How to Establish a Free Zone Company in Turkey?

Establishing a free zone company in Turkey involves a series of strategic steps designed to leverage the benefits of Turkey’s specially designated economic areas. These free zones, strategically located to boost trade and investment, offer significant incentives such as tax exemptions, reduced bureaucracy, and streamlined customs procedures, making them an attractive option for businesses aiming to enhance their export potential.

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The process begins with selecting an appropriate free zone that aligns with the company’s industry and business goals. This is followed by preparing and submitting detailed documentation, including an application form, company registration, and a lease agreement for premises within the chosen free zone.

The Directorate General of Free Zones evaluates the application, and upon approval, the company can proceed with setting up its operations.

Establishing a Free Zone Company in Turkey: What It Is, How to Do It, and Its Responsibilities

Turkey offers a unique opportunity for businesses seeking a competitive edge through its free zones. These zones are special economic areas designed to promote export-oriented investment and production, ensuring a more attractive business environment.

What is a Free Zone Company in Turkey?

A free zone company operates within designated areas that offer various incentives and advantages. These zones are strategically located to facilitate trade and investment, providing benefits such as tax exemptions, reduced bureaucracy, and streamlined customs procedures. The primary goal of these zones is to boost Turkey’s export potential and attract foreign direct investment.

How to Establish a Free Zone Company in Turkey?

1. Select a Free Zone: Turkey has multiple free zones, each with its unique advantages. Choose a zone that aligns with your business goals and industry requirements.
2. Prepare Necessary Documentation:
   • Application Form: Submit a detailed application form outlining your business plan, investment amount, and operational details.
   • Company Registration: Register your company with the relevant Turkish authorities. This includes obtaining a trade registry number and tax identification number.
   • Lease Agreement: Secure a lease agreement for your business premises within the chosen free zone.
3. Approval Process: The application will be reviewed by the Directorate General of Free Zones. This process includes an evaluation of your business plan and an assessment of its alignment with the zone’s objectives.
4. Set Up Operations: Once approved, you can proceed with setting up your business operations. This includes importing necessary equipment and materials, hiring staff, and commencing production or service delivery.

Responsibilities of a Free Zone Company

1. Compliance with Regulations: Adhere to the specific regulations and guidelines set forth by the free zone authorities. This includes maintaining accurate records, submitting regular reports, and complying with audit requirements.
2. Employment and Labor Laws: Ensure compliance with Turkish labor laws, including fair wages, safe working conditions, and employee benefits.
3. Customs and Trade Regulations: Manage customs procedures efficiently to benefit from duty exemptions and streamlined processes. This includes proper documentation for imports and exports.
4. Tax Obligations: While free zone companies enjoy various tax exemptions, they must still fulfill certain tax obligations such as social security contributions for employees and other applicable taxes outside the zone.
5. Environmental and Safety Standards: Implement and maintain high standards of environmental protection and workplace safety in accordance with Turkish laws and international best practices.

If the Partners are in Turkey, We Can Establish a Free Zone Company in Turkey in 20-30 Days

We can establish a free zone company in Turkey in 20-30 days if you are present in Turkey. The setup process will be faster and cost less and you will be able to get online banking.

If Partners are not in Turkey, We Can Establish a Free Zone Company in Turkey Remotely

We can establish a free zone company in Turkey remotely if you are not present in Turkey, however, the setup process will be longer and cost more.

Moreover, we have established more than 260 companies for our foreign clients including Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.

Legal Grounds to Establish Free Zone Company in Turkey

According to the Turkish Commercial Code, free zone companies can be established in different types of companies. If you choose to set it up as a limited company, a limited company (LLC) requires a minimum of one partner and it can be a legal entity or a real person, there can be a maximum of 50 shareholders.

The partner/partners can be Turkish or foreign as well. Foreigners can own 100% of a company and transfer their profit out of Turkey without any problems.

The minimum required capital for a Limited Liability Company is 10,000. -TL (Turkish lira). The capital of the company shall be paid in two years and up to four installments.

Steps to Establish a Free Zone Company in Turkey

• Partners’ passport translation and notarization
• Obtaining tax ID numbers for the partners
• Getting Power of Attorney from the partners for company formation before the Notary Public
• Determining and reserving the company title
• Signing a lease contract for the company address
• Preparing online company establishment procedures
• Filing company details at the Istanbul Chamber of Commerce online
• Filing company Articles of Incorporation online and getting it approved
• Filing all the documents at the Istanbul Chamber of Commerce and paying official company registration fees
• Obtaining a company registration certificate from the Istanbul Chamber of Commerce
• Getting signature circular notarized at Notary Public
• Giving Power of Attorney to an accountant on behalf of the company
• Opening company bank account

Free Trade Zone Company Operating Licence

In order to operate in a free zone company in Turkey, you need an Operating Licence which is granted by the Ministry of Trade. The firms which are found appropriate to get an Operating Licence and which intend to rent an open area must sign a rental contract with the Free Zone Operating Company.

Basic Objectives of the Foundation of Free Zones

• Promoting export-oriented investment and production.
• Accelerating foreign direct investment and technology access.
• Directing enterprises towards export.
• Developing international trade.

Activities in Turkish Free Zones

In general, all kinds of activities can be performed in free zone companies in Turkey such as:

• Manufacturing,
• Research and Development (R&D),
• Software,
• General trading,
• Storing,
• Packing,
• Banking and insurance,
• Assembly and disassembly
• Maintenance services.

Investors are free to construct their own premises, while zones have also available office spaces or warehouses on a rental basis with attractive terms. All fields of activities open to Turkish companies are also open to joint ventures of foreign companies.

Reach us to Establish a Free Zone Company in Turkey

Establishing a free zone company in Turkey presents a lucrative opportunity for businesses looking to expand their export capabilities and benefit from a favorable business environment. By understanding the establishment process and adhering to the associated responsibilities, companies can effectively leverage Turkey’s free zones to achieve their strategic objectives.

For more information on establishing a free zone company in Turkey and to receive personalized guidance, contact Finlexia Accounting Firm. Our team is dedicated to helping you navigate the complexities of setting up and operating a successful business in Turkey’s dynamic economic landscape.

You may reach our accountants and lawyers to establish a free zone company in Turkey by visiting our Contact page.