Minimum Capital Amounts for Joint-Stock and Limited Liability Companies in Turkey has been newly updated for and beyond 2024 in Turkey. This change will directly impact all investors for their ongoing and potential investment projects.
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.
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.
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.
The investment incentive regime in Turkey covers a wide range of incentives for legal and natural entities engaging in different sectors.
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, Article 3 of the Foreign Direct Investment Law regulates that foreign investors shall be subject to equal treatment with domestic investors.
We would also like to remind you that there are many ways to obtain Turkish citizenship.
What is the Minimum Capital Amount for a Company in Turkey?
Recently, a significant legal change has been made in Turkey. A considerable increase in minimum capital amounts for joint-stock and limited liability companies has been accepted by the Presidential Decision issued in the Official Gazette dated 25.11.2023.
What is New for the 2024 Minimum Capital Amount for Limited Liability and Joint-Stock Companies?
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.
When it comes to the limited-liability companies, 50.000 TRY rather than 10.000 TRY as the minimum capital amount will apply in the new year.
For a comprehensive discussion on the establishment of limited liability companies, take a look at our article on Limited Liability Company Formation.
The amendment enters into force in the new year as of 1.10.2024.
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, as outlined above. The minimum capital amounts for Joint-Stock Companies and Limited Liability Companies are updated for the new year of 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
