The draft law submitted to the Turkish Grand National Assembly on 5 May 2026 (the “Draft Law”) introduces new regulations and exemptions for technology and startup companies.
The Ministry of Industry and Technology grants a “tech-startup badge” to companies deemed to be technology and innovation-focused ventures. Under the Draft Law, it is proposed that, for private companies holding a tech-startup badge, the provisions of the Turkish Commercial Code No. 6102 regarding conditional capital increases will not apply to conditional capital increases carried out based on convertible debt instruments. Instead, the procedures and principles governing such conditional capital increases will be determined by the Ministry of Industry and Technology.
Additionally, it is proposed that companies established and operated in accordance with the “Digital Company” criteria to be determined by the Ministry of Industry and Technology, and founded by entrepreneurs who qualify as incubatees under Law No. 4691 on Technology Development Zones, will be exempt from chamber registration fees and, for up to three years during their operational period, from annual chamber membership dues.
These new regulations aim to facilitate investment in technology and innovation-driven startups through convertible debt instruments and to ease the financial burden they face during their early-stage growth.
