Annual Notification Obligation for Foreign-Invested Companies in Turkey – Due by End of May

Foreign-invested companies, branches, and liaison offices operating in Turkey are subject to certain reporting obligations under the Foreign Direct Investment Law No. 4875 and its Implementation Regulation. One of the most critical of these obligations is the Annual Activity Report, which must be submitted by the end of May each year.

Reporting Requirement for Foreign-Invested Companies and Branches

Foreign-invested companies and branches must submit the “Annual Activity Information Form for Foreign Direct Investments” electronically through the Electronic Incentive Implementation and Foreign Capital Information System (E-TUYS) to the Ministry of Industry and Technology by the end of May each year.

This form includes information such as:

• Shareholding structure
• Business activities
• Number of employees
• Other operational data

Reporting Requirement for Liaison Offices

Liaison offices established in Turkey are also required to submit an Annual Activity Report to the Ministry of Industry and Technology by the end of May, covering the previous year’s activities. This includes filling out the “Liaison Office Activity Information Form” and attaching relevant documents.

Failure to comply with this requirement may result in revocation of the liaison office’s activity permit.

Other Reporting Obligations

In addition to the annual report, foreign-invested companies and branches are also required to submit the following notifications:

• Capital Contributions: Any payments made towards the capital must be reported within one month via the “Capital Information Form for Foreign Direct Investments.”
• Share Transfers: Transfers of shares between partners or to third-party investors must be reported within one month using the “Share Transfer Information Form for Foreign Direct Investments.”
• New Foreign Partnerships: If a fully domestic company receives capital investment or a shareholding from a foreign investor, this must be reported within one month.

E-TUYS System and Authorization

All these notifications must be made electronically via the E-TUYS system, managed by the Ministry of Industry and Technology. Users authorized to operate on behalf of the company or branch must have a qualified electronic certificate (e-signature) to access the system.

Ensuring timely and accurate compliance with these obligations is crucial for maintaining legal status and avoiding administrative sanctions. Companies are strongly advised to follow these processes carefully and submit all required information by the official deadlines.