Facilitations for investors in Turkey in 2021 Business Plan

Facilitations for investors in Turkey are deeply rooted with the recent declaration by the Turkish President in relation to the new Action Plan for Human Rights in Turkey.

On March 2^nd, 2021, Turkish President Recep Tayyip Erdogan announced the long-awaited new action plan for human rights. It is a comprehensive action plan which includes many amendments with regard to all legal aspects in Turkey.

Initially, this action plan presents some important commitments to facilitate the lives of Turkish citizens, as well as foreigners residing, or having businesses in Turkey. In fact, it heralds a better era for all.

In this report, we will address the most prominent points in the mentioned action plan. Especially, aspects related to the facilities for investors in Turkey.

Legal facilities related to the judicial system

Restriction to the maximum timing mechanism for judicial processes

It is a method that seeks to reduce the time consumed for court procedures. Thus, encouraging citizens and foreigners to protect their rights through the judiciary.

Application of electronic trial mechanism

An e-trial is a mechanism that enables disputed parties to participate in their hearings online, without being physically present in a courtroom.

Indeed, there has been a pilot scheme for this mechanism in place since mid-2020. However, the current goal is to use the electronic trial platform by the majority of courts in Turkey, where the litigation sessions are held online and move forward faster.

Increase human resources and mentoring programs

Increasing human resources and providing some guidance programs in the Turkish judicial system are under process. The implementation of these programs has a noticeable positive impact on the speed and accuracy of court decisions.

Increasing number of specialized courts in the Turkish judicial system

Since the number of specialized courts in Turkey is very limited, the general courts are still responsible for hearing a large variety of cases requiring specific knowledge. Thus, the accuracy of court decisions is negatively affected.

In fact, it is both irrational and unfair to expect from judges to solve all kinds of cases in different fields with the same efficiency and capacity. Consequently, Turkey is heading towards introducing new specialized courts, such as IT law courts, and others.

Introducing Alternative Methods; Arbitration & Mediation

As a matter of fact, Turkey has made many legislative and judicial amendments. That is to keep pace with the global approach that is being strengthened in Turkey in recent years.

Through the new action plan, Turkey is committed to taking further steps to promote alternative dispute resolution methods.

The mediation method can be extended to include disputes that require court resolutions, such as divorce cases. In other words, Turkey opens the door wide to resolve legal disputes without resorting to the judiciary.

Law Application System & Fully Online Implementation

Assuming this major transformation was successfully implemented, it will surely enhance the efficiency and impact of law enforcement. However, at present, enforcement of court decisions is yet another very problematic area in the Turkish judicial system.

Streamline fees required for judicial processes

This method aims to eliminate confusion regarding the calculation of fees for judicial processes for both foreigners, as well as Turkish citizens.

Currently, there are several types of fees that have to be paid to courts, law enforcement offices and notaries. Therefore, it is usually very difficult for foreigners to keep track of such fees in details.

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More facilitations for investors in Turkey

Improving compliance with EU standards for foreign investment, in addition to the decisions of the European Court of Human Rights. Taking into consideration that EU standards and European Court of Human Rights decisions are relatively advanced. That is, in relation to securing the rights of foreign investors and the requirements of the free market. Therefore, increased compliance will create a safer and more attractive environment for foreign investors.
Solving the legal problems of foreign investors faster and more effectively. Turkey is in the process of establishing a new administrative body to deal specifically with the problems and disputes of foreign investors. In other words, foreign investors will have a competent authority to settle their problems with the Turkish public authorities.
The liquidation of companies will become easier and simpler than before. Although the procedures for establishing companies in Turkey are relatively easy, yet the procedures for liquidation and closing the company are somewhat complicated. That is to say, sometimes it might be quite difficult for foreign investors to terminate their business in Turkey.
The notary system in Turkey (Noter) is expected to shift into digital programming. Thus, reducing the burden of going to administrative offices in person. Foreign investors in Turkey must seek the assistance of notaries in many procedures. For example, attesting the translation of official documents, checking certain contracts, issuing powers of attorney to other people, etc.

In other words, the notary public provides basic services to foreign investors in Turkey. However, the limited working hours and the crowdedness of their offices more often create annoying obstacles.

A mechanism is under process to allow notaries public in Turkey to conduct real estate sales. Nevertheless, currently only public title deed registration offices are entitled to handle such transactions. So, having only one notary office in each neighborhood, keeps it crowded at all times.

Consequently, and in light of the proposed transfer of authority from the public title deed registration offices to the notaries public, which are widely spread in the neighborhoods (Noter), it will be easier and faster to complete real estate sales with less trouble.

Sources: Anatolia + Al Jazeera

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