The Presidential Decision No. 7887 on the Increase in the Minimum Capital Amount for Joint Stock and Limited Liability Companies ("Decision") was published in the Official Gazette dated 25.11.2023.
Effective as of 01.01.2024, the Decision amended the minimum initial capital amounts for joint stock and limited liability companies as follows:
The minimum initial capital amount for joint stock companies has been increased from 50,000 Turkish Liras ("TRY") to 250,000 TRY.
The minimum initial capital amount for non-public joint stock companies that have adopted the registered capital system has been increased from 100,000 TRY to 500,000 TRY.
The minimum capital amount for limited liability companies has been increased from TRY 10,000 TRY to Y 50,000 TRY.
The aforementioned amounts will be applied for newly established joint stock and limited liability companies effective as of 01.01.2024.
Existing joint stock and limited liability companies whose capital is below the mentioned amounts are not obliged to make a capital increase in accordance with the new regulation. However, the Ministry of Commerce has recommended that these companies should also increase their capital in accordance with the new regulation in order to strengthen their shareholders' equity.
In addition, these amendments are also closely related to the provision regulated under Article 35 of the Attorneyship Law, which obliges joint stock companies with a capital at least five times the minimum capital amount stipulated in the Turkish Commercial Code to have an attorney at law.
Accordingly, with the amendments made under the Decision, as of 01.01.2024, joint stock companies with a capital of at least 1,250,000 TRY (five times the minimum initial capital amount for joint stock companies) will be obliged to work with a contracted lawyer.