1. Why the Choice of Company Type Matters for Foreign Investors Many foreign investors initially believe that company type is a purely “formal” question. In practice, the choice between a limited or joint stock company in Turkey affects at least five critical areas: Looking only at initial incorporation cost can be misleading. The real impact […]
1. Introduction: Why Choice of Law and Jurisdiction Clauses Matter in Turkey Cross-border business with Turkish companies is no longer an exception; it is the norm. Foreign investors routinely sign distribution, agency, franchise, share purchase, supply, construction and service contracts with Turkish counterparties. When a dispute arises, two deceptively simple questions suddenly become crucial: If […]
1. Why buy company shares in Turkey? Acquiring shares in an existing Turkish company (rather than establishing a new entity) is often chosen because: On the other hand, the buyer also takes over the history and hidden risks of the company: tax exposures, social security debts, litigation, regulatory non-compliance, and even criminal risks in some […]
1. Why Enforcement in Turkey Matters International trade, migration, investment and digital commerce mean that disputes are no longer confined to one country. A company may litigate in London or arbitrate in Dubai, but the losing party’s assets may ultimately be found in Turkey. In that scenario, the winning party quickly discovers a crucial truth […]
Turkey has become a key market for international investors in sectors such as technology, logistics, real estate, tourism, manufacturing and energy. Many foreign investors choose to partner with Turkish entrepreneurs and set up a Turkish company with foreign and local shareholders together. These partnerships can be very profitable, but when expectations are not aligned, they […]
Technoparks, R&D and Other State Incentives in Turkey: Real Value and Risks for Investors For many foreign investors, Turkey’s Teknopark, R&D and other state incentives look like a free boost to valuation: tax breaks, grants and social security discounts that extend runway and improve margins. But from an investor’s perspective, the right question is not […]
Founder Control vs. Investor Protection: How to Strike the Balance Under the Turkish Commercial Code (TTK)? For foreign VCs investing in Turkish companies, the real negotiation is often about “Founder Control vs. Investor Protection: How to Strike the Balance Under the Turkish Commercial Code (TTK)?” In practice, the question is: how can founders keep enough […]
When an international investor asks “How are liquidation preference, anti-dilution and vesting mechanisms structured under Turkish law?”, the real concern is whether the familiar VC protections from common-law jurisdictions can be safely replicated under Turkish corporate law. The short answer is: they usually can – but only if the deal is carefully engineered through a […]
Cap Table Hygiene in Turkey from a VC’s Perspective: Which Structures Drive Investors Crazy? When we talk about cap table hygiene in Turkey from a VC’s perspective, we are really talking about one simple question: can an investor clearly understand who owns what, on what terms, and with which future dilution risks? For foreign founders […]
1) The Big Picture: Residence versus Work Authorization Think of your status in Türkiye as two layered permissions: A work permit usually serves two functions at once: it authorizes the specific work relationship and functions as a residence permit for the same period. That is why foreign shareholders who will actively manage the business should […]