Akkas & Associates Turkish lawyers are prepared to assist your free zone company set up in Turkey. Our company formation lawyers are experienced in establishing a limited company, joint stock company, holding company, branch office, liaison office, free zone company, management, and governance in Istanbul.
We do perform company formation services in Turkey and provide other company governance services for foreign persons and companies. We’ve been assisting clients from Baltic counties and Russia to start their businesses and their swift migration to Turkey. We have set up several companies for our Russian clients and we are very well aware of their needs under the new sanctions.
We have a customs agency in our office building and many of our clients use their services to perform transit trade to Russia and other countries. We also provide company address services for foreign companies and our rates are very moderate.
If the Partners are in Turkey, We Can Set up Your Free Zone Company in 20-30 Days
We can finish your free zone company set up 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 Set up Your Free Zone Company Remotely
We can complete your free zone company set up 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.
How to Set up a Free Zone Company in Turkey?
According to the Turkish Commercial Code, 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.
Please find the free zone company set up a roadmap 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
How Much Does It Cost to Set up a Free Zone Company with One Partner?
|FEES AND EXPENSES||USD|
|Attorney fee for the registration of a new company||2,250|
|Opening a bank account||250|
|Tax Office registration||250|
|Accounting fees per month||250|
|Official company registration expenses (Notary expenses for Articles of Association and all other documents)||1,000|
There is a 5.000 USD application fee for free zone companies and it will be refunded if the application is refused by the Ministry of Trade. However, if the application is accepted and a free zone operating license is issued, the application fee will be kept by the Ministry. After that, we continue establishing the company and it can be a limited company, a joint stock company, or a branch of the mother company.
We Need the Following Documents for Free Zone Company;
From Real Persons;
- 2 Translated and notarized passport copies
- 2 Passport photos
- Power of Attorney to us for incorporating the company from each shareholder.
From a Legal Entity, If One of the Partners is a Company;
- The foreign shareholder company’s “Certificate of Good Standing” from the Registrar of Companies. This certificate should contain information about the current active status of the company and its signature executives.
- The foreign shareholder company’s “Articles of Incorporation”
- The foreign shareholder company must get a resolution for incorporating a company in Turkey.
- If the foreign shareholder company will be appointed as a company director in Turkey, it must appoint a real person to do this task. We need signature samples from this person and he must also accept this appointment. We must get his/her passport translated and notarized and we will get a Turkish tax id number.
- Power of Attorney for establishing the company.
- The above-mentioned documents shall be notarized and apostilled.
How many Free Trade Zones are in Turkey?
A Turkish Free Trade Zone is a specially designed production site that aims at increasing export-oriented investment and production in Turkey, accelerating the entry of foreign capital and technology into Turkey. Enhancing productivity and economies of scale and increasing the utilization of external financial sources and trade opportunities.
Although a Free Trade Zone is within the boundaries of the Republic of Turkey, it is treated as if it were a territory abroad. National regulations relating to foreign trade, and financial and economic areas are partially applicable to Free Trade Zones. There are 18 Free Trade Zones in Turkey and their annual trade volume amounted to more than $ 23 billion in the year 2022.
Free Trade Zone Company Tax Incentives
- Production companies in a Free Trade Zone are exempt from social security taxes
- Goods imported from abroad are exempt from customs duty. In addition, there are no restrictions on the age/model of machinery to be imported from abroad, and these items are exempt from both VAT and customs duty
- Goods purchased in Turkey by companies located in a Free Trade Zone are exempt from VAT
- Companies based in a Free Trade Zone can keep their products in a designated duty-free storage area for an indefinite period of time and they can export the products in lots at any time (at the time of export, a customs duty for the lots is paid)
- Energy, water, and telephone utilities supplied within a zone are all exempt from special consumption tax (OTV) and VAT
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.
Definition of Free Zone
In general, free zones are defined as special sites within the country that are deemed to be outside of the customs territory. Free Zones are also defined as fenced-in areas in which special regulatory treatment exists for the operating users in order to promote exports of goods and services.
Free zones offer a more convenient and flexible business climate in order to increase trade volume and export for some industrial and commercial activities as compared to the other parts of the country. With the aim of increasing and promoting export-oriented investment and production, 18 free zones have become operational since 1985.
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 Turkish Free Zones such as:
- Research and Development (R&D),
- General trading,
- 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-venture of foreign companies.
Reach us for a Free Zone Company Set up in Turkey
Akkas & Associates Turkish lawyers are prepared to assist your free zone company set up in Turkey. Our company formation lawyers are experienced in limited companies, joint stock companies, branch offices, liaison offices, and free trade zone company formation, management, and governance in Istanbul.
Our law firm is one of the leading law firms providing company formation services in Istanbul, Turkey. You may reach us for a free zone company set up in Turkey through our Contact page.