Commercial Disputes in Turkey for Foreign Companies: 30 Urgent Legal Problems and Remedies in 2026

Discover 30 urgent commercial disputes faced by foreign companies in Turkey and learn about debt recovery, injunctions, arbitration, shareholder claims, M&A remedies and enforcement options.

Foreign companies doing business in Turkey may face urgent disputes involving unpaid invoices, defective goods, distributor termination, company management, asset transfers, bank guarantees, shareholder rights and cross-border enforcement.

The correct legal response depends on the contract, the company structure, the applicable law, the dispute resolution clause, the location of assets and the evidence available. A foreign company should act quickly because delays may cause limitation problems, asset transfers, evidence loss or missed procedural deadlines.

What Should a Foreign Company Do First?

A foreign company should preserve contracts, invoices, emails, payment records, electronic messages, delivery documents, accounting records and corporate documents immediately. It should also review the governing law, arbitration or jurisdiction clause, notice requirements and contractual deadlines.

Where there is a risk of asset dissipation, the company may consider an injunction, precautionary attachment, evidence-preservation measure or other urgent application. Foreign companies can generally act through a Turkish lawyer under a properly prepared power of attorney.

30 Urgent Commercial Problems and Remedies in Turkey

1. Turkish Customer Does Not Pay an Invoice

The foreign supplier may send a formal demand, initiate enforcement proceedings or file a commercial debt claim. Invoices, delivery records, account statements, emails and payment history may help prove the debt.

2. Debtor Objects to the Invoice

The creditor should collect evidence showing delivery, acceptance, pricing and the absence of a valid objection. A lawsuit or objection-removal procedure may be considered depending on the enforcement process.

3. Goods Were Delivered Without a Written Contract

A written contract is helpful but not always essential. Purchase orders, invoices, delivery notes, emails, payment records and the parties’ conduct may establish the commercial relationship and payment obligation.

4. Turkish Buyer Claims the Goods Are Defective

The foreign seller should review inspection, notice and warranty requirements. A technical examination, expert report and proper evidence of delivery condition may be necessary to defend the payment claim.

5. Turkish Manufacturer Delays or Fails to Deliver

The foreign buyer may request performance, terminate the contract, recover advance payments or seek compensation. The contract’s delivery dates, force majeure provisions and notice requirements should be analyzed first.

6. Advance Payment Is Not Returned

A foreign buyer may send a formal refund demand and consider interim measures if the supplier is transferring assets. Bank records, payment confirmations and production correspondence are important evidence.

7. Turkish Distributor Stops Paying

The foreign manufacturer may need to terminate the distribution agreement, recover unpaid amounts and request the return of unsold products. The contract should be reviewed for termination, notice and inventory provisions.

8. Distributor or Agent Claims Compensation After Termination

A distributor and a commercial agent may have different legal positions. The parties’ actual relationship, territory, customer development, commission structure and termination circumstances must be examined before ending the agreement.

9. Business Partner Diverts Customers to Another Company

Customer diversion may create unfair competition, breach of contract or confidentiality claims. The injured company may seek an injunction, customer-related evidence, compensation and recovery of improperly obtained profits.

10. Contract Price Becomes Unprofitable

Currency fluctuations and inflation may make long-term contracts commercially difficult. The foreign company should review hardship, price-adjustment, renegotiation, termination and good-faith provisions.

11. Turkish Party Relies on Force Majeure

Force majeure does not automatically excuse every failure to perform. The affected party should examine foreseeability, causation, notice, mitigation and whether performance became impossible or merely more expensive.

12. Damage Occurs During International Transport

Incoterms, the sales contract, bill of lading, insurance policy and carrier documents determine who bears the risk. The parties should preserve inspection reports, photographs, delivery records and timely notices.

13. Turkish Bank Refuses a Letter of Credit or Guarantee Payment

A foreign beneficiary may need urgent legal advice before the bank pays or refuses payment. Depending on the facts, an injunction, demand for payment or claim against the applicant, bank or guarantor may be considered.

14. Turkish Company Sues Despite an Arbitration Clause

The foreign party should raise the arbitration objection at the earliest appropriate procedural stage. It should avoid arguing the full merits before preserving its right to rely on arbitration.

15. Foreign Judgment or Arbitral Award Must Be Enforced in Turkey

A foreign judgment or award generally requires recognition and enforcement before Turkish assets can be seized. The creditor should prepare certified documents, proof of finality, translations and evidence of proper service.

16. Creditor Needs to Freeze Assets Before Judgment

A precautionary attachment or interim injunction may be considered where there is a credible claim and a serious risk of asset dissipation. The court may require security and a specific explanation of the threatened assets.

17. Turkish Debtor Transfers Assets to Avoid Payment

The creditor may investigate related-party transfers, below-market sales, concealed payments and changes in ownership. A separate asset-recovery or fraudulent-transfer action may be required.

18. Turkish Company Enters Liquidation

The foreign creditor should register its claim, monitor the liquidation and review creditor priority. Early action may help preserve assets before the company’s remaining property is distributed.

