INTRODUCTION
The internationalization of the legal industry has been on the rise, necessitating the collaboration of attorneys from various nations. Lawyers, in this regard, seek opportunities to obtain legal recognition for their professional activities in different countries in addition to their home country. Turkey's position as a developing economy, particularly in light of its financial capital, Istanbul, has garnered the interest of legal professionals worldwide.
Despite the fact that certain domestic legislations allow attorneys to establish law firms in the corporate form, Turkey strictly prohibits the formation of corporations that provide legal consulting and litigation services. Nonetheless, Turkish law permits the formation of attorney partnerships between multiple lawyers under a special regime. Therefore, responding to the inquiry regarding the establishment of a "foreign attorney partnership" in Turkey could be beneficial for international attorneys seeking to build up a presence on the Turkish legal market as well. This synopsis will provide an analysis of the legal status of foreign attorney partnerships in Turkey, including information on their establishment, limitations, and workable solutions to possible problems.
1. LEGAL STATUS OF FOREIGN ATTORNEY PARTNERSHIPS
Attorneyship Law No. 1136, enacted on March 19, 1969, stipulates in Article 3 that attorneys in Turkey are required to be Turkish citizens. However, this does not preclude foreign attorneys from conducting business in Turkey; rather, it is essential to note that, in accordance with Article 44/B of the Attorneyship Law No. 1136, foreign attorneys may only do so in the capacity of a foreign attorney partnership.
Under the legislation encouraging foreign capital, foreign attorney partnerships are permitted to operate on the Turkish legal market, subject to certain limitations, according to the legal language of the mentioned article. In a similar vein, a Turkish attorney partnership is a legal entity established by multiple attorneys, as stipulated in Article 44/B. While the operations of this partnership may not be deemed commercial in nature and distinguish them from corporations or law firms in other nations, they are still required to adhere to the tax regulations that govern sole proprietorships in Turkey. As a result of the implementation of this specific regulation to foreign attorney partnerships, a foreign attorney partnership is categorized as a legal entity in Turkey and its activities are distinct from those of a corporation or firm, moreover, this classification does not exempt the foreign attorney partnership from tax obligations; rather, Article 44/B of the mentioned law subjects it to the same tax regime as sole proprietorships in Turkey.
2. ESTABLISHING A FOREIGN ATTORNEY PARTNERSHIP IN TURKEY
In Turkey, the procedure for establishing a foreign attorney partnership was specified in both Turkey Attorneyship Law No. 1136 and the Attorney Partnership Regulation of the Union of Bar Associations of Turkey, which was published in Official Gazette 24790 on June 19, 2002. Article 11 of the aforementioned Regulation pertains to foreign attorney partnerships. In the Regulation, the documents and conditions that must be prepared and met before the formation of a foreign attorney partnership are specified in great detail. In summary, as per the aforementioned Regulation's articles 7-11, foreign attorneys who wish to operate as a foreign attorney partnership are obligated to submit an application to the Bar Association of the province where they intend to practice. The proceeding following this application is analogous to that of Turkish attorney partnerships. To begin with, the Board of Directors of the Bar Association makes a decision to register the partnership in the attorney partnership registry of the Bar Association within a period of one month. Upon acceptance of the request, The Union of Bar Associations of Turkey is notified of this determination and assigns it a designation of "unsuitable" or "suitable." Approval by the Ministry of Justice renders The Union of Bar Associations of Turkey decision final. This final decision is promptly implemented by the relevant Bar Association, which subsequently registers the partnership in the Bar Association Attorney Partnership Registry, thereby bestowing legal personality upon it. Professional activities are prohibited for a foreign attorney partnership until it has been duly registered with the registry. In the event that the application is rejected, Article 10 of the aforementioned Regulation provides clarification regarding the procedure for lodging an objection.
Nevertheless, restrictions on the practice of foreign attorney partnerships will come to the fore even if foreign lawyers form a partnership under Turkish law suitably following the prescribed procedure.
3. LIMITATIONS FOR THE FOREIGN ATTORNEY PARTNERSHIPS
3,1 Reciprocity
The relevant provisions of Attorneyship Law No.1136 impose the most significant restriction on foreign attorney partnerships as reciprocity; it is the determining factor in the application of Article 44/B concerning such partnerships, as stated in the same sentence of the article.
