Draft For Improvement of Investment Environment 5 February 2018

Draft For Improvement of Investment Environment 5 February 2018

“The Draft Law on the Amendment of Certain Laws for the Improvement of the Investment Environmentis submitted to the National Parliament on the 30th January 2018, however it is not enacted yet for the moment. It is expected that significant changes in commercial practice will come into force after the amendments are ratified by the National Parliament and then published in the Official Gazette.

The amendments will cover the following issues;

Joint Stock and Limited Liability Companies

-It is ensured that the opening approvals of the corporate books to be kept in physical environment by the joint stock and limited liability companies shall be conducted only by the directorates of trade registry so that no further transaction in this respect shall be required.

-The relevant articles of the Turkish Commercial Code are abolished in order to prevent the problems encountered in the implementation of provisions regulating the companies’ representatives, independent members and corporate members.

-Aiming to shorten the time spent in company establishment process, registration of an employee during the phase of establishments will be accomplished in the electronic environment, without any need for physical application at the Social Security Institute.

Building Permit Proceedings

The work-place registration, which is compulsory for obtaining the construction permits, will be accomplished electronically without any need for further physical application at the Social Security Institute

Foreign Trade Operations

-There will be a maximum monetary limit for all kinds of charges, evacuation, warehouses, in-field transportation fees and similar charges taken within the frame of customs transactions.

Title Deed Transactions

-In order to accelerate the registration of title deed transactions, with regards to the loan or debt contracts between the debtor and the creditors shall be registered at the land registry office without the necessity of having all of the parties present at the land registry office

-The transactions conducted at the land registry offices will be shared directly with the judicial authorities and the authorized institutions and organizations in the electronic environment

Infrastructure Permission Processes

-In order to facilitate the infrastructure authorization proceedings such as telecommunication infrastructure permits; the process related to the application requests, the fee rates, and their calculation method as well as administrative fines to be applied to the unauthorized excavators will be regulated   Amendments in the Pasture Law

-In order to establish telecommunication base stations and other electronic communication infrastructures and systems, especially in rural areas, places within the scope of pasture law, can be re-allocated by the Ministry of Transport, Maritime Affairs and Communications.

SME (Small –Medium Enterprise)

The SMEs will be able to of pledge all kinds of movable assets they have for financing purposes.

-Additionally, it is planned to clarify the issue of automatic registration of the legal benefitsof the movable assets, such as interest, insurance and the natural product of the movable assets or substitutes for such movable assetswithout any further transactionswithin the scope of the pledged movable asset, to the commercial registry.

Further information will be provided once the law is enacted.  Related Link