TRANSFER OF SHARES IN JOINT STOCK COMPANIES
102145113 102145113
DOING BUSINESS IN TURKEY TABLE OF CONTENTS Introduction ............................................................................................................. 1 In General ................................................................................................................ 1 Bearer Shares ......................................................................................................... 1 Registered shares .................................................................................................... 2 Restrictions by law ................................................................................................. 2 Restrictions by the articles of association ............................................................. 2 Right of First Refusal ...............................................................................................3 Transfer Procedure .................................................................................................3 Foreign Ownership................................................................................................. 4 Taxation .................................................................................................................. 4 Income Tax ............................................................................................................ 4 Corporate Tax .........................................................................................................5 VAT ..........................................................................................................................5 Stamp Duty ............................................................................................................ 6 Transfer of Shares in Joint Stock Companies gurulkan & cakir
DOING BUSINESS IN TURKEY TRANSFER OF SHARES IN JOINT STOCK COMPANIES Introduction In our Corporate Setup Publications series, we examined Establishing a Joint Stock Company in Turkey. 1 In this article, we will be explaining how to transfer the shares of a Joint Stock Company (JSC) as JSC, together with the Limited Liability Company (LLC), is one of the most common forms of the commercial companies in Turkey. “In principle, both the registered and bearer shares of a JSC may be transferred freely without being subject to any restrictions. However, there are various exceptions to this rule.” In General Under Turkish law, JSCs have two types of shares: Registered shares and bearer shares. In principle, both the registered and bearer shares of a JSC may be transferred freely without being subject to any restrictions. However, there are various exceptions to this rule. Bearer Shares Under Turkish commercial law, the owner of the bearer shares of a JSC is the person who has them in his possession. 2 As a result, it is possible to transfer the bearer share of a JSC simply by delivering its possession to the transferee. It is not mandatory to register the bearer shares to the share ledger as well. In such case, it is impossible for the JSC to prohibit or limit the transfer of the bearer shares. 1 1 For more information on the Joint Stock Company, please go to Corporate Setup at the Doing Business in Turkey section of our website. 2 A bearer share must be fully paid at the time of issuance. Transfer of Shares in Joint Stock Companies gurulkan & cakir
- Page 1: DOING BUSINESS IN TURKEY TRANSFER O
- Page 5 and 6: DOING BUSINESS IN TURKEY “Under T
- Page 7 and 8: DOING BUSINESS IN TURKEY holding th
- Page 9: gurulkan & cakir Haluk GURULKAN, LL
DO<strong>IN</strong>G BUS<strong>IN</strong>ESS <strong>IN</strong> TURKEY<br />
TABLE <strong>OF</strong> CONTENTS<br />
Introduction ............................................................................................................. 1<br />
In General ................................................................................................................ 1<br />
Bearer Shares ......................................................................................................... 1<br />
Registered shares .................................................................................................... 2<br />
Restrictions by law ................................................................................................. 2<br />
Restrictions by the articles of association ............................................................. 2<br />
Right of First Refusal ...............................................................................................3<br />
Transfer Procedure .................................................................................................3<br />
Foreign Ownership................................................................................................. 4<br />
Taxation .................................................................................................................. 4<br />
Income Tax ............................................................................................................ 4<br />
Corporate Tax .........................................................................................................5<br />
VAT ..........................................................................................................................5<br />
Stamp Duty ............................................................................................................ 6<br />
Transfer of Shares in Joint Stock Companies<br />
gurulkan & cakir
Change language