Incorporated company

An “Anonim Şirket” (Anonim Şirket or AŞ) in Turkey is a type of joint-stock company. It is a legal form of business organization characterized by its separate legal personality, limited liability for shareholders, and the ability to raise capital by issuing shares.

1. Legal Structure: An Anonim Şirket is a business structure that is owned by shareholders and managed by a board of directors. It is considered a separate legal entity distinct from its shareholders.
2. Minimum Capital Requirement: To establish an Anonim Şirket in Turkey, a minimum capital requirement must be met. The minimum capital requirement can vary and is subject to regulatory changes. As of my last knowledge update in September 2021, the minimum capital requirement was 50,000 Turkish Lira (TRY), but it’s important to verify the current requirements.
3. Shareholders: An Anonim Şirket can have multiple shareholders, and the shares can be freely transferred, subject to certain restrictions outlined in the company’s articles of association.
4. Liability: Shareholders of an Anonim Şirket have limited liability, meaning they are generally not personally liable for the company’s debts and obligations. Their liability is typically limited to the value of their shares.
5. Management: The management of the company is typically overseen by a board of directors (yönetim kurulu) appointed by the shareholders. The board of directors is responsible for making strategic decisions and managing the company’s day-to-day operations.
6. Corporate Governance: Anonim Şirket is subject to corporate governance regulations in Turkey. It is required to hold regular shareholder meetings and comply with governance rules outlined in the Turkish Commercial Code.
7. Shares: Anonim Şirket can issue various types of shares, including common shares and preferred shares. Preferred shares may have special rights, such as priority in dividend distributions or voting privileges.
8. Public Offering: Anonim Şirket has the option to make a public offering of its shares, allowing it to raise capital from a wider range of investors by trading its shares on the stock exchange.
9. Disclosure and Reporting: Anonim Şirket is required to maintain proper accounting records and prepare financial statements in accordance with Turkish accounting and reporting standards. These financial statements must be disclosed to shareholders and filed with relevant authorities.
10. Taxation: The company is subject to corporate income tax (kurumlar vergisi) on its profits. Shareholders are also subject to capital gains tax (vergi) when they sell their shares.
11. Name: The company’s name must include the abbreviation “AŞ” or “Anonim Şirket.”
12. Regulatory Compliance: Anonim Şirket must comply with Turkish Commercial Code regulations, which govern the establishment, operation, and dissolution of joint-stock companies in Turkey.
13. Transparency and Disclosure: Anonim Şirket is required to be transparent about its financial performance and disclose relevant information to shareholders, regulatory authorities, and the public.Dissolution: The company can be dissolved voluntarily by a shareholder resolution or involuntarily through legal proceedings. In the event of dissolution, assets are used to settle debts and liabilities, and any remaining assets are distributed to shareholders.Anonim Şirket is a popular choice for businesses looking to raise capital, have multiple shareholders, and benefit from limited liability. It offers flexibility in terms of governance and ownership, making it suitable for various industries and sectors in Turkey. However, it also entails compliance with regulatory requirements and corporate governance standards. Legal and financial advice is essential when establishing and operating an Anonim Şirket in Turkey.