Turkey Legal Articles
Law related articles writen by lawyers
and experts witnesses practicing in Turkey
July 8, 2016 By Cengiz & Opak Law Office
Investment in real estate has always been one of the favorite choices for investors. According to Knight Frank Global Price Index Q4 2015 and Q1 2016 reports, Turkey leads global house growth with 18% and 15% in order. Furthermore, after the abolishment of the reciprocity principle in 2012, real estate acquisition in Turkey has been even more attractive to foreign investors.
June 21, 2016 By DAB Law Firm
Provided here is general information regarding two primary types of limited liability entities that may be incorporated in Turkey.
June 21, 2016 By DAB Law Firm
The procedures and principles regarding trademarks have been regulated in the Decree Law Regarding the Protection of the Trademarks (No. 556) (the “Decree Law”) and the Regulation on the Implementation of the Decree Law Regarding the Protection of Trademarks (the “Regulation”).
Brief information on main types of companies and the procedures of registration in Turkey for foreigners.
The procedure and regulation concerning foreigners' acquisition of real estate in Turkey.
Please be informed that currently there is no specific regulation regarding the protection of personal data in Turkey and protection of personal data is regulated under various legislation. However, the Draft Code on the Protection of Personal Data (the "Draft Code") is recently approved by the Prime Minister of Turkey to be submitted to the Parliament.
It is significant for the foreigners to comply with the immigration laws while residing and working in Turkey. Below are the general principles and procedures regarding the residence and work permits for foreigners in Turkey.
The Law Regarding the Amendment of Income Tax Law and Certain Laws (Law No:6663) (the “New Law”) has been published on the Official Gazette on February 10, 2016. By the enforcement of the New Law in addition to the Income Tax Law (Law No: 193), certain laws such as Public Officers Law (Law No: 657), Unemployment Insurance Law (Law No: 4447), the Labour Code (Law No: 4857) and the Social Security Law (Law No: 5510) have been amended.
The laws and regulations governing the insurance and reinsurance practices in Turkey are quite complex, This brief aims to inform readers on general reinsurance regulations in Turkey and tries to shed light to the reinsurance business by international insurance providers in Turkey.
A country shall have regular human settlements and certain bordered zones, in order to provide a healthy environment and create feasible investment areas. For the purposes of meeting with the needs of the number of population in a rapid way, lands of the country should be planned and developed within the frame of specified master projects.
Due to Turkey’s rapidly financial growth and increasing population, real estate market has been developing for last five years.
Due to the increasing energy gap arising from industrial and technological developments of Turkey, the demand on electric energy has been increasing year for year and new investments in power generation are required.
Establishment of solar powers with a view to operating in electricity market is regulated in Electricity Market Code (the “Code”) law no. 6446.
Numerous countries have been in an energy transition in recent years due to the decreasing capacity of primary energy resources such as natural gas, oil and coal and also in order to contribute to the prevention of climatic changes arising from the use of primary energy resources. In this connection, the importance of energy production from renewable resources has come into question also in Turkey.
According to Turkish Private International Law (“Law”), a foreign judgments may be executed. The execution of the judgments in Turkey rendered by the foreign courts in relation to the civil actions and finalized in accordance with the laws of that state depends upon the rendering of the exequatur by the competent Turkish court.
No doubt the global economic recession and crisis have affected the European and US real estate markets. On the other hand, the real estate markets in emerging markets like Turkey are still promising despite the global crisis. In last decade, international real estate market has significantly developed in Turkey. Accordingly, the interest of local and foreign investors in the real estate market progressively increased every year.
Mergers and Acquisitions (“M&A”) is defined as the combining of two or more companies or buying-selling or dividing of two or more companies as a part of corporate finance in order to grow rapidly in business field of activity.
In international or local trade relations, termination of distribution agreements especially by manufacturers come frequently to the fore.
Due to developments particularly in telecommunication technologies and transport since last century, more products have been demanded by customers in other countries than their place of manufacture.
The New Communiqué on the Principles Regarding Securities Investment Trusts has been published in the Official Gazette numbered 29368 (hereinafter referred as to “Communiqué”) on 27 May 2015.
Under Turkish Law, a creditor is granted the right to collect its receivable in two ways. Firstly, it can initiate litigation procedures by filing an action of debt before local courts. The other way is to initiate executive enforcement proceedings (enforcement proceedings without judgement) before execution offices.
Investment companies or funds within the frame of the Capital Markets Law.
Energy Market Preferred by Foreign Investors Also in 2015
Franchise sector in Turkey has been in a rapid growth in the recent years. As of 2014, there were approximately 1850 chain of enterprises in Turkey, 24% of which are foreign trademarks and the number of foreign investors intending to franchise in Turkey has been increasing year by year.
Some significant amendments for real-estate acquisitions by foreigners introduced by a new Law. The most notable amendment in the Law is abolishment of the reciprocity clause. As a result, a foreigner may acquire a real-estate in Turkey even if a Turkish citizen may not acquire a real-estate in the foreigner’s home country.
Increase in international trade, people living abroad for various reasons and the disappearance of borders by time has resulted that the legal relationships and disputes not confined in one country or state. This situation has highlighted the difference between the national legal systems.
