Turkish Business Law: A Complete Guide for Investors and Companies
Turkish Business Law (TBL) governs how companies are established, managed, merged, or liquidated in Turkey. It covers corporate structures, shareholder rights, contracts, competition rules, intellectual property, and dispute resolution.
Discover the essentials of TBL, including company formation, shareholder rights, contracts, dispute resolution, and corporate governance. A practical guide for foreign and local investors.
What is TBL?
TBL is a set of legal rules that regulate companies, trade, contracts, and investments in Turkey. It is primarily governed by the Turkish Commercial Code (TCC, Law No. 6102), which aligns with European Union standards and international business practices.
Key Areas of TBL
1.Company Formation
Companies can be established as Joint Stock Companies (A.Ş.) or Limited Liability Companies (Ltd. Şti.).
Minimum capital:
- Joint Stock Company (A.Ş.): TR 250,000
- Limited Company (Ltd. Şti.): TR 50,000
Both foreign and local investors can set up companies with equal rights.
2.Shareholder Rights
Shareholders enjoy voting rights, dividend rights, and information rights.
Share transfers are freely transferable in Joint Stock Companies and Limited Liability Companies.
3.Corporate Governance
The Board of Directors manages Joint Stock Companies.
Managers oversee Limited Companies.
Transparency, auditing, and annual general meetings are legally required.
4.Contracts and Commercial Transactions
The TCC regulates commercial contracts, agency agreements, and trade practices.
International investors often rely on bilingual contracts governed by Turkish law.
5.Dispute Resolution
Business disputes can be resolved through Turkish Commercial Courts or arbitration.
Turkey is a party to the New York Convention, making foreign arbitration awards enforceable.
Why is TBL Important for Investors?
TBL provides legal security, transparency, and investor protection. Foreign investors benefit from:
Equal treatment under the law.
Tax incentives and investment opportunities.
Access to international arbitration mechanisms.
Frequently Asked Questions (FAQs)
1.Can a foreign investor establish a company in Turkey?
➡️ Yes, foreign investors have the same rights as Turkish citizens when establishing companies.
2.What is the main legislation governing business law in Turkey?
➡️ The Turkish Commercial Code (TCC) is the primary source of business law.
3.Is shareholder liability limited in Turkey?
➡️ Yes. In both Joint Stock and Limited Companies, shareholders’ liability is limited to their capital contribution.
Need Help or More Information?
Turkish Business Law is modern, investor-friendly, and harmonized with EU regulations. Whether you are a foreign investor or a local entrepreneur, understanding the basics of company law, shareholder rights, contracts, and dispute resolution is essential to succeed in Turkey’s dynamic business environment. If you still have questions or need help, feel free to contact us for more detailed information and professional assistance. With over 25 years of experience in Commercial Law and share certificates, we are here to support you.
