The Implementation Regulation on Foreign Direct Investments published in the Official Gazette dated 20 August 2003 and numbered 25205 (the "Implementation Regulation") has recently been amended with the Regulation Amending the Implementation Regulation on Foreign Direct Investment published in the Official Gazette dated 1 June 2018 and numbered 30438 (the "Amending Regulation").
The Amending Regulation requires companies with foreign shareholders and Turkish branches of foreign companies (the "FDI Entities") to fulfil their reporting requirements through a new electronic system called the "E-TUYS Platform".
According to the Implementation Regulation, FDI Entities are required to inform the Ministry of Economy (the "Ministry"):
- within one month following the incorporation of a Turkish legal entity whose shareholders are foreigners;
- within one month following the acquisition, disposal of or subscription for interests in Turkish entities any payment related thereto made by foreigners; and
- by 31 May each year regarding the activities of the FDI Entity during the previous year.
Previously, these reporting obligations were performed by paper-form submissions to the Ministry. Going forward, electronic submissions through the E-TUYS Platform will be mandatory.
In order to fulfil the reporting requirements through the E-TUYS Platform, Turkish entities will first be required to notify the Ministry of their authorised persons who will make use of the E-TUYS Platform on their behalf. Those persons will need to have the use of electronic signatures, provided by accredited service providers.
As a result of the procedures introduced by the Amending Regulation, all current FDI Entities should make note of the new procedures for their reporting obligations and foreign investors planning to invest into Turkish entities should build the notification of the authorised persons by their targeted entities into their timetables.
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.