What has changed in the process of establishing a company in Turkey with foreign capital?

AMENDMENTS TO THE FOREIGN INVESTMENT LAW

By the latest amendments to the law, foreign investors are given the same rights and facilities as local investors. Also the foreign investors can establish all types of companies as in the Turkish Commercial Code.

Most important changes to the law are:

-No need to invest an amount of $ 50.000 per shareholder of a Company

-No preliminary permits to be received by the Ministry of Treasury

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Real persons with foreign country citizenship and foreign Companies which are located outside of Turkey, can join to an already established Turkish Company by bringing capital to the Company.

Foreign investors can transfer the net profit arising from the activities and operations in Turkey. Also the earnings arising from dividends, sales, liquidation and compensation rates, licensing, management, and similar agreements can be transferred abroad via banks or private financial institutions.

EQUAL TREATMENT PRINCIPLE

Companies to be established by foreign investment are pursuant to the “equal treatment principle” provided by law, they shall be subject to the provisions in the Turkish Commercial Code and in the Code of Obligations as the same with local companies. According to the Turkish Commercial Code, types of Companies are; collective company, commandite company, cooperative company, limited liability company and joint stock company. Limited Liability Company and Joint Stock Company are mostly preferred.

The growth and investments are generally aimed at the corporations, it is preferred to establish the corporation as a joint stock company because foreign investment is a more institutional structure. Establishment procedures of Limited or Joint Stock Companies to be established with foreign partnership or foreign direct investment are not mainly separated in terms of the incorporation procedures provided for in the Turkish Commercial Code. However, additional documents and processes are in operation for real or legal person-partner, who are foreign nationals.

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