Turkey's Minimum Capital Deadline: Why 31 December 2026 Should Be on Your Calendar Now

There is a date that affects hundreds of thousands of Turkish companies and that almost everyone has pushed to the back of their mind. Joint stock companies with capital below TRY 250,000, and limited liability companies below TRY 50,000, must raise their capital to those figures by 31 December 2026.

The point of this article is not to remind you of a deadline. It is this: planned properly, an obligation you have to meet anyway turns into a tax deduction that runs for years. The difference between doing it now and doing it in the last week of December is spread across five accounting periods.

What the rule actually says

From the start of 2024 the minimum capital figures for newly formed companies went up: TRY 250,000 for an Anonim Şirket (A.Ş.) and TRY 50,000 for a Limited Şirket (Ltd. Şti.). Companies formed earlier, still carrying the old figures, were given a transition period by a provisional article added to the Turkish Commercial Code: 31 December 2026.

A company that has not increased its capital by then is deemed dissolved by operation of law. That sounds severe, and in practice it means the company can no longer carry out its ordinary business at the registry and is steered into liquidation. Not a position any operating company wants — which is why this belongs on a calendar rather than in a panic.

The legislator also made the mechanics easier: no quorum is required at the general assembly held for this increase, and the resolution can be passed by a majority of the votes present. Even companies with scattered shareholders can get it done.

The Ministry of Trade has the power to extend the period, but no extension has been announced. Planning against the current calendar is the sound approach.

The companies sitting on the shelf

The quiet audience for this deadline is the dormant company — the one that has had no real activity for years but was never closed, whose books drag along and whose returns go in empty. For those owners, 31 December 2026 is really a decision date: if the company is going to live, top up the capital; if it is not, close it through an orderly liquidation. Doing neither and waiting is the least manageable outcome. If you have a company in that state, the decision belongs in this year.

How the capital is topped up

There are three routes. The shareholders put new cash into the company. Retained earnings and reserves already sitting on the balance sheet are capitalised. Or a combination of the two.

Capitalising internal resources is the practical answer for a company that has accumulated profit, because no cash has to leave anyone’s pocket. But the route that opens the tax opportunity is the cash increase. That is where the two diverge.

The part most people miss: the deduction on cash capital

The Corporate Tax Law has carried an incentive since 2015 that is still in force: the cash capital increase deduction. The logic is simple. A company that finances itself with debt can deduct the interest; this provision grants a comparable deduction to cash put in by shareholders, rewarding growth funded by equity rather than borrowing.

A deduction is computed on the capital increased in cash, based on the commercial loan rate announced by the Central Bank, and half of that figure is deducted from the corporate tax base. Where the capital is met with cash brought in from abroad, the rate is higher still. And the deduction is not a one-off: it is recalculated and used every year for five accounting periods including the year of the increase. In a year where profit is not sufficient to absorb it, the unused amount is not lost — it carries forward.

In the current interest rate environment, this is not a symbolic figure. An increase you have to make anyway can become a line that pulls your tax base down for five years.

One detail deserves care: the deduction exists for genuinely new cash that leaves your pocket and enters the company’s account. Converting old shareholder loans into capital, or increasing from internal resources, meets the legal obligation but falls outside the deduction. In other words, the channel you use to put in the same amount changes the tax you pay over the next five years.

Not only tax: how the balance sheet reads

There is a second, quieter return that has nothing to do with tax. Strong capital is one of the first lines banks and financial institutions look at. From credit limits to collateral terms, from a leasing application to the payment terms suppliers will offer, a company with solid equity sits down at those tables on better terms.

A limited company that has shown TRY 10,000 of capital for years leaves a question mark on the other side of the desk, whatever its turnover. Bringing the capital to a realistic level removes that question mark. The 31 December 2026 obligation can therefore be read as an investment in the company’s financial standing as much as a compliance item.

Sequence matters: plan first, then decide

The picture is clear. The increase is happening either way; the question is how. A company that leaves it to the last week usually takes the most convenient route, converting whatever balances are to hand and getting through the day. The obligation is met and the deduction is missed. A company that plans now decides how much of the increase to make in cash, how much from internal resources, and which accounting period the timing should fall into.

There is a practical reality too: this requires a general assembly resolution, a bank transaction and a registry filing. Year-end is the busiest period for notaries and registry directorates. Waiting for the last quarter of 2026 compresses both the process and the planning.

In short: 31 December 2026 is a planning date, not a threat. Putting this on the table once over the coming months is enough to meet the obligation comfortably, avoid missing the deduction the state is offering, and strengthen how your balance sheet reads to financial institutions.

Working out the numbers

If you want to see what corporate tax looks like on your profit before and after planning, the corporate tax calculator runs the standard 25% rate along with the quarterly advance tax instalment. If you are still deciding between the two company types, the LLC or JSC decision quiz covers the capital difference alongside the liability and exit questions.

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This article is general information, not legal or tax advice. Consult a licensed professional for your specific situation.