Acquisition of Turkish citizenship by marriage is regulated in Article 16 of Turkish Citizenship Law and Articles 25-31 of the Regulation on the Implementation of Turkish Citizenship Law.
The expropriation procedure in Turkish law is conducted in accordance with Article 46 of the Constitution and Law No.2942 on Expropriation. In exceptional cases where there is a danger of disruption in public services, the method of immediate expropriation stipulated in Article 27 is employed.
Establishment of Joint Stock Companies and Limited Liability Companies in the New Turkish Commercial Code
The new Turkish Commercial Code (“NTCC”) No. 6102 entered into force on July 01, 2012. In parallel with the harmonization process of Turkish Law with acquis communautaire, the NTCC has significantly changed the system and replaced the outdated provisions of the former Turkish Commercial Code (“TCC”) with practical ones. As one of the aims of the NTCC is to boost investment, advanced provisions regarding the establishment of the companies have been introduced.
The regulations formulating the rules on residence permit and the entry of foreigners into Turkey were dated back to mid-twentieth century. These regulations lacked the ability to meet the needs of the present conditions. A modern approach was necessary, also in terms of Europeanization of the customs procedures and management.
The general principles setting out the legal requirements for licensing are defined under Law No 4646 of Turkey. Accordingly, the entities to engage in market activities shall obtain a license for each activity and for each facility respectively, if the said activities are to be conducted in more than one facility, before starting operation.
On 06 February 2014, Turkish Parliament has enacted a 6518 Omnibus Bill, gazetted February 19th 2014, which adjoins a provision to article 3 of the Law No 4734 Public Procurement Law (“Law”) stipulating that purchase of goods and services provided to ensure innovation, local production and technology transfer under offset/industrial participation programs are not subject to Law No 4734.
Divorce principles in Turkish Law related to divorce. Enforcement of a Foreign Divorce Decree in Turkey requires some standards.
ENTSO-E is a very essential step for uniting the EU Member States’ transmission grids. To define it briefly, it is the biggest Transmission System Operator throughout Europe. The ENTSO-E association has been established with the 3rd liberalization package in the light of the EU legislations.
Every country has its own legislation regarding acquisition of real estate by foreign individuals within the scope of its own political, economical and social requirements. Acquisition of real property by foreign real persons in Turkey is restricted by laws as well. The main purpose of this brief article is to explore the legal restrictions of purchasing real estate in Turkey by foreign individuals.
Turkey aims to encourage production and export activities, fasten the entrance of foreign capital and technology in Turkey and develop the international trading activities through the grant of incentives to the investors. In the light of that, the local and foreign investors have equal access to the investment incentives system in Turkey.
In order to complete a share transfer in a Joint Stock Company registered in Turkey, the endorsement and transfer of share certificates (in the bearer form) are required. If the company has not issued any share certificates, the transfer of the shares shall be completed within the share ledger of the company.
In Turkey, where shareholders directly or indirectly own and hold at least 90 % of capital shares and voting rights in a capital company, the controlling shareholders may apply to the court for the squeeze out of the minority shareholder(s), if the minority shareholder(s) prevents the company from running its business, do not act in good faith, create perceptible disruption or act in a reckless manner.
In Turkey, the liability of Joint Stock and Limited Liability Companies’ shareholders is only against the company and limited with their capital contribution. However, the shareholders of Limited Liability Companies are, unlike Joint Stock Companies, jointly and severally liable against public receivables (fiscal receivables) such as taxes, duties, levies and charges if the company is unable to make the required payments.
Employment laws in Turkey apply to Turkish nationals and foreign nationals alike. In addition, special provisions exist which regulate the employment and residence permits of foreign nationals who intend to work in Turkey.
In addition to the establishing a company or a branch office, foreign investors can also establish liaison offices in Turkey. Liaison offices can only be involved with non-commercial activities. In other words, liaison offices cannot issue invoice or proforma invoices.
Foreign companies may also operate through branches in Turkey. For establishing a branch, a permit from the Undersecretariat of Treasury Foreign Investment Department (FID) must be obtained before the registration to the Commercial Registry Office.
Buying a company or part ownership in Turkey, At Bereket & Baltaci, we provide assistance and guidance with foreign corporations and investors in acquisition of a Turkish company or part ownership thereof in Turkey.
Information about the tax liabilities of foreign investors in Turkey.
Information about starting and registering a business, including types and establishment process and liabilities of shareholders and regulations of a company, establishment process and customary time period as well as list of necessary documents for a company establishment in Turkey.
The Financial Crimes Investigation Board (MASAK), which is a main service unit of the Ministry of Finance, having the mission of making policies and carrying out investigation and research to convey the information and the results to relevant authorities has issued a regulation on registered electronic e-mail system which has entered into force on 30 March 2015.
In last 10 years, energy experts have been working keenly on the establishment of a new private and competitive electricity market in Turkey.
In the "project development" stage, initial step for the investors, who wish to install a solar energy based generation facility, is the "site selection". Special attention should be expended on site location and grid connection point.
This brief information note aims to provide information regarding capital company formations in Turkey and in Romania in a comparative manner.