Turkey offers a dynamic, strategically located, and legally structured environment for both domestic and international entrepreneurs. From company formation to dispute resolution, business law in Turkey covers a broad range of topics including corporate governance, commercial contracts, foreign investment, compliance, intellectual property, and competition regulations. The backbone of the legal framework is the Turkish Commercial Code (TCC - Türk Ticaret Kanunu), which governs business activities across sectors.
At ER&GUN&ER Law Firm, we advise businesses—from startups to multinational corporations—on their legal obligations and commercial operations in Turkey. Our English Speaking Turkish Lawyers provide comprehensive support for investors, shareholders, directors, and managers in navigating Turkish company law, commercial registration procedures, and legal compliance risks. As the best lawyer firm in Turkey for corporate law, we help our clients avoid liabilities, structure growth, and resolve disputes proactively.
Key Sources of Business Law in Turkey
Business activities in Turkey are governed by a combination of statutory laws and regulatory frameworks. The most critical sources include:
- Turkish Commercial Code (Law No. 6102): Regulates companies, trade, negotiable instruments, transportation, and insurance law
- Turkish Code of Obligations (Law No. 6098): Governs all contractual relations between private parties
- Law on Foreign Direct Investment (No. 4875): Provides protections and equal treatment for foreign investors
- Tax Procedure Law, Corporate Income Tax Law, VAT Law: Define accounting, invoicing, and taxation obligations
- Labor Law (No. 4857): Establishes rules for employer-employee relations
Our Turkish Law Firm provides integrated advisory services that combine regulatory, tax, contractual, and dispute resolution perspectives—ensuring that each aspect of your business is fully aligned with Turkish legal expectations.
Company Types Under Turkish Commercial Code
The TCC allows several company types, with the two most common being:
- Limited Liability Company (LLC – Limited Şirket): Minimum capital 10,000 TRY, managed by one or more directors, suitable for SMEs and foreign investors
- Joint Stock Company (JSC – Anonim Şirket): Minimum capital 250,000 TRY for non-public entities, allows for public offering, board of directors required
Other types include commandite companies, collective companies, and cooperatives, but these are rarely preferred due to liability exposure or administrative complexity. Our English Speaking Turkish Lawyers help clients choose the appropriate structure, draft Articles of Association, and complete all Trade Registry and tax office registrations.
Steps to Register a Company in Turkey
Setting up a business in Turkey involves multiple legal and bureaucratic steps. The key stages include:
- Drafting the Articles of Association in line with the TCC
- Obtaining potential tax number and verifying shareholder ID/passports
- Opening a capital deposit bank account
- Registering with the Trade Registry Directorate
- Obtaining tax number, SGK registration, and workplace declaration
- Issuing signature circulars, share certificates, and ledger books
Our Turkish Law Firm manages end-to-end company formation for local and foreign investors, ensuring accuracy in all filings and eliminating delays caused by translation errors, documentation mismatches, or notary miscommunication.
Commercial Contracts Under Turkish Business Law
Contracts are the foundation of business activity in Turkey. The Turkish Code of Obligations provides general principles for offer, acceptance, formality, liability, and enforcement. Typical business agreements include:
- Shareholder agreements and joint ventures
- Sales and distribution contracts
- Service agreements and consultancy contracts
- Construction and procurement contracts
- Franchise and license agreements
Although contracts in Turkey do not always require notarization, certain agreements—such as those related to real estate, powers of attorney, and specific trade transactions—require special form. Our English Speaking Turkish Lawyers draft bilingual agreements with enforceable terms, compliance clauses, jurisdiction provisions, and penalty mechanisms to ensure business protection.
Competition and Fair Trade Regulations
Turkey has a well-developed legal regime to prevent unfair competition and monopolistic behavior. The Law on Protection of Competition (No. 4054) is enforced by the Turkish Competition Authority (Rekabet Kurumu), which investigates and sanctions businesses that:
- Abuse dominant market position
- Enter into price-fixing or bid-rigging agreements
- Impose resale price restrictions on distributors
- Block market access to new entrants
Our Turkish Law Firm advises clients on anti-trust compliance, merger control filings, and defends companies during Competition Board investigations.
Dispute Resolution in Turkish Business Law
Commercial disputes in Turkey can be resolved through:
- Litigation: Filed before Commercial Courts (Asliye Ticaret Mahkemesi)
- Mediation: Mandatory in some cases before litigation (e.g., payment claims)
- Arbitration: Optional for larger contracts; ISTAC and ICC are commonly used
We represent clients in litigation and arbitration involving breach of contract, partnership dissolution, debt recovery, shareholder conflicts, and IP violations. We also enforce foreign judgments and arbitral awards in Turkey under international conventions.
Internal Legal Resources
- How to Set Up a Company in Turkey
- Corporate Governance in Turkey
- Franchise Law in Turkey
- Corporate Bank Accounts in Turkey
- Contract Enforcement and Commercial Disputes
FAQ: Business Law and Commercial Practice in Turkey
- Q1: Can foreigners own 100% of a company in Turkey?
Yes. Turkish law permits full foreign ownership without local partnership requirements. - Q2: Is a local director required?
No. Foreign nationals can act as directors. However, at least one authorized signatory must have a Turkish tax number. - Q3: How long does it take to establish a company?
Typically 3–5 business days after all documents are prepared and submitted. - Q4: Are English contracts valid in Turkey?
Yes, but a Turkish version is required for use in courts and official registrations. - Q5: What are the penalties for non-compliance with commercial law?
Penalties vary by infraction—can include administrative fines, trade restrictions, and even criminal prosecution in some cases. - Q6: What is the corporate tax rate in Turkey?
As of 2025, the corporate income tax is 25%—subject to periodic adjustments by law. - Q7: Can I resolve disputes outside Turkish courts?
Yes. Arbitration clauses are enforceable if properly drafted under Turkish or international rules. - Q8: What if a Turkish partner breaches a shareholder agreement?
You may file for damages, partnership dissolution, or interim injunction in Commercial Court. - Q9: How do I ensure contract enforceability?
Clear language, notarization when required, Turkish governing law clause, and local dispute resolution terms are essential. - Q10: How can a Turkish Law Firm support my business?
We offer company formation, contract drafting, compliance audits, dispute resolution, and legal representation for all corporate matters in Turkey.
Secure Your Commercial Operations with a Turkish Law Firm
In a globalizing economy, success in the Turkish market depends not just on commercial acumen—but also on full legal compliance, well-drafted contracts, and clear risk management strategies. Navigating business law in Turkey requires an expert understanding of legislation, local practice, and institutional culture.
At ER&GUN&ER Law Firm, our English Speaking Turkish Lawyers provide tailored legal guidance for your business journey—from market entry to litigation defense. As the best lawyer firm in Turkey for business law, we deliver results-driven legal strategies that protect your investment and enable your long-term growth.