1E9Ct5D

BUSINESS STRUCTURES IN TURKEYThere have been recent reforms in respect of business structures following the New TurkishCommercial Code (“New TCC”) coming into force on 1 st July 2012.The New TCC brings in some very important changes. It is designed to achieve thefollowing:• increase competitive power;• establish public confidence in corporate entities; and• bring about greater transparency and accountability.Furthermore, the New TCC aims to meet Turkey’s long and short-term needs by regulatingcommercial issues in line with the changing local and global business environment,improve investor confidence, and by creating more efficient legal institutions andmechanisms. These developments will in turn enable Turkey to function better as a moredynamic member of the international community of trading nations.Among others the New TCC has brought in many novelties in the corporate governance ofTurkish legal entities. As a result establishment is easier and restructuring procedures aresimpler. Limited Liability Companies and Joint Stock Companies will enjoy many commonbenefits stipulated under New TCC.In light of the New TCC, we set out below the principal options currently available forforeigners establishing businesses in Turkey.Joint Stock CompanyThe main features of Joint Stock Company (“AS” or “JSC”) structure is as follows:i) The initial capital amount for a JSC must be minimum 50,000.00 TL (Turkish Liras). It isalso obligatory to deposit ¼ of the capital before registration into a bank accountopened for the company in the incorporation process. The remaining amount mustbe paid within twenty four (24) months following the incorporation. Real estates andother assets including intellectual property rights and virtual platforms can besubscribed as capital-in-kind. Any cash payments must be made to an account of abank established in Turkey.ii)With the new Turkish Commercial Code a JSC may be incorporated with a singleshareholder. The minimum number of board of directors for JSCs is one.3