Introduction Turkey has become an important jurisdiction for foreign entrepreneurs, international companies, technology businesses, exporters, investors, and individuals seeking access to both European and Middle Eastern markets. Its strategic location, developed banking and logistics infrastructure, large domestic market, manufacturing capacity, and extensive international trade relationships make establishing a company in Turkey an attractive option for […]
Convertible loans have become an important financing instrument for startups that need capital today but do not want to determine the company’s final valuation immediately. A foreign investor may, for example, agree to provide: EUR 1 million to a Turkish technology startup today. Instead of immediately receiving shares, the investor initially becomes a creditor. When […]
A foreign angel investor wants to invest USD 500,000 in a Turkish technology startup. The founders do not want to negotiate the company’s final valuation today. The investor does not want to provide a traditional loan. Both sides want to complete the financing quickly and agree that the investor will receive shares when the startup […]
International startup investment agreements commonly contain three provisions that can fundamentally affect the relationship between founders and investors: Vesting Tag-Along Drag-Along These concepts developed largely through international venture capital and private equity practice and are now frequently encountered in Turkish startup investment transactions. Their commercial purposes are relatively straightforward. Vesting is designed to ensure that […]
International startup investment agreements commonly contain three provisions that can fundamentally affect the relationship between founders and investors: Vesting Tag-Along Drag-Along These concepts developed largely through international venture capital and private equity practice and are now frequently encountered in Turkish startup investment transactions. Their commercial purposes are relatively straightforward. Vesting is designed to ensure that […]
A foreign investor acquiring shares in a Turkish startup or establishing a joint venture with a Turkish business partner should not rely only on the percentage of shares shown on the cap table. Owning 20%, 30% or even 50% of a company does not by itself answer the most important questions: These issues are commonly […]
A foreign investor acquiring shares in a Turkish startup or establishing a joint venture with a Turkish business partner should not rely only on the percentage of shares shown on the cap table. Owning 20%, 30% or even 50% of a company does not by itself answer the most important questions: These issues are commonly […]
A foreign investor establishing or acquiring a business in Türkiye may be asked to become a member of the board of directors, a company manager or an authorized representative. At first glance, accepting such a position may appear to be a simple corporate formality. It is not. Under Turkish law, there is an important distinction […]
One of the main reasons investors establish or acquire a company rather than operating a business personally is the protection provided by limited liability. A foreign investor may invest EUR 1 million in a Turkish company but naturally wants to know whether a creditor could later pursue the investor’s: if the Turkish company becomes unable […]
A foreign investor may establish a Turkish company, acquire shares in an existing Turkish business or invest in a Turkish startup with the expectation of receiving profits in the future. When the company becomes profitable, an important question arises: How are dividends paid by a Turkish company to a foreign shareholder taxed? Under Türkiye’s domestic […]