During the last decade, Turkey has become the 17th largest economy in the world, and that because of the successful partnerships between local and foreign companies. These partnerships usually consisted in joint venture agreements which recently were introduced in the legislation on foreign investments. Joint ventures are also regulated by the Civil Law through the Code of Obligations and the Company Law in Turkey.
Our company registration agents in Turkey can offer more information on the legislation covering the establishment of joint ventures in this country.
There are two types of joint ventures foreign individuals or companies can establish in Turkey:
While a Turkish contractual joint venture is usually regarded as a simple partnership, the corporate joint venture can take several forms, which is why it has become quite popular in the last few years.
The contractual joint venture is formed through a joint venture agreement and falls under the regulations of the Code of Obligations. The agreement will be drafted and signed before a public notary in Turkey who will also swear on the legality of the content in the contract. This type of joint venture is usually employed by foreign citizens carrying out a project for a Turkish company and it is not considered a legal entity itself.
The corporate joint venture offers numerous investment opportunities to foreign companies in Turkey. This is also why it was introduced in the Foreign Direct Investment Act in 2009. The following types of structures can be employed to create a corporate joint venture in Turkey:
These types of joint ventures are considered legal entities and must be registered with the Turkish Companies Registrar. The corporate joint venture also grants the right to buy real estate and to issue work permits to foreign companies choosing to do business in Turkey.
For full information or assistance in creating a joint venture, please contact our Turkish company formation representatives. You can also rely on us if you want to open other types of companies in Turkey.