Liaison Office (“Representative Office”)

A Liaison Office, also known as a Representative Office, primarily handles liaison activities and serves as a communication bridge between the foreign Head Office and Indian parties. It isn’t permitted to engage in business activities or generate income in India, with all expenses being covered by inward remittances of foreign exchange from the Head Office outside India. The role of such offices is limited to gathering market information and providing insights about the company and its products to potential Indian customers. The initial permission for setting up such offices is typically granted for a 3-year period, extendable as needed.

Branch Office

Foreign companies involved in manufacturing or trading activities can establish Branch Offices in India with the specific approval of the Reserve Bank. These offices are permitted to undertake activities such as export/import of goods, rendering professional or consultancy services, conducting research work related to the parent company’s domain, promoting technical or financial collaborations, representing the parent company, and acting as a buying/selling agent in India. However, retail trading and manufacturing or processing activities are not permitted for Branch Offices. Profits earned by these offices are freely remittable from India, subject to applicable taxes.

Project Office

Foreign companies have the general permission to set up Project Offices in India for executing specific projects, subject to certain conditions outlined by the Reserve Bank of India. These conditions include securing a contract from an Indian company to execute a project in India, the funding of the project, and approval from relevant authorities.

Using a Local Associate

Apart from setting up a Liaison or Branch Office, another popular option for foreign entities is to collaborate with a local associate in India. This association allows the foreign entity to leverage the local associate’s understanding of Indian business practices, markets, and contacts, at a relatively lower cost. The local associate can perform various functions, including market research, acting as a distributor or sourcing agent, providing pre- and after-sales support, and more. Formalizing the relationship with a local associate can be done through a Memorandum of Understanding (MOU) or a formal agreement.

Understanding the nuances of these business structures is crucial for foreign entities planning to establish their presence in India, ensuring compliance with the regulatory framework and facilitating a seamless entry into the Indian market.

According to the new Airbnb bill, any rental periods of less than 100 days fall under the category of short-term rentals, necessitating the acquisition of a tourism residence

certificate. However, rentals exceeding 100 days at a time are not subject to the provisions of this draft law.

The requirements for obtaining a tourism residence certificate include specific conditions for homeowners, depending on the type of property and the nature of the housing complex. In buildings and housing estates, unanimous approval from all title deed holders or owners is mandatory. Homeowners of detached houses and villas can directly apply to the Ministry of Culture and Tourism without the need for neighboring title deed owners’ approval.

Furthermore, homeowners must work exclusively with companies possessing a Group A tourism certificate from the Association of Turkish Travel Agencies (TÜRSAB) to avoid facing severe penalties. The Law on the Leasing of Residential Properties for Tourism Purposes, proposed on 25.10.2023 and published on 02.11.2023 in the Official Gazette, applies particularly to residential rentals through platforms such as Airbnb, excluding rentals exceeding 100 days.

As per the new regulations, lessors engaged in tourism leasing activities must acquire an authorization certificate and display a plaque at the residence’s entrance, as prepared by the Ministry. Additionally, the lessor is responsible for obtaining the necessary permit, and the approval of all other floor owners is mandatory for rental activities in residential areas.

High-quality housing complexes meeting specific criteria outlined in the management plan may qualify for permits without meeting additional requirements. A transitional arrangement is in place until 1st January 2024, allowing a three-month grace period for those currently engaged in tourism leasing activities.

To ensure compliance, fines of TRY 100,000 will be imposed on homeowners leasing their residences for tourism purposes without the requisite permit. Intermediary service providers allowing such rentals without a permit will face administrative fines starting from TRY 100,000 per dwelling.

What are the Requirements for Obtaining a Tourism Residence Certificate?

• In buildings; unanimous approval of all title deed holders in the building
• In housing estates; again, only with the unanimous approval of the owners in the building where the apartment to be rented is located
• Application of the title deed holder to the Ministry of Culture and Tourism (only the title deed holder can make the application)
• For detached house and villa title deed owners; direct application to the Ministry of Culture and Tourism without the need for the approval of neighboring title deed owners

These new regulations aim to create a more organized and accountable short-term rental market, promoting transparency and quality standards in the tourism industry in Turkey. It is crucial for homeowners and intermediaries to adhere to these rules to avoid penalties and ensure a fair and regulated environment for both landlords and tenants.

As of October 2023, the rent increase rate in Turkey was 54.26%. This data helps us understand how much the rent can be raised within a specific period. It’s crucial for both landlords and tenants to understand these regulations to avoid any disputes or misunderstandings.

Another important rule to remember is the temporary limit set for rent increases in residential buildings. According to the additional rules in the Turkish Code of Obligations, there’s a maximum increase of 25% allowed for rent between 02.07.2023 and 01.07.2024. If the cost of

living doesn’t go up by more than 25%, the rent increase will be based on this index. However, if the cost of living increases by more than 25%, the maximum rent increase will still be 25%.

These regulations are in place to ensure that both landlords and tenants are treated fairly. They prevent landlords from raising the rent too much and protect tenants from sudden and unjustified rent hikes. By following these rules, both parties can maintain a healthy and stable rental market in Turkey.

