Joint ventures with the participation of foreign shareholders
became very popular in Turkey, especially after the late 1980s. The
major reasons behind this popularity were the necessity to attract
foreign investment, and the significant improvement in the Turkish
economy.
The major change and progress regarding foreign investment is
the enactment of Law No. 4875 which provided fundamental changes in
all phases of proceedings in relation to foreign investments.
Subsequent to the enactment of Law No. 4875, foreign investment
in Turkey is no longer subject to the approval of the General
Directorate of Foreign Investment of the Undersecretariat of the
Treasury of the Prime Ministry of Turkey (the "FIGD").
The basic purpose of Law No. 4875 is to encourage direct foreign
investment and to change, in general, the investment process from
the authorization and approval system to the information system. No
approvals and/or authorizations are required to be obtained
