BERK – How to conduct a proper check of a company in Turkey

How to conduct a proper check of a company in TurkeyWhen entering into a business relationship with a company in your home country, you feel more confident than doing so in a foreign country. Usually companies do not use the same level of caution when checking local companies as they would a company in a foreign country.

In some countries, it is easier to conduct a check of a company since there is an established system, and all, or at least most aspects of a companyand#39s transactions are registered via banks or other authorities.How is the situation in Turkey?In Turkey, some of the economy is still in the black market, and it might be difficult to assess whether a company is in good or bad standing by looking at its company books.

It is difficult to know if information concerning a Turkish company is properly registered. Needless to say, there are companies that do business by the book, keep good records and conduct business transactions in a proper way through banks.

Accessible information — Turkish practicesHowever, one thing more important than the existence of information is the availability of that information. Therefore the existence of the information is meaningful only if you can access this information in a reasonable period of time.

In a perfect world, there would be a database that collects all the information in one place and makes it easier to obtain, providing an andldquox-rayandrdquo of company with one click. However, this is not the case in the real world, at least not in the Turkish real world.

What kind of information is available easily in Turkey?Personal credit historyIn the past, the credit history of a bank customer was only accessible to financial institutions. At present, this information is supposed to be accessible to third parties via the credit registration bureau.

A risk report usually contains information about a person or institution, including but not limited to any default, credit line size and the last time the person or company took out a loan. One thing you should know before you depend on this accessibility is that the disclosure of this information to any third parties other than the banks and financial institutions is subject to the consent of the entity in question.

How to uncover bankruptcies, collection processes or other proceedingsThis is a bit tricky. There is data on all cases and legal proceedings in a judicial database.

However, incredibly, it is not possible to see all cases related to a legal entity in one go. Each jurisdiction can see the information limited to its own records.

This means that each jurisdiction should be checked one by one.How to find out about other assets?Legal properties are registered with the land registry office, and this information is supposed to be open to the public.

Therefore it is assumed that it is accessible. However, when it comes to obtaining the information there you need to submit the reason for your interest in the property information you are asking for Another challenge is that the information is spread over several different jurisdictions.

Finding information about vehicles is relatively easier than finding information about property. The registry is with the motor vehicles office and you can find it by using a single database.

In case you are starting a lawsuit or opening a business in Turkey and you want to see an andldquox-rayandrdquo of a company, it is possible to collect that information. However, if a company has bad intentions it may provide a nice picture and then vanish the next day.

Please note that you should take measures to protect your business do not rely on a check of a company that may be valid one day but not the next.NOTE: Berk ektir is a Turkish lawyer and available to answer questions on the legal aspects of living and doing business in Turkey.

Please kindly send inquiries to If a senderand#39s letter is published, names may be disclosed unless it is otherwise expressly stated by the sender DISCLAIMER: The information provided here is intended to give basic legal information.

You should get legal assistance from a licensed attorney at law while conducting legal transactions and not rely solely on the information in this column.

SOURCE: Today’s Zaman