It’s important for landlords and tenants to communicate openly and honestly, especially when discussing any changes in the rental price. Following the guidelines set by the Turkish Code of Obligations can help create a positive and respectful relationship between landlords and tenants, making the rental market in Turkey more secure and reliable.

In conclusion, the rules stated in Article 344 of the Turkish Code of Obligations, along with the additional regulations, play a significant role in shaping the rental market in Turkey. Understanding and following these rules can ensure a fair and balanced rental market for everyone involved.

The 2023 elections in Turkey were nothing short of pivotal, positioning the nation at a crucial crossroads. While the political landscape saw shifts, the consistent emphasis on attracting foreign investments remained intact, setting the stage for substantial transformations.

During our conversation, we took a deep dive into the history of Turkey’s investment program, reflecting on the significant changes it has undergone over the years. Furthermore, we explored how the earthquake that shook Turkey at the beginning of 2023 influenced investors’ decisions when choosing secure investment destinations, considering the implications of natural disasters.

If you’re keen on unraveling the intricate web of Turkey’s evolving investment landscape and understanding the various factors at play, this podcast episode is a must-listen. We’d like to extend our heartfelt thanks to UGLOBAL for providing us with this incredible opportunity.

Here’s the link to Podcast Episode: https://www.uglobal.com/en/immigration/podcast/navigating-post-election-turkeys-evolving-cbi-landscape-with-halime-tatan-dabilek/

Adaptation Process and Copyright Implications

The process of transforming foreign TV series into Turkish adaptations is predominantly overseen by Turkish screenwriters. This multifaceted process entails the creation of a comprehensive “Framework Story” that serves as the foundation for the Turkish version. Screenwriters meticulously adjust the storyline, characters, and cultural elements to resonate with the sensibilities of the Turkish audience. As this adaptation involves substantial creative input, it is crucial to examine the legal implications within the framework of Turkish Copyright Law and the Law on Intellectual and Artistic Works.

Derivative Works and Screenwriter Rights

The transformation of a foreign TV series into a Turkish remake results in the production of a “Derivative Work” under Turkish intellectual property law. This implies that the screenwriter holds authorship rights over the adapted storyline, characters, and other elements that distinctly characterize the Turkish version. The legal protection granted to such Derivative Works necessitates the explicit written permission of the screenwriter for their utilization in any context. Consequently, the screenwriter maintains the authority to claim copyright fees and assert their creative ownership over the adapted content.

Rights Allocation and Dispute Resolution

In certain scenarios, screenwriters may be involved solely in the creation of the Framework Story, subsequently relinquishing their role in drafting the episode scenarios. Despite their departure from the project, their contribution to the overarching Derivative Work remains legally significant. In such cases, the original screenwriter retains the right to demand equitable compensation, especially if subsequent episode scenarios are developed based on the initially crafted Framework Story. Moreover, the introduction of new characters during the adaptation process may warrant separate protection under the concept of “Personification,” subject to specific criteria stipulated by the law.

Copyright Fee Structures and Legal Precautions

The determination of copyright fees is contingent upon the nature of the screenwriter’s involvement and the overall production budget of the TV series. Professional societies often outline minimum fee standards, which serve as reference points in potential legal disputes. However, the courts evaluate each copyright claim individually, considering various factors that may influence the final compensation amount. To mitigate potential conflicts and safeguard the interests of all stakeholders, both screenwriters and producers must establish comprehensive business models and execute binding copyright agreements before commencing any television project.

Conclusion

As the landscape of Turkish television continues to embrace foreign influences through adaptation, protecting the rights of screenwriters assumes paramount significance. A comprehensive understanding of copyright laws, coupled with proactive measures to establish clear authorship and remuneration agreements, fosters a conducive environment for collaborative creativity and sustains the integrity of Turkish remakes within the global television industry. By upholding the rights of screenwriters, the Turkish entertainment sector can continue to thrive while honoring the creative contributions of its talented professionals.

Internet Accessibility and Financial Gains

As the internet continues to evolve as a primary medium for content consumption, the illegal dissemination of TV series and movies without the permission of the rightful owners has led to the proliferation of websites displaying such content. The subsequent increase in website traffic and views has facilitated considerable financial gains through advertising revenues for these online platforms. However, the financial benefits garnered fail to address the consequential adverse impact on the rights holders, including actors, directors, and other stakeholders who are deprived of fair compensation for their creative contributions.

Legal Provisions and Enforcement Measures

The Turkish Law on Intellectual and Artistic Works (Law No. 5846) explicitly prohibits the public distribution of copyrighted materials without the prior authorization of the right holders. In the event of non-compliance with takedown requests issued by the right holders or their legal representatives, the law empowers the affected parties to pursue legal action, potentially resulting in the closure of offending websites or the imposition of access restrictions.

