Foreign Direct Investment Law and Implementation Regulation

Foreign Direct Investment Law and Implementation Regulation

The principles of application of the provisions of this law are specified in the Implementation Regulation of the Foreign Direct Investment Law dated 20.08.2003. The last amendment to the regulation was made in July 2021.

"Justice without power is powerless, power without justice is cruel.”

ZÜLFÜ LİVANELİ

Foreign Direct Investment Law and Implementation Regulation

The main regulation regarding foreign investments in Turkey is the Foreign Direct Investment Law No. 4875. The purpose of this law, as stated in its first article; To encourage foreign direct investments, to protect the rights of foreign investors and to comply with international standards in the definition of investment and investor, to transform the permission and approval system into an information system in the realization of foreign direct investments, and to direct foreign investors through the determined policies. to regulate the principles regarding the increase of foreign investments.

The provisions of this law, on the contrary, an international agreement or a private law provision; unless;

• Foreign investments will be made freely in Turkey,
• Foreign investors will be treated equally with Turkish investors,
• that profits etc. obtained from activities carried out in Turkey can be freely transferred abroad,
• Other than the competent and competent courts for the settlement of disputes arising from contracts with other companies or administrative authorities, provided that the conditions arise and the parties agree, national or national It also shows that it is free to resort to international arbitration or other dispute resolution methods.

The principles of application of the provisions of this law are specified in the Implementation Regulation of the Foreign Direct Investment Law dated 20.08.2003. The last change in the regulation was made in July 2021.

Although the obligations of administrative authorities in general are mentioned in the regulation, the types of companies that foreign investors can establish are also listed. Accordingly, the companies that foreign investors can establish or become partners with are companies regulated by the Turkish Commercial Code and ordinary companies regulated by the Law on Obligations. Also;  The formations that do not have the specific characteristics of companies established on a contractual basis under names such as ordinary partnership, consortium, business partnership, joint venture and regulated in the Turkish Commercial Code will be considered ordinary companies in terms of the implementation of the Foreign Direct Investment Law. it has died.

In this context, there is no difference for foreign investors compared to Turkish investors.