Obligation to hire a lawyer in Turkey refers to the commitment of companies of a certain size or turnover to hire a lawyer to manage their legal processes and transactions. This practice aims to ensure that companies that have reached a certain scale receive professional support in their legal processes and increase legal compliance. Joint stock companies are subject to the obligation to hire a lawyer in Turkey. This is to minimize legal errors and violations that may arise due to the more complex structure of joint-stock companies compared to other company types. This article will discuss the legal basis, scope, advantages, and sanctions for failing to comply with the obligation to hire a lawyer in Turkey.
Legal Basis for the Obligation to Hire a Business Lawyer in Turkey
The regulation of obligation to hire a business attorney in Turkey is in the Attorneyship Law. According to Article 35 of the Law, "Anyone who can file a lawsuit can prepare their documents, file their lawsuit personally, and follow up on their business. However, joint-stock companies having five times more of the capital amount envisaged in Article 272 of the Turkish Commercial Code or housing cooperatives with a membership of one hundred or more must have a contracted attorney. Each month that organizations acting contrary to the provisions of this paragraph, they shall be imposed an administrative fine in the amount of two months' gross minimum wage in effect on the date of the offense for employees over the age of sixteen working in the industrial sector." As seen, the Attorneyship Law refers to the Turkish Commercial Code and requires joint-stock companies with at least five times the lowest capital amount to obtain contracted company attorneyship services or employ a lawyer. The minimum capital amount for joint-stock companies was determined as 250,000-TL for the year 2024. Therefore, it is a legal requirement for joint-stock companies with at least 1,250,000-TL capital to hire business attorneys in Turkey.
A similar limit has been set for housing cooperatives. However, the obligation for housing cooperatives to hire corporate lawyers in Turkey is the membership of one hundred or more. In other words, a housing cooperative with more than one hundred members will either hire a business lawyer or have an in-house counsel.
Scope of Obligation to Hire a Lawyer in Turkey
The obligation to hire a lawyer in Turkey is a regulation by the legislator for joint-stock companies and housing cooperatives that meet certain conditions to increase the legality of business operations and transactions, ensure legal reliability, prevent potential problems, and protect businesses from unforeseen significant losses. Institutions that hire business attorneys in Turkey take more accurate steps in both labor law and commercial law, compliance, and implementation of contracts, benefiting from legal protection.
Corporate lawyers provide support to their clients in many areas such as informing them with legal alerts, drafting, negotiating, and terminating contracts, sending warning letters, mediation, license applications, proceedings, check and promissory note enforcement, ensuring compliance with labor law, defending clients in lawsuits initiated by employees, and answering questions asked by clients orally or in writing. Ensuring legality from the outset protects clients from major losses and allows them to focus on growing their businesses.
For companies working with company attorneys, a win-win situation arises, and the client benefiting from the legal knowledge of the attorney can receive more than adequate returns on their investments. For example, for a client involved in international business, an attorney can collaborate with colleagues from other countries. With such international collaboration, reliable legal professionals can be accessed, and international or debt collection in Turkey can be possible. Therefore, hiring a business lawyer in Turkey should not only be seen as a necessity but also as an investment. Limited liability companies that are not required to have an attorney and joint-stock companies that do not meet the capital requirement can also invest by hiring a business lawyer in Turkey and preventing legal issues from occupying their time while growing their businesses.
Advantages of Hiring a Corporate Lawyer in Turkey
Working with corporate lawyers in Turkey provides many benefits in terms of pre-emptive law. Business owners working with contracted attorneys can see legal risks more clearly with the guidance of the attorney. Thus, they act in accordance with the law and can resolve issues before they become problems. Although there are many advantages to the practice of contracted company attorneyship, some of them are as follows:
Ensuring Legal Compliance
Working with corporate attorneys in Turkey facilitates companies to act by regulations and ensure compliance. This is a critical advantage, especially in an environment of constantly changing regulations. Legal compliance ensures that companies avoid criminal sanctions, manage their reputation, and maintain market reliability.
Companies that act in accordance with legal regulations are protected from potential criminal sanctions and administrative fines. This requires companies to continuously monitor and comply with regulations and laws applicable in every sector where they operate. A corporate attorney in Turkey plays a critical role in monitoring and implementing these legal regulations. For example, complying with tax regulations, adhering to environmental regulations, or protecting labor rights are among the necessary steps in various areas. Otherwise, companies acting unlawfully may face heavy fines, license cancellations, or even criminal liability for executives. Such sanctions can seriously threaten the company's existence and financial stability and disrupt long-term business plans. Therefore, the guidance of a corporate attorney in Turkey is vital to avoid such negative consequences.