Domain Name Selection and Regulatory Evasion

To evade legal repercussions, owners or managers of websites often opt for domain names with a ‘.com’ extension, which offers limited jurisdictional control by Turkish authorities. However, if the domain name is specific to a particular country, the legal authorities of that jurisdiction can be approached for enforcement. Additionally, the World Intellectual Property Organization (WIPO), as a specialized United Nations agency, can be petitioned for the protection of intellectual property rights related to domain names and associated assets.

Evading Accountability and Regulatory Compliance

In defiance of legal obligations, website operators distributing TV series and movies without permission frequently avoid providing contact information and operate without transparency. The failure to disclose pertinent details violates legal requirements, leading to potential fines imposed by the Information and Communication Technologies Authority (TİB). In contrast, a collaborative approach involving content creators, television channels, and relevant industry stakeholders is essential for instituting comprehensive mechanisms to protect intellectual property rights collectively.

Evaluation of Film Elements and Copyright Rights

Understanding the various components of a film and their copyright implications is crucial. While core elements such as scripts, dialogues, and original soundtracks are integral to copyright protection, the use of external works within films necessitates appropriate licensing agreements. Additionally, the status of actors and supporting artists within the context of copyright law remains subject to interpretation and necessitates careful consideration in contractual arrangements.

Conclusion

The unauthorized dissemination of TV series and movies on the internet without the consent of right holders poses significant challenges to the protection of intellectual property rights in Turkey. By embracing a collaborative approach and enforcing stringent regulatory measures, the stakeholders within the film industry can collectively safeguard their creative works and ensure fair compensation for their contributions. Emphasizing the significance of legal compliance and ethical conduct is imperative to foster an environment conducive to the sustainable growth and development of the Turkish film industry.

Copyright Framework and Applicable Jurisdiction

Under the Intellectual and Artistic Works Law, copyright protection extends to a wide range of creative works, including literature, music, fine art, and cinema. The law also recognizes sub-categories, offering comprehensive protection for a diverse array of creative expressions. Moreover, copyright protection is granted irrespective of the nationality of the creator, emphasizing the inclusive nature of copyright principles within Turkey. The applicable jurisdiction can be any of the following:

• The regular domicile of the copyright holder.
• The place where the infringement was committed.
• The place where the act of infringement produced consequences.

Primary and Secondary Copyright Infringement

Turkish copyright law treats primary and secondary infringement as a unified concept. Infringement may occur through unauthorized acts such as reproduction, distribution, adaptation, or violation of an author’s moral rights. These moral rights include the right to disclose the work to the public, protect the integrity of the work, and ensure proper attribution. These provisions reinforce the integrity and authorship rights of creators, establishing a secure environment for creative production.

Copyright Registration, Duration, and General Directorate of Cinema and Copyrights

Copyright protection arises automatically upon the creation of a work, There is no registration requirement to acquire copyright over a work and registration is not a pre-requisite for enforcement of copyright. 

There is a compulsory registration requirement for cinematographic and musical works for commercial exploitation purposes. It is possible to register other types of works but this is optional. Registration can be helpful as it creates a presumption with respect to the date of creation.

The authority in charge of recording and registering copyright is the General Directorate of Cinema and Copyrights, which operates under the Ministry of Culture and Tourism. The rules on recording, registering and paying fees are set out in Regulation No 26171 on the Recording and Registration of Intellectual and Artistic Works.

Although registration is optional for other types of works, it can be instrumental in establishing the date of creation. The General Directorate of Cinema and Copyrights, operating under the Ministry of Culture and Tourism, oversees the recording and registration of copyrights in Turkey.

The Copyright protection term begins when the work becomes public without the necessity for notification or registration. The duration of protection subsists for the life of the author, plus 70 years following the death of the author. The 70-year period starts from 1 January of the year following the author’s death. If there is collective ownership of a work, the 70-year period begins from the date when the last surviving owner dies.

Copyright Enforcement and Judicial Proceedings

In the event of copyright infringement, various enforcement options are available to copyright holders, including civil and criminal proceedings, preliminary injunctions, and border measures. Turkish courts are empowered to issue injunctions, order the cessation of infringing activities, and award damages for economic and moral harm. Additionally, criminal liability may be imposed on individuals engaged in the unauthorized exploitation of copyrighted works.

Alternative Dispute Resolution, Intermediary Liability, and Cross-Border Injunctions

While litigation remains a primary means of resolving copyright disputes, alternative dispute resolution methods, such as arbitration and mediation, offer alternative paths for resolving conflicts. The liability of intermediaries, such as internet service providers, is contingent on the degree of their involvement in the infringing activities. Turkey does not provide for cross-border injunctions, but it can issue blocking orders to prevent access to websites containing infringing materials within its jurisdiction.

Conclusion

Turkey’s copyright laws and enforcement mechanisms underscore the nation’s commitment to protecting the intellectual property rights of creators. By offering a balanced approach to copyright enforcement, Turkey fosters an environment conducive to creative innovation while safeguarding the interests of rights holders. As copyright issues continue to evolve in the digital age, Turkey remains committed to adapting its legal framework to address emerging challenges and promote a thriving creative ecosystem.

