Commercial enterprise
An economic unit operated independently and on a continuous basis, aiming at an income level that exceeds the scale of an artisan business.
All termsA commercial enterprise (ticari işletme) is the core concept of Turkish commercial law: a business operated continuously and independently, aiming at an income exceeding the threshold set for artisan businesses. Merchant status is built upon this concept.
Classification as a commercial enterprise has significant consequences. It confers merchant status on the owner, makes transactions related to the business commercial in nature and brings disputes within the scope of commercial litigation. The enterprise, together with its trade name, goodwill and customer base, may be transferred or pledged as a whole.
Upon transfer, debts of the enterprise pass to the transferee unless otherwise agreed and announced. Business transfers therefore carry important consequences for creditors and buyers alike.
Statutory basis
- TTK m.11
The glossary is provided for information only and does not constitute legal advice. What a term means in a specific case depends on the details of the file.