What Are the Types of Companies?

1. Capital Companies

Capital companies are types of companies that shape their structure and liability system over capital rather than partners. According to the Turkish Commercial Code (TCC), capital companies are divided into three.

1-) Joint Stock Company (A.Ş.): A joint stock company is a company type whose capital is definite, divided into shares, and is liable for its debts only with its assets. For a joint stock company to be established, there must be one or more founders who hold shares. The establishment capital of a joint stock company must be a minimum of 250,000 TL.

2-) Limited Liability Company (Ltd. Şti.): A limited liability company is a company type established by one or more real or legal persons in compliance with the laws to achieve any kind of economic purpose, with a specific main capital amount. The number of partners in this company must be a maximum of 50, and the main capital must not be less than 50,000 TL.

3-) Commandite Company Divided into Shares: A commandite company divided into shares is a type of company whose capital is divided into shares, where one or more of the partners have unlimited liability against the company's creditors, while the liability of the others is limited. In addition, the most obvious feature of this company type is that the capital is divided into shares and there is a minimum of 5 partners.

2. Personal Companies (Partnerships)

Personal companies are a type of company that has legal personality and whose partners have unlimited liability to achieve common economic interests. According to the TCC, personal companies are divided into three.

1-) Collective Company: A collective company is established by two or more partners. In this company, the partners are jointly and unlimitedly liable for the company's debts. In this company type, every partner has an equal right and responsibility to manage the company.

2-) Ordinary Commandite Company: An ordinary commandite company is a type of company that can be established between legal and real persons with the aim of operating a commercial enterprise under a trade name. In this company, the liability of one or more of the partners against the company's creditors is not limited, while the liability of the other partner or partners is limited to a specific capital.

3-) Ordinary Company: An ordinary company is established as a result of a minimum of two real persons combining their labor and assets to achieve a commercial purpose. In this company, there are no assets other than those of the company owner, and it does not have a legal personality.

Companies Established According to the Field of Activity

1-) E-Commerce Company: E-commerce companies are businesses that sell products or services over the internet. E-commerce is not a separate company type; it is an activity model that can be carried out through a personal company, limited liability company, or joint stock company.

2-) Factoring Company: Factoring companies are financial institutions that offer financing, collection, and guarantee services by taking over the receivables arising from forward sales. These companies operate especially in the management of short-term commercial receivables.