Legal Solutions
Foreign Investment
Strategic Legal Guidance for Investing and Doing Business in Türkiye
Türkiye offers international investors access to a dynamic domestic market and a strategic position connecting Europe, Asia, the Middle East, and surrounding markets. Entering a new market, however, requires more than identifying the right commercial opportunity — the legal structure of the investment, regulatory requirements, tax implications, contractual arrangements, employment considerations, and long-term exit strategy should all be considered from the outset.
At POA Law Firm, we advise international individuals, entrepreneurs, family offices, investors, and companies establishing, acquiring, expanding, or restructuring investments in Türkiye. Our role begins before the investment is made — we help clients understand the legal environment, identify risks, select the appropriate structure, execute the transaction, and provide ongoing legal support as their investment develops.
Foreign Investment in Türkiye
A Legal Framework Open to International Investors
Türkiye's foreign direct investment framework is based on the principle of equal treatment between international and domestic investors. International investors can generally establish companies and acquire shares in Turkish companies under the same conditions applicable to local investors, subject to sector-specific regulations and certain legal restrictions.
Foreign investment can take many forms. An investor may establish a new Turkish company, acquire an existing business, enter into a joint venture with a Turkish partner, establish a branch or liaison office, invest in real estate, develop a manufacturing operation, or participate through other investment structures.
The appropriate route depends on the nature of the investment, the investor's commercial objectives, regulatory requirements, tax considerations, financing arrangements, and long-term strategy. At POA, we assess these considerations together rather than treating company formation or investment documentation as isolated legal procedures.
Who We Advise
Our Foreign Investment practice is designed for international clients seeking to establish or expand their interests in Türkiye. We advise:
- 01
International Companies
Entering the Turkish market, establishing subsidiaries or branches, expanding existing operations, or making strategic acquisitions.
- 02
Entrepreneurs & Business Owners
Establishing new businesses, developing commercial operations, or using Türkiye as part of a wider international business structure.
- 03
Private Investors & Family Offices
Making direct investments, acquiring companies or assets, participating in investment projects, and structuring long-term holdings in Türkiye.
- 04
Manufacturers & Industrial Investors
Establishing production facilities, factories, warehouses, logistics operations, or other industrial investments.
- 05
Strategic & Joint Venture Partners
Entering commercial partnerships with Turkish companies or investors and establishing appropriate governance and contractual structures.
Ways to Invest in Türkiye
Choosing the Right Structure for Your Investment
There is no single structure suitable for every foreign investment. The appropriate route should reflect the investor's commercial objectives and the nature of the proposed activity. POA advises clients across a range of investment structures.
Establishing a Turkish Company
- Advice on limited liability companies and joint stock companies
- Shareholding structure, management, and governance
- Capital arrangements and articles of association
- Support throughout the incorporation process
Acquiring an Existing Turkish Business
- Entry via share acquisition or specific asset acquisition
- Legal due diligence and transaction structuring
- Negotiations and closing procedures
- Post-acquisition matters
Joint Ventures & Strategic Partnerships
- Ownership percentages and management rights
- Reserved matters and financing obligations
- Profit distribution and transfer restrictions
- Deadlock mechanisms, exit rights, and dispute resolution
Branches & Liaison Offices
- Assessment of whether a branch or liaison office suits the intended activities
- Establishment and regulatory requirements
- An alternative to incorporating a separate Turkish subsidiary
Real Estate & Commercial Property Investment
- Acquisition of offices, commercial property, and development sites
- Ownership structure and due diligence
- Coordinated support from our Foreign Investment and Real Estate teams
Manufacturing & Industrial Investment
- Company establishment and land or factory acquisition
- Investment incentives and licensing
- Employment and commercial contracts
- Regulatory compliance
Choosing the Right Investment Structure
Establishing a Company Is Only the Beginning
One of the most important decisions an international investor makes is how the investment should be legally structured. The simplest structure is not necessarily the most appropriate one. Before implementation, consideration should be given to questions such as:
- Who should own the Turkish investment?
- Should the investment be held personally or through a corporate structure?
- Should a new company be established or an existing business acquired?
- Should the Turkish operation be a subsidiary, branch, joint venture, or another structure?
- How should management and decision-making rights be allocated?
- How will the investment be financed?
- How will profits or dividends be distributed?
- What are the Turkish and cross-border tax implications?
- Are regulatory approvals or sector-specific licences required?
- How should the investor eventually exit or transfer the investment?
By addressing these questions before capital is committed, investors can reduce legal risk and establish a structure capable of supporting future growth.
How POA Supports Foreign Investors
From Market Entry to Ongoing Operations
Our role is not limited to establishing a company or preparing transaction documents. We provide coordinated legal support throughout the investment lifecycle. Our services include:
- Market-entry legal strategy
- Investment and corporate structuring
- Company establishment
- Branch and liaison office establishment
- Legal due diligence
- Share and asset acquisitions
- Mergers and acquisitions
- Joint ventures and strategic partnerships
- Shareholders' agreements
- Share purchase and asset purchase agreements
- Commercial contract drafting and negotiation
- Corporate governance
- Regulatory and licensing matters
- Real estate acquisitions
- Employment and work permit matters
- Investment incentive coordination
- Banking and transaction support
- Tax structuring in coordination with tax professionals
- Restructuring and exit planning
- Ongoing corporate and commercial legal advisory
Where an investment involves several disciplines, we coordinate the legal work as one integrated project rather than requiring the client to manage each matter separately.
Mergers, Acquisitions & Legal Due Diligence
Understand the Investment Before You Acquire It
Acquiring an existing business can provide immediate access to an established operation, customer base, licences, assets, employees, and commercial relationships.