19. Related-Party Transactions Harm the Company

A foreign shareholder or creditor may request records, an independent audit and recovery of unauthorized payments. Transactions involving directors, shareholders or affiliated companies require careful review.

20. Director Uses Company Funds Personally

Personal expenses, unexplained withdrawals, excessive bonuses and private investments may support a management-liability claim. Bank records, company credit card statements and accounting entries can be decisive.

21. Company Assets Are Sold or Pledged Without Approval

The foreign shareholder or company may challenge unauthorized sales, pledges, loans or guarantees. Urgent measures may be considered if real estate, shares, machinery or receivables are at risk.

22. Foreign Shareholder Cannot Access Financial Records

The shareholder should make a formal written request and preserve proof of refusal. Depending on the company structure, inspection, special audit or court-supported information remedies may be available.

23. Foreign Shareholder Is Not Invited to a General Meeting

A shareholder may challenge resolutions adopted without proper notice or participation rights. The company’s articles, meeting records and service documents should be examined immediately.

24. Shareholder Signature Is Forged

A forged signature may affect the validity of a share transfer, resolution, guarantee or corporate filing. The shareholder may need handwriting analysis, digital evidence, cancellation claims and, where justified, a criminal complaint.

25. Majority Shareholder Abuses Voting Power

Majority control cannot always be used to eliminate minority rights or transfer value unfairly. The minority shareholder may consider challenging resolutions, seeking compensation or negotiating an exit solution.

26. Company Is Blocked by a 50/50 Deadlock

A deadlock may prevent payments, contracts, appointments and strategic decisions. The shareholders should review deadlock clauses, buyout mechanisms, mediation, court remedies and possible dissolution options.

27. Shares Were Paid for but Not Transferred

The foreign buyer may seek completion of the transfer, registration of ownership, repayment or compensation. The share purchase agreement, payment records and corporate registers should be reviewed.

28. Hidden Liabilities Are Discovered After an Acquisition

Undisclosed tax debts, employee claims, bank loans, guarantees, lawsuits or enforcement proceedings may trigger warranty, indemnity, price-adjustment or rescission claims.

29. Turkish Partner Misuses Trademarks or Technology

Unauthorized trademark registration, software use, customer-data misuse or disclosure of confidential know-how may justify urgent injunctions and compensation claims. Ownership documents, licenses and digital records should be preserved.

30. Customs, Tax or Regulatory Problems Affect the Business

Customs seizures, additional duties, tax assessments, licensing problems or regulatory restrictions may interrupt commercial operations. The company may need administrative objections, suspension requests, release applications or compensation claims.

Evidence and Emergency Protection in 2026

Commercial disputes increasingly rely on electronic invoices, cloud accounting, electronic signatures, business messaging, online banking and digital delivery records. Foreign companies should preserve original files, metadata, system logs and complete correspondence.

If assets or evidence are at risk, the company should consider interim protection before the opposing party receives an opportunity to transfer property or delete records. The requested measure should be specific, proportionate and supported by documents.

Lawyer Fırat Fesih Kaya assists foreign companies with commercial litigation, arbitration, debt recovery, shareholder disputes, asset protection and cross-border enforcement in Turkey.

Frequently Asked Questions (FAQ)

1. Can a foreign company sue a Turkish company without having a Turkish office?

Yes. A foreign company may generally bring proceedings in Turkey through an authorized lawyer, subject to jurisdiction, service and procedural requirements.

2. Can foreign companies freeze Turkish assets before obtaining a judgment?

In suitable cases, a precautionary attachment or interim injunction may be requested by proving a credible claim, urgency and a risk to recovery.

3. Is an invoice enough to recover a commercial debt?

An invoice may support the claim, but delivery, acceptance, payment history, correspondence and account records may also be required.

4. What if the Turkish company transferred assets to another company?

The creditor may investigate and challenge fraudulent or sham transfers through a separate legal remedy supported by evidence.

5. Can a foreign company rely on an arbitration clause?

Yes, if the clause is valid, covers the dispute and the arbitration objection is raised at the correct procedural stage.

6. Can a foreign judgment be enforced directly in Turkey?

Usually, recognition and enforcement must first be obtained from a Turkish court before local seizure proceedings begin.

7. What if company directors misuse corporate funds?

The company, shareholders or other injured parties may consider management-liability claims, recovery actions and, where justified, criminal remedies.

8. Can a foreign shareholder request company financial records?

Depending on the company structure and shareholder rights, the investor may request information, inspection or an independent audit.

9. Are emails and business messages useful evidence?

Yes. Original files, full message histories, metadata, account information and system records are more reliable than isolated screenshots.

10. How quickly should a foreign company seek legal advice?

Immediately. Delay may result in lost evidence, transferred assets, missed deadlines or reduced recovery prospects.

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.

Legal Support for Foreign Company Commercial Disputes in Turkey

Foreign companies facing urgent commercial disputes should obtain tailored legal support before sending notices, terminating contracts or filing proceedings. Fırat Fesih Kaya Law Office provides professional assistance throughout Turkey and internationally for commercial litigation, arbitration, debt recovery, asset protection and shareholder disputes.

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