Critical warning from Prof. Dr. Duran Bülbül: 'Capital increase is correct but insufficient'

12punto.com.tr

According to the decision published in the Official Gazette, in accordance with the relevant provision of the Turkish Commercial Code, the minimum capital amount stipulated as 50 thousand liras for joint-stock companies has been increased to 250 thousand liras, and the minimum initial capital amount stipulated as 100 thousand liras for non-public joint-stock companies that have adopted the registered capital system has been increased to 500 thousand liras.

The minimum capital amount stipulated as 10 thousand liras for limited liability companies has been increased to 50 thousand liras.

Economist Prof. Dr. Duran Bülbül evaluated the increase in the minimum capital amounts for joint-stock and limited liability companies.

'A NEW SME DEFINITION AND SCALE MUST BE ESTABLISHED'

Bülbül stated, "The capital increase for the establishment of these companies is correct but insufficient. 99 percent of the commercial companies established in Turkey fall outside the international SME definition. A new SME definition and scale suitable for our country's conditions must be established.

It is also a fact that many shell companies receive million-TL tenders and loans, only to disappear after a while. Or, the real owners of a significant portion of these companies are other individuals. This leads to the waste of public resources and corruption," he said.