ANNOUNCEMENT 14 Feb 2011In February 2011, the government of Turkey announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
'1' Official governmental Internet site "Invest in Turkey": http://www.invest.gov.tr/en-US/investmentguide/investorsguide/Pages/EstablishingABusinessInTR.aspx
'2' Turkish Commercial Code No. 6102, published in the Turkish Official Gazette on February 14, 2011
'3' Republic of Turkey, Prime Ministry, Foreign Direct Investments in Turkey 2010, http://www.economy.gov.tr/upload/40C115B8-D799-9F69-CA2BD0F9B716E5B2/FDIReportTurkey2010.pdf
'4' OECD, http://stats.oecd.org/Index.aspx?DatasetCode=FDI_FLOW_PARTNER
'5' UNCTAD, http://unctadstat.unctad.org/ReportFolders/reportFolders.aspx?sCS_referer=&sCS_ChosenLang=en
The government of Turkey implemented a slight liberalisation of the foreign investment requirements in 2012. On July 1, 2012, the new Turkish Commercial Code No. 6102 (according to Turkish Official Gazette of February 14, 2011)came into effect.
The new code introduces the following legislative changes, which are beneficial for foreign investors operating in Turkey:
1) The obligation for foreign companies to secure mandatory minority shareholders in order to comply with the minimum shareholders' number requirements is removed. This means that shares of previously established companies can now be held by a single party.
2) The board of directors may now be comprised of a single person instead of at least three members. This is beneficial for the decision-making process during the board meetings of foreign investors.
3) The obligation for physical presence of board members is removed; board meetings can now be held in an electronic environment and board decisions can be approved via electronic signatures.