Firm Profile > KILINÇ LAW & CONSULTING > Istanbul, Turkey
KILINÇ LAW & CONSULTING Offices
Ayaza?a Mahallesi, Cendere Caddesi, No: 109,
Vadistanbul Bulvar, B1 Blok, Kat:26,
Ba??ms?z Bölüm No:58, Sar?yer
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KILINÇ LAW & CONSULTING > The Legal 500 Rankings
Project finance/projects Tier 3
Kılınç Law & Consulting assists with project agreements, EPC contracts, operation and maintenance agreements, and PPPs. In a recent highlight it assisted Yu Group Gayrimenkul Yatirim with project agreements and obtaining licenses and permits for projects. Other clients include high-profile engineering and energy companies. Levent Lezgin Kılınç heads the team, which is ‘very friendly, supportive and customer focused’ and provides ‘solid and complete solutions’.
KILINÇ LAW & CONSULTING > Firm Profile
Kılınç Law & Consulting was founded in 2014 by former advisor to the State Oil Company of Azerbaijan Republic (SOCAR), by Levent Lezgin Kılınç. The Firm is a cross-border energy and commercial law specialist based in Istanbul, Turkey. In less than five years Kılınç Law & Consulting has established itself as a leading practice with an enviable portfolio of domestic and international clients across the energy sector.
The Firm recently opened its consulting office in İzmir, a significant region for energy and shipping related projects in Turkey. This office enables the Firm to best serve its international clients operating in the region.
Areas of practice
Kılınç Law & Consulting focuses on all aspects of energy and commercial law, including corporate law, mergers and acquisitions, and securities law. Kılınç Law & Consulting is particularly qualified at dealing with public authorities in relation to energy law—especially the Ministry of Energy and Natural Resources and EMRA (EPDK)—and has extensive experience in structuring, drafting and negotiating various types of project agreements. This includes project agreements for Engineering, Procurement and Construction (EPC) contracts; oil, gas, and fuel supply agreements; and for the establishment of LNG terminals (floating and shore).
The firm is experienced at preparing operation and maintenance agreements; windmill, power purchase, and marketing agreements; terminal use agreements; transportation agreements; and agreements for establishing refineries, petrochemical facilities, wind, solar, biomass, landfill gas, and other alternative energy projects.
The firm also has particular expertise in relation to cross-border legal advice, and regularly provide consultation on inter-governmental relations, foreign company consultation—especially for international investors interested in Turkey—and contract negotiation advice.
|Aviation Law||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Aviation Law||Eren Can Ersoyfirstname.lastname@example.org||+90 212 217 12 55|
|Capital Markets||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Capital Markets||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Dispute Resolution||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Dispute Resolution||Duygu Doğanfirstname.lastname@example.org||+90 212 217 12 55|
|Energy Law||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Energy Law||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Foreign Investment||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Foreign Investment||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Government Relations||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Government Relations||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Immigration Law||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Immigration Law||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Intellectual Property||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Intellectual Property||Duygu Doğanfirstname.lastname@example.org||+90 212 217 12 55|
|M&A & Corporate||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|M&A & Corporate||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
|Maritime Law||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Maritime Law||Duygu Doğanfirstname.lastname@example.org||+90 212 217 12 55|
|Real Estate Law||Levent Lezgin Kılınçemail@example.com||+90 212 217 12 55|
|Real Estate Law||Seray Özsoyfirstname.lastname@example.org||+90 212 217 12 55|
Staff FiguresAt this address : 30 in this country : 35 worldwide : 38
LanguagesTurkish English German Azerbaijani Spanish Russian
MembershipsBritish Chamber of Commerce in Turkey Swiss Chamber of Commerce
CLIENT: Mustafa Mekki Özkan
COMPANY/FIRM: Yu Group Gayrimenkul Yatirim Anonim Sirketi
TESTIMONIAL: We have been working with Kilinç Law & Consulting for four years. As an investment company we always have to proceed with caution and the firm truly appreciates this. With Kilinç Law we are making great progress with two real estate projects. One is Cadde 54, which is the biggest modern construction estate project in Sakarya, and the other is UNIQ Istanbul, which is also a construction project in Maslak, Istanbul. The project finance team has provided excellent assistance in relation to these projects, including preparing, revising and reviewing the agreements and obtaining the licence from relevant authorities. Mrs. Özsoy has extensive knowledge in this practice area.
