Legal changes to boost investments go into force in Turkey

ANKARA

A law aiming to cut red tape and boost investments in Turkey has gone into effect after being published in the Official Gazette on March 10. 

“[The change] aims to ease the time, cost and procedural difficulties that foreign investors face during administrative and bureaucratic procedures,” the Official Gazette post read on March 10.

According to the changes, the chattel mortgage method will be made available for small and medium-sized enterprises (SMEs) in order to give them easier access to financial opportunities. As a result, if the parties of a mortgage loan agree then the title deed registration of the collateralized properties will be conducted by the registry offices automatically without any need to issue a new deed.

The necessary construction permits and signing procedures to get construction licenses have also been eased.

The number of official procedures to start a business - an indicator followed closely by the World Bank for its Doing Business surveys - have been reduced to just one, new regulations enabling investors to apply for permits and to submit queries online have been introduced, and cooperatives will be exempted from fees for openings, share transfers, mergers and takeovers.

In addition, the Interior Ministry will henceforth be in charge of standardizing the services that local municipalities provide online.