Introduction: Can a Turkish Company Transfer Its Profits to a Foreign Shareholder? Yes. A Turkish company may lawfully distribute profits to a shareholder located abroad and transfer the resulting dividend through the Turkish banking system. Turkey’s foreign direct investment legislation expressly protects this right. Article 3 of the Foreign Direct Investment Law provides that foreign […]
Introduction: Can a Foreign Shareholder Lend Money to a Turkish Company? Yes. A foreign individual or foreign company may, subject to Turkish foreign-exchange, tax, banking and corporate rules, finance a Turkish company through a shareholder loan rather than providing all of the funding as share capital. Shareholder loans are extremely common in international corporate structures. […]
Introduction: Can a Foreign Investor Bring Money From Abroad to Establish a Company in Turkey? Yes. A foreign individual or foreign company may transfer funds from abroad to establish, capitalise or finance a Turkish company. Turkey’s foreign direct investment regime is based on the principles of freedom to invest and equal treatment. Unless a special […]
Introduction: What Happens When a Foreign Investor and Turkish Business Partner Fall Out? A foreign investor may enter the Turkish market through a joint venture or by establishing a company together with a Turkish business partner. At the beginning of the relationship, the interests of the parties are usually aligned. The foreign investor may contribute: […]
Introduction: How Can a Foreign Shareholder Exit a Turkish Company? A foreign investor entering a Turkish company usually spends significant time negotiating how to invest. Far less attention is sometimes given to an equally important question: How will the investor eventually get out? An investment may end for many reasons. The company may become highly […]
Introduction: Can a Foreign Investor Have Veto and Control Rights in a Turkish Company? Yes. A foreign investor can negotiate significant management, veto and control rights when investing in a Turkish company. Foreign investors are generally subject to the same corporate-law framework as Turkish investors. Turkey’s foreign direct investment regime is based on equal treatment, […]
Introduction: Why Is a Shareholders’ Agreement So Important for Foreign Investors in Turkey? A foreign investor entering a Turkish company may spend weeks negotiating the investment amount and shareholding percentage while spending surprisingly little time determining what those shares actually allow the investor to control. This can be a serious mistake. Owning 40%, 49% or […]
Introduction: How Can a Foreign Investor Safely Start a Business with a Turkish Partner? Starting a company with a Turkish business partner can be one of the fastest ways for a foreign investor to enter the Turkish market. A local partner may contribute significant commercial value through local customers, distribution networks, regulatory experience, suppliers, employees, […]
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 […]