CLIENT: Ender Özatay
COMPANY/FIRM: Doka Kalip-Iskele Sanayi Ve Ticaret Anonim Sirketi
TESTIMONIAL: We have been working with Kilinç Law & Consulting for a year. Founding Partner Levent Kilinç is a key name in the project finance practice area. Our project is one of the biggest residence and business building projects in Ankara. The team’s hardworking associates have helped us to reach many agreements during the project. We are always impressed by the speed with which its lawyers respond. Mr. Kilinç is a highly experienced lawyer in project finance.
CLIENT: Cumhur Çanacik
COMPANY/FIRM: SOCAR Turkey Enerji A.S. & PETKIM Petrokimya Holding Anonim Sirketi
TESTIMONIAL: Mr. Kilinç and his team were always available for us to guide us through decisions, allowing us to feel that we were always working in the right direction. Thanks to their hard-working team, our project was completed without any delay or issues. We highly recommend Mr. Kilinç to our clients as a legal partner.
CLIENT: Zeynep Gazali Duran
COMPANY/FIRM: TANAP Dogalgaz Iletim Anonim Sirketi
TESTIMONIAL: We have been working with Kilinç Law & Consulting for four years. During this time, we have always been pleased with the meticulous work of the project finance team. The TANAP project is a confidential project and the natural gas pipe line has far-reaching effects on Turkish and Azerbaijani relations. We have been informed regarding critical matters on the project by a highly experienced team. Mr. Levent Kilinç specialises in energy law and also has a lot of experience related to project finance practice.
CLIENT: Murat Onuk
COMPANY/FIRM: Arz Gayrimenkul Ve Girisim Sermayesi Portföy Yönetimi Anonim Sirketi
TESTIMONIAL: Kilinç Law & Consulting assisted us with a project in which shareholder agreements were central and any delay in the process would have made matters difficult for us. Mr. Kilinç and his team were always available to advise us. The Firm also advises us in relation to one of our big investment, Bor Seker A.S., subject to privatisation and sold at auction for 336 million liras ($82.91 million). The Kilinç team successfully managed the project and assisted us in transferring shares and our whole investments as a venture capital fund. Their hard work ensured that the project ran smoothly and we would certainly recommend Mr. Kilinç to our clients as a legal partner.
CLIENT: Dilara Uçar
COMPANY/FIRM: Star Rafineri Anonim Sirketi
TESTIMONIAL: Kilinç Law & Consultancy provides a legal service to our company’s litigation practices. Star Refinery, which is the largest investment in a single point in the real sector in Turkey, meets 25% of Turkey’s refined petroleum products capacity needs alone. It is also the first company in the field of Turkey’s strategic incentive. In addition to this, Star Refinery which operates in Izmir and is valued at $6.3bn USD has been declared as “Turkey’s First Special Industrial Zone”. Mr. Levent and his team have provided various legal services such as: the “starrafineri” brand registration before the Turkish Patent and Trademark Authority; the preparation of our legal responses to possible objections; the maintenance of relevant negotiations; the preparation of legal memorandums and legal opinions;
the conducting of cases; the take-over of other similar brands, and; the organisation of a successful trademark registration process. Mr. Levent and his team are highly recommended legal advisors.
Kilinç Law & Consulting actively supports diversity in the firm. The firm is majority female and the team comprises many different ethnic identities. Kilinç Law and Consulting is proud to be a diverse team, reflecting a range of race, religion, national origin, sex, age, marital status, gender identity, citizenship status and other statuses. The firm is highly international, and there are currently many associates in the firm from Azerbaijani, Sweden and Australia.
The Firm provides a wealth of role models for aspiring young female lawyers the majority of senior positions are occupied by female lawyers a situation that is rare in both specialist and large law firms. As a firm that practices corporate law, Kilinç Law & Consulting understands good business practices, so the Firm agrees that diversity in recruiting, hiring, and promoting makes good business sense for us as well as for clients. Kilinç Law & Consulting recently promoted a female Senior Associate, Seray Özsoy, to the Partnership in September 2018. This helps to further encourage the predominantly female team that success is rewarded at Kilinç Law & Consulting regardless of gender.
Each associate who has the same seniority earns the same salary, regardless of gender. The Firm pays great attention to the absence of such discrimination. In addition, the company provides many conveniences to increase the role of working mothers in business life. It allows mothers working with flexible working hours to spend time in both family and business life. The firm also provides various forms of support to families of the workers expecting children, including a robust maternity cover scheme.
