International Conference on Eurasian Economies
11-13 June 2019 – Famagusta, Turkish Republic of Northern Cyprus
Paper properties
Paper ID : 2230
Status : Paper published
Language : Turkish
Topic : Law
Presenter: Prof. Dr. Mustafa Topaloğlu
Session : 3C Hukuk
Establishment of a Company and Share Acquisitions in Turkey by Foreigner Investors
Yabancı Yatırımcıların Türkiye'de Şirket Kurması ve Hisse Devralması
- Prof. Dr. Mustafa Topaloğlu (Özyeğin University, Türkiye)
Abstract
Relating to the establishment and acquisition of a company in Turkey by foreign investors, Foreign Direct Investments Law No.4875, FDI has entered into force on 17.06.2003. FDI formed a notification-based system rather than an approval-based system for foreigners to establish a new company and to take over company shares. Accordingly, company information regarding foreign investors will be notified to the General Directorate of Incentive Implementation and Foreign Capital via “Electronic Incentive Implementation and Foreign Capital Information System”. Foreign investment means establishment of a new company by a foreign investor or share acquisitions of an existing company, any percentage of shares acquired outside the stock exchange or 10 percentage or more of the shares/voting power of a company acquired through the stock exchange, by means of the following economic assets: assets acquired from abroad by the foreign investor which are capital in cash in the form of convertible currency bought and sold by the Central Bank of the Republic of Turkey, stocks and bonds of foreign companies excluding government bonds, machinery and equipment, industrial and intellectual property rights; or assets acquired from Turkey by foreign investor which are reinvested earnings, revenues, financial claims, or any other investment-related rights of financial value, rights for the exploration and extraction of natural resources. According to Article 4 of the Regulation for Implementation of Foreign Direct Investment Law, the Ministry of Economy shall provide information on the companies within the scope of foreign direct investments from Trade Registry Offices and related public institutions and organizations.
JEL codes: K33, K29, K22
Topaloğlu, Mustafa (2019). "Establishment of a Company and Share Acquisitions in Turkey by Foreigner Investors" in Proceedings of International Conference of Eurasian Economies 2019, pp.338-342, Famagusta, Turkish Republic of Northern Cyprus.
DOI: https://doi.org/10.36880/C11.02230
