News & Insights
Increase in Minimum Capital Amounts for Joint Stock and Limited Liability Companies
Selen Torun | JUNIOR ASSOCIATE28.11.2023
Pursuant to the Presidential Decision numbered 7887 published in the Official Gazette dated 25 November 2023, the minimum capital amounts required for the establishment of joint stock and limited liability companies have been increased.
Pursuant to the Decision, the first paragraph of Article 332 and the first paragraph of Article 580 of the Turkish Commercial Code have been amended.
Accoding to the new regulation;
• The minimum capital amount of the 50.000 TL for joint stock companies has been changed to 250.000 TL.
• The minimum initial capital amount of 100.000 TL for non-open joint stock companies that have accepted the registered capital system has been changed to 500.000 TL.
• The minimum capital amount of 10.000 TL for limited liability companies has been changed to 50.000 TL.
The amendment will be effective from 01.01.2024 and will be applied to companies to be established after this date.
Although there is no capital increase obligation for existing companies whose capital is below the new amounts determined, the announcement published by the Ministry of Trade stated that it is beneficial for these companies to increase their capital to at least the mentioned amounts in order to strengthen their equity structure.
İn addition, it is expected that arrangements will be made regarding the following issues:
- İt is stated that the said minimum capital amount will be applied to newly established companies. Accordingly, it should consider that the capital increase must be at least equal to the minimum capital amount of companies wishing to increase their share capital as of 01.01.2024.
- İn simultaneous capital increase and decrease transactions of companies, capital decrease can be made up to the minimum capital amount, but with this regulation, it is unclear which amount will be taken into consideration.
- Considering the workload of the trade registries, it is expected that a transition period will be envisaged for existing companies and their share capital will be raised to the minimum capital amount.