Foreign Investments in Turkey
Over the past years lack of capital in developing countries has been the most challenging factor for the economic growth. In the past decades the effect of globalization in the world, has seen a considerable increase in international manufacture and economic development through foreign direct investments (FDI) and multinational cooperation’s (MNC) has been observed. As foreign investments increase international production also increase rapidly and these investments not only contribute to the development of national markets but also constitute to extensive wider regional and global industries. Today it is widely accepted that rapid developments in foreign investments contribute to the integration of world economy. In this sense foreign investments term refers to foreign direct investments that are characterized by long term investment target.
FDI has become fundamental basis for governments which pursue to create new job opportunities, to induce transfer of technology and to improve competitiveness of their local markets. The liberalization of trade policies affect affirmatively the national economies hence foreign flows increase significantly in the countries. Consequently developing countries regulate economic policies to attract foreign flows into their countries.
Turkey is a country being affected positively by FDI flows. Foreign investment primarily emerged after the II World War in Turkey. However, there had been no substantial numbers of foreign investments through these years until the 80’s because of political and economic instability and policies related to international trade at that time. Since Turkey has an enormous potential to attract FDI flows with its active and massive market the increase in the number of flows of foreign investment was observed during 90s to today not only in the sector of service and production but also in the energy, telecommunication, mining and tourism sectors. Furthermore whilst economic and political stability is a necessity to raise the flows of FDI incentives and reassurance which demonstrate the positive attitudes of governments towards foreign investments are also effective in order to attract flows. Due to this point regulations and stabilities in the economic and legal environment have a fundamental role for a country accepting FDI. By regulation of Turkish Foreign Direct Investment Law, Turkish government aimed to facilitate the flows of FDI. One of the conveniences that are provided for foreign investment is to abolish the prior authorization in relation to establishment of foreign companies, investment, association, registry of franchise, licence and know-how agreements. Furthermore, the equal treatment to foreign investors with nationals is one of the basic characteristics of the policy of Turkish government to attract foreign investments. Consequently it has to be said that a great deal of considerable foreign investment flows to Turkey has been observed by such regulations, policies and economic stabilization.
Our law firm has extensive experience in assisting companies and individual business persons with their foreign direct investment projects in Turkey. Our clients include large MNCs, small and large business. We have our competent team of lawyers ready to advice in different industries on every aspect of foreign direct investment. Our clients benefit from our comprehensive experience not only in the field of FDI but also the various areas relevant to FDI such as corporate structuring, employment, intellectual property protection and dispute resolution.
We can assist your company on the following matters;
– Advising on the establishment of your foreign invested company in Turkey, which includes advice on related issues such as the type of the company, required documents and the expenses
– Legal registration and announcement of your company in Turkey established among various kind of company types
– Restructuring of your company including company type changes, transfer of shares, M&A, liquidation
– Negotiating with local partners and companies, drafting of agreements, corporate documents and any other related documents required for the operation of your company
– Advising on trademarks, patents, copyrights in terms of protection of intellectual property rights of the company
– Advising on general assembly meetings as per Turkish commercial law and relevant regulations.
– Advising on employment issues for your company including drafting of agreements and other related documents related to recruitment, termination and employment.
– Providing legal advice relating to criminal or civil liability of foreign partners and managers pursuant to the regulations.