According to the Presidential Decree, the minimum capital amounts for joint stock and limited liability companies have been increased.
The Presidential Decree (“Decree”) numbered 7887 on Increasing the Minimum Share Capital Amount for Joint Stock and Limited Liability Companies was published in the Official Gazette dated 25.11.2023 and numbered 32380.
Pursuant to the Decree, the minimum share capital amounts of joint stock and limited liability companies have been decided as follows:
- The minimum share capital amount for joint stock companies has been increased from TRY 50.000 to TRY 250.000.
- The minimum share capital amount for non-public joint stock companies that adopted the registered capital system, has been increased from TRY 100.000 to TRY 500.000.
- The minimum capital amount for limited liability companies has been increased from TL 10.000 to TL 50.000.
The Decree will enter into force on the date of its publication, effective from 01.01.2024.
According to the announcement by the Ministry of Commerce regarding the Decree, companies whose share capital isunder the specified amounts are not obligated to increase their capital. However, the Ministry has emphasized that it would be beneficial for companies to increase their capital by at least the specified amounts to strengthen their equity structures.
Details of the regulation can be found through this link.