Currently, some associates work together on both an academic and career basis. The Firm also provides every opportunity for associates, who are postgraduate students, to complete their program, such as flexible working hours.
On the other hand, the Firm’s new office, which is located in Istanbul, has been made appropriate for disabled people. The firm has attached great importance to make the office accessible for everyone; the architecture of the Firm has been completed in accordance with the requirements of disabled people who will work in the future.
The firm provides financial assistance to many non-governmental organizations. In addition to this, Kilinç Law & Consulting actively provides pro bono legal services individuals who require this.
The Firm also attaches importance to issues related to education and self-development of its associates. The Firm provides all kinds of support to contribute to the career of its associates. At the same time, all associates receive training on language courses in the UK, in order to improve their English and thus serve their international clients better.
In conclusion, all partners, associates, as well as auxiliary staff have their own voices in the Firm and their improvements and aspects are always welcome by the Firm. Kilinç Law & Consulting continues to move forward with all its facilities and innovative perspective to make long and productive efforts with both its staff and clients.
Doing Business In
CHANGES IN 2019 VERSUS 2018 – WHAT HAS CHANGED IN THE LAST YEAR THAT HAS IMPACTED THE WAY BUSINESS IS CONDUCTED?
As one of the worldly renowned reports on foreign investment, World Bank annually releases a “Doing Business” guide that evaluates the fundamentals of every country and assessing where the country ranks against the rest of the world concerning the investment dynamics. In the previous editions of the “Doing Business Report”; Turkey ranked 69th in 2017, 60th in 2018, and 43rd in 2019. This year, in the “Doing Business 2020” report; Turkey has jumped up 10 places from the year 2019 is now 33rd in the World Rankings. But what has changed to cause this jump for Turkey?
One of the core elements that has caused the jump is the importance that Turkey gives to the Foreign Direct Investment, increasing its benefits to the investors and many other factors. Last year, Turkey with the new regulations and reforms boost the investments. Especially, Turkey has enabled some companies to do easily their start-up procedures such us the notarization of the companies’ documents and legal books. In 2019, another regulation is made on obtaining construction permits. Turkey published new regulations for the clarity of the online application process, that leads to increase in the transparency of buildings. Also, paying taxes is now much easier by doing an online portal, and Turkey made new regulations for the enforcement of the contracts such as a new level that has been added before applying the Court. The mediation level is the pre-condition before filing a suit.
Regarding the future that awaits Turkey in the following years; Minister Berat Albayrak has pointed out that Turkey’s efforts to further enhance the investment process will continue over the years to come and the investment environment will be improved in the fields of company establishment, tax payments, and foreign trade. “In particular, by further reducing costs and increasing productivity in business life, we will raise the investment climate in Turkey to the highest level,” Moreover, it was pointed out by many government officials that Turkey is willing to get into the top 20 in the World Bank Rankings and will be willing to continue reformation processes in its legislation in order to further enhance the investment environment in the country.
WHAT ARE THE ADVANTAGES OF YOUR COUNTRY AS A BUSINESS LOCATION?
Throughout time, Turkey with its geographical location as the bridge between the continents of Asia and Europe as well as the having Bosporus being tying the Black Sea to the Mediterranean; has always been at the heart of the historical trade routes. These advantages of Turkey are also available for investors today. Turkey is located in the middle of global markets such as the European Market and the Middle East and conducting trade at both of these regions from Turkey is an extremely potent approach for an investor looking to extend its reach to two continents via a strategic trade location.
Moreover, since Turkey is surrounded by the Black Sea and the Mediterranean, it offers choices for an investor as for the decision of means of transport with ports offering great functionality to the investors with established operators and world-class technology.
WHAT ARE THE BUSINESS STRUCTURES IN YOUR COUNTRY?
In Turkey, especially for foreign investors, investments and trade should almost exclusively be conducted through companies in order to get the most of the Turkish Incentive System. As the companies offer plenty of advantages for an investor and quicken the processes through the use of representatives; the investors should direct their investments at a company established in Turkey in order to both legally protect themselves and get the most out of their investments.
As per the Turkish Commercial Code numbered 6102 (“TCC”), there are principal 5 (five) company types namely Joint Stock Company, Limited Liability Company, Collective Company, Commandite Company, and Cooperative Company.
