What is Free Zone?
Free zone is a place that is domiciled outside the customs lines of the country and established to develop international trade and technological development and encourage investment and production. This special economic zone provides wide economic incentives through decreasing administrative conditions and lifting trade barriers.
Function of the Free Zones?
|· Providing a basis for foreign investment new technologic developments,|
|· Delivering raw materials and intermediate goods which are need by industry,|
|· Lower costs of production and import,|
|· Transit sales through Turkey to other countries,|
|· Increasing employment opportunities,|
How to Establish a Company in Turkish Free Zone?
For the establishment of the company, the prime contract of the company shall be compatible with Circular No. 1998/4. Subsequently, obtaining the operation license is a necessary action. Ultimately, after obtaining the operation license, the company establishment depends on the conformity letter, approved prime contract and application to the Trade Registry under the Turkish Commercial Code, and other relevant legislation.
How to Obtain the Operation License?
Obtaining the operation license is a necessary process due to the establishment of the company. This process starts with the filling of the application form and pledging 5.000 USA Dollars to the Central Bank of the Republic of Turkey. Thereafter, the process that needs to be pursued is as below:
|· Operation License Application Form, Prime Contract and receipt of the paid application fee shall be submitted to the Directorate of Free Zone with a petition,|
|· After the approval of the Directorate, the lease agreement shall be concluded within 30 days,|
|· An application is made to the General Directorate together with the lease agreement.|
Establishment of the Company
This process requires a letter of conformity which is issued from the Directorate. After receiving this letter, the next step will be preparing the approved prime contract due to pledge it to the Trade Registry. The application shall include a letter of conformity, approved prime contract, and other necessary documents that are related to the company type and indicated in the Turkish Legislation.