Pursuant to the Presidential Decree on the Increase of the Required Minimum Capital Amount for Joint Stock and Limited Liability Companies numbered 7887 published in the Official Gazette dated 25 November 2023 and numbered 32380 ("Decree"), the required minimum capital amounts set out in the relevant articles of the Turkish Commercial Code numbered 6102 ("TCC") for joint stock and limited liability companies have been increased.
This Decree will be effective as of 1 January 2024.
Increased Minimum Capital Requirements
- The minimum capital for joint stock companies set forth in Article 332 of the TCC as 50,000 (fifty thousand) Turkish Liras has been increased to 250,000 (two hundred and fifty thousand) Turkish Liras.
- The minimum capital amount for limited liability companies set forth as 10,000 (ten thousand) Turkish Liras in Article 580 of the TCC has been increased to 50,000 (fifty thousand) Turkish Liras.
- For non-public joint stock companies that have adopted the registered capital system set forth in Article 332 of the TCC, the minimum capital amount set as 100,000 (one hundred thousand) Turkish Liras has been increased to 500,000 (five hundred thousand) Turkish Liras.
The Decree is applicable to companies to be incorporated as of 1 January 2024 and it does not impose any capital increase obligation for existing companies. On the other hand, under the announcement text published by the Ministry of Trade, the companies are recommended to increase their share capital according to the new amounts mentioned above to strengthen their equity structure.
By Cisem Altundemir, Counsel, and Basak Armagan, Associate, Balcioglu Selcuk Ardiyok Keki Attorney Partnership