Process, Required Documents, Costs, and Sole Proprietorship vs Limited Comparison

A limited company (Ltd. Şti.) is one of the most preferred and reputable business structures in Turkey.
It is ideal for entrepreneurs who want higher corporate credibility, access to financing, and the ability to add business partners.

This guide explains the entire incorporation process, costs, documentation, and how it compares against a sole proprietorship.

1) What Is a Limited Company?

A limited company is a corporate entity where liability is restricted to the company’s capital.

Key features:

• Legal personality

• Ability to add/remove partners

• Flat corporate tax: 20%

• Stronger credibility for corporate contracts

2) Required Documents for Forming a Limited Company

For founders:

• ID copy

• Residential address

• Signature declaration (notary or registry office)

• Partner information

• Company articles (created via MERSIS)

For company address:

• Rental contract
  or

• Title deed (if owned)

Also required:

• Activity code (NACE)

• Company name

• Capital (minimum 50,000 TL)

3) Steps to Establish a Limited Company (2025)

Step 1: Create the Articles of Association via MERSIS

• Enter company name, address, partners, and capital

• Generate application documents

Step 2: Notary Procedures

• Signature declarations of partners

• Articles confirmation if required

Step 3: Apply to the Trade Registry Office

Submit:

• MERSIS documents

• Signature declarations

• Rental contract / deed

• Required forms

Step 4: Chamber Registration

Step 5: Company Incorporation (Legal Establishment)

Completed within 2–5 business days.

Step 6: Tax Office Inspection

A tax officer visits the company address.

Step 7: Ledger approvals & accounting registration

Step 8: Open a corporate bank account

4) Limited Company Incorporation Cost (2025)

Approximate costs:

Total estimated setup cost:
6,000 – 12,000 TL

5) Advantages of a Limited Company

• Higher corporate credibility

• Better access to business loans & POS limits

• Flat tax rate: 20%

• Ability to add partners

• Preferred by corporate clients

• Personal assets are protected

6) Disadvantages of a Limited Company

• Higher incorporation cost

• More complex shutdown procedures

• Higher monthly accounting expenses

• Additional tax obligations (withholding, SGK, etc.)

• Mandatory ledger approvals

7) Sole Proprietorship vs Limited – Which Is Better?

For beginners:

Sole proprietorship is cheaper and simpler.

For scaling businesses:

Limited company is more logical—prestige, credit power, partners.

For hosting, software, and IT companies:

Start with sole → move to limited when growth begins.

For a business like ServerTurk:
Limited company is the correct long-term structure.

8) Conclusion

A limited company is:

• More credible

• More professional

• Better for corporate clients

• More suitable for long-term growth

If you aim to scale, take corporate contracts, or expand your brand, a limited company is the right choice.