Foreign Capital Law

As ONAL&ONAL, with our expert and experienced staff, we provide comprehensive legal support to ensure your investment journey is smooth and successful by thoroughly understanding local regulations and international standards on all matters related to foreign investments in Turkey.

The regulatory framework for foreign investments in Turkey was established within the scope of the Foreign Direct Investments Law No. 4875. This legislation shapes Turkey’s basic policies regarding foreign investments.

The objectives of this framework include:

– Encouraging foreign direct investments

– Protection of the rights of foreign investors

-Ensuring compliance with international investment and investor definitions

-Determining principles that will increase foreign direct investments

–Definition of Foreign Investor and Foreign Investment

Foreign investor refers to real and legal persons who make direct foreign investments in Turkey. This includes citizens of foreign countries, Turkish citizens residing abroad, foreign legal entities and international organizations established under foreign laws.

According to the Foreign Direct Investments Law No. 4875, foreign investment:
1) Brought from abroad;

– Cash capital in the form of convertible currency traded by the Central Bank of the Republic of Türkiye,

– Company securities (except government bonds),

– Machinery and equipment,

– Industrial and intellectual property rights,

2) Provided domestically;

-Profit, revenue, money receivable or other investment-related rights with financial value used in reinvestment,

– Through economic assets such as rights regarding the exploration and extraction of natural resources;

i) Establishing a new company or opening a branch,
ii) It includes acquiring shares outside the stock exchanges or

becoming a partner in an existing company through acquisitions from the stock exchanges that provide at least 10% shares or voting rights at the same rate.

Rights of Foreign Investors

Foreign investors are free to invest directly in Turkey and have the flexibility to repatriate net profits, dividends, sales, liquidation and compensation amounts, license fees, and foreign loan payments through banks or private financial institutions.

In disputes subject to private law, foreign investors have the right to apply to national or international arbitration or other dispute resolution mechanisms, subject to the conditions specified in the relevant legislation.

Comprehensive Legal Support

Our expertise is in assisting foreign investors throughout their entire investment journey, from legal due diligence to regulatory compliance, negotiation and beyond.

Our services include:

-Company establishment, branches and liaison offices

–Distributorship, franchise, know-how, licensing agreements

–Mergers and acquisitions

-Employment of foreign managers and personnel

-Legal assessments, reports and compliance audits

-Free zone activities

-Resolution of commercial, tax, employment and consumer disputes

-Interactions with regulatory authorities

–Permit, license and incentive applications

-We also provide specialized support on management liability, tax planning, tax dispute resolution, virtual company transactions, internal audits and more.