New Minimum Capital Requirements in Turkey: Impact on Joint Stock and LLCs
With the Presidential Decree numbered 7887 and published in the Official Gazette dated 25 November 2023 and numbered 32380, it has been decided to increase the minimum capital amount for joint stock and limited liability companies by 5 times.
According to this regulation, as of 1 January 2024, the new minimum capital amounts will be as follows:
| | Minimum Capital Amount According to the Previous Legislation | Minimum Capital Amount According to the New Legislation |
Limited Liability Companies | TRY 10,000 | TRY 50,000 |
Joint Stock Companies | TRY 50,000 | TRY 250,000 |
Non-public Joint Stock Companies that Adopted the Registered Capital System | TRY 100,000 | TRY 500,000 |
According to the statement made by the Ministry of Trade, the above-mentioned minimum capital amounts will be valid for new companies to be established as of 1 January 2024, and at this stage, capital companies already established with the current minimum capital will not need to realize a capital increase. Although there is no such obligation for already established joint stock and limited liability companies, it would be beneficial to increase their capital to at least the amounts mentioned above in order to strengthen their equity structures. In addition, it is important to review the capital requirements for companies, whose establishment and operations are subject to different legislation other than the Turkish Commercial Code, within the framework of the new regulation.
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