On June 1, 2018, new requirements have been introduced into the Implementation Regulation of the Foreign Direct Investments Law (the “Regulation”), effective from the date thereof. Accordingly, foreign-capitalized companies are now required to register certain information (such as shareholding structure, share transfers and/or increase or decrease of the share capital) into an online platform, namely the Electronic Incentive Application and Foreign Investment Information System (the “E-TUYS”).
Prior to such change, such companies were requested to submit such information to the General Directorate of Incentives and Foreign Investment of the Ministry of Economy (the “General Directorate”) through hard-copy forms. Companies without foreign shareholding are not subject to the Regulation and hence these notification requirements are not applicable to them. However, if a foreign entity/individual becomes shareholder as a result of a share transfer, share subscription or otherwise, they will be required to comply therewith.
To comply with the new notification requirements, each company must primarily define at least one user (the “User”) in E-TUYS who will be responsible from registering requisite information into the E-TUYS. The User will be appointed for a definite period of time; but may be re-appointed or a time extension may be requested. The Regulation sets out the procedures to define a User in E-TUYS in details. In principle, the User shall have access to the E-TUYS using a secured electronic signature issued by a licensed service provider in Turkey.
As of June 5, 2018 The General Directorate is yet to make the E-TUYS operational. We will issue another update as soon as the E-TUYS is online.