Istanbul * İzmir * Ankara
• FINANCIAL LEASING COMPANIES AND
• FACTORING COMPANIES AND
• FINANCE COMPANIES
Purpose: The purpose of the law is to regulate the establishment and operations of financial
leasing companies, factoring companies and finance companies.
Scope: Financial leasing companies, factoring companies and finance companies will carry out
their operations in accordance with this law.
Banks: This law shall not be applicable to banks.
Financial leasing transactions by participation banks, development banks and investment banks
shall be governed by this law.
Leasing of activities by financial leasing companies shall not fall under this law.
Provisions of the Law on Financial Leasing of Residences, No. 5582 regarding the financial
leasing of residences are reserved.
For those matters that are not regulated under this law, general principles of law will be
Permission for Establishment and Operation: Two permissions The Banking Regulation and
Supervision Board (“Board”) is the authority to grant permissions both for establishing financial
leasing companies, factoring companies and finance companies, and for the operation of these
companies. Applicant gets an answer within three months upon application. Any discrepencies
must be completed within six mothhs; otherwise, the application shall be deemed void. The
permission for operation must be requested within six months upon the permission for
Conditions: The following are ‘must’s for establishing a company:
in a form of a joint stock company,
• bearer share certificates against cash,
• only qualified founders as set forth in the law,
• minimum YTL 55 million (approximately USD 50 million, EURO 32 million)
paid up capital,
• articles of association compliant with this law.
transperant shareholders composition to allow effective auditing.
Amendments of article