Investors wishing to establish a company prefer two types of companies namely Joint Stock Company and Limited Liability Company, because of the reasons such as tax advantages, limited liability of the shareholders, the fact that the registration of the company before the authority.
A- JOINT STOCK COMPANY
Joint Stock Company is defined as a company that consists of a capital divided into shares and has liability for its debts as limited only to its assets. Also, the shareholders have liability only to the company as limited to the capital share they have undertaken at the established procedures. Therefore, for a shareholder, the liability is explicitly limited to the payment of the undertaken capital amount to the company.
The existence of one single founder shareholder who is a real or legal person is sufficient to establish a Joint Stock Company and there is no upper limit for the number of the shareholders.
The undertaken capital shall be TRY 50.000,00 (Fifty Thousand Turkish Lira) at least and this lower limit of the capital is TRY 100.000,00 (Hundred Thousand Turkish Lira) for the company subject to Registered Share Capital System. The registered share capital system is almost explicitly used by the Companies that are offered to the public and subject to the Capital Markets Law. Also, immovables can be transferred to the companies as capital providing a valuation of an expert report.
A Joint Stock Company can be established for any economic purpose unless prohibited by the law and for a limited or unlimited amount of time.
Establishment of the Joint Stock Company active in fields such as financial leasing companies, banks, insurance companies are subject to the approval of a ministry or other respective public
institutions. In case of that, the Joint Stock Company is desired to be established to be active in such areas, approval letter from a ministry may be required before establishment. Please note the revisions of the Articles of Association of the companies operating in the above sectors are subject to this approval process, too.
The Articles of Association must be written and signed by the founder shareholder and the signatures must be approved by the notary public. Also, the Articles of Association includes the required items such as field of activity, capital, nominal values of the shares, authorities, address, representatives of the Joint Stock Company. First members of the Board of Directors are appointed by the Articles of Association. We’d like to emphasize this point that it is only possible to insert a provision into the Articles of Association if this provision is clearly allowed by the law.
There are two mandatory organs of the Joint Stock Company. These are the General Assembly and Board of Directors. The Joint Stock Company is managed and represented by the Board of Directors under the supervision of the General Assembly. Board of Directors is authorized to decide on any kind of transaction and subjects required to realize the purpose of the company generally. A member of the Board of Directors is not required to be a shareholder of the Joint Stock Company. Real and/or legal persons may be a member of the Board of Directors.
B- LIMITED LIABILITY COMPANY
Limited Liability Company is defined as a company established by one or more real or legal persons with a definite capital. The shareholders of Limited Liability Company have liability only to the company as limited to the capital share they undertook as well as the shareholders of the Joint Stock Company and also the shareholders of Limited Liability Company may be liable for supplementary payments and additional liabilities set forth by the Article of Association. This provision for the Limited Liability Companies is sometimes used to define some additional payment liabilities for the shareholders in order to avoid the insolvency of a company.
Limited Liability Company is established with a minimum capital of TRY 10.000,00.-(Ten Thousand Turkish Liras) divided in to share with a value of TRY 25.-( Twenty Five Turkish Liras) or multiples thereof by at least 1 (one) shareholder and maximum 50 (fifty) shareholders to be active in any kind of economic purpose and subject that are not illegal.
The Limited Liability Company consists of two mandatory organs, Shareholders’ Assembly and Manager or Board of Managers. Please note that, management and representation of Limited Liability Company are carried out by a Manager and/or Board of Managers. It is important that at least one shareholder must have managing authority. Furthermore, in the case of the number of Managers is more than one, one of these Managers must be appointed as the Head of the Board of Managers. Management and representation of the Limited Liability
Company may be assigned to one or more shareholders or all shareholders or third person. Managers are authorized to decide on and conduct all subjects related to the management not vested into general assembly by law or Articles of Association.
C- INDEPENDENT AUDIT
It is crucial to explain that Companies are subject to Independent Audit pursuant to Turkish Audit Principles as per the Turkish Commercial Code and in accordance with the terms of 2018-11597 numbered Presidential Decree and the companies which subject to Independent Audit are also supposed to create a website and allocate some part of this website to the announcements required by the law.