In the same direction, according to Article 11 of the Attorney Partnership Regulation of the Union of Bar Associations of Turkey, foreign attorney partnerships are operational so long as they are established in accordance with the reciprocity principle. Due to the prerequisite of reciprocity, in order for foreign attorney Partnerships to provide services in Turkey, the opportunity to provide legal services to Turkish lawyers and Turkish attorney partnerships within the framework of the same principles must be granted in the country of each of the foreign partners of the foreign attorney partnership. Failure to comply with the reciprocity principle will result in foreign attorney partnerships being rejected at the establishment stage or in case the conditions change after establishment, foreign attorney partnerships will be prevented from providing services in Turkey.
3.2 Field of Activity Limitation
Again in accordance with Article 11 of the aforementioned Regulation and Article 44/B of Law No. 1136, foreign attorney partnerships are restricted to offering legal consulting services exclusively in the domains of international law and foreign laws. Put simply, foreign attorney partnerships are not permitted to engage in litigation or offer any other legal services beyond legal consulting. Moreover, the legal consulting they are allowed to deliver is exclusively confined to the domain of international law and foreign laws. This restriction extends to Turkish nationals and foreign attorneys employed by foreign attorney partnerships as well; thence, foreign attorney partnerships that employ Turkish nationals as lawyers are unable to circumvent this restriction.
3.3 Obligation to be Established by Attorneys
Article 44/B of the Law No. 1136 lays down that only attorneys can form an attorney partnership. In its fifth clause, Article 11 of the Regulation states that a foreign attorney partnership can be established by either a combination of lawyers who are citizens and non-citizens of the Republic of Turkey, or by more than one foreign attorney. In other words, persons who are attorneys can establish an attorney partnership. Nevertheless, it is readily apparent from the improper conduct of Turkish bar associations that foreign law companies are registered in Turkey as partners of a foreign attorney partnership. Limited liability companies have been officially -but unlawfully- recognized as partners in foreign attorney partnerships by the Turkish bar associations, which is a violation of the legal framework governing attorney partnerships in Turkish law. This practice may potentially jeopardize the smooth operation of foreign attorney partnerships by initiating legal proceedings in Turkish courts on the grounds of non-compliance with the aforementioned regulations, at the request of a Turkish lawyer. In conclusion, even if they possess the legal capacity and certification to practice law in their home country, organizations and corporations cannot establish attorney partnerships or be enrolled as partners of a Turkish or a foreign attorney partnership. Merely having not been litigated in Turkish courts yet does not preclude Turkish lawyers from bringing a lawsuit against the improper implementation of bar associations.
4. PRACTICAL SOLUTIONS FOR LIMITATIONS
Foreign law firms or foreign legal practitioners who are unable to achieve their business objectives in the Turkish legal sector due to Turkish law's restrictions on foreign attorney partnerships should consider establishing relationships with reputable and adequate Turkish lawyers or attorney partnerships. Foreign attorneys can have the opportunity to indirectly represent their clients in Turkey with the support and assistance of a Turkish attorney or attorney partnership. While Turkish lawyers are prohibited from publicly disclosing their affiliations with foreign law firms or attorneys in a manner that suggests generality and permanence, this does not always apply to attorney partnerships or lawyers that deliver legal services on Turkish law to foreign law firms or foreign attorneys or that manage the cases of foreign clients in Turkey in collaboration with a foreign attorney.
CONCLUSION
The existing legislation in Turkey pertaining to foreign attorney partnerships is insufficient in its ability to effectively respond to the requirements of the Turkish legal market. Due to their lack of awareness regarding the importance of attorney partnerships, Turkish bars are susceptible to various negligent activities. In the present circumstances, wherein the requisite legal framework and guardianship are absent, endeavoring to establish a foreign attorney partnership could prove to be a perilous undertaking. Moreover, the legal framework specifically governing foreign attorney partnerships is narrow and even ambiguous in the eyes of some. Under these circumstances, foreign law firms and attorneys are inclined to form alliances with Turkish legal professionals and attorney partnerships in Turkey, with the intention of enhancing their relations with them. This strategy remains seemingly viable and applicable.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
