COMMERCIAL ENTERPRISE Week 2 Dr. Özlem Döğerlioğlu Işıksungur Spring

Capital Labor Entrepreneur Organisation Specific purpose ENTERPRISE

Article 11 of TCC ▫“An enterprise that will be operated permanently and independently aiming to generate income which exceeds the limit prescribed for the craftsman enterprises.” DEFINITION

Types of Enterprises Small size enterprises Middle size enterprises Large size enterprises Craftsman enterprises are not accepted as commercial enterprise.

COMMERCIAL ENTERPISE The person who operates the commercial enterprise, in principal, MERCHANT Affairs related to Commercial Enterprise, Commercial Affair Commercial Provisions are applied to Commercial Affairs The case is “commercial case” if it is concerning both parties’ enterprises Application of commercial customs for the commercial affairs Commercial Interest for the Commercial Affairs. First: Check whether there is a “commercial enterprise or not” If the answer is yes, then above mentioned results

There are four components of commercial enterprise: ▫Economic activity-  It must be “generate income oriented” ▫It must be continuous ▫It must be independent ▫Its scope must exceed the craftman’s scope of activities ELEMENTS OF “COMMERCIAL ENTERPRISE”

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 importance ▫Result is not of importance (to profit or to lose money). ▫Way of income spending is not of importance ▫Legal status of the person who operates enterprise is not of importance  Municipality/Doctor/Engineer ELEMENTS: 1-Economic Activity

Commercial enterprise must have been established to operate continuously (not temprorary or fortuitous). What should be taken into consideration? ▫Intention and nature of the undertaking Disruption of the operation? Periodical activities?  Running school buses for the students during the periods when the schools are open  Operating hotels in winter ELEMENTS: 2-Continuity

The organisation must be independent from any other Independency for entrepreneur& enterprise Branches? Agency? ELEMENTS: 3-Independency

Distinction concernig whether an enterprise is a commercial enterprise or craftsman enterprise shall be made according to the Council of Ministers Decree Currently such kind of decree is not be published Until its publication, legislation in effect shall be applied ( Decision No: 2007/ Official Gazette , S ) ▫Takes place in the craftsmen and artisans group ▫Economic activity depends on capital and physical activity ▫Earning is below the amount for merchant ▫exempted from income tax ▫Basic 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.) ELEMENTS:4- Exceeding of the craftman’s scope of activities

Article 15 of TCC Craftman

A bookstore makes a loss. A company spents his profit to poor person A drugstore established for distribution of free medicine A bakery operating by Municipality A bakery operating by a doctor (self-employed person) A restaurant services only during the school time. The Kemeraltı branch of Garanti Bank A.Ş Turkish Airlines Kadıköy Agency Dormitory operated by Charity House earnes money X has 30 concert tickets and sells and earns money Manufacturing center of X Textile Export-Import Lımıted Liability Company Question- Is it a commercial enterprise? Why?