Turkish Labor Law
Related Articles
I. International Standards
“Foreign direct investment” and “Foreign investor” terms are defined within international standards in
order to clarify the field of application of the Foreign Direct Investment Law. Within this scope:
a) Foreign Investor is defined as :
- Real persons who possess foreign nationality and Turkish nationals resident abroad,
- Foreign legal entities established under the laws of foreign countries and international institutions, who make foreign direct investment in Turkey.
b) Foreign direct investment is defined as :
i) Establishing a new company or branch of a foreign company
ii) Share acquisitions not by means of capital markets, and share acquisitions through capital markets where the foreign investor owns 10 percent or more of the shares or voting power, By means of but not
limited to the following economical assets:
1) Assets acquired from abroad by the foreign investor:
- Capital in cash in the form of convertible currency bought and sold by the Central Bank of Turkey,
- Stocks and bonds of foreign companies (other than government bonds),
- Machinery and equipment,
- Industrial and intellectual property rights
2) Assets procured from Turkey:
- Reinvested earnings, revenues, financial claims, or any other investment-related rights of financial value
- Commercial rights for the exploration and extraction of natural resources.
II. Abolishing Permits
With this Law, all permits granted by the General Directorate of Foreign Investment are abolished. As a result, all transactions for establishing a company with foreign capital will be the same as with local companies. Since all companies established in Turkey within the framework of the Turkish Commercial Code are accepted as Turkish companies, all duties and responsibilities are equal regardless of the nature of capital formation.
