February 21, 2023

Depending on the type of business they prefer, foreign investors who want to establish a company in Türkiye, must pay a minimum capital amount.

As we have frequently stated in our previous articles, the minimal capital requirement for a limited company is 10,000 TL (roughly 550 USD at the time of this writing), and the requirement for a joint stock company is 50,000 TL (roughly $2,750 at the time of this writing).

The shareholders of the company can determine the capital amount in the Articles of Association as they wish, provided that it is not less than the above-mentioned amounts.

1/4 of the capital amount committed in the establishment must be paid at the time of establishment in Joint Stock Companies, within two months in Limited Liability Companies, and the remaining 3/4 within 2 years following the establishment.

It should be determined how much of the investment to be made will be covered by equity and capital should be distributed appropriately when determining the founding capital of the business. Other than the minimum capital amount mentioned above, factors like the business’s field of activity, the investment amount, sectoral and activity-related legal obligations, the investment’s ability to generate income and profits, and the costs and expenses incurred up until this point should be taken into consideration when determining the capital.

One of the issues to be considered while determining the capital is whether foreign employees can be employed within the company.

For a foreign work permit, the paid-in capital of the workplace must be at least 100,000 TL or the gross sales must be at least 800,000 TL or the export amount for the last year must be at least 250,000 USD. During the first establishment of the company, the easiest way to meet these conditions is to determine the capital as 100 thousand TL.

The capital of the business must be at least 100,000 TL in order for it to be eligible to apply for permission to hire foreign workers. (In addition to this and other requirements, there is a requirement to hire 5 Turkish nationals for every international worker.) This means that even though a business can be founded with the minimal capital amounts listed above in accordance with the Turkish Commercial Code, paid-in capital of businesses that want to hire foreign labor is now required to be at least 100,000 TL.

Companies that cannot meet the minimum annual sales amount or export criteria because they are newly established can set their capital as 100 Thousand TL. If the capital in the establishment is less than TL 100 Thousand, a subsequent capital increase can be made. Capital increase transactions take approximately 7-10 days.

Ali KARAKUŞ

CPA, Independent Auditor

Karen Audit

Istanbul,

February 21, 2023


Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.