Contribution of Receivables as Capital

Capital is what shareholders contribute to enable a company to be formed and to continue operating. Under the Turkish Commercial Code, capital may consist not only of cash but also of other assets that can be transferred and valued in money. Our Turkish article examines whether and how a receivable can be contributed as capital.

The article explains the concepts of capital and receivable, the expert valuation required when a receivable is contributed in kind, the prohibition on contributing receivables that are not yet due, and the elements of a receivable that cannot be contributed as capital.

It then addresses the use of receivables in capital increases, a method frequently used in practice, for example where shareholders convert amounts owed to them by the company into capital.

As these transactions are subject to valuation and registration requirements, they should be planned with the company's financial position in mind.

This is a short English summary of our article published in Turkish.