3DEFINITION OF “COMMERCIAL ENTERPRISE” Concept of “commercial enterprise” DEFINEDNeither in the Turkish Commercial Code (TCC)Nor in the Register of Commerce RegulationIndirect definition in Article 14 of RegulationConcept of “commercial enterprise” DEFINEDin New Turkish Commercial Code (NTCC)CURRENT TURKISH COMMERCIAL CODE NO 6762NEW TURKISH COMMERCIAL CODE NO 6102
4DEFINITION Article 11 of New Turkish Commercial Code (NTCC) “An enterprise that will be operated permanently and independently aiming to generate income which exceeds the limit prescribed for the craftsman enterprises.”
5ELEMENTS OF “COMMERCIAL ENTERPRISE” There are four components of commercial enterprise:Economic activity- It must be “generate income oriented”It must be continuousIt must be independentIts scope must exceed the craftman’s scope of activities
6ELEMENTS: 1-Economic Activity The main purpose and objective of commercial enterprise must be to generate income.What should be taken into consideration?Purpose/Intention of the entrepreneur is of importanceResult is not of importance (to profit or to lose money).
7ELEMENTS: 2-Continuity Commercial enterprise must have been established to operate continuously (not temprorary or fortuitous).What should be taken into consideration?Intention and nature of the undertakingDisruption of the operation?Periodical activities?Running school buses for the students during the periods when the schools are openOperating hotels in winter
8Question- Is it a commercial enterprise? Why? A bookstore makes a loss.A company spents his profit to poor personA drugstore established for distribution of free medicineA bakery operating by MunicipalityA bakery operating by a doctor (self-employed person)A restaurant services only the school time.The Kemeraltı branch of Garanti Bank A.ŞTHY Kadıköy AgencyDormitory operated by Charity House earnes moneyA has 30 concert tickets and sells and earns moneyManufacturing center of X Textile Export-Import Lımıted Liability Company
9ELEMENTS: 3-Independency The organisation must be independent from any otherIndependency for entrepreneur& enterpriseWorkers?Branches?
10ELEMENTS:4- Exceeding of the craftman’s scope of activities Distinction concernig whether an enterprise is a commercial enterprise or craftsman enterprise shall be made according to the Council of Ministers DecreeCurrently such kind of decree is not be publishedUntil its publication legislation in effect shall be applied ( Decision No: 2007/ Official Gazette , S )Takes place in the craftsmen and artisans groupEconomic activity depends on capital and physical activityEarning is below the amount for merchantexempted from income taxBasic method application of income tax (Commercial earnings acquired on simple earnings basis, represents the positive difference between the revenues generated and the expenses incurred and the acquisition costs of the goods sold within one account period.)