Introduction: Can a Foreign Investor Establish a Joint Venture in Turkey? Yes. Foreign investors can establish joint ventures with Turkish companies, Turkish individuals or other foreign investors, and joint ventures are widely used in Turkey for manufacturing, infrastructure, construction, energy, technology, real estate, healthcare, distribution, defence-related projects and other strategic investments. Turkey’s foreign direct investment […]
Introduction: Should a Foreign Investor Buy the Shares or the Assets of a Turkish Company? A foreign investor planning to acquire a business in Turkey usually faces one of the most important decisions in the transaction at a very early stage: Should we buy the shares of the Turkish company, or should we buy only […]
Introduction: Does a Foreign Buyer Become Liable for the Turkish Company’s Old Tax and SGK Debts? A foreign company considering the acquisition of a Turkish business should investigate one issue before almost everything else: Who will ultimately bear the target company’s historical tax and Social Security Institution (SGK) liabilities after closing? The answer depends primarily […]
Introduction: Does Becoming a Shareholder in a Turkish Company Automatically Require a Work Permit? No. A foreign person does not automatically need a Turkish work permit merely because they acquire shares in a Turkish company. This distinction is extremely important for foreign investors. Turkish law separates: ownership of a company from working for or actively […]
Introduction: Can Foreigners Buy or Transfer Shares in a Turkish Company? Yes. Foreign individuals and foreign companies may generally acquire shares in companies established in Turkey and may subsequently transfer those shares to Turkish or foreign investors. Turkey’s foreign direct investment regime is based on the principle of equal treatment. The official Investment Office confirms […]
International Contracts Law Introduction In the modern marketplace, with the rapid growth of the globalized economy, regulating commercial relationships between parties from different legal jurisdictions has become a critical necessity. For an agreement to be classified as an international contract, it must contain at least one international element. The existence of conflicting legal regimes necessitates […]
A foreign investor contributes EUR 2 million to a Turkish startup and receives 20% of the company. One year later, the founders decide that the company needs additional capital. New shares are issued. The foreign investor does not participate. Its ownership falls from: 20% to 12%. Has the investor been unlawfully diluted? Not necessarily. Share […]
SEO Title: How Can Foreign Investors Protect Minority Shares in a Turkish Startup? Meta Description: Foreign minority investor in a Turkish startup? Learn how to protect your investment through board rights, vetoes, information rights, pre-emption, anti-dilution, special audit, tag-along and legal remedies under Turkish law. Suggested URL Slug: protect-minority-shareholding-turkish-startup A foreign investor does not need […]
A foreign investor may enter a Turkish startup or privately held company based not only on its revenue but also on the assets, intellectual property, customer relationships, employees, licences, contracts and business infrastructure held by that company. A serious problem may arise when, shortly before the investor’s planned exit, the founders begin transferring those assets […]
A Practical Legal Guide to Share Dilution, Pre-Emptive Rights and Minority Shareholder Protection Under Turkish LawLast Updated: August 2026 A foreign investor may acquire 10%, 20%, 30% or even 49% of a Turkish company and reasonably expect that percentage to represent its continuing economic and voting position. However, one of the most significant risks faced […]