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 […]
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 […]