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
10 September 2024
Turkish Data Protection Authority and Turkish Ministry of Trade sign cooperation protocol on targeted advertising and dark patterns
The Turkish Personal Data Protection Authority and the Turkish Ministry of Trade General Directorate of Consumer Protection and Market…
16 August 2024
Turkish Competition Law Newsletter – 2024 Summer Issue
We are pleased to share our quarterly newsletter on recent developments under Turkish Competition Law.
16 August 2024
New Regulatory Framework Unfolded for Establishment of Crypto Platforms
Following the July 2, 2024, introduction of the crypto asset regulation law under the Capital Markets Law No. 6362, the Capital Markets…
7 August 2024
Key Changes in the Local Tax Legislation
Paksoy legal briefing: “Key Changes in the Local Tax Legislation”
24 July 2024
Amendments on the Communiqué on Principles Regarding Real Estate Investment Funds
The Communiqué Amending the Communiqué on Principles Regarding Real Estate Investment Funds (III- 52.3) (“Amendment Communiqué”) has been…
18 July 2024
Turkish Data Protection Authority issues new regulation on cross-border data transfers
Paksoy legal briefing: “Turkish Data Protection Authority issues new regulation on cross-border data transfers”