Companies that do not encounter legal problems maintain their reputation in the public and business world. Reputation is one of a company's most valuable assets and is critical to long-term success. Legal problems can lead to negative media coverage of the company and loss of trust by customers, investors, and business partners. A corporate attorney protects the company's reputation by identifying potential legal risks and managing them. For example, effectively resolving legal issues related to employees enhances the company's credibility as an employer. Similarly, compliance with consumer rights and product safety laws reinforces the company's reliability in the eyes of consumers. Thus, companies retain existing customers and gain new ones. Companies with a good reputation are more resilient in times of crisis and are preferred by business partners.
Legal compliance builds trust among customers, suppliers, and business partners. Market reliability is a fundamental element in maintaining and expanding a company's business relationships. Corporate attorneys help establish trust-based relationships with business partners by ensuring legal compliance. For example, a company that undergoes regular legal audits and complies with the law is perceived as a reliable business partner by suppliers and customers. This trust enables the company to increase its business volume, make more advantageous commercial agreements, and establish long-term partnerships. Additionally, legally compliant companies are respected by other players in the industry and regulatory authorities. This provides a competitive advantage in the market and increases the company's growth potential. Consequently, companies that act in compliance with the law under the guidance of company attorneys are in a stronger position in terms of market reliability compared to their competitors.
Risk Management and Risk Reduction
Professional management of legal processes minimizes companies' legal risks. In this regard, the proactive approach of business attorneys in Turkey is important in providing support for contract management and dispute resolution.
Business lawyers in Turkey ensure that legal issues are identified and resolved before they arise. This proactive approach enables companies to anticipate potential risks and take preventive measures. Business attorneys in Turkey serve as an early warning system by continuously monitoring and reviewing the company's activities, contracts, and business processes for potential legal violations or risks. Thus, a small problem is resolved before it grows and becomes more complex. For example, before company setup in Turkey attorneys assess whether this initiative complies with legal regulations and provide necessary recommendations. Thus, potential legal issues and costly lawsuits are prevented. The proactive legal approach not only ensures that the company fulfills its existing legal obligations but also minimizes the risk of encountering legal challenges in the future.
Attorneys review contracts in which the company is involved and make provisions to protect the company's interests. Contracts form the basis of relationships in the business world, and each contract determines the rights and obligations of the parties. A business attorney in Turkey plays a significant role in the preparation, negotiation, and review of contracts. Contract management not only protects the company's interests but also guarantees compliance with the law. Attorneys identify ambiguous terms, missing clauses, and provisions that may be detrimental to the company in contracts, making necessary adjustments. Additionally, they ensure that contracts comply with legal frameworks and industry standards. As a result, legal risks to the company are minimized, and the company is placed in a strong position in case of potential disputes. Well-managed contracts provide trust and stability in the company's commercial relationships, contributing to the company's long-term success.
Business attorneys develop strategic defense plans for potential disputes and lawsuits, ensuring that the company is in an advantageous position in legal proceedings. Disputes are inevitable in the business world, and such situations can threaten the company's financial and operational health. Defense plans focus on effectively managing disputes and resolving them through alternative dispute resolution methods whenever possible. Attorneys minimize the company's costs and time loss by using mediation, settlement, and other alternative dispute resolution methods. If litigation is unavoidable, corporate attorneys meticulously manage legal processes and defend the company's interests to the best of their abilities. Strategic dispute management not only enables the company to deal with existing lawsuits but also reduces the risk of similar issues in the future. This approach is critical for the company's sustainability and long-term success.
Expertise
Assessing and understanding an attorney's expertise in specific areas is best done by another attorney. The legal community is vast and, in our world where international trade is widespread, qualified or unqualified attorneys from many countries are accommodated. In cases where company attorneys practice international company attorneyship, the attorney can make more accurate decisions in evaluating other attorneys based on their expertise, enabling companies to make more informed and accurate decisions. Consequently, expertise and strategic decision-making come to the forefront.
Attorneys specialized in areas such as tax law, labor law, and commercial law provide in-depth knowledge on specific legal issues. This expertise helps companies produce correct and effective solutions to complex legal issues they encounter. For example, a tax law specialist attorney can help the company manage its tax obligations effectively, thereby avoiding potential tax penalties and costly legal processes. Attorneys specialized in labor laws in Turkey ensure that legal processes related to employees are conducted fairly and in compliance with the law. Attorneys specializing in commercial laws in Turkey protect the company's interests during the negotiation, drafting, and enforcement of commercial contracts. These areas of expertise enable companies to maintain a robust and secure business structure by receiving professional support in various legal matters.
