-public A.Ş. is TRY 250,000. Critically, at least 25% of the subscribed cash capital must be deposited into a blocked company bank account before the company’s registration. The remaining 75% must be paid within 24 months following registration. Companies under the registered capital system must have a minimum initial capital of TRY 500,000.

Shareholders and Management

• Shareholders: A Joint Stock Company can be established by a single shareholder (individual or legal entity), and there is no upper limit on the number of shareholders. 100% foreign ownership is fully permitted.
• Board of Directors: An A.Ş. must have a Board of Directors, consisting of at least one member. This member can be a natural person or a legal entity.
• Liability: Shareholders are only liable for the company’s debts up to the value of their committed capital, making this an excellent vehicle for risk management.

The Step-by-Step A.Ş. Formation Roadmap

Navigating the bureaucratic landscape of company establishment in Türkiye can be complex without expert legal support. Our streamlined process ensures efficient completion from inception to operation:

1. Preparation of Articles of Association (AoA): This foundational document, prepared in Turkish, defines the company name, purpose, capital structure, and management. Finlexia CPA provides expertise in drafting legally sound AoA, especially when complex ownership structures, such as a holding company formation, are involved.
2. Obtaining Tax Identification Numbers (TIN): All foreign shareholders and directors must obtain a Turkish Tax Identification Number (TIN). This is a fast, mandatory prerequisite for registration.
3. MERSİS Registration: The application is initiated electronically through the Central Registration System (MERSİS) to reserve the company name and obtain a preliminary registration number.
4. Notarization and Certification: The Articles of Association and all necessary signatures (including signature declarations for authorized signatories) must be executed before a Turkish Notary Public. This is also the stage where any required Power of Attorney (PoA) is executed, allowing us to manage the entire process on your behalf.
5. Capital Deposit: The minimum 25% of the subscribed capital is deposited into a temporary corporate bank account, and a bank certificate is obtained.
6. Trade Registry Application: The complete set of required documents, including the notarized AoA, bank deposit certificate, and signature declarations, is submitted to the local Trade Registry Office.
7. Registration and Publication: Upon approval, the company is officially registered and its establishment is published in the Turkish Trade Registry Gazette.
8. Post-Registration Formalities: This includes the certification of statutory books and finalizing registrations with the Tax Office and the Social Security Institution (SGK). Our services seamlessly extend to supporting you with essential compliance, especially regarding shareholder agreements and ongoing corporate governance requirements.

Understanding the Financial Commitment

Understanding the financial outlay is crucial before starting. The total financial commitment includes the mandatory minimum capital deposit, official government charges, and professional service fees.

Tax Considerations for Joint Stock Companies

Joint stock companies in Türkiye are subject to corporate income tax currently set at 25% on worldwide income for resident companies. However, numerous incentives, exemptions, and double taxation treaties may significantly reduce the effective tax burden. Our comprehensive corporate taxation guide provides detailed analysis of tax optimization strategies available to joint stock companies.

Additionally, joint stock companies must navigate value-added tax (VAT), withholding tax obligations, and social security contributions for employees. Strategic tax planning during the formation stage can yield substantial long-term benefits.

Advantages of Joint Stock Company Structure

The joint stock company format offers compelling advantages for serious business ventures:

• Enhanced Credibility: The AS designation signals financial strength and corporate sophistication to business partners, banks, and customers
• Capital Raising Flexibility: Ability to issue various share classes facilitates complex financing arrangements and investor relations
• Transferability of Ownership: Shares can be transferred relatively easily, supporting succession planning and investor exit strategies
• Limited Liability Protection: Shareholders’ personal assets remain insulated from corporate liabilities
• Perpetual Existence: The company continues regardless of changes in ownership or shareholder composition

Ongoing Compliance and Governance Requirements

After formation, joint stock companies must maintain rigorous compliance standards. Annual general assembly meetings must be held, financial statements must be prepared according to Turkish accounting standards, and various filings must be submitted to regulatory authorities.

Board meetings must be documented, shareholder registers must be maintained accurately, and any changes to company structure or bylaws must be properly registered. Our ongoing corporate governance services ensure clients remain fully compliant while focusing on business growth.

Why Choose Professional Guidance

The complexity of joint stock company formation in Türkiye makes professional legal assistance not just valuable but essential. Since 2017, Finlexia Turkish Accounting Firm has successfully guided hundreds of clients through this process, navigating regulatory requirements, preparing comprehensive documentation, and ensuring full compliance with Turkish commercial law.

Our multilingual team provides seamless service to international clients, eliminating language barriers and cultural misunderstandings that can complicate the formation process. We coordinate with notaries, trade registry offices, tax authorities, and banks on your behalf, streamlining what would otherwise be a complex, time-consuming process.

Contact Finlexia Turkish Accounting Firm Today

Are you ready to establish your joint stock company in Türkiye? With over three years of experience in Turkish corporate law, Finlexia Turkish Accounting Firm stands ready to transform your business vision into reality.

Our team of seasoned attorneys provides comprehensive support throughout the entire formation process and beyond, ensuring your company is structured optimally for success in the Turkish market.

Whether you’re a multinational corporation seeking to expand into Türkiye, an entrepreneur planning a significant business venture, or an investor requiring sophisticated corporate structuring, we deliver tailored solutions that meet your specific needs. Contact our Istanbul office today for a detailed consultation on your joint stock company formation requirements.