Capital Increase Services in Turkey: Fueling Business Growth

As a business expands, its initial capital may become insufficient to support new investments or operational demands. In such cases, companies can opt for a capital increase through cash injections or capital in kind (non-cash assets).

At Atlas Global Audit & Accounting, we specialize in managing the technical and legal complexities of capital restructuring, ensuring that your company meets all requirements under the Turkish Commercial Code (TCC).

Essential Requirements for Capital Increase

To initiate a successful capital increase, the following legal prerequisites must be met:

• Payment of Existing Capital:Before increasing capital, the previously committed capital must be fully paid and verified.
• CPA (SMMM) Report:A formal report must be prepared by a Certified Public Accountant (SMMM) or a Sworn-in CPA (YMM) certifying that the existing capital has been fully paid and that the company’s internal funds are eligible for addition to the capital.
• Valuation for Capital in Kind:If the increase involves assets (machinery, real estate, etc.), a court-appointed expert must provide an official valuation report to determine the asset’s fair market value.

The Step-by-Step Procedure

1. Board Resolution:The management body proposes the increase and drafts the amendment for the Articles of Association.
2. General Assembly Resolution:Shareholders convene to approve the capital increase and the new share structure.
3. Financial Reporting:Our experts prepare the necessary solvency and capital payment reports required by the Trade Registry.
4. Quarter Payment (For Cash Increase):For Joint Stock Companies, at least 25% of the newly increased cash capital must be deposited into a bank account prior to registration.
5. Registration and Announcement:The final resolution is registered with the relevant Chamber of Commerce and announced in the Official Gazette.

Scale your business with a solid financial foundation. Contact Atlas Global Audit & Accounting for expert consultancy on capital restructuring.