Legal Foundations of Turkish Companies’ Freedom of Establishment in EU

Abstract

The principle of freedom of establishment, as a part of the EC Treaty is s laid down in Article 49 (ex 43) and 54 (ex 48). Those articles grant free movement of establishment to natural and legal persons, and state how “a company” or “a firm” is to be defined under Community law. In Cases of The European Court of Justice’s rulings on the Daily Mail, Centros, Überseering, İnspire Art, Sevic and Cartesio, distinction between the “emigration” and “immigration” of the companies were empahsized and restriction by national measures on emigration was mainly accepted. However, restrictions on immigrations by national law is subject to more scrutiny, and depends on meeting the Gebhard test. Turkey, as a candidate country, harmonised its own company law with the Community Law. ECJ, with its Überseering ruling, had clearly expressed that freedom of establishment have been directly applicable as the transitional period had come to an end. It is no longer necessary for Member States to adopt a convention or secondary regulation in order to exercise the right of establistment. Turkey also completed transitional period.