Turkey: Enhancing the Justice System

Last Updated: 3 October 2018
Article by Beri̇l Yayla Sapan and Görkem Bilgin

Over the past year, several Turkish laws have been amended to help improve the country's investment environment and to make it easier for investors by increasing the quality and speed of the judicial system. The Law on the Amendment of Certain Laws for the Improvement of the Investment Environment No. 7099 introduced changes to regulations in the Turkish Commercial Code, Tax Procedure Law, Social Security and General Health Insurance Law, Property Law, Law on Municipal Revenues, Customs Law, amongst others.

Various reforms were recently made to laws surrounding dispute resolution to shorten the length of judicial proceedings.

The most important included the Law on Amendments to the Enforcement and Bankruptcy Law and Other Laws (the "Amendment Law"), which was published in the Official Gazette 30361 and dated March 15, 2018. Several laws were amended including the Civil Procedural Code, Commercial Code and the Law on Notifications.

In the Civil Procedural Code, the submission deadline of an expert's report has been reduced to two months for cases where simplified rules of procedure are applicable. The extension period for the submission of an expert's report was also reduced to two months.   From now on, commercial cases under the value of TRY100.000 are subject to a simplified procedure whereby exchange of the petitions phase is limited to one petition per party, unlike the written procedure where both parties are entitled to file two petitions when arguing their case.

With the Law on Notifications, the scope of those being subject to mandatory electronic notification has been expanded to all public institutions and organisations, public authorities, municipalities, village administrations, companies, cooperatives, associations, foundations, trade unions, professional associations, government business enterprises, publicly owned corporations, lawyers, notaries, experts, mediators and in-house lawyers. The Post and Telegraph Organisation is responsible for the operation of electronic notification transactions through the National Electronic Notification System. Formation of electronic notification addresses has also been regulated.

Important changes have also been made to the Labour Courts Act No. 7036, which were published in the Official Gazette 7036 and dated October 25, 2018 with the aim of easing the judiciary's workload and accelerating the judicial process in employment related cases. The most important change is that mediation is now mandatory for both employers and employees prior to initiating lawsuits (such as those relating to money claims, compensations arising from the Labour Act, employment agreements, collective bargaining agreements or reinstatement claims). Mandatory mediation has been in place since January 1, 2018 with recent reports showing that 65 per cent of employment disputes have already been resolved through mediation. To accelerate the judicial process, judgements regarding certain claims arising out of employment relationship (such as reinstatement claims) can no longer be appealed before the Supreme Court and the parties can only apply to Regional Court of Appeal for the decisions rendered on such claims.

While the above amendments aim to make the Turkish judicial proceedings less burdensome and time-consuming, the Law on the Amendment of Certain Laws for the Improvement of the Investment Environment provides a better environment for investors so that investments can be carried out more quickly and at less cost.

As a result, there are also many novelties in the Turkish Commercial Code ("TCC"). Pursuant to the amendments made in article 40/2 of the TCC, every merchant undergoing a company transaction can now submit the business name together with a signature to the relevant Trade Registry. The signature specimen should be provided in the presence of a designated officer of the Trade Registry in a written statement. This amendment abolished the need to notarise the business name and the signature before Notary Publics prior to submission to the relevant Trade Registry.

Changes have been made to article 64 of the TCC in relation to the registration of joint stock companies and limited liability companies. The opening approvals of company books will now only be issued by directorates of the Trade Registry removing the need to obtain the authority from Notary Publics. If the company books are kept electronically, it is no longer necessary to seek the approval from the Notary

Publics or directorates of the Trade Registry during the opening and closing process of general journal and board of directors' resolution books.

Amendments have been made to articles 575, 585 and 587 of the TCC whereby approval from the Notary Publics for signatures of founders and articles of limited liability companies is no longer required. With these amendments, articles of associations only need to be signed by the founders in the presence of the designated officers of the directorates of the Trade Registry. As this amendment will only be applicable to limited liability companies, the articles of association of joint stock companies can continue to be executed before Notary Publics or before the director or deputy director of the relevant Trade Registry.

 A significant novelty has been introduced to article 585 of the TCC and again, relates to limited liability companies. The pre-condition of payment of at least ¼ of the undertaken capital prior to the company's formation has been abolished.

 To align the above changes and help speed up the process when setting up a company, further amendments have been made to the Tax Procedure Law and the Social Security and General Health Insurance Law. Accordingly, the opening approvals of company books kept physically by companies will be carried out by the relevant directorates of the Trade Registry during the formation process.

Finally, in accordance with the amendment made to the Social Security and General Health Insurance Law, the notification form should now be directly sent to the Social Security Institution (SSI) by the relevant Trade Registry when a company is being set up. The work-place registration can be done without any application to the SSI in person.

 These amendments have certainly helped accelerate court proceedings dealing with disputes, eased the procedures when setting up and running a company, and have made legal expenditures much more cost-effective. These initiatives demonstrate the commitment by the Turkish governmental bodies to help improve and safeguard two highly of the many valued principles of business owners, namely, time and money.

First published by The Oath, 20.09.2018

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions