28November2023

Presidential Decree on Increasing the Minimum Capital Amount for Joint Stock and Limited Liability Companies Has Been Published

With the Presidential Decree numbered 7887 published in the Official Gazette dated November 25, 2023 Saturday and numbered 32380, it was decided to put into effect the decision on increasing the minimum capital amount for joint stock and limited liability companies.

With the relevant decision;

In the first paragraph of Article 332 of the Turkish Commercial Code dated January 13, 2011 and numbered 6102, the minimum capital amount stipulated as 50,000 TRY (Fifty thousand Turkish liras) for joint stock companies shall be increased to 250,000 TRY (Two hundred and fifty thousand Turkish liras),
The minimum initial capital amount stipulated as 100,000 TRY (One hundred thousand Turkish liras) for non-public joint stock companies that have accepted the registered capital system in the same provision of law shall be increased to 500,000 TRY (Five hundred thousand Turkish liras),
In the first paragraph of Article 580 of the same Law, the minimum capital amount stipulated as 10,000 TRY (Ten thousand Turkish liras) for limited liability companies has been increased to 50,000 TRY (Fifty thousand Turkish liras).

Although it was stated on the date of publication that the decision entered into force to be valid on October 1, 2024, a Correction was published in the Official Gazette dated Sunday, November 26, 2023 and it was ruled that it would enter into force on January 1, 2024.

Pursuant to Article 35 of the Attorneyship Law No. 1136, joint stock companies with a share capital of five times or more the amount of share capital stipulated by the Turkish Commercial Code are obliged to have a contracted attorney. Following the Presidential Decree No. 7887, it can be interpreted that this obligation will be calculated according to the newly determined minimum capital amount. As of January 1, 2024, companies with a share capital of 1 million 250 thousand Turkish Liras or more must have a contracted lawyer.

You can access the Official Gazette regarding the subject matter here (In Turkish).

You can access the correction published in the Official Gazette dated November 26, 2023 Sunday here. (In Turkish)

Should you have any queries or need further details, please contact your customer representative.

Author Gökşen Bakay, Category Turkish Commercial Code

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