Business attorneys in Turkey provide legal advice to achieve the company's long-term strategic goals and prepare the legal grounds for decisions to be taken in this direction. The legal perspective in the strategic decision-making process supports the company's sustainable growth and development goals. For example, in large-scale strategic moves such as entering new markets, mergers, and acquisitions, attorneys analyze and manage legal risks. During these processes, the most appropriate strategic roadmap is established considering possible legal obstacles and regulatory requirements. Thus, decisions made by the company are based on a solid legal foundation and potential implementation issues are minimized. This enhances the company's competitive advantage and ensures the achievement of its long-term goals more securely.
Education and Awareness
Corporate attorneys in Turkey increase the level of legal awareness within the company by organizing legal training sessions and seminars for company employees. These training sessions ensure that employees are knowledgeable about legal issues they may encounter in their daily work processes, thereby enhancing the company's legal compliance. For example, training on data protection legislation ensures that employees understand the legal requirements regarding the protection of personal data and how to implement them. Employment law training helps raise awareness among human resources and management staff about employee rights and employer obligations. A high level of legal awareness contributes to protecting the company from potential legal issues and adopting a proactive legal management approach. Moreover, such training also enhances the overall management quality and business ethics standards of the company.
Time and Resource Management
Business attorneys in Turkey ensure the swift and effective resolution of legal issues, preventing disruptions in the company's business processes. Rapid solutions are crucial for understanding the importance of time and continuity in the business world. When a legal issue arises, prompt and accurate intervention ensures the smooth continuation of the company's operations. For instance, in the case of a commercial dispute or labor conflict, attorneys assess the situation promptly and identify the most appropriate solutions. Amicable resolution methods, such as negotiation or mediation, are employed to swiftly resolve disputes. This minimizes the company's time and resource losses. Additionally, business lawyers, who are always prepared for urgent legal situations, enable the company to cope with sudden legal crises and minimize the impact of such crises on business processes.
By obtaining external support, particularly for large-scale lawsuits and complex legal transactions, attorneys ensure more efficient use of internal resources. While in-house legal departments may suffice for routine legal matters and daily legal needs, external expert support from specialized law firms may be required for large-scale lawsuits, international legal transactions, or complex merger and acquisition processes. In such cases, corporate attorneys entrust the work to experts, ensuring that complex legal issues are resolved more effectively and swiftly. Furthermore, the global knowledge and connections of contracted business lawyers in Turkey provide significant advantages to companies in international transactions and lawsuits.
Effective management of legal processes ensures cost-effectiveness by reducing potential legal expenses and penalties in the long run. Business attorneys in Turkey reduce costs by early detection and management of legal risks. Preventing legal disputes or resolving them at the earliest stage prevents expensive and time-consuming lawsuits. For example, careful preparation of employment contracts and commercial agreements prevents future disputes and potential litigation costs. Additionally, effective management of legal processes helps minimize costs such as criminal sanctions and administrative fines. Companies, guided by their attorneys, achieve full compliance with laws, protecting them from potential penalties and associated costs. In the long run, reduced legal expenses strengthen the company's financial health and contribute to a more sustainable business model. This enhances the company's competitiveness and enables it to use financial resources more efficiently.
Contract Management
Business lawyers carefully review all details of contracts and make provisions to protect the company's interests. Each commercial contract is a critical document that determines the rights and obligations of the parties involved, and any incorrect or missing clause can pose serious legal and financial risks for the company. Attorneys ensure that contract clauses are analyzed meticulously to ensure clarity and precision in legal language. Additionally, they ensure that contracts include clauses that best protect the company's interests and minimize potential risks. During this process, important elements such as payment terms, delivery times, responsibilities, and obligations are thoroughly reviewed. Regulations tailored to the company's needs and industry requirements are made. Consequently, robust contracts are created that clearly define the mutual obligations of the parties, prevent disputes, and secure the company's rights.
The presence of attorneys in contract negotiations ensures that the company is in a stronger position and allows for more favorable terms to be negotiated. The negotiation process is one of the most critical stages of commercial agreements, and attorneys' knowledge and experience at this stage safeguard the interests of the company to the fullest extent. Attorneys advocate for the company's rights at the negotiation table, ensuring that contract terms are in the company's favor. Through negotiation skills and legal expertise, they carefully evaluate the terms proposed by the other party and offer alternative suggestions when necessary. This enables the company to have more favorable financial and operational terms, minimizes risks, and ensures the company's sustainability in the long run. The strategic role of attorneys contributes to the company being in a strong and reliable position in all types of commercial agreements.
