
What does "merchant" mean?
The term "merchant," defined by the Turkish Language Association as someone engaged in trade, is further defined under the Turkish Commercial Code (TTK) as "a person who operates a commercial enterprise, even partially, in their own name." To be considered a merchant, a commercial enterprise must exist and be operated in the name of a specific person.
In commercial companies, since the company has legal personality, the business is operated in the company's name. Here, it is the company's legal entity itself, not the company managers and partners, that is considered the merchant.
Minors or persons with limited legal capacity are also considered merchants in commercial enterprises operated by their legal representatives.
Rules and Consequences of Being a Merchant
- Subject to Bankruptcy
Under the Turkish Commercial Code, merchants are subject to bankruptcy proceedings for all types of debts. - Registration in the Commercial Registry
- Room Registration
- Choosing and Using a Trade Name
- Subject to the Presumption of Commercial Transaction
- Being Subject to Commercial Customs and Practices
- Business Bookkeeping
- Act like a prudent businessman.
- Claiming Fees and Interest
- Inability to Request a Reduction in Fees and Penalties
- Issuing Invoices
- You have eight days to object to the invoice and confirmation letter.
- Making Notifications and Warnings in a Specific Way
- Enjoying Certain Facilitations While Exercising the Right to Imprisonment
Relevant Legislation
- Generally
Article 12- (1) A person who operates a commercial enterprise, even partially, in his own name is called a merchant. (2) A person who has announced to the public that he has established and opened a commercial enterprise through circulars, newspapers, radio, television and other means of announcement, or who has registered his business in the trade registry and announced the situation, is considered a merchant even if he has not actually started operating. (3) A person who conducts transactions as if he has opened a commercial enterprise, whether in his own name or as a partner in a general partnership or any other company that is not legally recognized, is liable to bona fide third parties as if he were a merchant.
It is possible. - Small and limited
Article 13- (1) The legal representative who operates a commercial enterprise on behalf of minors and persons with limited capacity is not considered a merchant. The status of merchant belongs to the represented person. However, the legal representative is liable as a merchant in terms of the application of penal provisions. Those prohibited from engaging in trade
Article 14- (1) A person who operates a commercial enterprise in violation of a prohibition arising from the law or a court decision, or without obtaining permission or approval from another person or an official authority, due to his personal circumstances or the nature of his work, or due to his profession and duties, is also considered a merchant. (2) The legal, criminal and disciplinary liability arising from the act contrary to the first paragraph is reserved. - Small business
Article 15- (1) A person whose economic activity is based more on his physical labor than on his capital, whether itinerant or fixed in a shop or in a certain place on a street, and whose income does not exceed the limit shown in the decree to be issued pursuant to the second paragraph of Article 11, and who is engaged in art or trade, is a craftsman. However, the provisions of Articles 20 and 53, which are specific to traders, and the second paragraph of Article 950 of the Turkish Civil Code also apply to them.
Supreme Court Decisions
Supreme Court of Appeals, 6th Civil Chamber, Case No. 2015/10504 E., Decision No. 2016/6048 K.
According to Article ... of the Turkish Commercial Code, "a person who operates a commercial enterprise, even partially, in their own name is called a merchant." Article ... of the same law also stipulates that "those engaged in crafts and trades whose economic activity is based more on physical labor than on monetary capital, and whose earnings are only sufficient to provide for their livelihood, are not considered merchants." Article ... of Law No. 5362 on Craftsmen and Artisans Professional Organizations defines craftsmen and artisans as those who, whether operating in a mobile or fixed location, belong to the crafts and artisan professions determined by the Coordination Board for Determining Craftsmen, Artisans, Merchants, and Industrialists; whose economic activity is based on both capital and physical labor; whose earnings are not sufficient to qualify them as merchants or industrialists; those taxed under the simplified tax system; those subject to bookkeeping based on the business account principle; and those engaged in crafts and trades who are exempt from tax. Furthermore, Article 1463 of the law, by first referring to Article ..., states that if the Council of Ministers issues a decree on this matter, no one other than those engaged in arts and crafts whose gross income is below the amount specified in that decree can be considered among the tradesmen defined in Article ... of the law, thus clearly showing the criteria by which a merchant or tradesman is determined... In this case, the court, taking into consideration the matters explained above, Whether the defendant is a merchant or not will be investigated, and if the defendant is a merchant, the interest will be calculated accordingly. ....considering that the limitations in articles 88 and 120 would not be effective, the interest should have been calculated accordingly, but the decision was made in writing without addressing this issue, therefore the judgment must be REVERSED.
12th Civil Chamber of the Supreme Court of Appeals 2017/4352 E. 2018/5512 K.
In this specific case; since the drawer and payee on the promissory note forming the basis of the claim are natural persons and there is no document in the file indicating that they are merchants, the jurisdiction clause designating the ... Courts as competent is invalid.
For detailed information on this subject, please contact our expert team. Contact page.
Here are some other studies on Commercial Law that might interest you:;
- What is a contract?
- What is the Statute of Limitations for Promissory Notes? Statute of Limitations for Bonds & Checks
- What is Force Majeure?
- The Obligation to Draft Contracts in Turkish
- Doubtful Receivables under the Tax Procedure Law
- How to Establish a Joint Stock Company?
- How to Establish a Limited Liability Company?
- What is Loading and Unloading?
- What is a commercial transaction?
- What is Unfair Competition?
- UYAP for Companies
- What are preferred shares?
- What is unjust enrichment?
- Partnership Agreement
- What is Vesting?
- The Obligation to Use Turkish Currency in Securities Sales
- General Assembly Meetings Without a Call in Limited Companies
- Penalty Clauses in Contracts
- Application for Commitment to the Competition Authority
- General Assembly in Joint Stock Companies
- Obligation to have a Ministry Representative at the General Assembly
- What is a royalty? What is a royalty agreement?
- Ultra Vires Principle
- What is the Legal Nature of Cryptocurrencies?
- Dispute the Invoice
- What is Drag Along?
- What is Tag Along?
- What is a General Partnership?
- What is a bond?
- Current Account Agreement
- What does merchant mean?
- What is Etbis?
- Check Cancellation Case
- Lifting the Corporate Veil
- What is a Stock Option?
- Exiting a Company Partnership
- Loss of Business Ledgers
- Key Points in Confidentiality Agreements
- Obligation to Bring Export Proceeds to Türkiye
- Competition Board Approval for Mergers and Acquisitions
- Board of Directors' Liability for Tax Debts

Address: Nergis Neighborhood, Girne Boulevard No: 83, Floor 2, Apartment 2, Karşıyaka, İzmir
E-mail: info@efeshukuk.com
Phone: +90 534 415 52 56
