Question 1

Which should I choose? Individual firm or Company?

Question 2

Limited company or joint stock company?

Accepted Answer

Limited companyIt can be a single partner company. The number of partners cannot exceed 50.It must be established with a capital of at least 50,000 TL.Must use trade name.For the establishment, the articles of association of the company must be prepared and registered in the trade registry.The tax rate is not variable. All your earnings are taxed at 25%.Profit distribution is subject to procedure. Profit distribution cannot be made after the company does not make a profit. Advance dividends can be distributedProfit distribution transactions are subject to 15% withholding tax. Your company will withhold 15% advance tax on every cash outflow.It cannot go public. It cannot issue bonds.The transfer of shares is made with a written transfer agreement approved by a notary and with the approval of the general assembly. It is then registered with the trade registry.No matter when the shares in the company are sold, they will be subject to capital gains. If you are thinking of selling your company in the future, a joint stock company would be a better choice.There is a liquidation process for closing transactions.Incorporated companyIt can be a single partner company. There is no limit on the number of partners.It must be established with a capital of at least 250,000 TL.Must use trade name.For the establishment, the articles of association of the company must be prepared and registered in the trade registry.The tax rate is not variable. All your earnings are taxed at 25%.Profit distribution is subject to procedure. Profit distribution cannot be made after the company does not make a profit. Advance dividends can be distributed.Profit distribution transactions are subject to 15% withholding tax. Your company will withhold 15% advance tax on every cash outflow.There is a possibility of going public. It can issue bonds.Share transfer is easier than limited companies. Shares can be transferred with a transfer agreement. It does not require notary approval or registration in the trade registry.If you are considering selling your shares in the company, the sales of shares that you have held for at least two years are exempt from tax. No tax is paid regardless of the amount. The point to be noted in this regard is that the company's shares are printed.If you are going to take on investors, you will have the advantage of the emission premium.There is a liquidation process for closing transactions.

Question 3

What do I need to determine for company establishment?

Accepted Answer

Type of company and its capitalCompany partners and their ratesBoard members/Directors and who are authorizedCompany addressThe work to be done by the companyCompany title

Question 4

What does Company Capital mean?

Accepted Answer

Company capital is the total financial resources provided by the founders for a company to operate. This capital is used to start the company's operations, cover operating expenses, make investments and generally ensure the sustainability of the company.Company capital can be the money or tangible assets that entrepreneurs put into the company . It is also considered an important indicator for the company's future growth and investment processes.Types of Company CapitalPaid-in Capital: The actual amount of capital put in by the founders and deposited into the company's account when the company was established. This amount constitutes the company's initial capital.Committed Capital: The amount of capital that the founders committed to when establishing the company but have not yet paid. Committed capital can be used when a capital increase is planned during the company's establishment phase.What is the Use of Company Capital?Operations of the Company: Capital provides the resources necessary for the company to carry out its daily operations. For example, expenses such as purchases of goods, staff salaries, office expenses are covered by capital.Investment and Growth: Capital is required for the company to grow further or invest in new projects. The more capital, the more credit the company can get.Reliability: The amount of capital determines the financial strength and reliability of the company. Investors and banks may consider companies with high capital as safer.Capital RequirementsLimited Companies: The minimum capital requirement to establish a limited company in Turkey is 50,000 TL. Company partners can start the business by investing this amount into the company.Joint Stock Companies: The minimum capital requirement for establishing a joint stock company is 250,000 TL.Increase or Decrease in CapitalIncreased Capital: If the company wants to grow and invest in new projects, it can increase its existing capital. This usually happens by taking on new partners or additional contributions from existing partners.Capital Reduction: If the company is experiencing some financial difficulties, capital may be reduced. However, this usually means that the company's financial situation has deteriorated.In summary, corporate capital is the initial financing required for a company to operate and is an important element that directly affects the company's growth capacity.

FREQUENTLY ASKED QUESTIONS

Which should I choose? Individual firm or Company?

Limited company or joint stock company?

What do I need to determine for company establishment?

What does Company Capital mean?