REGULATORY UPDATE – Regulation on Associations

Amendments have been made in the Regulation on Associations, effective from 21.10.2021.

The regulations included in the Amendments to the Regulation on Associations are summarized below.

1. It has been regulated that general assembly and board of directors meetings can be held electronically. The procedures of the meetings have been regulated as well. 

 2. The periods of notification for the general assembly, provident fund activities, place of residence and bylaw changes made by the association were increased from 30 days to 45 days.

3. The notifications, procedures and principles of aid received from abroad and sent abroad, money sent (from Turkey) to the headquarters or branches of foreign associations, and aid to be made – without the intermediary of financial institutions – to countries where financial access is difficult, were regulated.

4. Amendments have been made in the annexes of the regulation regulating the notifications to be made and new annexes have been added.

5. The annual gross income lower limit for the associations that will keep books on the balance sheet basis has been increased from 500,000-TL to 1,500,000-TL.

6. It has been regulated that the president of the association, by the decision of the board of directors, may authorize the persons responsible for the administrative and financial transactions of the association to access the Associations Information System (DERBIS), limited to their areas of duty. However, it has also been regulated that even in this case, the responsibility of the president remains and would not be absolved.

As of 21.10.2021:

– In-kind and cash donations received from abroad to the Association (in Turkey) will be reported to the Governor’s Office by filling out the Annex-4A form. Notification must be made at the latest on the date the donation is used. This form is essentially identical to the Annex-4 which was used previously.

– In case of sending cash or in-kind aid (to) abroad by the Association (in Turkey), a notification will be made to the Governor’s Office by filling out the Annex-4B form, latest on the day the funds or in-kind donations are sent. Notification regarding multiple cash or in-kind transfers made to abroad on different dates within the scope of a particular project can be made under a single notification to the Governor’s office.

– After the aid is sent abroad, Annex-4C activity result notification form should be filled in at the latest within 90 days, to declare how the aid is used abroad. This declaration will be made to the Governor’s Office.

For more information please do not hesitate to contact us.