When qualifying foreign legal entities, it is necessary to examine the legal entities by making a triple distinction as partnership, foundation, and association. Partnerships are legal entities established to share profits, and associations and foundations do not have such a quality.
When a partnership is established under Turkish law and the headquarters of this partnership is in Turkey then this is a Turkish legal entity.
If the headquarters of the partnership is abroad then this is not a Turkish legal entity. There may be branches of this partnership in Turkey although its headquarters is abroad. In these cases, branches are registered as Turkish commercial enterprises, but they are subject to foreign headquarters.
Turkish law only makes it possible to purchase real estate in Turkey by the foreign qualified partnership. Foreign-qualified associations and foundations cannot buy a real estate in Turkey.
If a foreign trade company wants to purchase bare land and if they want to develop a project on that property then this company must request approval from the ministry within two years.
According to the restriction, foreign legal entities can acquire real estate only in cases specified in special laws of Turkey.
The first of the relevant regulations are related to commercial enterprises operating in the field of tourism.
Another regulation is about the creation of industrial zones to increase foreign capital inflows. A third special arrangement is about the foreign partnership owning petroleum rights in the regions where oil is available and about the activities the company can do in this field.
It’s also possible to make immovable pledge facilities in favor of foreign trade companies in Turkey. The companies established in Turkey with foreign trade capitals may also acquire real properties and they will be able to establish limited rights in rem limited to the fields of activity specified in their articles of association.
Foreign capital companies wishing to acquire fundamental properties can apply directly to the relevant governorship or acquire the relevant immovables through share transfer indirectly with the documents enumerated in the law, however, this situation is valid for the cases where the company is a Turkish company and its capital has a foreign element.
Antalya Lawyer and Antalya Attorney Baris Erkan Celebi and his Antalya Law Firm offer their clients legal support in all inheritance lawsuits under FOREIGN LEGAL ENTITIES.