D- COMPANY ESTABLISHMENT PROCESS
The company establishment process in Turkey is conducted through an electronic system named MERSİS and the supporting documents are delivered to the trade registry after an online application is filed to the system. For the establishment of the Joint Stock Company and Limited Liability Company (“Company”), the documentation that is pointed out in the respective regulation of the Company types shall be registered before the respective Trade Registry Office of the city that the Company will be established at.
CURRENT OPPORTUNITIES & FUTURE PROSPECTS
Considering to start investing or expanding current business in Turkey will be the right decision for all the foreign investors, due to the fact that the Republic of Turkey has one of the most growing economies in the world with its advantages of geographical location, diversified economy and investment opportunities supporting by the government. Especially the Investment Office of the Presidency of the Republic of Turkey is the official organization for promoting Turkey’s investment opportunities to the global business community and for providing assistance to investors before, during, and after their entry into Turkey. As we are a lawyer, mostly directs our Clients to the Investment Office of the Presidency of the Republic of Turkey to hear the advantages and opportunities of Turkey from the firsthand. After their meetings with the Presidency Investment Offices, all our Clients have clear answers for their queries that why should we invest in Turkey.
Actually, there are many important reasons for making an investment in Turkey, but the top reasons to invest in Turkey can be listed as follows:
- The Turkish economy is ranked 13th among the world’s largest economies, and 5th largest economy compared with the European Union in 2018 (GDP at PPP, IMF WEO)
- Over the past 16 years, Turkey has put in a noteworthy performance by increasing the size of its overall economy from USD 236 billion in 2002 to USD 784 billion in 2018.
- Turkey successfully generated approximately 7.5 million new jobs during the 2008-2018 period.
- With an eye-catching 10 percent average annual growth in exports, Turkey has outpaced the world performance and increased its export volume from USD 36 billion to USD 168 billion over the past 16 years
- Turkey successfully generated approximately 7.5 million new jobs during the 2008-2018 period.
Large Domestic and Regional Markets
- Turkey’s performance in economic development saw its income per capita increased from USD 3,581 in 2002 to USD 9,632 in 2018.
- Turkey is the 11th largest economy in terms of GDP per capita among countries with a population over 50 million.
- More than 23 urban centers, each with populations of over 1 million, support Turkey’s thriving domestic market through their production of goods and services. In terms of population, Istanbul is the largest city in Europe.
- Turkey is a natural bridge between both the East-West and the North-South axes; thus, it is easy to access all customers over the world.
- Turkish Airlines, the national flag carrier airline of Turkey, connects 255 destinations in 122 countries.
- Turkey offers excellent opportunities with its growing, young, and dynamic population – the driving force behind a strong labor pool and a lucrative domestic market.
Skilled and Cost-Competitive Labor Force
- Turkey’s overall labor force is around 32.7 million people, which makes the country the 3rd largest labor force in Europe.
- The Republic of Turkey offers so many opportunities to foreign investors in a wide variety of sectors such as automotive, machinery, defense & aerospace, energy.
All of the above reasons can be just motivation for all potential investors who are thinking to make an investment in Turkey. Also, there is one more good news from our country. The Republic of Turkey official announced its first fully domestically-produced car last months, it is planning to eventually produce up to 175,000 of the electric vehicles a year in a project expected to cost 22 billion lira ($3.7bn) over 13 years. It is obvious that this investment demonstrates the country’s growing economy.
HOW DOES THE LEGAL SYSTEM OPERATE? WHAT SHOULD CLIENTS BE MINDFUL OF WHEN DOING BUSINESS IN YOUR JURISDICTION?
The legal system of Turkey is similar to the fundamentals of continental Europe. As a civil law country; Turkey has a codified set of rules that explain the processes that are to be carried out in the country. We believe codification of the rules to be an important attraction point for a foreign investor since the requirements, the repercussions and the liabilities are definitively laid out in the primary legal sources that are constitution, laws regulated by the parliament and the decrees issued by the Presidency and secondary sources that derive from these primary sources that are by-laws, regulations and communique.
Turkish Legal System based on the Turkish Constitution numbered 1982 is generally composed of Civil Law and Administrative Law and so does not adopt the precedent system. Generally, in Turkey, the judicial system is separated into three levels, one is the first instance courts, district courts, and supreme courts.
