CreditHub: Turkey
Business Structure
| Type | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Joint-stock Limited Company (Anonim Şirketler - A.S.) | Owned by shareholders | The company is a business owned by its investors with each investor owning a share of the company based on the contributed investment. | Suitable for larger enterprises seeking significant capital through multiple investors. |
| Minimum capital: TRY 50,000 | The company requires a minimum capital of TRY 50,000. | ||
| Minimal share value: BGN 1 | Minimal nominal value of BGN 1 per share. | ||
| Limited Liability Company (Limited Şirketler - Ltd. / Sti.) | Limited personal liability | An LLC is a corporate structure which protects its owners from being personally responsible for any liabilities. | Suitable for small to medium-sized businesses seeking liability protection. |
| Minimum capital: TRY 10,000 | A minimum capital investment of TRY 10,000 is required. | ||
| Max 50 shareholders | There can be no more than 50 shareholders. |
Data Sources
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Corporate Information | Turkish Standards Institution | Corporate Information can be found at the Turkish Standards Institution: www.tse.org.tr. | Use the Turkish Standards Institution for reliable corporate information. |
| Credit Checks | Financial state of affairs | You can obtain information on the financial state of affairs for companies and industry at the Turkish Standards Institution. There are also numerous private reporting agencies offering credit checks. | Consider using both public and private sources for comprehensive financial information. |
Contracting
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Contract Documentation | Complete contractual documentation | In the case of a regular lawsuit procedure, copies of the complete contractual documentation should be available, starting with contracts, orders, order confirmations, delivery notes, invoices, as well as exchanges of correspondence. | Ensure all relevant documents are available for potential legal proceedings. |
| Oral negotiations | In the case of oral negotiations, you will require the visit and negotiation reports, together with the names of the witnesses. |
Retention of Title
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Retention of Title | Security against buyer's default or insolvency | When included in trade contracts, retention of title allows the seller to retain ownership over the goods supplied until certain contractually defined conditions are met, therefore providing the seller with a form of security against the buyer's default or insolvency. | Include retention of title clauses in trade contracts to protect against buyer's default or insolvency. |
Pre-Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Letter before action | Not mandatory | A warning notice to the debtor is not mandatory before filing any enforcement claims. Good practice dictates that a notice should still be given which contains: | Consider sending a demand letter as a courtesy and potential negotiation tool. |
| Good practice |
If this measure has been taken and the payment still has not been made after a notice period, the creditor may file for enforcement. |
||
| Interest and Collection Costs | Contractual interest claimable | Contractual interest can usually be claimed. If no interest rate has been agreed contractually, the legal and default interest rate is set as the maximum interest rate applied to foreign exchange accounts set by Turkish public banks, often fluctuating around 6%. If your claim is in Turkish currency, the interest rate will be significantly higher (approximately 20% per year). | Include clear terms for interest and collection costs in contracts. |
| Legal interest rates apply | Collections costs can only be demanded from debtors if these have been contractually agreed between you and your debtors. | ||
| Collection costs need agreement | Collections costs can only be demanded from debtors if these have been contractually agreed between you and your debtors. |
Litigation
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Limitation Period | General limitation period: 10 years | As per the Code of Obligations, if no specific limitation period is determined by law, the limitation period is set as ten years. | Be aware of different limitation periods for various types of claims. Act promptly to avoid exceeding these time limits, especially for specific cases with shorter periods. |
| Specific cases: 5 years |
The following exceptions have a limitation period of five years:
|
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| Alternative Dispute Resolution (ADR) | Not compulsory before or during proceedings | ADR methods are not mandatory but may be encouraged as they are often cheaper, quicker, and more private than court proceedings. | Consider ADR methods as potentially faster and more cost-effective alternatives to court proceedings. Be aware that participation is voluntary and outcomes may not be binding. |
| Arbitration |
Arbitration is the most common method of ADR. Local arbitration is governed by the CPC, while international arbitration is governed by the IAC. Parties may submit any dispute for settlement if stated in signed contracts. They must agree on dispute settlement and obtain a judgement from the arbitration court, which would then be granted an enforcement clause. |
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| Mediation |
Mediation is less common but popular for reducing court workload. A licensed, neutral third party helps creditors and debtors agree on debt settlement based on evidence and documentation. The mediator has no decision-making powers and cannot impose a binding conclusion or settlement on the parties. |
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| Settlement during court proceedings | During court proceedings, the court must ask the parties' intention relating to settlement, which can be regarded as a simple form of ADR. |
Court Proceedings
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Court System | Two types of procedures: written and simple. | The two types of procedures for civil proceedings are the written procedure and the simple procedure. | Understand the court hierarchy and jurisdiction. Ensure all required information and evidence is prepared before filing a lawsuit. Be aware of strict deadlines for responses and objections. |
| Specific requirements for filing a lawsuit. |
Examination stage, where the court investigates whether the claims raised by both parties correspond with the material facts and evidence. During this stage, the court can:
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| Timeframes and limitations | Neither procedure has a fixed timeframe in which action must be taken. There are however limitations on certain procedural actions such as responding to petitions (which must be done within two weeks). In addition, parties must submit objections to an expert report or appeal a final decision within two weeks. | ||
