Key elements of the new "Foreign Direct Investment Law"

... sets the legal framework for a liberal investment environment in Turkey. This law entitles foreign companies to the same rights and responsibilities as Turkish companies. Now, any form of company included in the Turkish Commercial Code is acceptable for foreign investment.

According to the law, all companies that are established with foreign capital contribution and set up in line with the regulations of the Turkish Commercial Code will receive equal treatment with Turkish companies both in terms of rights and responsibilities.

Applications for the establishment of a company must be filed with the Ministry of Industry and Trade or with a provincial trade registration office in Turkey. The law also states that there is no obligation requiring Turkish participation in the management of such a company.

Foreign capital companies established in Turkey have the same rights to acquire a property as domestic investors.

Valuations of international credit agencies as well as courts or competent authorities of the investor’s country will be accepted as valid in the determination of the share value for marketable securities that are contributed as capital in-kind.

In terms of this new law, Turkish nationals who verify with work or resident permit, domiciled abroad are deemed as foreign investors.