Obtaining Work Permits for Foreign Business Partners in Turkey: Legal Requirements and Process

At Bayraktar Attorneys, we are committed to providing comprehensive legal insights to support your business endeavors in Turkey.

In this article, we delve into the intricacies of obtaining work permits for foreign business partners, along with key legal requirements and procedures according to Turkish legislation. For broader context, see our guide on obtaining work permits in Turkey for foreign nationals.

Applicability of Foreign Direct Investment Law

Foreign individuals and legal entities engaging in direct foreign investment in Turkey are subject to the provisions of Law No. 4875 on Foreign Direct Investment.

However, foreign-owned companies' shareholders and partners do not fall under the scope of Law No. 4875. Instead, their situation is regulated by Law No. 6735 on International Labor and its implementing regulation, Law No. 4817.

Application for Work Permits

The application process for work permits depends on whether the company partner resides in Turkey or abroad. If the partner resides in Turkey, the application is submitted domestically through the Ministry of Labor and Social Security.

For partners residing abroad, the application is made through Turkey's diplomatic missions in their home countries. It's important to note that foreign company partners applying from within Turkey should hold a residence permit valid for at least 6 months.

Exemptions from Work Permit

Foreign individuals meeting any of the following criteria are exempt from the work permit requirement:

1. Members of the board of directors of Joint Stock Companies established according to the Turkish Commercial Code No. 6102, who are based outside of Turkey.
2. Partners holding executive positions in other companies.

Mandatory Work Permit Holders

Work permits are mandatory for the following individuals:

1. Directors who are partners of Limited Liability Companies established according to Turkish Commercial Code No. 6102.
2. Members of the board of directors who are partners of Joint Stock Companies established according to Turkish Commercial Code 6102.
3. Foreign partners holding executive positions in Joint Ventures with Divided Shares established according to Turkish Commercial Code 6102.

Qualifications for Work Permits for Foreign Partners

To apply for a work permit, the company where the foreign partner will be employed must meet the following criteria:

1. The company's paid-in capital must be at least TRY 100,000. If the capital is less than TRY 100,000, the company's gross sales must be at least TRY 800,000 or its export amount in the previous year must be at least USD 250,000.
2. The company must employ at least 5 Turkish citizens, which applies immediately for newly established companies and within the last 6 months for existing companies.
3. The foreign partner applying for the work permit must hold at least 20% of the company's capital and their capital share must be at least TRY 40,000.

These thresholds form part of the broader foreign work permit evaluation criteria applied by the authorities.

Required Documents for Work Permit Application

The following documents are required when applying for a work permit:

1. Work Permit Application Letter.
2. Fixed-Term Employment Contract.
3. Commercial activity certificate from the Chamber of Commerce where the company is registered.
4. Recent Trade Registry Gazette showing the latest capital and ownership structure.
5. Last year's audited financial statements, approved by a certified public accountant or tax office.
6. Employee roster of the workplace.
7. Copy of the passport.
8. Residence permit valid for at least 6 months.
9. Notarized Turkish translation of the diploma or graduation certificate, verified by a sworn translator.
10. One passport-sized photograph.

The work permit process for partners differs from the standard route for employees; if you are a foreign national hired by a company rather than a shareholder, see our guide on applying for a work permit in Turkey. Related residency questions are also covered in our 10 questions and replies on Turkey's visa requirements and residency permits.

Navigating the legal intricacies of work permits for foreign business partners can be complex. At Bayraktar Attorneys, we specialize in guiding businesses through such legal processes, ensuring compliance with Turkish laws and regulations.

Contact us for personalized legal assistance to facilitate the successful growth of your international partnerships in Turkey.