Minimum Capital Amounts for Joint Stock and Limited Liability Companies Increased
A. INTRODUCTION
The minimum capital amounts for joint stock and limited liability companies, as regulated in the first paragraph of Article 332 and the second paragraph of Article 580 of the Turkish Commercial Code Numbered 6102, have been amended by Presidential Decision Numbered 7887, dated 24 November 2023, on the Increase of the Minimum Capital Amount for Joint Stock and Limited Liability Companies (“Decision”). The effective date of the Decision, published in the Official Gazette on 25 November 2023, is set as 1 January 2024.
B. SIGNIFICANT REGULATIONS IN THE DECISION
Under the Decision:
i. The minimum capital for joint stock companies will increase from TRY 50,000 to TRY 250,000.
ii. For non-public joint stock companies that have adopted the registered capital system, the initial capital of TRY 100,000 will be raised to TRY 500,000.
iii. The minimum capital amount for limited liability companies, previously set at TRY 10,000, will be increased to TRY 50,000.
C. STATUS OF JOINT STOCK AND LIMITED LIABILITY COMPANIES ESTABLISHED BEFORE THE DATE OF THE DECISION
The Ministry of Trade announced on 26 November 2023 that the amounts specified in the Decision will apply to joint stock and limited liability companies established after 1 January 2024. In the same statement, the The Ministry of Trade advised existing companies with capital below the specified amounts to consider increasing their capital to meet the new minimum requirements, aiming to strengthen their equity structure.
For further information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm
The minimum capital amounts for joint stock and limited liability companies, as regulated in the first paragraph of Article 332 and the second paragraph of Article 580 of the Turkish Commercial Code Numbered 6102, have been amended by Presidential Decision Numbered 7887, dated 24 November 2023, on the Increase of the Minimum Capital Amount for Joint Stock and Limited Liability Companies (“Decision”). The effective date of the Decision, published in the Official Gazette on 25 November 2023, is set as 1 January 2024.
B. SIGNIFICANT REGULATIONS IN THE DECISION
Under the Decision:
i. The minimum capital for joint stock companies will increase from TRY 50,000 to TRY 250,000.
ii. For non-public joint stock companies that have adopted the registered capital system, the initial capital of TRY 100,000 will be raised to TRY 500,000.
iii. The minimum capital amount for limited liability companies, previously set at TRY 10,000, will be increased to TRY 50,000.
C. STATUS OF JOINT STOCK AND LIMITED LIABILITY COMPANIES ESTABLISHED BEFORE THE DATE OF THE DECISION
The Ministry of Trade announced on 26 November 2023 that the amounts specified in the Decision will apply to joint stock and limited liability companies established after 1 January 2024. In the same statement, the The Ministry of Trade advised existing companies with capital below the specified amounts to consider increasing their capital to meet the new minimum requirements, aiming to strengthen their equity structure.
For further information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm