Minimum Capital Amounts for Joint-Stock and Limited Liability Companies in Turkey have been updated for and beyond 2024 in Turkey. This change will directly impact all investors for their ongoing and potential investment projects.
Table of Contents
Introduction
Minimum capital amounts of joint stock and limited liability companies, set forth in Articles 332 and 580 of the Turkish Commercial Code numbered 6102, have been amended by the Presidential Decree circuited in the Official Gazette dated November 25, 2023 and numbered 32380. That revision is in effect as of October 10, 2024 and will be in effect beyond this date up to new revision in 2025 as well.
Significant amendments have been made to the minimum capital requirements for joint-stock and limited liability companies in Turkey. These changes, established under Articles 332 and 580 of the Turkish Commercial Code (Law No. 6102), were introduced through Presidential Decree No. 32380, published in the Official Gazette on November 25, 2023. Effective from October 10, 2024, these revisions will remain in force until further updates are enacted in 2025. This development directly affects both ongoing and prospective investment projects in Turkey.
The Importance of Investment Guidance
Investment in Turkey, particularly in Istanbul, offers substantial opportunities for foreign investors. However, navigating the regulatory landscape requires expert guidance. Turkish investment lawyers provide essential advice to ensure compliance, strategic planning, and risk mitigation for both short-term and long-term investment projects. Their support is invaluable in optimizing outcomes in Turkey’s dynamic business environment.
Is it a good idea to invest in İstanbul?
There has been a growing acceptance that Turkey is getting more capable of attracting more investment day by day. Investing in Istanbul may pave the way for ensuring an efficient solution for foreign investors. At the outset we should bear in mind the main rationale behind this opinion.
Turkish investment lawyers of Pi Legal Consultancy provide comprehensive guidance and strategic investment advice to both foreign investors for Turkish markets and Turkish investors for international markets. Current and upcoming investment opportunities are the primary focus of our Investment Working Group.
Is Türkiye safe for investment? If you are curious about the answer to the question, you can read our article.
Investment Advice offered by Turkish investment lawyers and|or Turkish business lawyers for investing in İstanbul and Turkey is very helpful for particularly foreign investors. Investment advice is needed for every single long-term investment project in Turkey. Indeed, expert advice can have an enormous impact duly planning the scope of any investment project.
In terms of more comprehensive information on investment advice, see our practice areas
Why is Turkey attractive for Foreign Direct Investment?
Turkey attracts the foreign direct investments across the globe. It is sufficient to note that since the 2000s, total capital stock of Turkey has risen gradually. Turkey also hosts a large number of people from different parts of the world. It necessarily follows that Turkey is becoming a more popular investment area for foreign investors.
Turkey has emerged as a prominent destination for foreign direct investment (FDI) due to its growing economy, strategic location, and investor-friendly policies. Key factors that make Turkey attractive include:
- Comprehensive Incentive Regime: Turkey offers a broad range of investment incentives, including tax reductions, subsidies, and exemptions tailored to various sectors.
- Equal Treatment for Foreign Investors: In accordance with Article 10 of the Turkish Constitution and the Foreign Direct Investment Law No. 4875, foreign entrepreneurs enjoy the same rights and protections as domestic investors.
- Strategic Opportunities:
- Business and company startups
- Real estate investments
- Financial services
- Citizenship through investment programs
The investment incentive regime in Turkey covers a wide range of incentives for legal and natural entities engaging in different sectors.
We would also like to remind you that there are many ways to obtain Turkish citizenship. Need guidance on Turkish citizenship? Our Turkish citizenship lawyer is here to help you navigate the process seamlessly.
Do foreign investors have the same rights as Turkish Citizens?
Article 48 of the Turkish Constitution provides that everyone has the freedom to work and conclude contracts in the field of his/her choice and the establishment of private enterprises is free.
More importantly, according to Article 10 protecting the right to equality, there shall not be any limitations for foreign entrepreneurs in Turkey.
Likewise, the Foreign Direct Investment Law numbered 4875 regulates that foreign investors shall be subject to equal treatment with domestic investors.
Indeed in accordance with Article 3, unless regulated by international agreements, foreign entrepreneurs are free to make foreign direct investments in Turkey. Additionally foreign investors shall be subject to equal treatment with domestic investors.
It is also significant that the 2024 Amendments to Turkish Commercial Code (Numbered 6102) contains significant changes in terms of working conditions of the board of directors within the context of companies. Our article concentrates on a brief outline of the amendment concerned. Take a look at our article:
What are Minimum Capital Amounts for Joint Stock and Limited Liability Companies in Turkey?
It is significant to bear in mind that significant legal change has been made in Turkey as of 2024 and that will be into effect during 2025 until new regulatory updates. In this context, a considerable increase in minimum capital amounts for joint-stock and limited liability companies was accepted by the Presidential Decision issued in the Official Gazette dated 25.11.2023.
Key Legal Updates for and beyond 2024
The 2024 amendments to the Turkish Commercial Code include significant changes affecting the governance and operations of companies, particularly with regard to the responsibilities and working conditions of boards of directors. These updates aim to enhance transparency, accountability, and corporate governance standards.
As of 1.10.2024, the minimum capital amount for joint-stock companies increases from 50.000 to 250.000TRY.
With regard to joint-stock companies, the minimum initial capital amount increases from 100.000 to 500.000 TRY for non-public joint stock companies that adopted the registered capital system.
When it comes to the limited-liability companies, 50.000 TRY rather than 10.000 TRY as the minimum capital amount will applicable.
For a comprehensive discussion on the establishment of limited liability companies, take a look at our article on Limited Liability Company Formation.
The amendment entered into force as of 1.10.2024 and it will be in force through the year of 2025.
Conclusion
Limited liability companies and joint-stock companies are the most preferred type of companies in Turkey. Taking into account the importance of both company models, a new revision is instituted in Turkey by the decision of the President for minimum capital amounts of joint-stock and limited liability companies. The minimum capital amounts for Joint-Stock and Limited Liability Companies are updated for the year of 2024 and will be in force during the year of 2025.
The updated minimum capital requirements reflect Turkey’s commitment to fostering a robust and competitive business environment. As joint-stock and limited liability companies are the most commonly preferred business structures, these updates have a far-reaching impact on local and foreign investors alike. For personalized guidance on company formation and compliance with these new regulations, consult our experts.
