Capitalization of Receivables as Capital in Kind

Article 343 of the Turkish Commercial Code provides that the value of the assets that are capitalized as capital-in-kind in an equity company, as well as the businesses or property that are taken over by the company during incorporation should be determined by experts to be appointed by a court of first instance located in the place where the company headquarters is located. This requirement to obtain a court of first instance decision regarding capitalization of the company shareholders' receivables as capital in kind imposes extra procedural burdens in practice. The memorandum by the Directorate of Domestic Trade of the Ministry of Customs and Trade, dated 27.09.2013 and No.50035491.449.7326, on "Capitalization of Receivables as Capital in Kind" provides clarification on the said matter. The memorandum by the Ministry of Customs and Trade provides the following;

  1. In cases where a receivable of a shareholder from a third party will be capitalized into company subject to a capital increase, the report prepared by experts to be appointed by a Commercial Court of First Instance should be submitted to the registrar,

  2. In cases where a receivable of a shareholder from the company subject to capital increase will be capitalized, either the report prepared by experts to be appointed by a Commercial Court of First Instance or the report prepared by a Certified Accountant or Certified Public Accountant or, for companies subject to audit, an auditor may be submitted to the registrar.

Thus, in cases where a receivable of a shareholder from the company subject to capital increase will be capitalized, the option to submit either the report prepared by experts to be appointed by a Commercial Court of First Instance or the report prepared by a Certified Accountant or Certified Public Accountant or, for companies subject to audit, an auditor offers procedural convenience in commercial life.

Önemli Duyurular
Güncel Duyurular
Arşiv

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