The scheme shows the main structure of the court system but under these courts, there are specialized courts for certain legal areas. (for example, under the courts of civil law; commercial courts, consumer courts, enforcement courts, family courts, labor courts etc.) Also, in Turkey with the new regulation for the labor cases and commercial cases, it is obligatory to apply mediation before filing a lawsuit. The mediation level is the pre-condition before filing
a lawsuit. With this regulation, Turkey has gained the investors, due to the reason that the investor can speedily enforce their contracts at this level without paying any Court costs and expenses.
Turkish Courts especially seek written pieces of evidence before deciding on any cases, therefore it is very critical to gather evidence before applying any courts. From this point of view, we advise all our Clients to not act independently on any of their operations without taking consultancy from their lawyers, because in accordance with the current codes in Turkey, most of the transactions shall have to fulfill the form requirements regulated by the related laws.
FOREIGN INVESTMENT RESTRICTIONS
The fundamental regulation that creates the foreign direct investment regime in Turkey is the Foreign Direct Investment Law Numbered 4875 (“FDI Law”) and the Regulation on the Implementation of the Foreign Direct Investment Law. According to the FDI Law, an FDI according to Turkish regulation is defined as;
Convertible cash capital in currencies that are traded by the Turkish Central Bank, Company Securities, Machinery and Equipment and Industrial and intellectual property rights that are brought to Turkey from overseas or; rights related to the profit, revenue, money receivable or investment having financial value used in the investment, Rights for exploration and extraction of natural resources, that provided domestically in order to;
i) Establish a new company in Turkey or,
ii) Acquire shares outside the stock exchanges or acquiring a shareholding in an existing company through acquisitions that provide at least 10% of the shares or equal voting rights.
An FDI that corresponds to the definition pointed out above; is regarded as equal with domestic investment. Moreover; Foreign direct investments, in accordance with the legislation in force; cannot be expropriated or nationalized unless the public interest requires and their provisions are paid.
Therefore, according to the FDI Law; investments made by foreign investment is not restricted in amounts except for certain sectors that are regulated through different regulations.
Secondly, according to Article 3c of the FDI Law; net profits, dividends, sales, liquidation and compensation, licensing, management, and similar agreements in exchange for sums to be paid by foreign loans principal and interest payments, and foreign credit principal and interest payments arising from the activities and transactions of Foreign Direct Investments in Turkey can be freely transferred abroad through banks or special financial institutions. Therefore; and
FDI that fits the definition pointed out in the FDI Law is not subject to any foreign exchange control.
INCENTIVES FOR DIRECT INVESTMENTS
The new investment incentive system has been specially designed to encourage investments that have the potential to reduce import dependency on intermediate goods, which are important for the strategic sectors of the country.
Reducing the current account deficit, expanding the investment supports provided to less developed regions, increasing the number of support elements, promoting clustering activities, supporting investments to provide technology transformation are among the main objectives of the new investment incentive system.
As of 1 January 2012, the new investment incentive system consists of four separate regimes. Domestic and foreign investors can benefit equally from the following incentives:
1- General Investment Incentive Practices
- All projects that meet the determined capacity conditions and minimum fixed investment amount are supported within the framework of General Investment Incentive Practices, regardless of the region where the investment will be made.
2- Regional Investment Incentive Practices
- While the sectors to be supported in each region are determined in accordance with the potential of the region and the local economic scale sizes, the intensity of the supports to be provided varies depending on the level of development of the regions.
3- Large Scale Investment Incentive Practices
- Turkey’s potential as a technology-specific investment issues to increase R & D capacity and competitiveness is supported.
4- Strategic Investment Incentive Practices
Investments that meet the following criteria are supported within the scope of Strategic Investment Incentive Practices:
- Local production capacity for the product to be manufactured by investment should be less than the import of the product.
- The minimum fixed investment amount of the investment should be 50 million TL.
- The investment should create a minimum of 40% added value. (This condition is not required for refinery and petrochemical investments)
- The total import value of the product to be produced must be at least 50 million US as of the last 1 year. (This condition is not required for goods that do not have domestic production)
In order to these incentive practices, each practice has a different types of benefits such as VAT exemption, customs tax exemption, tax discount, social insurance premium support, income tax withholding discount, social insurance premium support, interest rate support, land allocation, VAT refund.