Free zones in Turkey are specialized areas designed to facilitate foreign trade and promote various commercial, financial, and economic activities. These zones operate independently of the country’s customs borders, providing unique regulatory advantages to businesses. These advantages aim to enhance trade volume and exports, particularly for specific industrial and commercial sectors, compared to other regions of the country.

Legal Framework

The establishment, management, and operation of free zones in Turkey are regulated by the Free Zones Law No. 3218. Additionally, specific regulations, such as the “Free Zones Implementation Regulation,” the “Establishment, Duties, Authorities, and Working Principles of Free Zone Directorates,” the “Decision on Payments to be Made in Free Zones in Turkish Lira,” and Circulars issued by the General Directorate of Free Zones, govern these zones.

Activities in Turkish Free Zones

Turkish free zones allow various business activities, including:

Manufacturing: Companies engaged in manufacturing benefit from significant tax advantages within free zones. They are 100% exempt from corporate income tax on their profits, compared to the regular corporate tax rate of 20% in Turkey.

Research and Development (R&D): Free zones provide an ideal environment for R&D activities, encouraging innovation and technological advancements.

Software Development: Software development companies can operate efficiently in free zones, taking advantage of tax exemptions and other benefits.

General Trading: Free zones offer a range of benefits for general trading companies, including customs-related exemptions.

Storage and Warehousing: The storage and warehousing of goods in free zones are key activities, supported by customs duty exemptions.

Packaging: Packaging companies can benefit from logistical advantages and tax exemptions in free zones.

Banking and Insurance Services: Financial institutions and insurance companies find a conducive environment for their operations within free zones.

Assembly and Disassembly: Businesses involved in assembly and disassembly operations benefit from reduced bureaucracy and streamlined processes in free zones.

Maintenance Services: Companies offering maintenance and related services can operate efficiently in free zones, enjoying various advantages.

Turkish Free Zones: Locations

Turkey boasts 18 free zones located in various cities, each with its unique advantages and characteristics. These include:

Antalya Free Zone – Antalya

Mersin Free Zone – Mersin

Aegean Free Zone – Gaziemir/İzmir

Istanbul Atatürk Airport Free Zone – Havalimanı/İstanbul

Trabzon Free Zone – Liman İçi/Trabzon

Istanbul Thrace Free Zone – Çatalca/İstanbul

Adana-Yumurtalık Free Zone – Ceyhan/Adana

Istanbul Industry and Trade Free Zone – Tuzla/İstanbul

Samsun Free Zone – Limaniçi/Samsun

Europe Free Zone – Çorlu/Tekirdağ

Rize Free Zone – Rize

Kayseri Free Zone – Kayseri

İzmir Free Zone – Menemen/İzmir

Gaziantep Free Zone – Çakmak/Gaziantep

TÜBİTAK MRC Free Zone – Gebze/Kocaeli

Denizli Free Zone – Çardak/Denizli

Bursa Free Zone – Gemlik/Bursa

Kocaeli Free Zone – İzmit/Kocaeli

Objectives of Free Zones

The establishment of free zones in Turkey serves several key objectives:

Promoting Export-Oriented Investments: Free zones are designed to encourage investments with a focus on export-oriented production and activities.

Attracting Foreign Direct Investments: These zones aim to attract foreign investors and promote technology transfer to enhance economic development.

Directing Enterprises Toward Export Markets: By providing a favorable environment for export-focused activities, free zones help businesses expand into global markets.

Developing International Trade: Free zones facilitate international trade by offering customs-related benefits and logistical advantages.

Advantages of Turkish Free Zones

Turkish free zones offer a plethora of advantages, including:

Tax Advantages: Companies in free zones can enjoy tax exemptions, including corporate income tax and income tax over salaries, under certain conditions.

Profit Transfer: Revenue and earnings from free zone activities can be freely transferred to Turkey or abroad without restrictions.

Customs Duty Exemptions: Goods originating from Turkey or the European Union brought into free zones are exempt from customs duties when re-entering Turkey or the EU.

Access to EU Markets: Free zones are part of the Turkey-EU Customs Territory, allowing goods in free circulation to be sent to EU countries.

Planning Flexibility: Operating licenses in free zones have varying validity periods depending on the nature of the activities, offering flexibility to businesses.

Facilitated Foreign Trade: Goods sold from Turkey to free zones are subject to export regulations, allowing free zone users to purchase goods and services from Turkey without paying value-added tax (VAT).

Equal Treatment: Incentives and advantages in free zones are available to all firms regardless of their origin.

No Time Limitation: Goods in free zones are not subject to time restrictions, providing flexibility in operations.

Flexible Market Regulation: Free zones offer flexibility in pricing, quality, and standards without external regulatory influence.

Inflation Accounting: Payments in free zones are made using convertible currencies or the equivalent in Turkish Lira.

Access to Domestic and Foreign Markets: Sales to the domestic market (except for specific products) are allowed.

Reduced Bureaucracy: Free zones minimize bureaucratic processes, with professional private sector companies managing them.

