Providing information on a variety of legal topics that foreign investors take into consideration during the investment process, such as; protection of foreign investment, business structures under Turkish law, labor law, property rights, access to finance and insurance, environmental law, competition law, public procurement regime, protection of personal data.
We assist individuals and organizations wishing to invest in Turkey by providing information on the legal environment related to foreign investment & foreigners Law.
Protecting your interests
If you are interested in foreign investment in Turkey, one of our lawyers can help you to navigate the complex process involved and work to protect your interests throughout. Investment, business, and corporate law all differ greatly from country to country and having legal counsel that is familiar with those of that of Turkey is vital to make intelligent investments. Turkish law defines certain regulations that must be followed, restrictions that must be addressed creatively as needed, and opportunities that may be missed if they remain unknown.
The legal team at Bıçak will take the time to answer your questions and explain the legal issues surrounding your potential investment. We can advise as to your options for approaching the investment and the advantages and disadvantages of each. Our knowledge also covers the acquisition of property and how the title may be held in the most intelligent and tax-advisable way. We can assist with any related contracts and can offer foreign corporation representation in Turkey. As needed, we consult with appraisers and other professionals to ensure you have the information you need and we work with clients nationwide and worldwide.
Whether you are considering a particular investment or need assistance finding an investment that satisfies your needs, we can help. Our law firm can provide a comprehensive appraisal of potential investments and help you make strategic decisions about your future. Unlike certain agents that involved in the investment process, we have no vested financial interest in your transactions so are able to give objective and trustworthy advice. If your investment goals require you to be further established with your own business and in Turkey, we can guide you in matters of business development as well as immigration/naturalization.
Specialist legal advice
We provide specialist legal advice to foreign clients acquiring, managing or divesting Turkey investments. We have expert knowledge of Turkey’s regulatory framework, and a wealth of experience with foreign investment proposals across a wide range of industry sectors including energy and resources, real estate, infrastructure, manufacturing, agribusiness and financial services.
We are privileged to be Turkish counsel to leading overseas law firms and multinational clients on their Turkey transactions and trading activities, as well the management of disputes arising in Turkey. Regardless of time zones, our partners and lawyers are available to meet your requirements.
We maintain non-exclusive relationships with law firms throughout the world. We independently represent referrer firms looking for high quality and dependable legal representation in Turkey. We work closely with major foreign law firms to meet the needs of multinational corporations operating in Turkey, as well as Turkish enterprises with international operations.
Globalization & Legal Protection
Over the past twenty years, global flows of foreign direct investment have increased at an astounding annual growth rate of over 25 percent. Multinational corporations and their overseas investment activities have become an immensely important, but often contentious, aspect of globalization.
In order to ensure the attraction of foreign direct investment and capital flows, a large network of investment treaties and customary international law obligations has been developed for the legal protection of international investments. Investment treaties also provide an additional layer of protection by empowering foreign investors to bring investment claims against Turkey for breaches of international law.
Our services consists of providind information on a variety of legal topics that investors take into consideration during the investment process, such as;
- protection of foreign investment
- business structures under Turkish law
- labor law
- property rights
- access to finance and insurance
- environmental law
- competition law
- public procurement regime
- protection of personal data.
Foreign direct investment
International treaties, the FDI Law and the Regulation on the Implementation of the FDI Law are the main legal sources governing foreign direct investment in Turkey. The FDI Law, which entered into force on 17 July 2003, has brought extensive changes in favour of foreign investors and liberated the foreign investment climate by, in particular, abolishing the approval system and introducing a more liberal system based on the principles of equal treatment and the free expatriation of proceeds.
Prior to the FDI Law, investors were required to obtain prior written consent of the Undersecreteriat of Treasury to establish a company, acquire shares in an existing company and/or open a branch or liaison oice. Increase of share capital and change in the scope of activity or shareholding structures were also subject to prior written consent of the Undersecreteriat of Treasury.
Under the FDI Law, investors are only required to notify the Ministry of Treasury and Finance of their investment (e.g. greenield investment, share transfer or otherwise) and the amount of foreign capital brought to Turkey, except for opening a liaison oice which is subject to the prior written consent of the Ministry of Industry and Technology.
On June 1, 2018, new requirements have been introduced regarding the notiication to the Ministry. Accordingly, companies with foreign shareholders are now required to register certain information (such as shareholding structure, share transfers and/ or increase or decrease of the share capital) on an online platform, namely the Electronic Incentive Application and Foreign Investment Information System (E-TUYS).
The FDI Law also introduced some other principles which are vital for fostering a successful foreign investment environment such as the freedom to invest, valuation of non-cash capital and the employment of foreign personnel. Foreign investors can freely establish an entity, open a branch and/or acquire shares of an existing company1 and conclude know-how/technical assistance agreements with domestic companies.
Under the FDI Law, companies with foreign shareholding which are established in line with the Turkish Commercial Code are treated equally to companies with local shareholding. In line with this principle, foreign investors may establish a company with 100% foreign shareholding or acquire all of the shares of an existing Turkish company.
However, exceptions to this equal treatment principle exist, including for acquisitions by companies with foreign shareholding of real property in Turkey. There are also restrictions on investment in certain strategic sectors such as TV broadcasting, maritime and civil aviation by companies with foreign shareholding.
Employing foreign staff
Also, we provide consultancy and legal support services to companies employing foreign staff as well as to foreign individuals in Turkey.
What “legislation regarding foreigners” mainly deal with is to determine and protect of foreigners’ rights, which are different from those of the citizens. The fact of being a foreigner usually strike to most people when they visit another country for various purposes (short stay, work, study, reside). Obtaining all necessary information about the domestic rules of the host country is not possible despite even today’s available communication means. Therefore, unknown details and different practices can cause serious problems for foreigners.
On the other hand, it is obvious that the legal status of foreigners is more fragile than that of the citizens. Citizenship, which denotes legal and constitutional loyalty to a country, bestows guaranteed rights in all states. For foreigners, the use of rights in the destination country depends on the fulfillment of certain rules.
In Turkey, there have been some favorable amendments, like in other areas, in legislation for foreigners taking the changing conditions and necessities emerging recently into consideration. On 11.04.2014, Law No. 6458 on Foreigners and International Protection entered into force. Then, issues such as entry in Turkey, short or long stay therein, education, revocation of residence permit, have been laid on legal framework and the establishment of effective objection mechanisms against the decisions of the administration have been envisaged.
With the Law on International Labor Force numbered 6735 coming into force, the procedures and principles of work permit for foreigners in Turkey have been determined and improvements have been made in related laws. Additionally, some new rules have entered into force about evaluation of the rules with regard to obtaining real estate and property in Turkey.
Within the framework of the developing conditions and emerging needs, we feel obliged to expand the range of our legal services. Our priorities are to facilitate the obligatory procedures regarding foreigners who want to visit Turkey and who currently are in Turkey, to ensure full enjoyment of the granted rights, and to contribute to the improvement of the facilities and services provided by Turkey to foreigners.
Contact Attorneys of Bıçak Law Firm for guidance regarding foreign investment in Turkey.
We have a brochure attached to the letter with detailed information on the topics mentioned above. We will be glad if you contact us to avail of our services and find out more information about them.