It may also expose the investor to liabilities that are not immediately visible.
- Corporate records and ownership
- Share capital and shareholder rights
- Material commercial contracts
- Financing and security arrangements
- Real estate and other significant assets
- Employment matters
- Regulatory licences and permits
- Existing or potential disputes
- Intellectual property
- Compliance matters
- Material liabilities and contractual risks
The findings of the due diligence process help us advise the client on whether to proceed, renegotiate the transaction, require additional protections, restructure the acquisition, or address identified risks before closing. We then reflect those findings in the transaction documents through appropriate representations, warranties, indemnities, conditions precedent, and other contractual protections.
Establishing & Operating a Business in Türkiye
From Incorporation to Long-Term Operations
Company formation is often only the first legal step in a much longer commercial journey. International businesses operating in Türkiye may subsequently require advice concerning:
- Corporate governance
- Shareholder and board decisions
- Commercial agreements
- Employment relationships
- Work permits for foreign personnel
- Office, factory, or warehouse leases
- Regulatory compliance
- Banking arrangements
- New investment rounds
- Changes in shareholding
- Business acquisitions
- Restructuring
- Disputes
- Expansion and exit strategies
POA can remain involved as ongoing legal counsel, allowing clients to work with a legal team that already understands their business, structure, and long-term objectives.
Investment Incentives & Regulatory Considerations
Depending on the nature, location, scale, and sector of an investment, projects in Türkiye may potentially benefit from various investment incentives or support mechanisms. These may relate to matters such as taxation, customs duties, employment, financing, land allocation, manufacturing, research and development, technology, exports, or strategic investments. Eligibility and available benefits depend on the specific project and the legislation applicable at the time of the investment.
For this reason, incentive planning should ideally take place before the investment structure and capital expenditure are finalized. POA works with the relevant financial, tax, and technical professionals where necessary to help clients assess available opportunities while ensuring that the investment is implemented within the applicable legal and regulatory framework.
The POA Approach to Foreign Investment
We Look at the Investment Before We Look at the Documents
Foreign investment should not begin with company registration forms or standard agreements. It should begin with understanding the investment itself.
- 01
Understand
We identify the commercial objective, ownership structure, investment strategy, and long-term plans.
- 02
Structure
We determine the appropriate legal structure and identify the principal corporate, regulatory, contractual, and tax considerations.
- 03
Protect
We conduct the necessary legal due diligence and establish contractual and corporate protections before capital is committed.
- 04
Execute
We manage the establishment, acquisition, transaction documents, regulatory procedures, and closing process.
- 05
Support
After the investment is completed, we remain available as ongoing legal counsel as the business develops, expands, restructures, or makes further investments.
Why Work With POA?
Legal Advice with a Commercial Perspective
Foreign investors need lawyers who understand not only Turkish law but also the commercial objectives behind the investment.
International Client Focus
Our practice is specifically designed around international individuals, entrepreneurs, investors, and businesses with interests in Türkiye.
Strategic Legal Advice
We consider the wider investment structure rather than treating each legal procedure independently.
One Legal Partner
Corporate, contractual, employment, real estate, immigration, investment, and private client matters frequently overlap. Our multidisciplinary approach allows us to coordinate these requirements through one legal relationship.
Clear Communication
We explain Turkish legal requirements in practical terms so that international decision-makers can understand the risks, options, and implications of their decisions.
Long-Term Partnership
Our objective is not simply to complete the initial investment. We aim to remain a trusted legal advisor as our clients' businesses and investments in Türkiye develop over time.
Frequently Asked Questions
Yes. International investors can generally establish companies in Türkiye under the same framework applicable to domestic investors, subject to specific requirements that may apply to regulated sectors or activities.
Generally, no. A foreign investor may establish and own a Turkish company without having a Turkish shareholder, subject to sector-specific restrictions where applicable.
Limited liability companies and joint stock companies are among the most commonly used corporate structures. The appropriate structure depends on factors such as ownership, governance, investment plans, financing, and future exit strategy.
Yes. A foreign company may establish a Turkish branch. Whether a branch or subsidiary is more appropriate should be assessed based on the proposed activities, liability structure, taxation, management, and commercial objectives.
A liaison office allows a foreign company to maintain a presence in Türkiye for permitted non-commercial activities, subject to authorization and regulatory requirements. A liaison office cannot generally conduct commercial activities or generate revenue in Türkiye.
Yes. Foreign investors may generally acquire shares in Turkish companies, subject to applicable competition, regulatory, sector-specific, and transaction requirements.
Yes. Legal due diligence is an essential part of assessing an acquisition because it can identify liabilities, contractual risks, regulatory issues, disputes, ownership matters, and other factors that may affect the value or structure of the transaction.
Generally, yes, subject to the restrictions applicable to foreign ownership of real estate and the characteristics and location of the particular property.
Potentially, yes. Türkiye operates various investment incentive and support programmes, and international investors are generally treated equally with domestic investors. Eligibility depends on factors such as the sector, location, scale, and nature of the proposed investment.
Yes. In fact, we encourage clients to seek legal advice before committing capital, signing preliminary agreements, establishing a company, or selecting a final investment structure. Early legal involvement allows potential risks and structural issues to be identified while the investor still has flexibility to address them.
Yes. We provide ongoing corporate and commercial legal support to international businesses operating in Türkiye, including contracts, corporate governance, employment matters, regulatory issues, further investments, restructuring, and other legal requirements.
Planning an Investment in Türkiye?
The right legal structure should be considered before capital is committed. Whether you are establishing a new business, acquiring an existing company, entering a joint venture, developing a manufacturing operation, or making a strategic investment in Türkiye, our team can help you evaluate the legal framework and structure the investment around your long-term objectives.