1. General

The minimum capital amounts set forth for joint stock companies and limited liability companies under the Turkish Commercial Code No. 6102 (the "Law") have been amended by the decision of the President dated 11/24/2023 (the "Decision") based on the authority granted by the Law. The Decision was published on the Official Gazette dated 11/25/2023 and numbered 32380.

2. New Minimum Capital Amounts

With the Decision,

(i) The minimum capital amount for joint stock companies has been increased from TL 50,000 to TL 250,000.

(ii) The minimum capital amount for non-public joint stock companies that have accepted the registered capital system has been increased from TL 250,000 to TL 500,000.

(iii) The minimum capital amount for limited liability companies has been increased from TL 10,000 to TL 50,000.

Although it is stated in the Decision that the relevant changes will be valid as of 10/01/2024, according to the statement made by the Ministry of Trade, the relevant changes will be valid as of January 1, 2024.

3. Conclusion

In the Ministry of Trade’s statement related to the matter, it was stated that as of January 1, 2024, newly established companies will have to comply with the new minimum capital amounts.

According to the statement of the Ministry of Trade, existing companies whose minimum capital is below of the determined amounts are not required to increase their capital to the determined amounts, at this stage.

With this change on the minimum capital amounts introduced for joint stock companies and limited liability companies, it is expected that the legislation depends on these amounts will also be amended soon.

We will gladly share these changes with you as they are made.

Kind regards,

For information and inquiries please contact:

info@ozel-law.com

ÖZEL Attorneys-at-Law

This bulletin has been prepared on 11/26/2023 in order to share the legal developments in Turkish law. It does not include any legal advice nor guidance; for general information only.