Intellectual Property Rights As Capital In Kind

Introduction

Shareholders may contribute capital to their companies in cash or in kind. Capital in cash can be subscribed and paid in Turkish Liras, whereas capital in kind can be formed from different items. Any appraisable and transferrable assets that are not subject to encumbrances, attachments or measures can be contributed as capital in kind.

Types of Capital in Kind

Article 127 of the Turkish Commercial Code¹ ("TCC") specifies the assets that can be contributed as capital as follows:

1. Cash, receivables, negotiable instruments and shares belonging to commercial companies² ,
2. Intellectual property rights,
3. Movables and any type of immovable,
4. Usufruct rights pertaining to movable and immovable properties,