While criminal responsibility traditionally applies to natural persons, Turkish law recognizes circumstances in which legal entities such as companies can be subject to judicial sanctions. Although Article 20 of the Turkish Penal Code (TCK) explicitly states that legal entities cannot bear criminal liability, Article 60 of the same code and various special laws introduce indirect responsibility for corporations that benefit from criminal acts or fail in compliance.
At ER&GUN&ER Law Firm, our team of English Speaking Turkish Lawyers advises corporate clients on criminal risk management, compliance procedures, and defense strategies when companies are entangled in criminal investigations. This guide offers a detailed examination of when and how companies can be prosecuted or sanctioned under Turkish law.
Is There Criminal Liability for Legal Entities in Turkey?
Technically, no. Under Article 20/2 of the Turkish Penal Code, legal entities such as corporations, associations, or foundations do not have criminal liability in the classical sense. Criminal responsibility is personal and tied to individuals.
However, this principle has significant exceptions. When an employee, manager, or board member commits an offense that benefits the company or is made possible due to lack of internal controls, the company may face judicial sanctions—especially under special laws regulating areas such as tax, environment, anti-corruption, and financial crimes.
Key Statutory Frameworks for Corporate Sanctions
- Article 60 of TCK: Enables application of security measures to legal entities, such as cancellation of licenses or confiscation of assets.
- Law No. 5549: Anti-Money Laundering Law permits administrative sanctions on companies benefiting from laundering activities.
- Law No. 2872: Environmental Law allows suspension of operations for polluting or non-compliant businesses.
- Law No. 5237 (TCK) Articles 43, 116, 155: Enable prosecution of decision-makers with resulting company exposure.
- Competition Law: Corporate fines and disqualifications for anti-competitive behavior.
These laws create a framework where companies can be punished indirectly while the actual offender is prosecuted criminally.
When Can a Company Be Prosecuted or Sanctioned?
Sanctions against companies generally arise in two categories:
- When the company directly benefits from a crime: e.g., bribery leading to a government contract.
- When the offense is committed within the scope of company activity: e.g., using illegal labor, dumping toxic waste, or falsifying commercial documents.
Even if the company is not formally charged in the indictment, prosecutors can request seizure, freezing of bank accounts, or cancellation of operational permits as a protective measure.
Common Offenses Leading to Corporate Consequences
- Environmental pollution and waste mismanagement
- Violation of labor laws and occupational safety regulations
- Corruption, bribery, and facilitation payments
- Tax evasion, false invoicing, and transfer pricing manipulation
- Data privacy breaches under Law No. 6698 (KVKK)
These offenses may lead not only to criminal trials against responsible individuals but also to administrative investigations, license revocations, and heavy fines for the company itself.
Judicial Sanctions Applicable to Companies
Under Article 60 TCK, courts can impose the following security measures on legal entities:
- Confiscation of goods used in the commission of the offense
- Permanent or temporary closure of the business
- Prohibition from bidding in public tenders
- Revocation of licenses or operational permits
- Suspension of activities related to the offense
Such measures can be enforced even when the company is not formally convicted, as long as a benefit was obtained from the crime committed by company staff.
Defense Strategies and Corporate Compliance
The best way to prevent corporate liability is proactive compliance. At ER&GUN&ER Law Firm, our compliance advisory services include:
- Internal audit protocols and employee conduct policies
- Anti-corruption training and reporting mechanisms
- Contract risk assessment and documentation standards
- Environmental, social, and governance (ESG) compliance reviews
- Data protection policy under Turkish KVKK and EU GDPR
Frequently Asked Questions (FAQs)
- Can a company go to jail in Turkey? No. Legal entities are not subject to imprisonment, but can face administrative and judicial sanctions.
- Is company liability automatic if an employee commits a crime? Not automatically. There must be proof of benefit or organizational fault.
- Can a company’s assets be frozen during investigation? Yes. Prosecutors can request precautionary seizure of company assets.
- Should companies hire a criminal lawyer? Absolutely—especially if executives or staff are questioned in relation to a criminal file.
Contact Our Corporate Criminal Defense Lawyers
Whether your company is under investigation or you want to establish a preventive compliance framework, our English Speaking Turkish Lawyers are ready to help. As a leading Turkish Law Firm representing multinational companies, financial institutions, and tech startups, we offer end-to-end legal services to manage risk and defend corporate reputation.