Turkey continues to be an attractive destination for foreign investors with its strategic location, developing economy, and investment opportunities in various sectors. However, as in every country, there are specific legal frameworks and procedures that foreign investors should know when investing in Turkey. In this article, we will discuss the basic legal information and important points for foreign investors considering investing in Turkey.
Foreign Investment Legislation in Turkey
Foreign investments in Turkey are regulated under the Foreign Direct Investment Law No. 4875. This law has adopted the principle of equal treatment for foreign investors and aims to facilitate investment processes. Under this law:
- Foreign investors have the same rights and obligations as Turkish citizens
- – Compensation based on real value is guaranteed in case of expropriation or nationalization of investments
- – The transfer of profits, dividends, sales proceeds, etc. abroad is free
- – The right to resort to international arbitration mechanisms in case of disputes is recognized
This legal framework provides confidence to foreign investors and makes Turkey more attractive in terms of investment.
Company Establishment Processes
The most common types of companies for foreign investors in Turkey are limited liability companies and joint-stock companies. Both types of companies have their own advantages and legal requirements.
Limited Liability Company
- Can be established with at least one partner
- – Minimum capital requirement is 10,000 TL
- – Partners’ liability is limited to the capital they contribute
- – Establishment and operating costs are lower compared to joint-stock companies
- – Management structure is simpler
Joint-Stock Company
- Can be established with at least one partner
- – Minimpportunities for foreign investors. However, there are some restrictions on foreigners’ acquisition of real estate:
- – Foreign real persons can acquire a maximum of 30 hectares of real estate throughout the country
- – The total area that foreigners can acquire in a district cannot exceed 10% of the district’s area
- – Real estate sales to foreigners cannot be made in military forbidden zones and security zones
- – There may be restrictions in some strategic regions uum capital requirement is 50,000 TL
- – Can issue shares and be traded on the stock exchange
- – Has a more complex management structure (board of directors, general assembly)
- – More suitable for large-scale investments and projects
If you are considering investing in Turkey or looking for legal support for your existing investments, we are here to offer the most suitable solutions for you.
The company establishment process includes steps such as application to the trade registry office, notary procedures, and tax office registration. Getting professional legal support in this process will ensure that the transactions are completed correctly and quickly.
Real Estate Investments
The real estate sector in Turkey offers significant o
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