Can a Turkish Court Hear a Dispute Between Two Foreign Companies? Jurisdiction Rules Explained – 2026 Updated Guide

Can two foreign companies litigate before a Turkish court? Learn about jurisdiction clauses, Turkish connections, arbitration, service abroad, interim measures, and enforcement.

A Turkish court may hear a dispute between two foreign companies, even if neither company has its headquarters in Turkey. However, Turkish jurisdiction is not automatic merely because one party has business interests, customers, goods, or assets connected with Turkey.

Jurisdiction may arise from the contract, a valid Turkish court-selection clause, performance in Turkey, a Turkish branch or representative, Turkish property, a harmful event occurring in Turkey, or mandatory jurisdiction rules.

The parties should distinguish jurisdiction from governing law. A contract may be governed by Turkish law but require proceedings before a foreign court or arbitral tribunal.

Main Bases for Turkish Jurisdiction

Turkish connection	Possible relevance
Turkish court-selection clause	The parties agreed to litigate in Turkey
Performance in Turkey	Contractual obligations were performed wholly or partly in Turkey
Turkish branch or representative	A foreign company conducts relevant business through Turkey
Turkish goods or assets	The dispute concerns products, property, shares, or receivables located in Turkey
Harm occurring in Turkey	A tort or unlawful act caused damage in Turkey
Turkish real estate or corporate matters	Mandatory or exclusive Turkish jurisdiction may apply
Interim protection	Turkish assets or evidence require urgent judicial protection

The strength of jurisdiction depends on the facts and the type of claim.

Jurisdiction Clause in the Contract

The clearest basis is usually a contractual jurisdiction clause. Two foreign companies may agree that Turkish courts will hear their disputes.

The clause should be reviewed to determine whether it is:

• Exclusive;
• Non-exclusive;
• Limited to certain disputes;
• Connected to a particular Turkish court;
• Subject to negotiation or mediation;
• Combined with an arbitration clause;
• Written in more than one language;
• Governed by a specific law.

A clause stating that “Turkish courts have jurisdiction” may have a different effect from a clause granting exclusive jurisdiction to a named court.

The company should also verify whether the person who signed the contract had authority to bind the foreign company.

Turkish Law Does Not Automatically Mean Turkish Courts

A governing-law clause and a jurisdiction clause perform different functions.

For example, the contract may state that Turkish law applies but that disputes must be resolved by arbitration in another country. Alternatively, the contract may provide for Turkish courts while applying foreign law.

The Turkish court may need to apply foreign substantive law if the contract requires it. This may lead to additional evidence, translations, and expert opinions.

The parties should not rely on the governing-law clause alone when assessing jurisdiction.

Performance in Turkey

A Turkish court may have jurisdiction where important contractual obligations were performed in Turkey.

This may include:

• Delivery of goods in Turkey;
• Construction or installation in Turkey;
• Services performed in Turkey;
• Payment through Turkish banking channels;
• Inspection or acceptance in Turkey;
• Operation of a Turkish facility;
• Management of Turkish assets;
• Use of a Turkish warehouse or port.

The connection should be relevant to the dispute. A minor or unrelated transaction in Turkey may not be sufficient.

Turkish Branch, Agent, or Representative

A foreign company may become subject to Turkish jurisdiction through a branch, commercial representative, distributor, agent, or local business operation.

The company should determine whether the local person or entity had authority to negotiate, sign contracts, receive notices, accept service, or create obligations on behalf of the foreign company.

A distributor’s presence in Turkey does not automatically make every dispute between the foreign company and another foreign entity subject to Turkish jurisdiction. The connection between the dispute and the local activity must be assessed.

Turkish Property and Assets

A dispute concerning Turkish real estate, company shares, bank accounts, receivables, inventory, or other assets may involve Turkish courts.

Some matters involving Turkish property or the internal status of Turkish companies may be subject to mandatory or exclusive jurisdiction rules.

Even where the merits must be decided elsewhere, Turkish courts may potentially be asked to protect Turkish assets or evidence through interim measures.

Arbitration Clause

An arbitration clause may prevent a Turkish court from hearing the merits of the dispute.

The foreign companies should review whether the clause identifies:

• The arbitration institution;
• The seat of arbitration;
• The number of arbitrators;
• The language;
• The governing law;
• The scope of disputes;
• Emergency or interim procedures.

A Turkish court may still have a supporting role in relation to interim injunctions, precautionary attachments, evidence preservation, service, or enforcement.

The bank, carrier, insurer, guarantor, subsidiary, or director may not be bound by the same arbitration clause if it did not sign the agreement.

Service on a Foreign Company

If a Turkish court has jurisdiction, the foreign company must receive valid service of process.

Service may involve:

• International service conventions;
• Judicial authorities;
• Diplomatic channels;
• A designated local representative;
• A registered branch;
• Contractual notice arrangements;
• Other legally recognized methods.

An email or courier delivery may not always constitute valid service unless the contract or applicable procedure recognizes it.

The company should preserve the date and method of receipt. A defective service argument may affect the response deadline, but the company should not ignore the case.

