Foreign investment turkey
Turkey Information Investing
Turkey
Foreign investment turkey. New foreign direct investment law, do foreign
investors have access to real estate in Turkey.
Turkish labor force.
Information
from: Investing
in turkey, Turkish gov official web site.
Turkey General Information
Total land area : 814,578 km2
Total population : 63 million
Labor force : 23 million
Growth rate : 1,62%
Currency : New Turkish Lira (YTL)
Time zone : GMT + 2
Language : Turkish
Climate : Three main climatic zones are discernible. The weather in
northern coastal region (looking onto the Black Sea) is mild and generally
rainy throughout the year, with temperatures neither very low in winter
nor very high in summer. On Southern and Western coastline, typical
Mediterranean climate with mild winters and hot and dry summers reigns.
The most extreme temperature differences occur in the interior parts with
highland plains and mountainous east of Anatolia marked by cold and snowy
winters and hot and dry summers.
Good
Reasons to Investment in Turkey
Turkey Foreign Investment
-
Unique
geographical location
- Turkey enjoys a very special location
at the crossroads between East and West, overlapping Europe and Asia
geographically. The proxy to the new emerging markets in Middle East and
Central Asia creates unique business opportunities.
-
A strong
international investment record
- The experience of more than 4000 foreign capital establishments,
including 104 of the Fortune Top 5000 companies, confirms Turkey as a
predominant investment location.
-
A fast
developing economy
-
The average growth rate of 5,4 % for the last 5
years, which is well above many OECD countries, implies a dynamic and
growing economy. WTO outputs also state that Turkey is among the most
dynamic 20 countries in the world trade.
-
A huge
domestic market
- With a population of 63 million and an increasing consumer purchasing
power, Turkey offers a huge and dynamic domestic market to investors.
-
High-skilled, competitive labor
- The Turkish labor force is well-known with its skills and learning
capacity, and competitive labor rates offer cutting edge for industries.
-
High
quality standards
- The new quality oriented generation in both manufacturing and services
sectors ensures high quality levels.
-
The
gateway of energy resources
- Turkey is located at the gateway of Middle East and Caspian petroleum
and Central Asian natural gas to the west, which are regarded as the
future energy reserves of the world.
-
A state
of art telecommunications network
- Turkey has a relatively "young"
telecommunications network with the latest technology, which can easily
compete with the developed countries.
-
Strong
ties with Caucasia and Central Asia
- Turkey is the leading investor in Caucasian and Central Asian Turkic
Republics. Due to her strong cultural and historic ties, Turkey provides
privileged access and a perfect base to develop business with these
countries.
New foreign direct investment law
Foreign investment turkey
10 Key Questions
Regarding Turkey's new foreign direct
investment law
By Turkish Treasury Office.
1 - Why has Turkey introduced a new Foreign
Direct Investment Law now?
The new Law is an integral part of a broader national reform program that
is laying the foundation for sustainable growth and development, driven by
private investments in a transparent marketplace fully open to the world
and supported by a smaller but more effective State. To ensure that
Turkey’s bold fiscal adjustment and ambitious structural reforms translate
into substantial investments, the Government of Turkey is focusing on
improving the investment climate as one of the main pillars of its
economic program. In addition to the introduction of a more
investor-friendly new Law, the Government of Turkey has established by
decree an inter-governmental Coordination Committee for the Improvement of
the Investment Climate (YOIKK), composed of high-level representatives of
relevant ministries, the private sector and NGOs to help remove remaining
bureaucratic obstacles to investment. The Government of Turkey also
intends to set up a well-funded new Investment Promotion Agency
simultaneously able to work inside government and draw on private sector
knowledge and market skills, to carry out a multi-year strategy to promote
investment in Turkey.
2 - What is ‘new’
about the Foreign Direct Investment Law?
-
Key features of the new Foreign Direct
Investment Law include:
-
Freedom to invest by dropping all former FDI-related
screening, approval, share transfer and minimum capital requirements;
-
Reassurance of existing guarantees to
foreign investors of their rights in one transparent and stable
document;
-
Upgrading to accepted international
standards for definitions of ‘foreign investor’ (broadened to include
Turkish national residents abroad and international organisations) and
‘foreign direct investment’ (broadened to include all possible types of
assets); and
-
A policy shift from ex-ante control to a
promotion and facilitation approach with minimal ex-post monitoring to
continuously improve an investor-friendly climate for growth and
development.
3 - What rights
do foreign investors have under the new Law?
The new Law guarantees national treatment and
comprehensive investor rights.
All companies established with a foreign
capital contribution and under the rules of the Turkish Commercial Code
(existing and newly established foreign companies) are regarded as a
Turkish company. Therefore equal treatment both in rights and
responsibilities as stated in the Constitution and other laws is
applicable to all such companies (including national treatment, a
guarantee against expropriation without compensation, transfer of
proceeds, access to real estate and to expatriate personnel, and
international arbitration or any other means of dispute settlement).
4 - Will
investors be exempted from permits formerly granted by GDFI?
Yes,
previous pre-permits issued by the Undersecretariat of
Treasury’s General Directorate of Foreign Investment (GDFI) are abolished.
However, all foreign companies established or to be established in Turkey
are still responsible for obtaining those local licences required for a
comparable Turkish company.
5 - Which permits
formerly granted by GDFI will not be issued from now on?
Company and Branch establishment Pre-Permits
Foreign partner participation Pre-Permits
Investment Permits
Permits regarding changes in field of activity
of foreign companies
Permits regarding capital increase or sale of
shares of foreign companies
Indirect participation Permits
Registrations of license, know-how, technical
assistance and similar agreements
6 - What is new
for establishing a company in Turkey for foreign investors?
Entry conditions
are the same as for comparable local Turkish companies.
There is no minimum amount of capital
required. It is no longer obligatory to bring a minimum of $50,000 in
share capital.
Any form of company included in the Turkish
Commercial Code is acceptable. It is no longer obligatory to establish
either a limited liability company or joint stock company.
7- Do foreign
investors have access to real estate in Turkey ?
Companies having a legal entity with foreign capital in Turkey have the
same rights to own or use land as domestic investors. The new Law
reassures these rights. However, the principle of reciprocity is still
valid for foreign real persons.
8 - Is there a
new regulation for liaison offices?
No, there are no additional requirements.
The establishment procedure of liaison offices has not changed.
9 - Is there a
new regulation for establishment of branches of foreign companies?
Yes, pre-permits issued by General
Directorate of Foreign Investment are abolished.
These branches can be established under rules of Turkish Commercial
Code with the permit of Ministry of Industry and Trade.
10 - What will
happen to foreign companies established in Turkey under the provisions of
the previous Law No. 6224?
All companies with foreign
capital established under Law No. 6224 (dated 18 January 1954) are subject
to the new Law, with their previously-granted rights grandfathered.
Therefore they will no longer require any approvals from GDFI, though they
will now have to send yearly information forms (just like
newly-established foreign companies) based on procedures to be determined
by new regulations.
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