Amendments to The Regulation For Implementation Of Direct Foreign Investment Law
Amendments to The Regulation For Implementation Of Direct Foreign Investment Law
The Regulation Amending the Regulation on the Implementation of the Direct Foreign Investment Law (“Regulation”) have been published by the Ministry of Trade (“Ministry”) in the Official Gazette on 1 June 2018. In this scope, notifications to be made to the Ministry by foreign-capitalized companies and branch offices of foreign companies (“Companies”) must be carried out through an online platform, namely Electronic Incentive Practices and Foreign Capital System (“E-TUYS”). As of 1 June 2018, certain notifications specified under Regulation shall be made through E-TUYS and certain information requested by the Ministry shall be provided and updated online if need be.
To carry out transaction through E-TUYS, Companies must register a user before the Ministry by completing and presenting necessary documents detailed under the Regulation and a ministerial approval must be obtained. Users who will be registered can be a Turkish or a foreign citizen. Companies may appoint multiple users to carry out transactions through E-TUYS.
The authorization period of the authorized user shall be limited to the period determined by Company. Where deemed necessary, the Regulation recognizes the possibility for companies to extend this term of authorization by applying to the General Directorate of Incentive Practices and Foreign Capital (“Directorate”). Accordingly, authorizations of users shall be terminated at any time.
The Regulation had regulated which notifications and within which periods shall be made through E-TUYS:
- Firstly, users must provide “Investors”, “Shareholders Lists” and “Subsidiaries” information no later than one (1) month as of the authorization approval by the Ministry.
- Companies shall fill in and submit “Activity Information Form for Direct Foreign Investments” on an annual basis by the end of May.
- In case there is share capital increase or decrease, users shall update “The Shareholders List” no later than one (1) month.
- Users shall update “Shareholders List” after share transfer have been occurred among domestic or foreign investor or to any local or foreign investor outside the company.
- In case there are payments related to capital share increase or share transfer, following date of payment, users shall update “Share Capital Information Form for Direct Foreign Investment no later than one (1) month.
- In case share transfer or inclusion of a Company into the scope of the Communique after participations of foreign investors to domestic companies or participation of foreign investors outside company to share capital increase of Company, users shall update “Shareholders List” and “Subsidiaries” information no later than one (1) month.
Authorization For The Execution Of Investment Incentive Certificate Transactions In Electronic Environment
Communique on “Authorization for The Execution of Investment Incentive Certificate Transactions in Electronic Environment” (“Communique”) have been published by the Ministry of Trade (“Ministry”) in the Official Gazette on 31 June 2018. Within this scope, the procedures and principles regarding the authorization of the users who will carry out transactions on behalf of the investors who will apply for the works and transactions related to the investment incentive certificate in the electronic environment have been regulated. Necessary documents to be completed and presented in accordance with the investment incentive applications shall be carried out electronically via the Electronic Incentive Practices and Foreign Capital System (“E-TUYS”). Therefore, all incentive transactions shall be conducted electronically as of the said date.
To carry out transaction through E-TUYS, Companies must register a user before the by completing and presenting necessary documents detailed under the Regulation and a ministerial approval must be obtained. Users to be registered may be a Turkish citizen or foreign citizen. Companies may appoint multiple users to carry out transactions through E-TUYS.
The authorization period of the authorized user shall be limited to the period determined by Company. Where deemed necessary, the Regulation recognizes the possibility for companies to extend this term of authorization by applying to the General Directorate of Incentive Practices and Foreign Capital (“Directorate”). Accordingly, Authorizations of users shall be terminated at any time.
Users must provide “Investors” and “Shareholders Lists” information no later than one (1) month as of the authorization approval by the Ministry.