NEW MINIMUM SHARE CAPITAL FOR JOINT STOCK COMPANIES AND LIMITED LIABILITY COMPANIES

The President’s Decision numbered 7887, published in the Official Gazette dated 24 November 2023, amending article 332 and first paragraph of article 580 of the Turkish Commercial Code numbered 6102 shall enter into force on 1 January 2024.

According to the said Decision, the minimum share capital envisaged as TRY 50,000 for joint stock companies has been increased to TRY 250,000 and the minimum share capital amount envisaged as TRY 100,000 for non-public joint stock companies that have adopted the registered capital system (in Turkish, “Kayıtlı sermaye sistemini kabul etmiş bulunan halka açık olmayan A.Ş.’ler”) has been increased to TRY 500,000.

Additionally, the minimum share capital envisaged as TRY 10,000 for limited liability companies has been increased to TRY 50,000.

The Decision shall be in full effect as from 1 January 2024 for the joint stock companies, as well as limited liability companies that shall be formed.

As per the Announcement of the Trade Ministry dated 26 November 2023 (i) the Decision shall not affect the existing joint stock companies and limited liability companies, (ii) it is recommended that the said companies should also increase their share capital to these new amounts so as to strengthen their equity capital (in Turkish, “öz kaynak”).

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