| Initiating court claims | Court claims begin when the claimant, usually the creditor submits a claim petition to the court. Once the claim petition is submitted to the court, the court issues opening minutes and notifies the defendant of the petition. In doing so, a two-week window is granted for the debtor to submit a response to the court – a period which may be extended up to two weeks under simple procedure or four weeks under the written procedure. | ||
| Examination stage | In the examination stage the court assesses all evidence and supporting documentation, listens to witness statements, conducts on-site examinations, and requests subject matter experts if required. | ||
| Final decision | After examination, the court issues its final decision in writing to both parties. | ||
| Time frame | Procedures may take 3-5 years | Court procedures may take anywhere between three to five years subject to the case complexity and availability of individual parties. | Be prepared for potentially lengthy legal processes. Consider the time frame when deciding whether to pursue legal action. |
| Costs | Lawyer fees: 15-20% of debt value | Lawyer fees are approximately 15-20% of the overall debt value of the claim. | Consider potential costs when deciding to pursue legal action. Be prepared to pay initial court costs, but understand that litigation fees may be recoverable if successful. |
| Court costs: ~6% of debt value | Court costs account for roughly 6% of the outstanding debt value and are determined by the provisions of the "Harclar Kanunu", laws number 492 (law for Turkish fees). | ||
| Extrajudicial costs | Extrajudicial costs may also be incurred on the recovered amount. | ||
| Cost allocation |
The application of interest charges is entirely subject to the judge's decision on the case. Whichever party is deemed unsuccessful in the court case must bear the costs of the legal proceedings according to article 417 I "Usul Hukuk Muhakemeleri Kanunu" (Turkey Civil Process Law). Otherwise, the costs will be split between the two parties. |
Enforcement of a Court Judgment
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Enforcement of Court Judgments | Execution order required for non-compliant parties | The claimant can enforce a local judgment by making an application to the bailiff's office. The established enforcement order may be opposed by the defendant or debtor within seven days of its notification. | Be prepared to apply for an execution order if the debtor doesn't comply with the judgment. Understand the enforcement process and potential asset seizure options. |
| Enforcement officer can freeze assets and seize property | A creditor may also request the attachment of any assets belonging to the debtor. | ||
| Enforcement fees borne by the debtor | Enforcement fees are typically borne by the debtor. |
Insolvency
| Topic | Main Points | Details | Key Takeaways |
|---|---|---|---|
| Insolvency Proceedings | Creditor can file for liquidation or reorganization | Insolvency proceedings aim to settle the debts of creditors equally through the liquidation of the assets of the debtor company, or through collection of any income of any bankrupt sole traders. | Understand the insolvency process and timeline. Be prepared for potential suspension of debt settlements and legal actions during bankruptcy proceedings. |
| Specific timeline for court actions | Insolvency proceedings may be initiated either by the debtor or by the creditor assuming that the relevant evidence and supporting documentation is provided. Subject to assessment from the court, the debtor's bankruptcy is announced, and all other collection activities and procedures are suspended, and creditors must all submit their claims. | ||
| Appointment of trustee or administrator | At this point, a liquidator is appointed to manage the liquidation of assets and ensuring that the cash-proceeds are correctly distributed to the creditors appropriately. | ||
| Suspension of debt settlements and legal actions | Bankruptcy claims may take anywhere between twelve to eighteen months subject to objection from the debtor. Liquidation of the assets may take longer depending on the assets available. |
The information on this website is accurate to our knowledge as of January 2024.
The know-how stated is not intended to constitute a definitive or complete statement of the law, nor is it intended to constitute legal advice for any specific situation. We do not accept any responsibility for action taken as a result of information provided by on this website. It is your responsibility to take specific advice when dealing with specific situations. This website is intended as educational in nature and may not reflect all recent legal developments and may not apply to the facts and circumstances of individual transactions and cases.
Nothing on this website shall be construed or relied on as providing any legal representation, advice or opinion whatsoever on behalf of us or our staff.
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Source: alphavantage.co
Using the Chart
Candlestick Series
Represents the daily opening, highest, lowest, and closing prices of a currency pair. This visual tool is pivotal for identifying price patterns and potential market directions, providing insights into market sentiment and possible price movements.
SMA (Simple Moving Average)
Calculates the average price over a selected number of periods, smoothing out price volatility. Commonly set at 14 days for short-term trend analysis, it helps identify the direction of the market momentum.
EMA (Exponential Moving Average)
This average places a greater emphasis on recent prices, thus responding more quickly to price changes than the SMA. A 14-day EMA is often used for reactive trend analysis, making it invaluable for dynamic trading strategies.
Bollinger Bands
Features a central SMA line with upper and lower bands that adapt based on price volatility. These bands widen during periods of high volatility and contract when the market is stable. This indicator is key for spotting the turning points in price movements by identifying overbought and oversold conditions.
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It is particularly useful for identifying the conditions where an asset is potentially overbought (>70) or oversold (<30), often preceding reversals.
MACD (Moving Average Convergence Divergence)
Demonstrates the relationship between two moving averages, offering signals about the strength, direction, and momentum of the market. Its line crossings can signal potential buy or sell opportunities, aiding in decision-making on entry and exit points.
Stochastic Oscillator
Measures the current price relative to its price range over a specific period. Readings above 80 indicate a potential overbought situation (suggesting a sell), and readings below 20 indicate a potential oversold situation (suggesting a buy).
General Guidance
Utilise these indicators in conjunction with each other to gain a comprehensive understanding of market conditions, potential price movements, and to inform your trading decisions. Always consider the broader market context and other fundamental economic indicators to enhance the accuracy of your trading strategy.
