Limited liability company (Ltd. Şti.)

A limited liability company (limited şirket, abbreviated Ltd. Şti.) is a Turkish capital company formed under a trade name by one or more natural or legal persons. Only the company's assets answer for its debts; members are in principle obliged only to pay in the capital they have subscribed.

It is the most common company form in Türkiye, widely used by small and medium-sized businesses. Its mandatory organs are the general assembly and the managers. Share transfers are subject to stricter formalities than in a joint-stock company and, as a rule, require approval by the general assembly.

An important exception concerns public debts. Members can be held personally liable, in proportion to their shares, for taxes and social security premiums that cannot be collected from the company. This point is often overlooked when choosing the company type.