WHAT TO KNOW BEFORE INVESTING
The Republic of Turkey become the first destination for all foreign investors around the world due to the reason that the Republic of Turkey has one of the most growing economies in the world with its advantages of geographical location, diversified economy and investment opportunities supporting by the government. In accordance with the Doing Business Report, Turkey has jumped up 10 places to be 33rd among 190 nations. It is clearly seen that Turkey gained critical achievements in economic fields, especially by comparing all places into the index for two years, Turkey has gained improvement in 27 places. The expectation of Turkey is being ranked 20th on the next index. All of the improvements and the speed of economic growth boost investors to do direct investments within the border of Turkey.
Also, the Turkish Government continues to make new regulations and reforms in order to improve the activities of the Turkish business life such as reducing costs and accelerating the procedures.
Besides, last year can be the year of publishing new regulations and reforms for Turkey, due to the reason that Turkey aimed to boost the investments with the new regulations and reforms and truly succeeded in its aims. Especially, the new regulations for doing easily start-up, the transparency of the online application requirements for the construction buildings, paying taxes on online platforms and most important regulations and reforms on the Turkish jurisdiction such as adding mediation level before filing a suit increase the trust of the investors to Turkey.
Levent Lezgin Kılınç, Founding Partner
What do you see as the main points that differentiate Kılınç Law & Consulting from your competitors?
“Our lawyers all come from a range of legal and commercial backgrounds, and so the Firm posseses a thorough knowledge of the industries in which our clients operate. The team is also fluent in a range of languages. In addition to English and Turkish, our lawyers also speak Azerbaijani, Russian, German, Swedish and Spanish, allowing us to work effectively with our international clients.
Our main focus is to assist our clients in a simple, clear and cost-effective manner. I myself come from an in-house background; prior to founding Kılınç Law & Consulting, I was legal counsel at SOCAR, Azerbaijian’s State Oil Company, in Turkey. The Firm is therefore founded on a core understanding of corporate clients’ expectations of their legal services providers, and we apply this knowledge across all the matters on which we are instructed.”
Which practices in your member firm do you see growing in the next 12 months? What are the drivers behind that?
“We envisage that our core services, energy and corporate, will continue to see substantial growth over the next year as Turkey solidifies its position in the region as a key energy and business hub. Furthermore, we have recently appointed a maritime law specialist, which will enable us to expand our offering in this sector.
There are many international individuals and companies that wish to invest in Turkey, especially in light of the new regulations in regard to Foreign Direct Investment recently passed through Turkish Parliament. The new Presidential Investment Office provides incentives for international investors, and so the country is ripe for investment across its regions. We expect an influx of international companies seeking lawyers with the specialist knowledge in local laws to achieve their objectives in Turkey.”
What is the main change you have made in your firm that will benefit clients?
“In order to enhance our services further, the Firm is contactable 24 hours a day so as to make sure any urgent client matters are dealt with swiftly. We have also made our website more user-friendly and incorporated a media section, which features articles written by the team. This allows us to build a bridge between our clients and ourselves, keeping them informed on trends, changes in regulations, codes, amendments and sector developments.
We we will continue to maintain our highly international perspective and enhance our expertise in international areas, and have recently set up offices in Izmir and London.”
How is technology changing the way you interact with your clients and the services you can provide them?
“Absolutely. Technology enables the Firm to efficiently and effectively serve our clients. We utilise a range of systems to keep our legal knowledge at the forefront and to ensure that the work we provide to our clients is both cutting-edge and takes into consideration the most recent changes and updates to the law, remaining compliant with both international and domestic regulation.”
Can you give us a practical example of how you helped a client add value to their business?
“Kılınç Law & Consulting provides legal services on every practice area relevant to our clients. For instance, one of our clients recently consulted regarding an investment in Turkey. First of all, we researched and found the areas where the company could invest in its field of activity. We then provided opportunities to our client for incentives from the relevant ministries on the investment. We then completed all the necessary legal processes for the establishment of the company in Turkey. We are currently providing legal service in all litigation and corporate matters for the company. This will allow our client to add value to the company, both within its own organisation and internationally.”
Are clients looking for stability and strategic direction from their law firms – where do you see the firm in three year’s time?
“Our stability and strategic direction are the key components that attract our clients to us, and we plan to stringently maintain these qualities. As a matter of course, we are always improving the Firm and the quality of our services. We are training our colleagues on the issues we deem necessary to go above and beyond in the practice of law. Our success in this regard has allowed us to provide exceptional professional services to our clients, and we will continue to expand the scope of these activities in both the national and international arena.