Complete Guide to Commercial Dispute Resolution in Türkiye

At Finlexia Turkish Accounting Firm, we have been guiding domestic and international clients through complex commercial dispute resolution processes since 2017. Our comprehensive understanding of Turkish commercial law, combined with multilingual capabilities, positions us uniquely to help businesses navigate these challenging situations effectively.

Commercial disputes are an inevitable aspect of conducting business in Türkiye’s dynamic market. Whether arising from contractual disagreements, partnership conflicts, or regulatory compliance issues, understanding the mechanisms for resolving these disputes efficiently is essential for protecting your company’s interests and maintaining business continuity.

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Finlexia Turkish Accounting Firm, a leading full-service company formation and governance firm based in Istanbul, has been advising local and international clients since 2017. With years of experience in Turkish commercial law, we provide strategic legal solutions tailored to complex business disputes across industries.

Our corporate lawyers team offers a comprehensive overview of commercial dispute resolution in Türkiye, including litigation, arbitration, mediation, and preventive legal strategies.

Understanding Commercial Disputes in Turkish Law

Commercial disputes in Türkiye encompass a wide range of conflicts between business entities, including breach of contract claims, shareholder disagreements, intellectual property infringements, unfair competition allegations, and disputes arising from mergers and acquisitions. The Turkish Commercial Code (TCC) and the Civil Procedure Code govern how these disputes are addressed, providing multiple resolution pathways tailored to different circumstances.

The Turkish legal system recognizes that commercial parties require swift, specialized, and confidential dispute resolution mechanisms. Consequently, Turkish law offers several alternatives to traditional litigation, each with distinct advantages depending on the nature and complexity of the dispute.

What Is a Commercial Dispute Under Turkish Law?

Commercial disputes in Türkiye are governed primarily by the Turkish Commercial Code (TCC) and the Code of Civil Procedure. A dispute is considered “commercial” when it arises from:

• Business-to-business contracts
• Shareholder and partnership conflicts
• Distribution, agency, or franchise relationships
• Banking and finance transactions
• Mergers, acquisitions, and joint ventures
• Unfair competition and intellectual property issues

Commercial disputes are typically heard before specialized Commercial Courts of First Instance, ensuring that judges have technical expertise in business law.

Commercial Litigation in Türkiye

Commercial litigation remains a core dispute resolution method in Türkiye, particularly when disputes involve high financial stakes, urgent interim measures, or non-negotiable rights.

Key characteristics of commercial litigation include:

• Mandatory pre-trial mediation for certain disputes
• Written and oral procedural phases
• Expert witness reports for technical matters
• Appellate review before the Regional Courts of Justice and the Court of Cassation

Türkiye’s litigation framework is especially relevant for disputes involving shareholder liability, director duties, or insolvency-related matters. Businesses often rely on litigation when contractual mechanisms fail or when enforcement power is required. Our extensive experience in corporate litigation enables us to represent clients effectively at every stage of the judicial process.

Arbitration as an Effective Alternative

Arbitration has become increasingly popular in Türkiye, particularly for international and high-value commercial disputes. Turkish law strongly supports arbitration, both domestic and international, under:

• The Turkish International Arbitration Law
• The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards

Arbitration offers several advantages:

• Confidentiality
• Faster resolution compared to court proceedings
• Ability to appoint industry-specific arbitrators
• Enforceability of awards internationally

Well-drafted arbitration clauses during the contract drafting phase are critical. Businesses engaging in cross-border transactions or strategic investments often opt for arbitration to minimize jurisdictional risks and procedural delays.

Mandatory and Voluntary Mediation

Mediation has become a cornerstone of commercial dispute resolution in Türkiye. For many commercial claims, mediation is mandatory before initiating a lawsuit. This system aims to reduce court congestion while encouraging amicable settlements.