Strategic Locations: Turkish free zones are strategically located near EU and Middle East markets, with easy access to major ports and international transportation routes.

Competitive Infrastructure: Free zone infrastructure meets international standards, providing essential services without VAT.

Supply Chain Management: Free zones offer supply chain management opportunities, especially for export-oriented manufacturers.

Easy Work Permits for Expatriate Employees: Recent amendments in the Free Zones Law have made it easier to employ foreign personnel in free zones.

Inapplicable Provisions: Certain Turkish laws do not apply within free zones, simplifying regulatory compliance.

In conclusion, Turkish free zones present a compelling opportunity for businesses seeking a flexible and advantageous environment for various commercial activities. With their tax benefits, customs-related exemptions, and strategic locations, these zones play a vital role in promoting international trade and attracting foreign investments to Turkey.

If the lessor needs the leased property, the tenant may be requested to evacuate. In this context, the type of lawsuit that can be filed by the lessor is called “evacuation lawsuit due to need”.

The suit for eviction due to the need in question is a type of lawsuit specially regulated in our law. Based on the relevant article of the law, in order to decide on the evacuation of the lessor, it becomes necessary to prove the need. Therefore, the need must be real, sincere and imperative.

EVACUATION ACCORDING TO LAW NUMBER 6570:

1- EVICTION CASE TO BE FILED DUE TO EVACUATION COMMITMENT PURSUANT TO ARTICLE 7/A OF LAW NO. 6570:

A lawsuit must be filed within 1 month following the committed date or enforcement proceedings must be carried out within this period.

b. If the eviction commitment is made in the presence of a Notary, it is not possible to object to the signature and its content.

c. In order for the eviction commitment to be valid, the commitment agreement must be made after the tenant starts using the rented place. The date on the lease does not matter. In other words, the date of the Commitment must be after the date of using the leased property. If a commitment to evacuate is taken on the day the contract is made, it is not respected because it is assumed that it was given as a result of pressure and necessity.

D. Only the lessor can file a lawsuit based on an eviction commitment. If the lessor is not the owner, he cannot file this lawsuit.

to. The commitment to evacuate must be unconditional.

f. In case of denial of the signature (ordinary commitment), an expert examination is carried out on the signature in accordance with the provisions of the Code of Civil Procedure.

g.  In practice, the commitment date is left blank to be filled in as desired by the lessor. In this case, leaving the date of evacuation of the rented person blank in the Evacuation Commitment by the parties will not affect the result. The Tenant who undertakes in this way must bear the consequences.6.HD

2 – EVICTION CASE TO BE FILED DUE TO NECESSITY PURSUANT TO ARTICLE 7/BC OF LAW NO. 6570:

The lawsuit must be filed within one month from the end of the lease agreement. If the will and request for eviction has been notified to the tenant before or within this one-month period, a lawsuit can be filed until the end of the period following this notification. Here, the start and end date of the contract and the duration of the contract must be proven by the plaintiff. This can be proven with all kinds of evidence, including witnesses.

Those in need are:

 1-The lessor 

2-The lessor’s spouse 

3-The lessor’s children.

 It is not possible to file a lawsuit for the needs of people other than these. The need must be imperative, sincere and serious. The fact that these people are renting or unemployed and idle is a presumption that the need for housing or a workplace is mandatory and serious. The desire of a child who has reached adulthood to leave the family and live independently is considered natural. Parents can file a lawsuit for the needs of the adopted child. The need that will occur in the very near future can be considered mandatory. If the need disappears during the trial, the case should be rejected. If the plaintiff’s residence or workplace is smaller or more unusable than the one owned by the tenant, the need should be considered a compelling need in accordance with the “Superiority to Property Rights” rule. This issue should be especially observed during the exploration.

Workers working abroad may request their evacuation if this need is deemed genuine and necessary due to their definite return or need for a summer house during the holiday. The claim of “summer house” or “storage” can be considered a mandatory need. A public official who owns a residence cannot be forced to do so, even if he has the opportunity to reside in the residence. If he wants to live in his own home, this is considered a mandatory and sincere need. However, the need of the plaintiff who voluntarily settles in the lodging after filing a lawsuit is not sincere and mandatory. (There are also case laws to the contrary.)6.HD

An evacuation decision cannot be made for needs that are temporary and not permanent. The fact that the person in need is engaged – if there is no concrete preparation for marriage – cannot be considered sufficient for the need. The desire to do a second job in addition to an existing job cannot be considered a compelling need. However, since the Company legally has the opportunity to do more than one job, it may file an eviction lawsuit for another job.

Whether the property (leased place) is suitable for the intended job or the claim that the existing workplace is inadequate should be determined by an expert expert. A person cannot file an eviction lawsuit for his own property based on the needs of the company of which he is a partner. Only the company can file an eviction lawsuit for the company’s needs. For this, the company must be either the lessor or the owner.

Since it is not possible for minors to trade, it is not possible to talk about the need. The workplace needs of a person who does not live in the place where the rented property is located cannot be considered essential.

