Repatriation of Export Proceeds and Legal Consequences of Non-Compliance
An overview of Turkey’s export proceeds repatriation rules, İBKB account closure, exemptions, write-off mechanisms and administrative fines under…
Read Article →Turkey operates a civil law judicial system with specialised courts for commercial, labour, consumer, intellectual property, and administrative matters. The first-instance courts are organised into Civil Courts of Peace, Civil Courts of First Instance, and Commercial Courts. Appeals proceed to Regional Courts of Appeal (Bolge Adliye Mahkemeleri), with further review available from the Court of Cassation (Yargitay) on points of law. Administrative disputes are heard by Administrative Courts, with appeals to Regional Administrative Courts and the Council of State (Danistay).
We represent clients across this court structure, from initial filing through to final appeal. Our litigation team handles commercial disputes, shareholder conflicts, contract enforcement, tort claims, and administrative challenges to government decisions.
Commercial disputes in Turkey are heard by the Commercial Courts, which have jurisdiction over matters arising from the Turkish Commercial Code, including disputes between merchants, company law disputes, insurance claims, maritime law, and unfair competition. The Istanbul Commercial Courts handle a disproportionate share of Turkey’s commercial litigation given the city’s role as the commercial capital.
We manage commercial litigation from pre-action assessment through trial and appeal. Turkish civil procedure follows a written pleading model with oral hearings for witness examination and expert testimony. Court-appointed experts play a significant role in Turkish commercial litigation, particularly in disputes involving accounting, valuation, or technical questions.
Turkey is a signatory to the New York Convention and has a modern arbitration framework under the International Arbitration Law (Law No. 4686). Istanbul has emerged as a regional arbitration seat, particularly through the Istanbul Arbitration Centre (ISTAC). We represent clients in arbitration proceedings under ICC, ISTAC, and LCIA rules, as well as in ad hoc arbitrations.
Foreign court judgments are not automatically enforceable in Turkey. Recognition and enforcement require a separate proceeding under the International Private and Procedural Law (Law No. 5718). The Turkish court examines whether the foreign judgment meets conditions including reciprocity, proper service, and consistency with Turkish public order. Arbitral awards rendered under the New York Convention benefit from a more streamlined enforcement process, though Turkish courts retain the power to refuse enforcement on limited grounds.
Turkish law requires mandatory mediation as a precondition to filing suit for certain categories of disputes, including commercial claims (since 2019) and labour disputes (since 2018). The mediation process is time-limited, typically completing within four to eight weeks. If mediation fails, the mediator issues a final report that enables the parties to proceed to litigation. We represent clients throughout the mediation process and, where settlement is not achievable, transition seamlessly to litigation.
Turkish courts have broad authority to grant provisional measures (ihtiyati tedbir) and provisional attachments (ihtiyati haciz) to preserve the status quo or secure assets pending resolution of a dispute. These measures can be obtained ex parte in urgent cases. We regularly obtain and defend against provisional measures in commercial and enforcement contexts.
An overview of Turkey’s export proceeds repatriation rules, İBKB account closure, exemptions, write-off mechanisms and administrative fines under…
Read Article →Reach out for a confidential consultation on your legal needs.