On the 14th of February 2011 the New Turkish Commercial Code (Yeni Türk Ticaret Kanunu) was promulgated in the Turkish Official Gazette. The New Turkish Commercial Code No. 6102 and Law No. 6103 came into affect on July 1st 2012.
The new Commerical Code was developed so that Turkish legislation could become more modern and aligned with European Union legislation and international standards. Other key reasons where to encourage more foreign investment within Turkey, to foster private equity and public offering activities and to create more transparency in business operations.
Changers in directors' and shareholders structure were introduced to ensure good conditions for development of businesses. The new code changed the number of directors from three to just one or more. While the number of shareholders were changed from 2 for a Limited Liability Company to just one, therefore all shares in a company can be held by a single party. This offers foreign investors the opportunity to do business more easily, as board meetings and business development may be hindered if there were a large number of shareholders and directors.
The new Commerical Code allows foreign entrepreneurs to incorporate all types of companies, such as: