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Joint Ventures/Licensing
Although 100 percent foreign ownership is permitted, most U.S. investment in Turkey is in the form of joint venture,licensing operations. Basic
infrastructure for a specific industry usually exists within the operation of the potential local licensee or joint venture partner that also has easy access to the market. The U.S. firm brings the required
advanced technology or know-how. Most Turkish companies prefer to establish joint ventures with U.S. suppliers to overcome shipping costs and European competition. Especially in view of customs taxes applied
to U.S. products vis-a-vis zero customs charges for European-origin goods (Turkey joined the European Customs Union in 1996), many U.S. firms have chosen local production as a way to profitably penetrate the Turkish
market. Law No. 6224 and Decree No. 86/10353 governs joint ventures/licensing, as well as direct foreign investment in the country. The government authority in charge is the Undersecretariat of the Treasury,
General Directorate of Foreign Investment. Especially in large urban centers, a highly sophisticated infrastructure exists (legal support, financial and consultancy services) which may be required by potential
foreign investors or joint venture partners. Major U.S. accounting/auditing firms, law firms, and banks also have established branches in Turkey. |
