Advantages of Establishing a Joint Stock Company
An average of 150,4700 joint stock companies are established in Turkey. Joint stock and limited companies are the most preferred company types both in Turkey and also in international area. Joint stock companies and limited liability companies are similar to each other, but there are certain differences and more advantages are given to joint stock companies.
First of all, the liability of joint stock company partners is limited compared to the limited companies. Which is, joint stock company partners who are not members of the Board of Directors are only required to fulfill their capital debt. As long as the joint capital fulfills its debt, the partnership cannot be terminated or expelled from the company by the company.
Another advantage of establishing a joint stock company is that the partners are not responsible for the public debts of the companies. Since a partner who has paid its capital debt is not responsible for other debts of the company, personal assets of joint stock company partners cannot be pursued. Partners are evaluated independently of the losses and risks that the company will incur.
A minimum capital of 50,000 TL is required for the establishment of a joint stock company. Notary approval is not required when establishing a company, and there is no need to be in the presence of a notary public when transferring shares. For this reason, the fastest established company type is the joint stock company. Joint stock companies can be established with a single partner or with multiple partners. In the transfer of shares of joint stock companies with multiple partners, registration, announcement and notary conditions are not required, and the partners can transfer shares as they wish. In joint stock companies with one partner, notary approval is not required, only a notification to the Trade Registry Office is required.
It is easy to establish a Joint Stock Company, but it also has advantages in terms of management and transfer. The first of these advantages is the transfer of shares. If the share certificates of the joint stock company are bearer, it is transferred only by delivery (transfer of possession), if registered, it is transferred by endorsement and delivery. In this respect, matters such as being in the presence of a notary public or being approved in the general assembly, which are sought in limited companies, are not sought in joint stock companies. For this reason, no tax is required for share transfers.
Tax advantages are provided in the transfer of shares of real persons. When selling shares held for more than two years, natural persons are not subject to income tax arising from the sale. For this reason, you can sell the share certificates that you hold for more than two years without paying income tax. In the sale of share certificates held by legal persons, there is no obligation to pay VAT in sales made on the condition that certificates or share certificates are present.
Considering the ease of the procedure, speed and impact of share transfers of Joint Stock Companies, establishing a joint stock company has a very important place in terms of both legal responsibility, tax and functionality.
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