3 – Eviction Case to be Filed Due to Repair in Pursuant to Article 7/C of Law No. 6570: 

The case must be filed within one month from the end of the lease agreement. If the will and request for eviction has been notified to the tenant before or within this one-month period, a lawsuit can be filed until the end of the period following this notification. Here, the start and end date of the contract and the duration of the contract must be proven by the plaintiff. This can be proven with all kinds of evidence, including witnesses.

CONDITIONS FOR FILING A LAWSUIT:

1- Wanting to demolish and rebuild the rented property

2- Requesting substantial repair, expansion or alteration for zoning purposes,

3- It must be technically impossible to reside in the rented property while these works are being carried out.

It must be determined by a local expert whether the repairs and renovations to be made are for development purposes and are essential. Repairs and renovations in the new building cannot be grounds for eviction. Remodeling to increase income cannot be a reason for eviction. The zoning purpose is not required in reconstruction. However, the certified project must be submitted. This project must be implemented locally through an expert expert. If an application has been made for the approval of this project in due time, the result should be waited.

The new owner does not have the right to file a lawsuit by taking advantage of the period in Article 7/d of SY 6570. In an eviction case based on reconstruction, a good faith investigation cannot be conducted if the conditions are met. If the addition or renovation to be made in the building is an integral part of the building, this is a reason for eviction.

4 – EVICTION CASE TO BE FILED DUE TO PURCHASE (ACQUISITION) PURSUANT TO ARTICLE 7/D OF LAW NO. 6570:

a)  Period of filing a lawsuit according to the contract: The new owner can file a lawsuit within one month from the end of the contract.

b)  Period of filing a lawsuit based on purchase: The new owner must notify the tenant within 1 month of the acquisition that he has purchased the leased property and that he will use it when needed, and must file the lawsuit within a reasonable period of time (usually until the end of the contract) after waiting 6 months from the acquisition.

However, filing a lawsuit after a long period of time indicates that the new owner is not in good faith. The lawsuit filed before the 6-month period expires must be rejected due to time limits. However, the case can be reopened at the end of the period. In these periods, the date of acquisition is also included in the 1 and 6 month period. It is not necessary to give the tenant time for eviction in the notice. However, if the tenant is given a period of time, the new owner is bound by this period. He must wait for the end of the period.

The concept of “acquisition” in itself is not sufficient for release. The new owner must also prove his claim of need. The new owner cannot file an eviction lawsuit due to repairs and renovations based on the period in paragraph 7/d. This clause gives the right to file a lawsuit based solely on job and housing needs. The notice must be notified to the tenant within 1 month from the date of acquisition. If the 1-month period is neglected and delayed, it is not legally possible to correct this deficiency. A person who acquires a new share of the real estate in which he was previously a shareholder cannot file an eviction lawsuit in accordance with Article 6570/7-d.

Conditions of eviction cases filed due to necessity;

1. There is an obligation to use the residence or workplace of the new owner or his relatives, which is clearly stated in our law. 

In accordance with Article 350 of the Turkish Code of Obligations, the lessor is responsible not only for himself; Eviction of the tenant may also be requested if his/her spouse, descendants, ancestors or dependents required by law require it. 

The summary of the decision of the 6th Civil Chamber of the Supreme Court of Appeals, numbered 2000/1983 and Decision no. 2000/2109, regarding the eviction of the leased property may be requested in terms of relatives clearly listed in the law and the existence of the need is mandatory, is as follows; 

“The plaintiff requested his release, claiming that his son was working as a worker in France and that his daughter-in-law and grandchildren would return to Turkey and live in detention. Article 7/b of Law No. 6570 stipulates that the lessor or the owner who is not a lessor may file a lawsuit for the needs of his/her spouse and children. An eviction request cannot be made due to the needs of the daughter-in-law and grandchildren. Moreover, it is understood that the needy bride and grandson are in France and have not returned to Turkey. An eviction lawsuit cannot be filed for needs that have not yet arisen. “While it should have been decided to reject the case by taking these issues into consideration, it was wrong to decide on release with written justification.” 

As can be understood from the decision given above, the degrees of kinship listed in the law are limited. In addition, it is clearly understood from the decision that in order for the eviction case due to necessity to be accepted and the tenant to be evicted, the state of need must already exist at the time the case is filed. 

In the Decision No. 2017/6-1540 and Decision No. 2021/878 of the General Assembly of the Supreme Court of Appeals of the Republic of Turkey, the need was briefly defined and the cases in which the dispute was taken as basis before the court were stated:

“In cases based on the allegation of need, in order to decide on release, it must be proven that the need is real, sincere and mandatory. A temporary need that is not permanent cannot be considered as a reason for evacuation, and a need that has not yet arisen or whose realization depends on a long period of time cannot be considered as a reason for evacuation. “The existence of a reason for need at the time the case is filed is not sufficient; this need must continue during the trial.”

