Company Formation in TurkeyNumerous entrepreneurs around the world show great interest to Turkey. However, generally the investment process is complex for them. Therefore, as a leader consulting firm we assist investors on those matters. Our major service area is, company formation in Turkey (company registration in Turkey) and related services. Such as, bank account opening in Turkey, trade registration in Turkey and Turkish Citizenship by Investment.

What is a free zone: Free zones are privileged zones subject to special conditions, which are located within Turkey but are excluded from the customs zone in commercial terms. Majority of the foreigner investors are interested in company formation in Turkey at free zones. However, Turkey is not an offshore country, therefore opening a company in Turkey at free zones are subject to some conditions.

Who can establish a company in free zones:

Authority:

Article 2 – The President in Turkey is authorized to determine the locations and borders of free zones in Turkey.

The establishment and operation of free zones by public institutions and organizations, domestic or foreign real or legal persons is permitted by the President of the Republic in Turkey.

Definitions:

Article 3 – In the application of this Law;

1. a) Operator: The public institution and organization, local and foreign real or legal persons that operate the free zone,
2. b) User: The real or legal person who has an operating license and has a certain workplace in the region,

The company formation in Turkey at free Even the establishment can be done by foreigners.

The Procedures of Company Registration in Turkey for Foreigners at Free Zones

In order to operate in free zones, an Operating License must be obtained from the Ministry of Commerce, General Directorate of Free Zones, Overseas Investment and Services. To obtain an Operating License; The Operating License Application Form and a photocopy of it, which can be obtained from the Internet address of ministry of trade.The Free Zone Directorate or the Zone Operator/Founder and Operator Company will check the documents listed down belows.

1-Introductory information about the applicant and the activity to be carried out in the free zone,

2- The authorization certificate of the signatory and the circular of signature,

3- The authorization certificate and signature statement of the company representative

4- İf any the establishment announcement of the applicant company established in Turkey and the Turkish Trade Registry Gazettes in which the last capital and partnership structure is published, and Trade and/or Industry Chamber registration (for foreign companies: a copy of the establishment certificate valid in their country and approved by the Turkish representative in that country)

5- The company’s balance sheet for the last three years, the profit and loss statement, the original and a photocopy of the bank receipt showing that the application fee has been deposited to the Central Bank of the Republic of Turkey.

6-( If any) Documents showing the amount of foreign currency brought to Turkey in the last three years are submitted to the relevant Free Zone Directorate together with a petition.

7-Companies that are deemed appropriate to obtain an Operating License as a result of the examination carried out by the General Directorate, within 30 days; They make an indoor or outdoor lease agreement.

8-In free zones, the land of which is privately owned, it is possible for companies to purchase land or workplaces. In these regions, companies deemed appropriate by the General Directorate to obtain an Operating License, within 30 days; If they are going to buy land or workplace, they make a sales contract or a lease agreement. A copy of the contract approved by the relevant Free Zone Directorate is forwarded to the General Directorate of Free Zones.

Within the period given by the General Directorate, an Operating License is issued on behalf of those who make lease/sales contracts. Investor users, after obtaining the Operating License, apply to the Regional Directorate and obtain a “Construction License” in order to implement the construction projects they have prepared. After completing the construction work, they get their “Settlement License” and start their commercial activities.

The application fees paid for the Operating License are refunded to the companies that are not deemed appropriate to obtain an Operating License. It is obligatory for real or legal persons headquartered in Turkey to carry out their activities in the free zone through their branches. In this case, issues such as capital structure and profitability will be taken into account during the analysis of the balance sheet of the central company for the last three years. In order for the branch to operate in the free zone to start commercial activities, capital allocation and operating expenses should be foreseen. All real and legal entities that will operate in free zones are required to obtain the necessary permits from all public institutions and organizations in our country within the scope of their activities.