Minimum Capital for Joint Stock and Limited Liability Companies Have Been Increased

Pursuant to the Presidential Decree No. 7887 published in the Official Gazette dated 25/11/2023, it has been decided to increase the minimum capital amounts of joint stock and limited liability companies to be effective as of 01/01/2024.

Minimum capital amount pursuant to the relevant decision;

  • From 50.000 TL to 250.000 TL for joint stock companies
  • From 10.000 TL to 50.000 TL for Limited Liability Companies 
  • For non-public joint stock companies that have accepted the registered capital system, the minimum initial capital of 100.000 TL has been increased to 500.000 TL.

According to the statement made by the Ministry of Trade, the increase in the minimum capital amounts will be valid for companies to be established as of 1 January 2024. Companies established before this regulation do not require to a capital increase. However, in the statement made by the Ministry of Trade, it was stated that although there is no capital increase obligation for joint stock and limited liability companies, it would be beneficial for companies to increase their capital amounts to the amounts mentioned above in order to strengthen the equity structures of the company.

Minimum Capital Before 01.01.2024 (TL)Minimum Capital After 01.01.2024 (TL)
Joint Stock Company50.000250.000
Non-Public Joint Stock Company that has accepted the Registered Capital System100.000500.000
Limited Liability Company10.00050.000

As it is known, according to the Turkish Commercial Code, the capital of joint stock and limited liability companies cannot be below the legal minimum amount. However, the Presidential Decree does not explicitly state that “previously established companies do not require capital increase.” According to the statement of the Ministry of Trade, it is considered that capital increase is not obligatory for present companies for the moment. In this regard, it is thought that the Ministry of Trade will publish a communiqué containing more comprehensive and detailed information in December.

As stated above, although there is no certainty, even if there is no obligation to increase the capital for the present established companies, we recommend capital increase in order to avoid any negative situation in the future. In terms of the implementation of the relevant decision, it is thought that a situation contrary to the principles of equality between companies will arise. For this reason, the Ministry of Trade may require present companies to increase their capital in order to prevent this inequality.