Dear visitors, in this article titled How to Establish a Limited Company, Formation Costs, and Required Documents?, we will cover topics such as limited company formation, establishing a limited liability company (LLC), and 2026 formation costs.
In a limited company, shareholders and managers have their own legal identities separate from the company itself.
Even if the company consists of only one person who is the sole shareholder and sole manager, the company remains a separate legal entity.
This means the company can enter into contracts and be sued in its own name. If the company faces legal action, its managers and shareholders are not required to sell their personal assets to pay its debts—provided they are not found guilty of misconduct or have not given personal guarantees.
This legal distinction also means that managers and shareholders cannot withdraw money from the company at will. The revenue earned by the company belongs to the corporate entity, not to the individuals.
If you want to manage your company accounts securely and complete the formation process—which normally takes 3 business days to a week—in just 1 business day, you can contact Mete CPA & Auditing.
İçindekiler
What is a Limited Company?
A limited company (LTD) is a type of business that can be established with one or more partners, where the company’s finances are separate from your personal finances. Similarly, profits belong to the company after taxes are paid. These profits can be shared among partners (individuals or entities) based on the shares determined during establishment. A minimum capital of 50,000 TRY and at least one shareholder are required for formation.
Mandatory Bodies in a Limited Company
A limited company must have two mandatory bodies: the General Assembly and the Manager(s).
General Assembly
The General Assembly is the decision-making body. It is responsible for decisions such as appointing managers, amending the articles of association, and termination of employment. Shareholders meet periodically to discuss financial affairs. In extraordinary circumstances, these meetings can be held more frequently.
Managers
Responsibility for the management of the company lies with the manager(s) appointed by the General Assembly. If an authorized manager fails to perform their duties, the General Assembly has the authority to dismiss them and appoint a new manager. There are no limits to the powers of a manager in a limited company.
Advantages and Disadvantages of a Limited Company
Since a limited company has its own finances and is legally distinct from its owners, shareholders have limited liability. This means owners and shareholders are not personally liable for any losses or debts incurred by the business beyond their initial investment.
Advantages
- Protection of Personal Assets: Your personal assets are not at risk if your business fails.
- Control Over Your Business: You maintain full control over your financial affairs without the risk of being dependent on a third-party manager.
- Credibility: Most suppliers and customers place more trust in limited companies compared to other business structures.
- Taxation: You benefit from a fixed corporate tax rate (currently 25%).
- Partnership: You can increase the number of partners as needed and sell shares to individuals or institutions.
Disadvantages
- Strict legal procedures apply when closing a limited company. Debt, taxes, and legal compliance are closely monitored during liquidation.
- Accounting and book-keeping expenses are higher compared to sole proprietorships.
For those considering a sole proprietorship instead, you may check our Sole Proprietorship Guide.
Required Documents for Limited Company Formation
- Application Petition
- Passport-sized Photos
- Chamber of Commerce Registration Declaration
- Workplace Rental Contract
- Power of Attorney for the CPA
2026 Limited Company Formation Costs
The process begins once the required documents are submitted to the relevant authorities. For 2026, the cost of establishing a limited company typically ranges between 15,000 and 20,000 TRY, depending on variables such as city and field of activity.
For a standard setup (1 shareholder, 1 manager, minimum capital of 50,000 TRY):
- Formation Power of Attorney: ~1,250 TRY
- Notary Expenses: ~3,500 TRY
- Signature Circular (Per Manager): ~950 TRY
- Post-Formation CPA Power of Attorney: ~1,250 TRY
- Stamp Duty (Tax Office): ~500 – 1,500 TRY
- Chamber of Commerce Registration (Istanbul base): ~10,000 TRY
Mete CPA & Auditing can help you open your limited company in just 1 day.