Defending a Jurisdiction Challenge

A foreign company may challenge Turkish jurisdiction where:

• The contract selects a foreign court;
• The dispute must be arbitrated;
• There is no sufficient connection with Turkey;
• The claimant used an improper forum;
• Service was invalid;
• A mandatory pre-litigation step was not completed;
• The claim concerns parties not bound by the agreement;
• The Turkish court lacks authority over the subject matter.

Jurisdiction objections may need to be raised at an early stage. Participating fully in the merits without preserving the objection may create procedural risks.

Governing Law and Foreign Legal Evidence

If the Turkish court has jurisdiction but the contract applies foreign law, the parties may need to submit foreign legal texts, expert opinions, translations, and evidence of the foreign law’s content.

The company should assess whether applying foreign law will increase time and cost. Settlement or arbitration may be commercially preferable in some cases, but the decision should be based on the contract and exposure.

Interim Injunctions and Attachments

A Turkish court may be relevant even when the final dispute will be decided by arbitration or a foreign court.

The parties may consider Turkish interim measures where:

• Turkish assets are at risk;
• Goods may be transferred;
• Evidence may be destroyed;
• Bank accounts or receivables may be moved;
• A trademark or property right requires protection;
• Urgent action is needed before a final judgment.

A precautionary attachment may be considered for a monetary claim if the applicable requirements are satisfied. Security may be required.

Commercial Mediation

Certain commercial monetary disputes may require pre-litigation mediation before a lawsuit can proceed.

Two foreign companies should determine whether mediation is mandatory, contractually required, or commercially useful. A representative may need specific authority to settle.

The company should prepare its settlement position only after reviewing jurisdiction, evidence, contractual liability, limitation, and enforcement risk.

Enforcement of a Turkish Judgment

A Turkish judgment may need to be enforced against assets located in Turkey or recognized in another country.

The parties should assess:

• Turkish bank accounts;
• Real estate;
• Receivables;
• Shares;
• Inventory;
• Vehicles;
• Guarantees;
• Assets held by related entities;
• Recognition and enforcement abroad.

A judgment’s practical value depends not only on legal victory but also on the location and recoverability of assets.

Evidence for Jurisdiction

The company should preserve:

• The contract;
• Jurisdiction and arbitration clauses;
• Corporate registration documents;
• Powers of attorney;
• Delivery and performance records;
• Turkish branch or representative documents;
• Payment records;
• Asset records;
• Service documents;
• Correspondence;
• Mediation records;
• Digital notices.

Electronic signatures, online contracting, cloud documents, and digital service records may be particularly important in 2026.

2026 Practical Considerations

In 2026, foreign companies increasingly conduct transactions through online platforms, remote signatures, digital branches, cloud systems, and cross-border representatives.

Contracts should clearly regulate jurisdiction, arbitration, service, governing law, notices, language, electronic communications, interim protection, and enforcement.

A foreign company should not assume that having no Turkish office prevents Turkish litigation. It should assess jurisdiction immediately after learning of a claim.

Lawyer Fırat Fesih Kaya assists foreign companies with Turkish jurisdiction, service abroad, arbitration, commercial litigation, interim measures, mediation, and cross-border enforcement.

Frequently Asked Questions (FAQ)

1. Can a Turkish court hear a dispute between two foreign companies?
Potentially, if there is a valid Turkish jurisdiction clause, a sufficient connection with Turkey, Turkish assets, performance in Turkey, or a mandatory jurisdiction rule.

2. Does doing business in Turkey automatically create Turkish jurisdiction?
No. The connection must be relevant to the dispute and legally sufficient.

3. Does choosing Turkish law mean Turkish courts have jurisdiction?
No. Governing law and jurisdiction are separate contractual issues.

4. Can two foreign companies choose Turkish courts in their contract?
Yes, subject to the validity and scope of the jurisdiction clause.

5. Can an arbitration clause prevent a Turkish court from hearing the case?
Potentially. A valid arbitration clause may require the merits to be decided by an arbitral tribunal.

6. Can Turkish courts issue interim measures for an arbitration dispute?
Potentially, particularly where Turkish assets, goods, or evidence require urgent protection.

7. Is service by email valid for a foreign company?
Not automatically. Service depends on the contract, authorization, applicable procedure, and international service rules.

8. Can a foreign company challenge Turkish jurisdiction?
Yes, where the contract selects another forum, arbitration applies, or Turkey lacks a sufficient connection.

9. Can a foreign company defend a Turkish case through a lawyer?
In many cases, yes, under a properly prepared power of attorney.

10. What should a foreign company do after receiving a Turkish claim?
It should preserve the documents, verify service, calculate deadlines, review jurisdiction and arbitration, and obtain Turkish legal advice immediately.

This article is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer about your specific circumstances to avoid any loss of rights.

Expert Legal Support for Foreign Companies in Turkish Courts

Expert legal support is essential to avoid losing valuable rights. By working with a lawyer experienced in Turkish jurisdiction, foreign-company litigation, service abroad, arbitration, commercial mediation, interim measures, and cross-border enforcement, international businesses can protect their interests. Fırat Fesih Kaya Law Office provides professional legal support for foreign companies before Turkish courts and arbitral tribunals.

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