Foundation Law

Frequently Asked Questions

• How is the Foundation Established?

  Establishing a foundation is possible in two ways:
  With the official deed in the notary
  With testamentary disposition
  In order for the foundation to be officially established, whether it is with testamentary disposition or with an official deed at the notary public, it must be registered with the registry in the place of residence. We will elaborate on this below.
  We said that the establishment of a foundation with an official deed should be done at a notary public. It is also possible to do this through a representative. However, the representation relationship must be provided with a power of attorney containing special authority in this regard. This power of attorney must be given at a notary public. In addition, this power of attorney must include the property and rights to be allocated.
  To give an example, when a power of attorney is to be given to a lawyer for the establishment of a foundation, a general power of attorney will not be sufficient. A special power of attorney must be issued from the notary public, which also includes authorization in this regard.
  When it comes to testamentary disposition, the most important transaction that comes to mind is wills. It is possible to establish the establishment process by testamentary disposition - will.

• Registration of the Foundation

  After the establishment of a foundation is made with an official deed or a testamentary disposition at the notary public, it must be registered. This registration process is carried out in the Civil Court of First Instance located in the settlement of the foundation. In addition, there is another registry kept by the General Directorate of Foundations, which also registers.
  If the decision regarding the registration is given by a court located in another place, this decision must be sent to the Civil Court of First Instance in the settlement of the foundation. The registration to be made in the registry at the General Directorate takes place automatically upon the notification of the court.
  In other words, those who will establish a foundation have the obligation to apply for registration in the court's registry. After that, the court deals with the registry of the General Directorate of Foundations. Of course, this should be followed up by the relevant people.
  After the registration is made in the registry kept at the General Directorate, an announcement is made in the Official Gazette regarding the establishment of the foundation.

• What is a foundation deed?

  The foundation deed is the most basic document of the organization. It is legally binding and many legal transactions of the foundation are determined according to the features included here. This deed contains the name of the foundation, its purpose, the property and rights assigned to this purpose, the organization and management style and the place of residence.
  Since some deficiencies in the foundation deed are complete, they do not prevent the establishment. So the application is not rejected. The court can make up for these deficiencies. However, in order that these deficiencies do not prevent the establishment, the purpose and assets of the foundation should be fully stated in the deed in the first application.

• Is it Possible for Foreign Foundations to Open a Representative Office in Turkey?

  It is possible for foreign foundations to open branches or representative offices in Turkey, to establish a parent organization, to join or cooperate with superior organizations. This requires permission from the Ministry of the Interior. The Ministry should consider it beneficial to cooperate in the international arena and the reciprocity condition mentioned above is also valid here. The Ministry of Interior gives permission by taking the opinion of the Ministry of Foreign Affairs.

• What Happens to the Property When the Foundation Ends?

  When the foundation is closed, its debts are liquidated first. If any other property or right remains, the goods are transferred to another organization with the closest purpose. This may be written in the foundation deed.
  If not, it can be transferred to that institution by court decision by taking the opinion of the General Directorate and the foundation to be transferred. In other words, if there is no information in the deed of the closed foundation about whom the goods will be transferred to, the transfer is made with a court decision.

• How to Perform a Foundation Audit?

  A foundation can and should establish its own internal audit mechanism. In general, we maintain this order in the organizations we provide consultancy. Here, it is possible to establish an external control mechanism, as well as within the organization. This completely depends on the characteristics of the concrete event and the preferences of the managers.
  Foundation directors create an internal audit report at least once a year. They notify these reports to the General Directorate of Foundations within 2 months following their preparation. Apart from this internal audit, the general directorate regularly audits the foundation's activities, compliance with the legislation, etc.