Foreign Direct Invesment (“FDI”) creates strong links among economies and these links are ensured the flow capital (Please see our related article…) legislation includes 7 articles and the second article clarifies the subject what definitions of FDI and foreign investor are.
Due to importance of the definition of “FDI” and “Foreign Direct Investors”, it is emphasised in this article. First of all, the description of foreign invesment is that; passing of movable and immovable assets from one country to another. The aim is making profit of multinational companies under the controlling by partial or complete owner of assets. Thus the welfare of rich countries is contributed to invested countries. Secondly the notion of foreign investors seperated in two classes according to 2. article in FDI Law. The first class came into existence from real persons who possess foreign nationality and Turkish nationals resident abroad. The other class is foreign legal entities established under the laws of foreign countries and international institutions.
And the notion of foreign direct invesments is separated according to classification of assets. The fist class of assets are acquired from abroad and the other class is acquired from Turkey by foreign investor. The both classes are prescribed by law in article 2.
“1) Assets acquired from abroad by the foreign investor:
- Capital in cash in the form of convertible currency bought and sold by the Central Bank of Turkey,
- Stocks and bonds of foreign companies (excluding government bonds),
- Machinery and equipment,
- Industrial and intellectual property rights;
2) Assets acquired from Turkey by foreign investor:
- Reinvested earnings, revenues, financial claims, or any other investment-related rights of financial value,
- Commercial rights for the exploration and extraction of natural resources.
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