The minimum capital requirements for incorporating joint stock and limited liability companies are regulated under Articles 332 and 580 of the Turkish Commercial Code ("TCC"). Pursuant to the Presidential Decree dated 24.11.2023 and numbered 7887 (the "Decree"), effective from 1st January 2024, the minimum capital requirements have been revised as follows:
i) the minimum capital requirement of 50,000 Turkish Liras for joint stock companies has been increased to 250,000 Turkish Liras.
ii) the minimum capital requirement of 10,000 Turkish Liras for limited liability companies has been increased to 50,000 Turkish Liras.
iii) the minimum capital requirement of 100,000 Turkish Liras for non-public joint stock companies that have adopted the registered capital system has been increased to 500,000 Turkish Liras.
Although there is no capital increase obligation at this stage for the existing companies with a share capital below the revised amounts, the Ministry of Trade has stated that it would be beneficial for the existing companies to increase their capital to at least the aforementioned minimums. As a matter of fact, following the entry into force of the Decree, it is very likely that joint stock and limited liability companies will be given a deadline to increase their share capital to the determined minimum amounts. This will also have an impact on companies that might be considering a capital decrease.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