Evacuation case due to necessity;

• The lessor occupies the lease,
• The health condition of the lessor requires moving to the rented house,
• The place where the lessor lives is not sufficient to meet the housing needs,
• Required by the lifestyle of the lessor,
• The need to put wood in the rented room located below the lessor’s residence,
• If the request of the lessor and his/her spouse to live separately is accepted,
• Reason for education of the lessor’s children,
• The lessor’s reason for being a civil servant,

is accepted in such cases.

2.  The period for filing an eviction lawsuit filed due to necessity has been determined as “one month”.

In accordance with the relevant article of the Law; “If there is an obligation to use the rented property for oneself, one’s spouse, one’s descendants, one’s descendants or other persons that one is obliged to look after by law, due to housing or workplace needs, at the end of the period in fixed-term contracts, in indefinite-term contracts, the termination period and the periods foreseen for notice of termination in accordance with the general provisions regarding rent. may be terminated by filing a lawsuit within one month, starting from the date to be determined in accordance with the law.”The right to file a lawsuit is subject to a one-month limitation period. On the other hand, it is stipulated in the text of the Law article that the termination period and the periods stipulated for termination notification must be observed. At this point, it would be appropriate to make an evaluation together with the termination clauses that regulate the termination of the lease agreement by declaration of will. The general view accepted in practice is; If the lessor wishes to file an eviction lawsuit, in fixed-term contracts, a notice must be given to the tenant at least three months before the last day of the lease; In terms of indefinite-term contracts, the condition of at least three months’ notice must be complied with, provided that six-month termination periods are observed. To give an example: Since the lease agreement dated 05.05.2019 turned into an indefinite term at the end of one year, For the lessor who will request the evacuation of the leased property due to necessity in 2022, 6-month termination periods should be taken as basis. If the notice period to the tenant is not complied with, the case will be rejected due to procedural reasons.

3. After the tenant is evacuated, the real estate must not be rented to anyone else for three years.

Paragraph 1 of Article 355 of the Turkish Code of Obligations, titled “re-rental prohibition”,  states: “When the lessor ensures the evacuation of the leased property for necessity purposes, he cannot rent the leased property to anyone other than the former tenant, without a justified reason, unless three years have passed.” It includes the provision. According to this provision, the owner does not have the right to rent the real estate to third parties other than the former tenant unless three years have passed since the conclusion of the eviction case due to necessity. Otherwise, the lessor must pay compensation to the tenant evicted due to necessity, not less than one year’s rent paid in the last rental year.

In summary from the decision of the 3rd Civil Chamber of the Supreme Court of Appeals numbered 2017/6483 E., 2019/2527 K.; “Accordingly, considering the above explanations; According to the declaration of the plaintiff party, the rented property was evacuated on its own on 01/01/2012 after the notification of the notice, and since it was not possible to ensure the evacuation by implementing an eviction lawsuit filed by the defendant due to necessity and the court decision given as a result of this eviction lawsuit, the compensation conditions set out in Article 355 were not possible. has not occurred. In this case, while the court should have rejected the case, the decision to accept it in writing was not deemed appropriate and required reversal.”

In its decision numbered 2017/4956 and decision numbered 2019/871, the 3rd Civil Chamber of the Supreme Court of Appeals of the Republic of Turkey gave a precedent decision proving that in order for the conditions for compensation to be met, the evacuator must have filed a lawsuit of necessity.

“In the concrete incident; While the plaintiff was a tenant in the real estate with a two-year lease agreement dated 01.06.2011, the defendant requested the plaintiff’s eviction from the house with a notice dated 17.12.2013 on the grounds that he needed the house, and the plaintiff tenant evicted the house in May 2014 and after the real estate was evacuated. There is no dispute that it was subsequently rented to a third party. It is understood that the defendant lessor did not file an eviction lawsuit for the purpose of necessity, and the plaintiff tenant did not evacuate the immovable property by a judicial decision or enforcement. In this case, compensation conditions have not been met in accordance with Article 355 of the Turkish Code of Obligations No. 6098.”

The Court in Charge and Competent in the Eviction Case

The competent court for eviction due to necessity is the civil court of peace in accordance with Article 4 of the Code of Civil Procedure, and the competent court is the court of the place where the leased property is located.

In Which Situations Is It Not Acceptable? 

Although it is filed due to a certain need, in some cases, if it is determined that there is no real and sincere need, the decision in eviction cases is in favor of the tenant. These are;

Applications for the needs of people who do not belong to the descendants and superiors of the landlord

Acting in the landlord’s own interests (pursuing personal interests such as evicting the tenant and renting to a higher tenant)

Going to court due to arbitrary reasons and insincere situations far from reality 

Situations such as going beyond the contract and not observing the deadlines specified in the agreement are not found appropriate by the court.

Ordinary Partnerships: A Key Perspective on Foreign Investment

When it comes to foreign investment, understanding partnerships’ distinct role is essential. While Turkish commercial entities operate under the Turkish Commercial Code No. 6102 (“TCC”), partnerships are governed by Articles 620-645 of the Turkish Code of Obligations No. 6098 (“TCO”). This legal distinction also reflects in tax treatment. Unlike corporations, partnerships’ profits don’t face corporate tax; instead, partners are individually taxed based on their profit shares. An ordinary partnership centers on collaboration between two or more individuals to achieve a shared objective.

