SSS · Transaction Advisory

Is it mandatory to establish a separate company for a joint venture?

No. The cooperation can be run through a joint company (an equity JV) or set up purely through a contractual structure. The choice is made according to the project's duration, the size of t…

Updated · July 20261 min readCategory · Transaction Advisory
Short answer

No. The cooperation can be run through a joint company (an equity JV) or set up purely through a contractual structure. The choice is made according to the project's duration, the size of the investment, the allocation of liability and the tax implications. We lay out both models before you, with their pros and cons. The decisive practical difference is lia…

No. The cooperation can be run through a joint company (an equity JV) or set up purely through a contractual structure. The choice is made according to the project’s duration, the size of the investment, the allocation of liability and the tax implications. We lay out both models before you, with their pros and cons.

The decisive practical difference is liability and exit. In a purely contractual structure — an ordinary partnership under the Turkish Code of Obligations (No. 6098) — the partners can bear unlimited, joint liability towards third parties, whereas a separate capital company under the Turkish Commercial Code (No. 6102) confines exposure to the committed capital and makes share transfer and exit cleaner. We weigh this against the setup cost and tax profile before recommending a route.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.

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