Free Zone Regulation in Turkey
These zones are designed to increase the number of export-focused investments. Legal and administrative regulations in the commercial, financial and economic fields applicable within the customs area are either not implemented or partially implemented in such free trade zones.
In general, all kinds of commercial activities can be performed in free zones such as manufacturing, warehousing, packaging, general commerce, banking and insurance. All fields of activities are open to local and foreign companies, and they may benefit equally from the incentives granted in free zones.
Free zones in Turkey
The Free Zones Law was enacted in 1985 in Turkey. The Cabinet is authorized to determine the location and borders of the free zones. Currently, there are 24 free zones in Turkey.
Free zones can be established and operated by state institutions or national or non-resident real or legal persons. These individuals or entities having an operating license and a fixed location in a free zone are called users. Companies or branches incorporated in Turkey or abroad can commence operations in free zones by obtaining an operating license from the Undersecretariat for Foreign Trade Directorate General of Free Zones, who assesses applications for operating licenses.
Free Trade Zones Establishment and Development Fund (‘the Fund’)
For the purpose of the establishment, development and maintenance of free zones, a fund levy is imposed on transactions by companies operating in free zones. The Fund is payable on the CIF (cost, insurance and freight) value of goods entering and leaving the free zone, with the exception of goods brought into the free zone from within Turkey, and goods used at the investment and installation stages and equipment brought into the free zone for repair and maintenance. There is no fund for the goods exported from free zones to countries other than Turkey.
An operating license application fee specified by the General Directorate based on the type of activity and activity period should be deposited in the Free Zones Establishment and Development Fund account.
Foreign capital in free zones
Legislation governing foreign capital requires that each shareholder should contribute a minimum of $50,000 as capital and should obtain permission from the Foreign Investment Directorate for investment in Turkey. In free zones, there is no minimum foreign capital requirement for branches of foreign-based companies or branches of companies established in Turkey with foreign capital.
Winding up a business in a free zone
In the event users wish to shut down their business in the free zone or their operating license is cancelled, they can sell their buildings and/or facilities to real or legal persons, upon the approval of the Undersecretariat of Foreign Trade.
Berk Cektir http://www.berkcektir.av.tr The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner. http://www.todayszaman.com/
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