Ordinary Partnerships: Unique Identity and Liability

Ordinary partnerships carve a unique space in the partnership landscape. Unlike their counterparts, they lack independent legal recognition, rendering partners directly liable for the partnership’s obligations. This means the partnership itself doesn’t stand apart legally; it can’t undertake obligations in its own name. This distinctive liability framework highlights that partners are inextricably linked, regardless of internal agreements. Moreover, any internal agreements won’t alter how third parties perceive the partnership.

Interestingly, partnerships offer the flexibility of incorporating corporate entities as partners, giving rise to varied ownership structures. Limited partnerships, a sought-after option for strategic alliances, allow corporate entities as partners. However, in limited partnerships, partners must be natural persons. The structure entails general partners, bearing full liability, and limited partners, accountable only to their invested capital.

The Limited Partnership Divided into Shares merges partnership advantages with share tradability. This structure lets limited partnership interests be represented through share certificates, increasing liquidity and attracting diverse investors.

Internal Dynamics of Partnerships

Understanding how partnerships function internally is important for anyone engaged in such ventures. Partnerships operate based on various dynamics that shape responsibilities, decision-making, and the distribution of gains and losses.

1. Administration and Decision-Making

By default, all partners possess the right to participate in the administration of the partnership. However, it’s common for one or a select few partners, known as “Pilot Partners,” to be entrusted with the day-to-day management of the partnership’s operations. This delegation of authority streamlines decision-making and ensures efficient business operations.

2. Fiduciary Relationship and Mutual Obligations

Partners within a partnership share a fiduciary relationship, underlining a high level of trust and reliance. This relationship extends beyond mere business interactions, encompassing ethical responsibilities and obligations towards one another. Partners are legally bound to act in the best interest of the partnership and each other.

3. Exercise of Care, Skill, and Diligence

Partners are held to a standard of care, skill, and diligence in fulfilling their duties within the partnership. This means that each partner is expected to bring the same level of dedication and professionalism as they would to their own individual business pursuits. Competence and prudence are key attributes partners should exercise.

4. Competition and Conflict of Interest

To maintain the integrity of the partnership, partners are prohibited from engaging in activities that directly compete with the partnership’s business. This prevents conflicts of interest and ensures that partners’ personal pursuits do not undermine the collective goals of the partnership.

5. Participation in Decision-Making

Even partners who aren’t directly involved in managing the partnership may still have a voice in critical decisions. This inclusion in the decision-making process ensures that all partners have the opportunity to contribute insights and opinions, fostering a collaborative environment.

6. Sharing of Profits and Losses

By default, profits and losses within a partnership are shared equally among partners, irrespective of their capital contributions. This equal distribution encourages a sense of unity and shared responsibility among partners.

While profits are shared equally, certain situations may lead to exceptions in sharing losses. Partners who contribute solely in terms of labor may be exempted from participating in losses, recognizing the differing nature of their contributions.

External Relations in Partnerships

Understanding the external dynamics of partnerships is crucial for establishing effective relations with third parties. The unique structure of partnerships necessitates a distinct approach when it comes to representation and interaction with the external world. 

1. Collective Representation

An ordinary partnership lacks independent legal personality, which implies that partners are both authorized and obligated to act on behalf of their fellow partners. While this is an inherent feature of partnerships, it also entails a distinct responsibility for partners to collectively represent the partnership’s interests.

2. Perception of Third Parties

Externally, an ordinary partnership presents itself as a collaboration of individual partners rather than a unified entity. This distinction is pivotal as it sets the stage for how third parties perceive and interact with the partnership. Third parties are likely to treat each partner as a distinct entity in their dealings.

3. Representation in Individual Names

When a partner engages with third parties on behalf of the partnership, they do so in their own name. This allows for smoother transactions without the need to disclose the identities of other partners. These unnamed partners are often regarded as silent partners, having no legal involvement unless specific rights and obligations are transferred to them from the transaction.

4. Joint and Several Liability

The law stipulates that when one partner represents the partnership in a transaction, the other partners are inherently involved as well. This joint and several liability holds all partners accountable for the transaction’s outcomes, as long as the transaction falls within the partnership’s established scope and objectives.

5. Maintaining Transaction Scope

Crucially, the joint and several liability principle applies only to transactions within the partnership’s established scope. Any actions that deviate from the partnership’s objectives may not fall under the umbrella of this liability, emphasizing the importance of adhering to the partnership’s intended business activities.

In conclusion,understanding ordinary partnerships is crucial if you’re thinking of teaming up with others in the Turkish business world. They might not have their own legal personality, but they’re a powerful way for people to come together and make things happen.  The incorporation of corporate partners adds an extra layer of flexibility, enabling tailored ownership structures. The distinction between ordinary partnerships and limited partnerships highlights the significance of liability considerations.