In Turkey, foreign oriented or included companies must notify the authorities about their capital structures, share transfers and other activities. The Ministry of the Economy has announced an electronic system for such notifications, called the Electronic Information System on Incentive Implementation and Foreign Capital ("System").
The Regulation Amending the Regulation for Implementation of Foreign Direct Investment Law ("Amendment Regulation") was published in Official Gazette number 30348 on 1 June 2018.
Qualifying companies must apply to the General Directorate of Incentive Implementation and Foreign Capital ("General Directorate") to authorize users who will use the System on the company's behalf.
Individual users will log in and operate the System via an eligible electronic certificate, which should be obtained from an electronic certificate service provider.
Qualifying companies must use the System to:
- Update the following information
within one month after authorisation:
- "Investor"
- "Shareholder List"
- "Subsidiaries"
- Annually complete the Foreign Direct Investment Activity Form, by the end of May each year.
- Update the Shareholder List within one month if a capital increase or decrease occurs.
- Update the Shareholder List within one month of payment if a share transfer occurs.
- Update the Foreign Investment Capital Form within one month of payment if a capital increase or share transfer occurs.
Companies with only Turkish contributions must also use the System to update the "Investor", "Shareholder List" and "Subsidiaries" sections if a foreign investor joins the company via a capital increase or a share transfer.
Please see this link for the full text of the Amendment Regulation (only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
