Erdal Nuhbasa – Law and Consulting Firm – Legal Services
Erdal Nuhbasa – Law and Consulting Firm – Legal Services
Turkey’s location between Europe, Asia, and the Middle East makes it a practical and attractive market for international companies. However, foreign businesses operating in Turkey must comply with Turkish trade law and carefully structure their commercial contracts to mitigate legal and financial risks. I will explain the basic structure of Turkish trade law and outlines the main legal issues international companies should consider when entering into commercial contracts in Turkey.
Turkish trade law is primarily governed by the Turkish Commercial Code (TCC), which regulates commercial enterprises, companies, negotiable instruments, transportation, maritime trade, and insurance. In addition, commercial activities are influenced by:
Foreign companies operating in Turkey are generally subject to the same legal obligations as domestic companies, unless otherwise regulated by international agreements.
Commercial contracts form the backbone of business operations in Turkey. While Turkish law recognizes the principle of freedom of contract, agreements must comply with mandatory legal provisions.
Common commercial contracts include:
Parties may choose foreign law and international arbitration. However, mandatory provisions of Turkish law may still apply in certain cases.
Turkish regulations may impose restrictions on foreign currency payments in certain contract types. Proper structuring is essential.
Termination rights, notice periods, and penalty clauses must comply with Turkish law to be enforceable.
Limitations of liability should be clearly drafted, keeping in mind statutory restrictions under Turkish law.
International companies often face challenges such as:
Commercial disputes in Turkey may be resolved through:
Turkey is a signatory to the New York Convention, ensuring the enforceability of foreign arbitral awards.
Trade law and commercial contracts in Turkey present significant opportunities for international companies, provided that legal risks are properly managed. Well-drafted contracts and compliance with Turkish trade law are essential for sustainable business operations.
For international companies, working with experienced legal counsel can help reduce risk and ensure that commercial activities in Turkey are carried out in a legally sound manner.
Erdal Nuhbasa Law and Consulting Firm provides legal advisory services to international companies operating in Turkey, with a focus on trade law, commercial contracts, and cross-border transactions.
