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Freedom of Settlement of Foreign Companies
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Att. Leyla Orak
Introduction
Globalization is one of the significant aspects that shape daily
commercial life. It is possible to say that, through the globalization of
production, commerce and economy, national borders disappear and
establishing relationships between countries becomes easier and faster.
Commercial companies, which are the indispensable subject of our
increasingly globalized commercial lives, have started to adapt and global
companies have been formed. Such global companies can be defined as
those which operate in the international arena without any differentiation
of language, religion, race, nation, culture, custom, law, and that have
a reputation and material trade capacity. Therefore, the freedom of
settlement of companies with international operations has become an
important issue.
This Newsletter article will briefly assess the freedom of settlement
of foreign companies.
Freedom of Settlement of Foreign Companies in Turkey
Before analyzing the settlement requirements for foreign international
companies in Turkey, it should be underscored that a company with legal
personality should be recognized in countries other than that where it is
established. Hence, whether such a company is defined and treated as a
foreign company must be evaluated under Turkish law.
Within the scope of Turkish law, when a ‘foreign company’ is
examined, it becomes clear that there is no concrete definition thereof.
Despite the fact that the Turkish Commercial Code No. 6102 (TCC) does
not explicitly define ‘foreign company’, scholars argue that a company
whose headquarters is located abroad is regarded as a ‘foreign company’.
Their argument hinges on TCC Art. 40, para. 4, which reads: “
Branches
in Turkey of commercial enterprises whose headquarters are located
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Article of September 2013