Notification Obligation of Foreign Capital Companies and Branches
Article 2 of the Foreign Direct Investments Law No. 4875 defines the term “foreign investor.” Accordingly, a foreign investor is:
- Real persons holding the citizenship of foreign countries and Turkish citizens residing abroad who make direct foreign investments in Turkey,
- Legal entities established according to the laws of foreign countries and international organizations.
The implementation regulation of the Foreign Direct Investments Law, published in the Official Gazette No. 25205 on 20.08.2003, sets out certain reporting obligations for foreign capital companies and branches.
According to this, foreign capital companies and branches are required to fill out and save the fields in the “Annex-1 Direct Foreign Investments Activity Information Form” available on the Ministry of Industry and Technology’s (Ministry) website under the Electronic Incentive Application and Foreign Capital System (E-TUYS) on an annual basis, no later than the end of May each year.
Additionally, contact offices of these companies located in Turkey must send the “Annex-4 Information Form on the Activities of Contact Offices” and the related documents about the office’s activities in the previous year to the Ministry by the end of May.
Contact offices that do not make the required notifications will have their activity permits automatically canceled, and requests for extensions will not be considered. The relevant regulation can be accessed here.
Sincerely,
BİLGENER
