The Caliphate State was founded in 1984 as the "Union of Islamic Community and Associations" in Cologne by Cemalettin Kaplan after he left a Millî Görüş organization due to ideological disagreements.

Metin Kaplan, who led the organization during its attempted attack on Turkish Republic Day, was arrested in Germany in 2000, and was extradited to Turkey in 2004.

[11][12] Caliphate State challenged this decision in Federal Constitutional Court in 2003, which rejected the application, finding that the militant nature of the group made it unconstitutional and a threat to democracy.

[13] Caliphate State appealed to the European Court of Human Rights, however the appeal was dismissed, with the court ruling that "banning of associations...deemed as a concrete and current threat to the principles and fundamental rights of the democratic constitutional order and to the rule of law is legitimate.

"[14] The banning order stated that the group "violates the principle of democracy since it demands the primacy of the Sharia law over democratic institutions.