Ensuring that all commercial agreements comply with legal regulations prevents potential legal issues in the future. Corporate lawyers not only prioritize the company's interests in the preparation of commercial contracts but also ensure compliance with all relevant legal regulations and industry standards. This guarantees the legal validity and enforceability of contracts. Legal compliance encompasses both local and international regulations, and attorneys make necessary adjustments to ensure that contracts do not conflict with these regulations. For example, data protection laws, employment regulations, or trade law provisions are considered in the preparation of contracts by business lawyers in Turkey. As a result, in the event of a legal dispute in the future, contracts have a solid legal basis, and the company is in an advantageous position in legal proceedings. Compliant contracts also maintain the company's reputation and help it sustain legal compliance.
Workforce Management
Corporate attorneys ensure the preparation of fair and legally compliant employment contracts for employees. Employment contracts are important documents that determine the rights and obligations of both the employer and the employee. Attorneys prepare balanced and fair contracts by considering labor laws and relevant regulations, safeguarding the interests of both parties. Critical elements such as salary, working hours, leaves, job descriptions, duties, and responsibilities, as well as overtime and termination, are specified in the contracts. This ensures the protection of the client's rights and prevents potential labor disputes. Fair and transparent employment contracts increase employee motivation and loyalty while maintaining the company's legal compliance and reputation.
Company lawyers provide consultancy services for the protection of employee rights and the regulation of employer-employee relations within the legal framework. Employee rights are protected by labor laws and relevant regulations, ensuring both the fulfillment of the employer's legal obligations and the existence of a fair working environment for employees. Attorneys guide employers on employee rights and ensure the maintenance of fair practices in the workplace. This consultancy covers issues such as wage payments, overtime, annual leave, social benefits, and occupational safety. Additionally, attorneys play a significant role in creating policies related to negative workplace situations such as discrimination, harassment, and bullying. Protecting employee rights creates a peaceful and productive work environment and reduces the risk of legal problems for the company.
Business lawyers provide legal support for the resolution of employee-employer disputes and represent the company in potential lawsuits. Workplace disputes are common occurrences in the business world, and effective management of these disputes is crucial for maintaining the company's operations and reputation. Attorneys provide legal support for the resolution of workplace disputes through mediation, negotiation, and other alternative dispute resolution methods, minimizing court processes and associated costs. If litigation is unavoidable, attorneys manage legal processes meticulously and prepare the company's defense. They defend the company's interests in cases such as reinstatement lawsuits, compensation claims, and workplace accidents. Ultimately, hiring a business lawyer in Turkey ensures that workplace disputes are resolved fairly and legally, reducing the risk of negative outcomes for the company.
Sanctions for Not Hiring an Attorney in Turkey
Failing to hire an attorney in Turkey, despite it is mandatory, constitutes a violation. Companies that act unlawfully are subject to administrative penalties and suffer both financial losses and reputational damage. According to Article 35 of the Attorneyship Law, companies that are required to appoint a contractual attorney but fail to do so are subject to an administrative fine "of the two-month gross amount of the minimum wage in force at the time of the offense, for each month they do not hire an attorney for workers over sixteen years of age working in the industrial sector." This fine amount is 40,005 TL per month for the year 2024. For example, if a company continues its activities for one year without appointing an attorney and is found not to have appointed an attorney at the end of the year, it will be sentenced to pay a fine of 480,060 TL. The imposition of such a significant amount at once could destabilize the company's financial stability. So companies should hire a business lawyer in Turkey to mitigate this risk and reap the benefits mentioned above.
Frequently Asked Questions
How much should I pay for a business lawyer in Turkey?
It depends on several factors. The minimum recommended amount by the Istanbul Bar Association for lawyers in Istanbul varies depending on the type and capital of the company, starting from 40,500 TL per month.
What do business lawyers in Turkey do?
Business lawyers in Turkey provide legal support in areas such as legal compliance, risk management, contract preparation and negotiation, contract termination, employment laws, in-house training, and answering questions from company employees. They can also file lawsuits and enforcement proceedings.
Does every company have an attorney in Turkey?
Not every company is required to have an attorney in Turkey, but it is recommended for every company to have one. The establishment of preventive law principles will result in many problems being resolved at their source before they arise. This way, companies will not only be more profitable but also gain credibility with business partners and customers. Increased trust will lead to increased profitability for companies and enable them to have both higher-quality employees and higher turnover.
What types of cases do company attorneys handle?
Company attorneys may handle cases in various fields, including disputes arising from labor law, commercial disputes, unrecoverable checks and promissory notes, contract terminations, sending and responding to notices, and disputes arising from real estate law, as well as objections to administrative fines.
Is it mandatory to have an attorney in limited companies?
There is no obligation to have an attorney for a limited company in Turkey. However, due to the risks and benefits mentioned above, limited companies should work with business lawyers in Turkey too.
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