The purpose of the adopted law is to create a legislative framework for attracting foreign investment without intermediaries. The purpose of the law is to:

Foreign Direct Investment Law of the Republic of Turkey

Content:

• Article 1
• Article 2
• Article 3
• Article 4
• Article 5

Foreign Direct Investment Law of the Republic of Turkey

Fig.1 Law of the Republic of Turkey on Foreign Direct Investment

Article 1

Foreign Direct Investment Law in Turkey: Objectives and Scope

The purpose of the adopted law is to create a legislative framework for attracting foreign investment without intermediaries. The purpose of the law is to:

• protect the rights of all non-resident investors;
• harmonize the definitions of “investor” and “investment” adopted in the country with international legislation;
• increase the inflow of private investment from other countries through national policies to attract investment.

The effect of the adopted norm covers all procedures directly related to the investments of investors from other countries.

Article 2

The meaning of such concepts as “investor”, “foreign direct investment in Turkey”, “cash capital” is revealed. The ways of creating companies with international capital and the most attractive areas for investment are determined.

Article 3

The principles that allow the acceptance and use of investments of foreign investors in the territory of the Republic are proclaimed, the rights of foreigners to the purchased real estate in Turkey are established.

Thus, equal opportunities are declared for all investors in the field of taxation, protection of personal, corporate interests. It is emphasized that enterprises and foreign real estate , which arose as a result of investments, cannot be nationalized or alienated in other ways.

Financial transfers

The legal norms of the state do not restrict the movement of funds in the accounts of local and foreign banks, and allow you to freely to:

• carry out transactions with investments;
• transfer funds to the accounts of banking institutions of other countries without the intervention of the supervisory authorities of the Republic of Turkey.

Real Estate Transactions

All businesses, partially or wholly financed from foreign sources, can legally buy or lease real estate, as well as have limited property rights within the same limits as private Turkish citizens.

In particular, the order of inheritance in Turkey for non-residents will be the same as for citizens of the Republic.

Dispute Resolution Procedure

If, as a result of investment agreements, disputes have arisen that fall within the categories of private law, for example, disputes over inheritance property , or disputes that can be classified as corporate regulation, then these situations can be resolved by applying to the courts of local jurisdiction.

Also with the involvement of judicial bodies of the highest state or international order by mutual agreement of the parties.

The procedure for calculating the cost of non-cash investments

The Commercial Code of the country is regulated by the procedure for the application and evaluation of non-cash capital, the value of which is determined by experts of the state of origin / international organizations.

Foreign personnel

Permission to attract foreign employees to work in the country is issued by the Ministry of Labor. The procedure for issuing work permits for citizens of other countries is spelled out in Law No. 4817, which lists the types of enterprises/organizations with the participation of foreign financial resources that have the opportunity to hire employees from other states.

Article 4

Defines the principles of policy in relation to enterprises with foreign capital. Its essence boils down to the following:

• issues of regulation and control over the conduct of business are decided by the Treasury Chamber;
• it also determines the policy of the state in relation to enterprises with foreign investments and takes part in their activities;
• regulates the procedure for attracting foreign investment in real estate in Turkey;
• all new acts relating to investments should be considered only with the involvement of specialists from the Chamber.

Article 5

This article lists other provisions related to the commercial activities of companies with financing from foreign sources. In general, the law aims to create the most favorable investment climate, which is conducive to attracting foreign direct investment to the Republic of Turkey from all over the world.