Turkish Corporate & Commercial Law | Company Formation & Business Law in Turkey
Turkey is one of the largest economies in Europe and the Middle East, with a rapidly growing commercial landscape and strong trade ties with the UK. Whether you are a British business looking to establish a presence in Turkey, a Turkish company seeking to expand into the UK market, or an investor navigating a cross-border transaction, understanding Turkish corporate and commercial law is essential to protecting your interests.
At Kaya Legal, our London-based Turkish lawyers advise UK and international clients on all aspects of Turkish business law — from company formation and commercial contracts to mergers, acquisitions, and regulatory compliance.
Company Formation in Turkey
Foreign nationals and companies can establish businesses in Turkey on the same terms as Turkish citizens, with no requirement for local partners in most sectors. The most common business structures available to foreign investors are:
- Limited Liability Company (Limited Şirketi – Ltd. Şti.): The most popular choice for foreign investors. Requires a minimum capital of 10,000 Turkish Lira, at least one shareholder, and one director. Liability is limited to the capital contributed.
- Joint Stock Company (Anonim Şirketi – A.Ş.): Suitable for larger businesses and those planning to raise capital. Requires a minimum capital of 50,000 TRY (or 250,000 TRY if registered capital system is adopted), at least one shareholder, and a board of directors.
- Branch Office: A foreign company can establish a branch in Turkey, which operates as an extension of the parent company rather than a separate legal entity.
- Liaison Office: Permitted for certain activities (market research, promotion) but cannot engage in commercial activities or generate revenue in Turkey.
Our team handles the entire company formation process, including drafting articles of association, registering with the Turkish Trade Registry, obtaining a tax number, making required capital deposits, and completing all post-incorporation registrations.
Commercial Contracts Under Turkish Law
Turkish commercial contracts are governed by the Turkish Commercial Code (Law No. 6102) and the Turkish Code of Obligations. While parties to international commercial contracts often have latitude to choose the governing law, contracts involving Turkish entities or performed in Turkey will frequently be subject to Turkish law provisions — particularly in relation to consumer protection, competition law, and regulated sectors.
Our team drafts, reviews, and negotiates a wide range of commercial contracts for clients doing business with Turkey, including supply agreements, distribution and agency contracts, joint venture agreements, shareholder agreements, service contracts, and licensing agreements. We identify Turkish law provisions that could affect enforceability and advise on structuring contracts to minimise risk.
Mergers & Acquisitions in Turkey
Turkish M&A activity has grown significantly in recent years, attracting significant foreign investment across sectors including real estate, manufacturing, technology, and energy. Cross-border acquisitions involving Turkish companies require careful due diligence of Turkish corporate records, contracts, regulatory licences, and employment obligations, as well as coordination of Turkish and UK transaction structures.
Our team advises on Turkish M&A transactions from the UK, working alongside specialist Turkish advocates in Istanbul and Ankara to conduct due diligence, draft transaction documents, and manage Turkish regulatory filings.
Turkish Competition Law
Turkey has a well-developed competition law regime modelled on EU competition law. The Turkish Competition Authority (Rekabet Kurumu) regulates mergers and acquisitions above notification thresholds, prohibits anti-competitive agreements and abuse of dominant position, and has the power to impose significant fines. We advise businesses on Turkish competition law compliance and assist with merger control filings where required.
Turkish Foreign Investment Law
Turkey generally welcomes foreign direct investment and offers a relatively straightforward investment regime. However, certain sectors — including media, aviation, maritime, and strategic industries — have restrictions on foreign ownership. We advise UK companies and investors on the regulatory framework for their specific sector, ensuring full compliance with Turkish foreign investment law before establishment.
How We Help UK Businesses
- Company formation in Turkey — full registration from London
- Drafting and reviewing commercial contracts under Turkish law
- Cross-border M&A due diligence and transaction support
- Joint venture structuring and shareholder agreements
- Turkish competition law compliance and merger notifications
- Foreign investment regulatory advice by sector
- Commercial dispute resolution and Turkish litigation
- Ongoing corporate secretarial and compliance support
If your business has interests in Turkey or you are considering entering the Turkish market, contact our team for expert advice from our London office.