Until recently, mergers in Turkey have been a complex and time-consuming procedure, with a large number of formalities that complicate and delay the whole process. The good news is that the rules recently adopted in this jurisdiction have made the mergers much faster and easier. Based on Swiss law, Turkish legislation has adopted the concept of a simplified merger. Now the procedure of merging joint-stock companies takes less time and effort, which can not but please the entrepreneurs who decided to merge or acquire a company in Turkey.
What has changed?
It is worth noting that the new regulation covers not all firms. Only JVs and LLCs can carry out simplified mergers in Turkey.
In a simplified regime, companies have less record-keeping obligations to provide to shareholders. In the old way, in order to formalize a merger in Turkey, the parties had to prepare an explanation of the merger objectives and consequences, and then provide this analysis to all shareholders for approval. In the framework of a simplified regime, they are not obliged to do so. Meanwhile, they still have an obligation to prepare a merger agreement, but there is no need to present it to the general meeting.
NOTE: All the merging companies in Turkey must have audit and financial statements at hand.
Entrepreneurs are eager to buy ready-made companies in Turkey, and are willing to merge companies in Turkey because here:
- You will be able to work in the European and Asian markets at the same time as Turkey is the point of intersection of Europe and Asia;
- It is easy to obtain licenses and regulatory restrictions are not very strict;
- Financial risks are low. But this is not the only thing that makes the country safe for foreign business. Entrepreneurs work here as Turkish citizens, so they can receive subsidies and benefits.
Now, Turkey has created even more favorable conditions for foreign businesses with a more convenient and time-efficient mechanism for merging companies that are in a joint-stock relationship. Thus, the simplified procedure has become more preferable for businesses, all the more so because the whole process the old way normally resulted in unjustified delays and money loss.
Experienced legal professionals of our company provide services for complex assistance in mergers and acquisitions transactions. We offer consultations on M&A regulation in Turkey, in the course of which you can receive comprehensive answers to your questions. Also, if you are just planning to start a business in Turkey, our specialists will help you register a company in Turkey in the swiftest and most convenient way.