Establishing a Limited Company. Limited Company Features.
Before moving on to establishing a limited company, it is necessary to know exactly what a limited company means. According to the Turkish Commercial Code, it is a type of company established by two or more partnerships to establish a limited company. The most basic feature of this company is that the number of partners in the company's management team is limited to one or more partners.
What are the Basic Features of a Limited Company?
The necessary and basic features to establish a limited company are as follows;
1. Partnership structure:
• Limited partners cannot participate in company management and are partners with unlimited liability. These partners simply contribute capital and thus become partners.
2. Capital:
• The capital of the company is formed by the contributions of limited and limited partners. Although partners with unlimited liability, general partners' liabilities are limited to the capital they invest.
3. Management:
• Company management is carried out by limited partnerships. Since limited partnerships become partners thanks to their investment amounts, they do not have an active role in management.
4. Name and Title:
• The title section includes the phrase limited partnership. There is at least one limited partner in the company name.
5. Limited Liability:
• Limited partners are limited to the capital they invest. Limited partners have unlimited liability and are authorized to use their personal assets for the company's debts.
6. Audit:
• Audit status of limited companies can be audited by the limited partners without the need for the appointment of auditors, unless otherwise stated in the contract.
7. Profit and loss:
• Profit and loss situations are shared according to the decisions taken by the partners. Limited partners receive profits and losses based on their invested capital.
8. Freedom of contract:
• The company's contract is a contract in which the partners can freely regulate their profits and capital positions.
9. Trade Name:
• The title of one or more partners must contain the phrase limited partnership.
10. Continuous existence:
• The assets of the company can be established by the partners for a certain period of time or for the completion of the work, depending on the agreements.
What are the Features of a Limited Company?
Establishing a limited partnership has its own characteristics, just like sole proprietorship, joint stock and limited companies. These features are as follows:
• There is no commercial activity requirement for ordinary limited partnership company types. In this way, individuals who want to invest can earn financial profits through these companies.
• At least one partner among the partners must be a general partner. This means that liability for creditors is unlimited.
• It has legal personality.
• The responsibilities of some of the partners are limited.
• Partners both manage and represent the company.
• It is written in the contracts which partners are limited partners or limited partners.
How to Establish a Limited Company?
To establish a limited company, the application must be made by completing the necessary documents. If there are no missing documents or any negativities after the application, the process of establishing a limited company will result positively.
1. Trade Registry Documents:
• Petition containing signatures submitted by people who want to establish a limited partnership company.
• Photocopies of the identity cards of the persons who will become partners in the company
• Notarized contract
• Letter of undertaking received from the trade registry office
• Photocopy of the capital deposited in the central bank
• Signed registration declaration approved by a notary
2. Legal books that are mandatory and must be kept
Another issue that must be done to establish a limited company is the completion of the legal books that must be kept. There are legal books that limited partnership companies must keep. These books must be certified by notaries. These notebooks are as follows:
• General ledger
• Board of directors decision book
• Journal Book
• Share ledger
• Inventory ledger
• Negotiation and general assembly meeting book
3. Documents Required for the Tax Office
The mandatory documents that must be submitted to the tax office to establish a limited company are as follows:
• Copy of identity card
• Printed petition
• Contract photocopy
• Signature circular
• Certificate of residence
After completing the above documents, an application can be made to establish a limited company. After completing these documents, it is necessary to obtain a cash register plate, register to the chamber of industry, register to the chamber of commerce and register to the chamber of tradesmen and craftsmen.
What is an Ordinary Limited Company?
Ordinary limited liability company is a company established under the name of trade name for the purposes of businesses and in which one or more of the partners bear the responsibilities in return for the company's creditors.
It is a type of limited company formed by limiting the responsibilities of other partners to certain levels.
What is a Limited Company with Capital Divided into Shares?
A limited liability company, whose capital is divided into shares, is a type of company in which the shares are divided and one or more of the individuals among the partners become partners of the collective company for the company's receivables, and the other partners have shares in the joint stock company.
How Many People Should a Limited Company Be Established?
A limited partnership is a type of company established by a minimum of two partners. These partnerships are in two different groups.
1. Limited partners: These are partners with unlimited responsibilities in the company. They can use their personal assets to pay off the company's debts. Even if limited partners are in the management team of the company, they do not have decision-making authority.
2. Limited partners: While they are among the capital partners of the company, they are responsible for the company as much as the capital they have invested. They are partners limited to their invested capital and personal assets. They have the right to take part in the management of the company and, in addition, they are among the partners who have the right to say about the operation of the company.
The partners of the two different limited companies listed above are the partners that form the basic structures of limited companies. Although the number of partners is limited to a minimum of two, they have the chance to find partners without any legal restrictions. The responsibilities and roles within the company are different between these two partnerships.
What are the advantages of a limited company?
1. Diversity of capital contributions
2. Flexibility in business management
3. Using partners in their areas of expertise. In this way, the company can obtain high profits and expand its fields of activity by getting full efficiency from the partners.
4. Limited responsibilities
5. Providing quick solutions in case of missing points by ensuring active participation in management
6. Reliability of limited liability partners
7. Investment diversity
8. Ability to attract investors
Frequently Asked Questions About Limited Liability Companies
We have brought together the questions that are most frequently asked by those who want to establish a limited company and are very important to answer. In this way, you can see the most frequently asked questions and answers about limited partnership companies.
1. In which type of company is limited partnership included?
While companies whose capital is divided into shares are called capital companies, ordinary limited liability companies are among the sole proprietorship companies. Thanks to these features, it is among the types of both capital companies and sole proprietorship companies.
2. Who manages the limited partnership company?
Companies with divided capital are managed by limited managers. However, while it is managed by two partners, it is managed by the general assembly and limited managers. While every partner can be present at the general assembly, managers can only form a limited partnership.
3. What are the methods of leaving a limited partnership?
There are special articles in the company's articles of association that include these rights in case the partners want to leave. If a partner requests to leave the partnership, he can leave the partnership by publishing his declaration after agreements are made between the partners. In addition, some companies in the limited company group add some obligations in case of departure of the partner or partners. These obligations include age, personal developments, special reasons and disease conditions.
Release date : 26.02.2024 Author : Samet Views : 287 Category : General