Legal Due Diligence Before Sending Money to Individuals or Companies in Turkey

In today’s global economy, many foreign nationals and companies doing business with Türkiye seek assurance before transferring funds to a Turkish recipient.

Whether it’s a private individual or a registered company, verifying the legal and financial reliability of the counterparty is essential to minimize the risk of fraud, non-performance, or legal complications.

At Bayraktar Attorneys, we provide detailed legal background checks on individuals and companies in Türkiye before any payment is made. In this blog, we explain why this process is important, how we carry it out, and what kind of risks you can avoid through a proper legal investigation.

Why Is Legal Due Diligence Before Payment Important?

Whether you're transferring funds for investment, service fees, or goods procurement, any money transfer carries legal risk. Even registered companies in Türkiye may have legal issues, tax debts, or enforcement files that put your money at risk.

Some common risks when funds are transferred without prior investigation:

• Fraud: The recipient becomes unreachable after the transfer.

• Non-existent Companies: Some entities present false documentation or impersonate real businesses.

• Bankruptcy or Insolvency: The recipient may be in bankruptcy proceedings.

• Outstanding Tax or Social Security Debts: A company’s failure to meet legal obligations signals poor reliability.

• Criminal or Civil Lawsuits: The recipient may have ongoing legal disputes or criminal charges.

A comprehensive legal review minimizes these risks and offers transparency before you take financial action.

Also Read; Why should you write a money transfer explanation?

What Information Is Included in a Legal Background Check?

Our due diligence process includes several key elements depending on whether the recipient is a company or an individual:

1. Trade Registry Records (For Companies)

We access Türkiye’s Trade Registry Gazette to confirm the company’s legal status, incorporation date, shareholders, scope of activities, and updates such as address or director changes.

2. Tax and Social Security Status

We check public databases to see if the company has any unpaid tax or social security (SGK) debts, as this is an important sign of its financial condition.

3. Enforcement and Bankruptcy Filings

We investigate whether the company or individual is listed in Türkiye’s enforcement courts (İcra İflas Mahkemeleri), which deal with debt collection, bankruptcy, or asset seizures.

4. Criminal and Civil Court Records

For individuals or company directors, we check for any criminal charges, fraud allegations, or civil lawsuits.

5. On-site Review and Reference Checks (Optional)

In higher-value transactions, we can conduct field investigations such as office visits, neighbor interviews, or partner reference checks to verify physical presence and commercial activity.

Can Individuals Also Be Legally Checked?

Yes. We can also conduct due diligence on individuals in Türkiye. This is particularly useful when dealing with:

• Private consultants

• Real estate brokers

• Local agents

• Freelancers or advisors handling large sums

Our checks can include:

• Criminal background (via legal representation)

• Enforcement files or debt collection records

• Property ownership records (limited access)

• Court filings and legal disputes

• Reference inquiries

How Long Does the Process Take?

A basic legal background check on a company in Türkiye can usually be completed within 1 to 3 business days. More detailed checks, such as site visits or verification of notarized documents, may take 5 to 7 business days to up to a month. For individuals, the process typically takes 2 to 4 business days, depending on the type of information requested.

What Will the Final Legal Report Include?

At Bayraktar Attorneys, we provide a detailed report containing:

• Legal verification of the company or individual

• Tax and SGK compliance status

• Active or historic enforcement or bankruptcy files

• Summary of court disputes or criminal records

• Evaluation of trustworthiness and legal risk level

• Protective recommendations before transferring funds

Upon request, the report can include notarized documentation, translations, and photo evidence from field visits.

Legal Due Diligence Is Your First Line of Protection in Türkiye

Unlike many Western countries where payment defaults are uncommon and commercial trust is strong, in Türkiye, breaking contracts and delaying payments happens more often and is sometimes culturally accepted. Many individuals and businesses postpone payment until legal action is taken.

By conducting legal due diligence before sending any money, you protect yourself from these risks. A legal investigation is not just a precaution — it is your first step to doing business safely and confidently in Türkiye.

Let us be your eyes and ears in Türkiye before any funds are sent. Contact Bayraktar Attorneys for full legal verification and peace of mind.