Open menu

Required Documentation for Capital Amount Reductions for LLC Companies

1. Petition to the Trade Registry Office

2. Resolution of the shareholders’ assembly (1 notarized copy) (Should be obtained in 2 months following the 3rd publication and should be arranged to reflect that a change in the capital amount will take place)

3. Amendment draft (3 copies – containing the original content and amended items –Signed by the partner and stamped)

4. The official trade registry gazette in which the invitations were published

5. Assignment letter of an expert by the court, and a report prepared by three experts in cooperation, and the court decision to appoint an expert (original)

6. A list of payables signed by the managers that contains the amounts of the liabilities, the full names and trade names associated with those liabilities. In addition to the list, notarized receipts of payments made towards debts with related signatures

7. Notarized and signed letter of consent for deferred payables (termed, not yet due)

8. Receipts of payments made towards loans (showing that the debt payments have been made)

9. A share table of shareholders in accordance with the Turkish Commercial Code 519 and article 71 of the Commercial Registry Regulations

Important Notes:

*** A report prepared by a committee of three court appointed (trade court located at the place of the company headquarters) experts must show that assets are sufficient to meet liabilities. The articles of association will be amended to reflect the lowering of the capital amount and will be decided upon as such.

*** The call to collect payables is to be published 3 times in the official trade registry gazette. A declaration of liabilities is to be made 2 months after the 3rd publication. Payment or guarantees will be notified, the known creditors will be sent a request to collect letter. Registration applications at the Trade Registry Authority for the lower capital level are to be made 2 months after the publication of the 3rd gazette.

*** At no time can the capital amount be lowered to a level below the minimum capital amount set by legislation.

*** The request for the reduction of the capital amount can only be made if; 2 months after the 3rd publication of the official trade registry gazette related to the call to collect payables has been made, the related articles of association have been altered to reflect the lower capital amount, invitation to collect accounts payable has been made, a list signed by the administration containing all payables which contains amounts and the persons and trade names of those to be paid, overdue payments have been completed or have been guaranteed with documentation stating the fact.

Posted in Taxation Law, Turkish Commercial Code

  • Notification!

    Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.

    Please consult your client representative if you are a customer of CottGroup® or consult a relevant party or an expert prior to taking any action in regards to the above content.

This website is using cookies.
In this website, we use cookies to develop your user experience, obtain efficient work and track statistical data. You are agreeing to our use of cookies by browsing our website. Please review Çerezler (Cookies) page for detailed information of how we manage the cookies. This choice is valid for 30 days until you delete the cookies in your web browser.