About Maya   Türkiye   Expansion   Home

   Legislation   Restructuring   Articles   Contact

Metin Kutusu: Copyright © 2003 Maya Associates Limited. All Rights Reserved.



Foreign Capital Law No: 6224 - Part I

Source: Undersecretariat of Treasury; Official Gazette - Jan 24th, 1954 ; Approved: 18 January 1954; Issued: 24 January 1954


Subject and Scope of the Law


Article 1 - This law applies to foreign capital and foreign credit loans obtained from abroad and to be procured from abroad upon decision of the Committee for the Promotion of Foreign Investment, and approval and ratification by the Council of Ministers, provided that the subject of investment is: a) of benefit to the economic development of the country, and b) in a field of activity open to Turkish private enterprise. Moreover, foreign capital to be brought into Türkiye may not acquire a majority share of institutions carrying out activities on a monopoly basis within the country. The "Committee for the Promotion of Foreign Investment" mentioned in this Article and established in accordance with Article 8, shall hereafter be referred to as the "Committee".

* The functions of this Committee were transferred to the Undersecretariat of Treasury by the Law No:4059


Principal Foreign Capital


Article 2 - For the purposes of implementation of the present Law, the term "Principal Foreign Capital" shall mean the total of various values determined and evaluated as follows; a) The following assets allocated for the efficient establishment, expansion or revival of a business included in the scope of the present law, and to be imported from abroad:


1. Capital funds in the form of foreign currency,


2. Machinery, equipment, tools and similar goods, machinery components, spare parts and materials, and other necessary commodities to be approved by the Committee,


3. Services and rights over intangible property such as patent rights, licenses and trade marks,


4. Portions of profit converted into and integrated with investment capital, by way of reinvestment in accordance with Article 3 thereunder.

b) The values of imported assets, whether in goods, services or proprietary rights, as well as their necessity and appropriateness for the approved enterprise are determined by experts to be appointed by the Committee.


The values assessed by experts may be reexamined and reappraised by the Committee.


The assessment shall be made both in the currency of the country of origin and in Turkish lira at the official rate of exchange prevailing at the time of importation.


With the condition that objection rights indicated in Article 8 are reserved, the decision of the Committee concerning the evaluation of assets is final.


Conversion of Profits into Capital


Article 3 - Subject to the decision of the Committee, the shares of profits accruing in favour of principal foreign capital investors may, either in whole or part, be added to the principal foreign capital or reinvested in another enterprise which meets the qualification requirements indicated in Article 1 above.


Transfer of Profits and Principal Capital


Article 4 - a) Pursuant to the provisions of paragraph (c) of this Article, the following profits and capital funds shall be transferred abroad in the national currency of the principal foreign capital at the current official exchange rate:


1. Net profits accruing in favour of the owner of the principal foreign capital out of income realised after 31 December 1953 and calculated in accordance with the tax laws in force,


2. In case of a partial or total liquidation of an enterprise established under the present law, the share accruing in favour of the owners of the principal foreign capital at reasonable prices,


3. Proceeds obtained from the sale, at a reasonable price and whether in whole or in part, of the principal foreign capital invested in a business founded or working under the terms of this Law,


4. Repayment instalments and interest payments, as they become due and payable in accordance with the respective foreign loan agreements, over a credit loan contracted pursuant to the terms and provisions of Article 6 of this Law.


b) If deemed necessary, the Ministry of Finance or the Committee may:


1. Order the examination of the accounting books and tax declarations of an enterprise established under this Law, in order to determine the amount available for transfer under sub-paragraph (1) of paragraph (a) of this Article,


2. Order an inquiry in order to ascertain whether the sale of capital shares, liquidation sale of assets, or credit loans are executed in good faith.


c) Upon application for the transfer of profit shares, sales proceeds, loan repayment instalments and interest payments of the sort classified as transferable in paragraph a).of this Article, the Ministry of Finance will grant permission for such transfers.


Transfer of Shares


Article 5 - a) Therefore, the Ministry of Finance will undersign, on request the following guarantee for the registered shares, share certificates or provisional receipts of a Turkish company representing the principle foreign capital as defined in Article 2:


"The dividends on this share, upon presentation of this share certificate or provisional receipt to the Central Bank of the Republic of Türkiye or to authorised representatives of the said Bank abroad, will be immediately transferred..... (in the foreign currency of origin).... converted at the current rate of exchange at the time of transfer. Proceeds from the sale of this share certificate or provisional receipt from the proceeds of liquidation of the enterprise shall be transferable to the rightful holder of this share or provisional receipt (in the currency of the country of origin).... in accordance with Article 4 of Law No. 6224 of the Republic of Türkiye". The Minister of Finance or his Authorised Officer. Top



Please read the legal statement before proceeding.  Maya Associates Limited is a Private Company Limited by Shares with the company registration number 4724644.  Registered address is, 27 Old Gloucester Street London wc1n 3xx, United Kingdom. For your enquiries you may send an e-mail to web.enquiries@mayainvest.co.uk or a mail to the above address.