Other common form of company in Turkey is limited liability companies which are also regulated mainly by the Turkish Commercial Code. Although limited liability companies are structurally very similar to joint stock companies, certain procedures require more formalities than the latter, such as share transfers. They are, nevertheless, favoured in certain circumstances. The rules governing the establishment of a limited liability company are almost identical to a joint stock company, except that in specific regulated sectors (such as certain financial services sectors), it is not possible to operate as a limited liability company. (b) Shareholding The Turkish Commercial Code allows limited liability companies to be incorporated with a single shareholder, although the maximum number of shareholders permitted for such companies is 50. Individuals and legal entities of any nationality may be shareholders in a limited liability company.

1. Share Capital:

The Turkish Commercial Code requires limited liability companies to be incorporated with a minimum share capital of TRY 10,000 (subject to minimum share capital requirements in certain specific sectors where operating as a limited liability company is allowed). The registered share capital system is not an option for limited liability companies and they may only adopt the principal share capital system. Rules governing the contribution of share capital in cash or in kind and deposit and payment requirements are identical to the rules and requirements for joint stock companies.

2. Shares and Share Certificates:

The share capital of a limited liability company shall be divided into shares with a nominal value of at least TRY 25 or its multiples (i.e. TRY 50, TRY 100 etc.). Limited liability companies may only issue registered, not bearer, share certificates.