As ONAL & ONAL, with our expert and experienced team, we provide comprehensive legal support for all matters related to foreign investments in Turkey, deeply understanding local regulations and international standards to ensure a smooth and successful journey for your investment. The regulatory framework for foreign investments in Turkey is established under the Direct Foreign Investment Act No. 4875. This legislation shapes Turkey’s fundamental policies regarding foreign investments.
The objectives of this framework include:
-Encouraging direct foreign investments
-Safeguarding the rights of foreign investors
-Ensuring compliance with international investment and investor definitions
-Establishing principles to enhance direct foreign investments
-Defining Foreign Investor and Foreign Investment
A foreign investor refers to individuals and legal entities engaging in direct foreign investment in Turkey. This encompasses foreign nationals, Turkish citizens residing abroad, foreign legal entities, and international organizations established under foreign laws. According to the Direct Foreign Investment Act No. 4875, foreign investment includes:
-Assets brought from abroad;
-Convertible currency as cash capital, traded by the Central Bank of the Republic of Turkey
-Company securities (excluding government bonds)
-Machinery and equipment
-Industrial and intellectual property rights
-Assets obtained from domestic sources;
-Profits, revenues, receivables, or other investment-related rights used in reinvestment
-Rights related to exploration and extraction of natural resources through economic assets;
- i) Establishing new companies or opening branches,
- ii) Becoming a partner in an existing company through share acquisition or acquisition of at least 10% of shares (or equivalent voting rights percentage) except for stock exchanges.
Rights of Foreign Investors
Foreign investors are free to engage in direct investments in Turkey and have the flexibility to repatriate net profits, dividends, sales, liquidation and compensation amounts, license fees, and external credit payments through banks or private financial institutions. In case of disputes subject to private law, foreign investors have the right to resort to national or international arbitration or other dispute resolution mechanisms, subject to the conditions specified in the relevant legislation.
Comprehensive Legal Support
Our expertise lies 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 staff
-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
Moreover, we provide specialized support in matters such as management liability, tax planning, resolution of tax disputes, virtual company operations, internal audits, and more.
Feel free to contact us today for a successful investment venture in Turkey.