Business By Legal Structures: Foreign Capital Enterprises


Many countries want to bring foreign capital to their country and increase investments in the world. Many regulations are made for foreign investments for this purpose.

The number of foreign investments and companies established for this purpose has increased with the “Foreign Diret Investment Law” which took effect in 2003 in Turkey. The capital contribution to the stock of capital in our country is also outstanding. 

These capital initiatives have moved into our lives with many foreign capital inflows and development projects since the Republic period in Turkey. 

This research aims to provide information about foreign capital businesses within the framework of legal structures and the importance of these investments in terms of economic importance. 

Keywords:  Foreign Capital enterprises, legal processes 


People have to come together for a variety of purposes. This relationship, which starts with two-person relationships, is increasingly partnered. These mergers are often made for economic purposes.

Companies are the largest and most consequential place between social and economic or poetic mergers. (Lion, 2014, p. 171) 

A company can comprise of for different reasons. It is possible to divide these causes into four, mainly a) to provide capital, b) to provide administrative labour, c) to limit liability and c) to distribute the consent. As businesses grow, one, a few or all of these four reasons may play a small or multiple roles in building a company. (Aslan, 2014, p. 171) 

With the change in the sector structure of the Turkish economy, capital is the most substantial element in economic growth. Capital is the scarce production element of these economies. One of the problems that arise in the capital element is incompetence. This is important for the total capital amount as well as for the quality of capital. The lack of capital in developing countries can only dip out by foreign capital. This can provide a critical identity in the growth and development of the Turkish economy, as for all underdeveloped economies of foreign capital. 

The desensitization function and effect of specialized foreign capital in economic growth are essential in the sector distribution of this item. However, the expertise of foreign capital can be productive and in a sense determines the marginal yield of foreign capital. This is especially important for our country’s economy. Due to a change in the industrial structure in the planned development model, Turkey has been implementing it since 1960, which is considered the main goal and the plan is accordingly.
According to this, foreign capital inflows will inevitably be shaped and directed according to these changes intended in the sector structure (Cetinkaya, 2004)


Foreign capital can be grouped into private, direct and official foreign capital, and is grouped into indirect and direct foreign capital to make it more understandable today. 

It can be defined as people from foreign countries who want to come and invest in our country and Turkish people who have a settlement abroad and as a company established following the legal rules of foreign countries. 

Why do investors of foreign capital investments invest in another country outside their own country? There are many reasons, these are: 

  • High-profit expectations,
  • Market expansion and new market understanding,
  • More efficient production expectations,
  • To overcome customs or other obstacles in export and import transactions,
  • To be able to facilitate the need for raw materials,
  • Demand to broadly market the current market,
  • We can list technology as bringing it to other countries. (Cetinkaya, 2004) 

When we look at these situations, the economic impact of these investments, such as payments, employment, economic development, prosperity and production balance, should be understood as their contribution to the domain economy to better understand.

Some of these investments appear in a much longer period at the time of impact. 

Established By Law No. 6224 

Together with Turkish partners, it may be one of the types of companies shown in the TCC, and it may be the branch of a business in our country that has a swagger in following the laws of its own country. İllustrations: Renault, Roche, Siemens. This law was then abolished in 2003 by the Foreign Direct Investments Act No. 4875. 

Companies Founded By Oil Law 

In our country, those who want to build a business for oil extraction, oil products, oil exploration and oil refinery are allowed to establish a business as one of the companies in the TCC or as a branch of a business abroad. 

Businesses Established With International Agreements 

It is a business founded between other countries and Turkey by leveraging the benefits and benefits provided by multilateral or bilateral deals and rights and privileges. 

There are foreign capital manufacturing companies in many sectors. Each of these principal sectors has a manufacturing code. 

For example; the manufacturing code of furniture manufacturing as the base sector is 31. The production code of the bearing making is 3103 from the activities included within the fundamental segment. 

There are a total of 1200 companies in the distribution of foreign capital firms in Turkey according to countries. The first five countries: 

Germany 242, Netherlands 139, Italy 101, France 86 and the United States have 66 companies. 

Based on this distribution, a sum of 1306 companies are available in the distribution of foreign capital companies according to the provinces. The top five cities of foreign capital businesses are: 

Kocaeli 215, İzmir 200, İstanbul 185, Bursa 117, Tekirdağ’da ise 91 ilimiz bulunmaktadır.


When the company is founded, the society’s title, the centre, the address, the subject and purpose of the activity, who the manager/agent will be, and the capital and capital shares are determined. The company capital is “Limited Company” for a minimum of 10,000 TL and “Anonymous Company” for 50,000 TL. Then we can sort it like this. 

  • Obtaining the necessary warranty or performing the feasibility study.
  • Preparing the organization notification form.
  • Preparation of the main contract.
  • Application to the Ministry of Industry and Trade for the organization.
  • Chamber of Commerce registration petition.
  • Foreign partner, if the actual person is the notary-certified translated passport transcript and a potential tax number dump.
  • Foreign partner if the legal entity is a notary-approved interpretation of the business document and registration summary issued by the industrial or trade room or by the competent courts, where the company containing the apostil city or approved by the Turkish consulate is registered.
  • Bank commentary with a bowl and signed signifying collection. (Bank statement with collected bowls and signed explanation indicating that four out of ten thousand of the capital is deposited into the Competition Authority’s account)
  • Notarized translated proxy given to the veritas person who will manage the organization transactions.
  • Registered request by notarized Authorized Persons under company title.

Once all of these transactions are completed and the required organizational permits are supplied company will gain legal personalities from the registration of the Trade registry directorate. 

The documents given to the trade record and the documents given to a Turkish-funded company are the same. 

The Tax Registry Number is obtained by contacting the Tax Office where the company’s address has been located since the date of registration. The books which are then required to be kept as stated in the Tax procedure Law are then adopted. 


At least in some of our lives, we’ve seen some the words, like anonymous and limited. Have you ever wondered? These are capital companies. 

When building companies capital from basic building blocks may sometimes not be enough. 

It may also not be enough in the capital of our country. One of the ways we apply in these situations is a partnership. These partnerships can sometimes be established for different purposes. Like foreigners wanting to enter markets in our country. Foreign investments from foreign states also contribute to the nation’s economy. 

Foreign Capital enterprises are established by passing laws based on many legal foundations when they are established. In Article 10 of the Foreign Capital Incentive Law on this issue; “FOREIGN CAPITAL and UNDERTAKINGS working on the same fields are benefited from rights, exemptions and conveniences granted to domestic capital and undertakings under the same conditions”. it is said. 


Aslan, Y. (2014).Trade Law courses,  Ekin Publishing House,, Volcano Iron,, Murat Çetinkaya, 2004,,,,,

Aslan, Y. (2014). Ticaret Hukuku Dersleri, Ekin Yayınevi,, Volkan Demir,, Murat Çetinkaya, 2004,,,,,,,,, 

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