Turkey chapter of “Lexology GTDT – Joint Ventures 2020” written by Elvan Aziz, Togan Turan, Stephanie Beghe Sönmez and Şansal Erbacıoğlu is published.
The most common and standard forms of joint venture under Turkish law are contractual or simple partnerships, jointstock corporations (JSCs) and limited liability companies (LLCs).
Contractual or ordinary partnerships are generally used for short-term joint venture relations, mostly in cases where the partners are personally involved in either the operations or financing of the project and are, therefore, comfortable with having broad liability in the partnership. The most important feature of a contractual or ordinary partnership is that it is a pass-through vehicle; the partners are directly exposed to any profts or loss, including all liabilities of the partnership.
JSCs and LLCs are the most common types of joint venture model used by investors. In most cases, when the parties enter into a joint venture agreement or a shareholders’ agreement, they create a contractual relationship to govern their relationships as shareholders of the company during the term of their joint venture. In both JSCs and LLCs, the joint venture partners’ liability would be limited to the amount of capital they contribute into the joint venture entity. It is generally the case that JSCs are preferred over LLCs in joint venture transactions owing to the more flexible nature of JSCs, from both a corporate governance perspective and regarding shareholding relations of the partners, including transfer abilities. LLCs are preferred for small-scale operations.
Although joint ventures may be recognised by the Turkish Code of Obligations (Law No. 6098) as similar to a simple partnership structure, they are not specifically governed under Turkish law.
You may reach the entire publication here.
Share
Related persons
You can contact us for detailed information.



Legal Information
This briefing is for information purposes; it is not legal advice. If you have questions, please call us. All rights reserved.
You May Be Interested In
14 February 2025
Important changes in Regulation on Insurance Agencies
On 22 January 2025, Turkey’s Insurance and Private Pension Regulation and Supervision Agency (IPRSA) published the Regulation Amending the…
10 February 2025
Minimum equity amounts for payment services and electronic money institutions have been reassessed
On 30 January 2025, Central Bank of the Republic of Türkiye (CBRT) published the Communiqué on the Reassessment of Minimum Equity Amounts…
6 February 2025
Developments in Private Hospitals Legislation
Following the entry into force of the Regulation on Private Hospitals (“Regulation“) published in the Official Gazette on 30 January 2025,…
4 February 2025
Technology M&A 2025 in Turkey
Overall M&A activity in Turkey slowed down throughout 2022 and into early 2023 due to economic instability, inflation, and geopolitical…
28 January 2025
Recent developments in Turkish data protection law
The end of 2024 and the beginning of 2025 were highly active in terms of developments in data protection legislation in Türkiye. Many…
13 January 2025
New Administrative Fines Regulation For Competition Violations Enters Into Force
The Regulation on Administrative Fines for Restrictive Agreements, Concerted Practices, Decisions, and Abuse of Dominance, which governs…