Presidential Decree to Increase the Minimum Capital Amount for Joint Stock and Limited Liability Companies

The Resolution ("Resolution") annexed to the Presidential Decree dated 24.11.2023 and numbered 7887 regarding the increase of the minimum capital amount for joint stock and limited liability companies was published in the Official Gazette dated 25.11.2023 and numbered 32380.

According to the Resolution;

• In the first paragraph of Article 332 of the Turkish Commercial Code dated 13.01.2011 and numbered 6102; the minimum initial capital of fifty thousand Turkish Liras for joint stock companies has been increased to two hundred fifty thousand Turkish Liras, and the minimum initial capital of one hundred thousand Turkish Liras for non-public joint stock companies that have accepted the registered capital system has been increased to five hundred thousand Turkish Liras.
• In the first paragraph of Article 580 of the same Law, the minimum capital amount stipulated as ten thousand Turkish Liras for limited liability companies has been increased to fifty thousand Turkish Liras.

The table regarding the changes is as follows;

	Before the change	After the change
Joint Stock Company	50.000 TL	250.000 TL
Non-public joint stock company which has accepted the registered capital system	100.000 TL	500.000 TL
Limited Liability Company	10.000 TL	50.000 TL

 

 

Article 2 of the said Decree, which includes the regulation that the said Decree will enter into force on the date of its publication, effective from 01.10.2024, has been amended with the correction published in the Official Gazette dated 26.11.2023 and numbered 32381. According to this correction, the said Decree shall enter into force on 01.01.2024.

According to the recommendation of the Ministry of Trade, although existing companies with capital below the specified amounts don't need to increase their capital at this stage, it would be beneficial for them to increase their capital to at least the specified amounts to strengthen their equity structure.

You can access the said Decision here.

You can access the Correction Decision here.

You can access the announcement shared by the Ministry of Trade on its social media accounts here.

Kind regards

Zümbül Attorneys at Law

info@zumbul.av.tr