Single-person limited companies (SLPs) are a type of company that has become quite popular in Turkey in recent years. While these types of companies offer many conveniences in terms of establishment and operation, they also bring with them some legal and financial obligations. In this blog post, we will examine the advantages and obligations of single-person limited companies in detail.
What is a Single-Person Limited Company?
A single-person limited company is a type of limited company that can be established and operated by a single partner. In such companies, the single partner is also the manager of the company. SLPs are preferred because they offer many conveniences in terms of establishment and operation and some advantages in terms of taxation.
Advantages of Single-Person Limited Companies:
Ease of Establishment: SLPs have a very easy procedure during the establishment phase. It is sufficient to prepare a company contract, notarize it and submit the necessary documents to the Ministry of Commerce.
Capital: There is no minimum capital requirement for the establishment of SLPs. In this way, entrepreneurs can establish a company with a small amount of capital.
Taxation: TKLSs are subject to income tax instead of corporate tax. This may provide a tax advantage in some cases.
Limited Liability: In TKLSs, only the company’s assets are responsible for the company’s debts. The partner’s personal assets are not affected by the debts.
Flexibility: TKLSs have a very flexible structure in terms of management and operation. The sole partner can make all decisions alone and determine the way the company is managed.
Obligations of Single-Person Limited Companies:
Legal Bookkeeping Obligation: TKLSs are required to keep legal books, just like other limited companies. These books must be submitted to the tax office regularly.
Obligation to Pay Tax: TKLSs are required to pay income tax on the income they earn.
Social Security: Partners working in TKLSs must be within the scope of 4/B insurance.
Accounting Obligation: TKLSs must be audited by an independent auditor when they exceed a certain turnover limit.
Compliance with Legal Legislation: TKLSs, just like other companies, must comply with all legal legislation.
Required Documents for Establishing a Single Person Limited Company:
Company Agreement: Notarized company agreement
Tax Office Registration Certificate: Registration document to be obtained from the tax office
Chamber of Commerce Registration Certificate: Registration document to be obtained from the relevant chamber of commerce
Criminal Record: Criminal record for partners
Residence Certificate: Residence document for partners
