Turkey Introduces Amendment Laws for Improvement of Investment Environment
The Turkish government continues its efforts to move up in the ease of doing business indexes in the world. As a supplementary step to the previous reforms and incentive policies, Law no. 7099 on the “Amendments to Certain Laws for Improvement of the Investment Environment” was published in the Official Gazette on March 10, 2018.
The 35-article reform package, which aims to improve the investment environment in Turkey, focuses on reducing the number of transactions required to set up a company; facilitating bureaucratic procedures such as building permits and title deed transactions in the real estate sector; reducing several costs regarding foreign trade transactions and thus easing trade in Turkey; reducing the procedures to obtain infrastructure permits in telecom services; and easing the access of SMEs to finance.
A key feature of the package is the reduction of transactions required to set up a company in Turkey. Trade Registry Offices will become "one-stop-shops" for company establishment, and investors will be able to establish a company at a single institution and without the need for an intermediary.
In the real estate sector, a new online platform will be established to link transactions in various institutions, such as the land registry office, the tax office, and the Social Security Institution (SSI), which in turn will reduce the need to carry out procedures across multiple municipal offices.
The set of amendments to the legislation has been welcomed by entrepreneurs. The new law not only lessens red tape, but it also brings about a considerable reduction in expenses incurred, thus emerging as a source of motivation for the whole business community.
Turkey on Display Opportunities for French Investors
March 2018 saw ISPAT engage with potential investors in France. ISPAT hosted a “Turkey: Increasing Investment Opportunities Amid Geopolitical Turbulences” conference together with GIDE law firm in Paris on March 15.
ISPAT President Arda Ermut was a keynote speaker at the conference, and during his address Ermut said that relations between France and Turkey have blossomed over the past 15 years. He added that today there are around 1,500 companies operating with French capital in Turkey, including BNP Paribas, Total, AXA, Sanofi, Renault, Peugeot, Valeo, Schneider Electric, Sephora, Alstom, Carrefour, Danone, Lafarge, and L’Oreal among others. Turkey’s Ambassador to Paris İsmail Hakkı Musa was also a panelist at the “Invest in Turkey” session at the conference and talked about the Turkish economy, the opportunities it offers, and trade, cultural and political relations between Turkey and France.
Within the scope of his visit to France, ISPAT President Ermut was also a guest on a live broadcast on French 24 Heures Chrono de l’international channel. Speaking about Turkey’s economic outlook and prospective sectors of interest for French companies, Ermut explained ISPAT’s role in facilitating FDI and in expanding ties between Turkey and France.
The ISPAT delegation also attended the MIPIM fair in Cannes, which was held on March 13-16. Istanbul was named "Top Southern European City in Business Friendliness" by fDiMagazine at the fair, and ISPAT Vice President Mustafa Rumeli received the award on behalf of Turkey. At the Istanbul pavilion of MIPIM, ISPAT also talked to attendees about the advantages of Turkey, such as access to multiple markets with a combined population of 1.6 billion, GDP of USD 23.5 trillion, and over USD 7.1 billion trade, within a 4-hour flight radius.
Being the 6th largest supplier to Turkey, France is a country where ISPAT has had a permanent presence since 2007.
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