Benefits of mediation include:

• Cost efficiency
• Speed and procedural flexibility
• Preservation of commercial relationships
• Confidential settlement outcomes

Voluntary mediation is also widely used, especially in shareholder disputes and ongoing contractual relationships. With the right legal guidance, mediation can produce commercially viable solutions that litigation cannot.

Disputes Arising From Corporate Structures

Many commercial disputes stem from improper or unclear corporate structuring. Issues may arise during the initial company formation, including:

• Ambiguous shareholder agreements
• Unequal capital contribution obligations
• Management and representation authority conflicts

Preventive legal planning at the incorporation stage significantly reduces the likelihood of future disputes. Clear articles of association and governance frameworks are essential to maintaining corporate stability.

Corporate Governance and Shareholder Conflicts

Poor corporate governance is a leading cause of internal disputes. Common conflict areas include:

• Minority shareholder rights
• Dividend distribution
• Board member liability
• Abuse of management authority

Strong corporate governance practices aligned with the Turkish Commercial Code help companies avoid disputes and protect management from personal liability. When conflicts arise, governance documentation often determines the legal outcome.

Dispute Resolution in Mergers and Acquisitions

Commercial disputes frequently arise before, during, or after mergers and acquisitions. Typical M&A-related disputes involve:

• Breach of representations and warranties
• Earn-out disagreements
• Valuation conflicts
• Non-compete and confidentiality breaches

Due diligence failures and poorly structured transaction documents are common triggers. Effective dispute resolution strategies in M&A matters require a deep understanding of both transactional and litigation aspects of Turkish commercial law.

Insolvency, Liquidation, and Disputes

Financial distress can escalate commercial disagreements rapidly. Disputes often arise in connection with debt enforcement, shareholder liability, and asset recovery during company liquidation processes.

Turkish insolvency law provides structured mechanisms for liquidation, concordat (restructuring), and creditor protection. Legal disputes during these processes must be managed carefully to avoid personal liability and ensure compliance with statutory obligations.

Enforcement of Judgments and Arbitral Awards

Winning a dispute is only part of the process; enforcement is equally critical. Türkiye offers effective enforcement mechanisms for:

• Domestic court judgments
• Foreign court decisions (subject to recognition)
• Domestic and international arbitral awards

Enforcement proceedings are conducted through Enforcement Offices and may involve asset seizures, bank account attachments, or share transfers. Strategic enforcement planning ensures that legal victories translate into tangible results.

Preventive Legal Strategies for Businesses

The most effective commercial dispute resolution strategy is prevention. Companies operating in Türkiye should focus on:

• Professionally prepared contracts
• Clear dispute resolution clauses
• Regular legal audits
• Strong internal compliance mechanisms

Early legal intervention often prevents minor disagreements from evolving into costly disputes. Ongoing legal support from experienced counsel is a critical investment, not an expense.

Why Choose Finlexia Turkish Accounting Firm?

With over three years of experience, Finlexia Turkish Accounting Firm provides integrated legal services covering dispute resolution, litigation, arbitration, mediation, and corporate advisory. As a top-tier Istanbul-based accounting firm, we support multinational and local clients in multiple languages, offering pragmatic and business-focused solutions tailored to Türkiye’s legal landscape.

Contact us for Commercial Dispute Resolution Services in Türkiye

Commercial disputes can threaten your business operations, financial stability, and strategic objectives. Don’t navigate these challenges alone. Finlexia Turkish Accounting Firm has been Türkiye’s trusted partner for commercial dispute resolution since 2017, serving clients in multiple languages from our Istanbul office.

Our experienced attorneys provide comprehensive legal services spanning negotiation, mediation, arbitration, and litigation, ensuring that your commercial interests receive robust protection throughout the dispute resolution process.

Whether you face contractual conflicts, shareholder disputes, or complex cross-border commercial litigation, our team delivers strategic counsel grounded in deep knowledge of Turkish commercial law and international business practices.

Contact us today to schedule a consultation and discover how our proven expertise can help resolve your commercial disputes efficiently and effectively while protecting your long-term business interests in Türkiye’s competitive marketplace.