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Turkey – Deadline to comply with new Minimum Capital Requirements
On the 29th of May 2024, “Provisional Article 15” was added to the Turkish Commercial Code, requiring all existing joint-stock and limited liability companies in Turkey to increase their capital by the 31st of December 2026.
This follows the publication of Resolution No. 7787 in the Official Gazette, with the new minimum capital requirements coming into force on the 1st of January 2024.
The new minimum capital amounts are as follows:
- For joint-stock companies, the minimum capital amount stipulated has increased from 50,000 to 250,000 Turkish Liras;
- For nonpublic joint-stock companies that accept the registered capital system, the minimum initial capital amount stipulated has increased from 100,000 to 500,000 Turkish Liras.
- For limited-liability companies, the minimum capital amount stipulated has increased from 10,000 to 50,000 Turkish Liras
The risk of non-compliance
- Joint-stock firms and limited liability companies that do not increase their capital to the established minimum amount will be considered dissolved.
- For nonpublic joint-stock companies that have adopted the registered capital that do no increase their initial and issued capital to the established minimum amount will be considered to have exited the system.
