With the Foreign Capital Law No. 6224 which went into effect in 1954, Turkey adopted the most liberal law of the period. The liberalization policies adopted in the 1980s, and the changes in the regulation of currency exchange have made foreign capital investments quite attractive.
Additional regulations introduced in 1986, 1992 and 1995 brought new opportunities to foreign investors. In June 2000, additional amendments were made to the Foreign Capital Law and quidelines such as discipline, independence, accountability, responsibility, fairness, and social responsibility, which are all central to the success in investment decisions, were given importance. In 2001 and 2002, a report concerning the Development of Investment Conditions in Turkey, was prepared jointly with World Bank officials. New amendments adopted the principle that foreign investors have the same rights and liabilities as local investors. Foreign investors can make investments in all the fields open to the Turkish private sector and can also benefit from investment incentives, provided that they do not form a monopoly or private charters. Within the framework of the current regulations:
* There is no "percentile limit" for foreign partner shares.
* Foreign currency brought as foreign capital may be kept in foreign exchange deposit accounts without the obligation of conversion into Turkish currency.
* Revenues like dividends, royalties and liquidation shares may be freely transferred abroad.
* Foreign investors can employ the foreign personnel they need. Furthermore, the companies based abroad can establish liaison offices on condition that they do not carry out commercial activities in Turkey.
* The obligations of approval for license, know-how, technical assistance and management agreements have been removed and a registration is considered sufficient.
* There is no obligation for approval of foreign credit agreements.
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