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: 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 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 […]
Dividend Rights, Minority Shareholder Protection and Legal Remedies Under Turkish Law A foreign investor acquires shares in a profitable Turkish company. The company performs well. Revenue increases. Financial statements show substantial annual profits. Yet the investor receives no dividend. Management explains that: “The company needs the money.” The same explanation is given the following year. […]