Unlimited company


Collective Company: What is it? Features and Setup Process

In the world of entrepreneurship, various business models and structures are shaped according to the needs and goals of businesses. Especially among these structures, one that stands out is the collective company model.

A collective company is a form of joint business conducted under a trade name by individuals who come together for common purposes, and it is frequently preferred by those who wish to establish a company today.

What is a Collective Company?

A collective company is defined by Article 153 of the Turkish Commercial Code as a type of company established among real persons to operate a commercial enterprise under a trade name, and the liabilities of the partners are unlimited against the company's creditors.

Collective Company Features

A collective company is a type of company established by multiple partners for the purpose of conducting trade. Understanding the basic features and structural characteristics is important to understand its operational principles. The main features of a collective company are as follows:

  • There can be a minimum of 2 and a maximum of 20 partners.
  • The full name of at least one partner must be included in the company name.
  • There is no obligation to deposit capital at the establishment of the company.
  • Partners are personally and jointly responsible for the company's debts.
  • Creditors can demand the full amount of their claim from each partner.

Advantages of Collective Companies

Collective companies have many advantages, especially providing various opportunities to business owners. The key advantages of collective companies include:

  • Collective companies are the easiest type of company to establish compared to other types.
  • There is no minimum capital requirement in collective companies.
  • In collective companies, management is conducted collectively by the partners.
  • In collective companies, partners actively participate in the management of the business.

Collective Company Setup Costs

Collective company setup costs vary depending on the type and size of the company and the sector in which it operates. In general, the costs of establishing a collective company include preparing the necessary documents, notary fees, registration fees, and other legal expenses.


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