Turkey - Joint Ventures/Licensing Turkey - Joint Ventures/Licensing
International investors may establish any form of company set out in the Turkish Commercial Code (TCC) and are, in theory, treated the same as local investors. Turkish citizens residing abroad are considered foreign investors with the submission of their resident and/or work permits issued by their host country.
There are corporate and non-corporate structures for companies under the TCC, with the following types of establishments under each:
a. Corporate
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Joint Stock Company (JSC)
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Limited Liability Company (LLC)
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Cooperative Company
Despite their structural and financial differences, the procedures for establishing a JSC or an LLC are the same.
b. Non-corporate
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Collective Company
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Commandite Company
JSC and LLC are the most common types chosen both in the global economy and in Turkey.
Additionally, branches and liaison offices may be considered as alternative ways to establish a business in Turkey. Liaison offices cannot engage in any commercial activity and are not considered legal entities under Turkish law.
Although 100% foreign ownership is permitted (except in Radio & TV Broadcasting), most U.S. investment in Turkey is in the form of a joint venture or licensing operation. Most Turkish companies prefer to establish joint ventures with U.S. suppliers in order to overcome shipping costs and compete effectively against European counterparts. Since 1996, European-origin goods have been largely duty-free due to Turkey’s Customs Union agreement with the European Union. Many U.S. firms have chosen local production as a way to both penetrate and profit from the Turkish market. The sophisticated business infrastructure present in most major Turkish commercial centers (e.g. legal support, financial and consulting services) can greatly assist in forming joint ventures. Several major U.S. accounting/auditing firms, law firms and banks have established branches in Turkey.