New Communique On Signing Articles Of Association Before Trade Registries

Following the entry into force of the Law Introducing Several Amendments in Different Laws to Improve the Investment Environment in August 2016, the Communique Regarding the Signing of the Articles of Association Before the Trade Registries was published in the Official Gazette on December 6 2016 and entered into force on that date.

In order to boost the markets and help investors, the amendment law introduced certain amendments to the Turkish Commercial Code to expedite the company incorporation procedure and reduce the related notary public costs.

Before the amendments, some of the incorporation documents, including the articles of association and statement of signature, were subject to the approval of the notary public. According to the amendment law, these documents can also be signed and executed directly before the trade registries without having to be approved by the notary public. In this context, the communique was published in order to set out the procedures to be followed when incorporation documents are signed or executed before the trade registries.

The communique also states that the service fee to be charged for the following cannot exceed 10% of the minimum wage:

• the signing of the articles of association;
• a declaration of correction;
• a declaration of intention;
• a statement of signature; and
• the registration of the articles of association.

Both the amendment law and the communique reduced the notary public costs which incur at the time of incorporation of the company.

This article aims to endow the reader with a general outline about its subject matter. Each individual case should be evaluated according to its circumstances.