Company Establishment In Free Zone
Activities in free zones can be conducted by companies established as “branches” or “with a free zone address.”
Domestic or foreign legal entities wishing to operate by establishing a company or branch in the free zone send the draft of the articles of association prepared in accordance with the circular numbered 1998/4, the Activity License Application form, and the documents to be attached to the form to the Ministry of Trade. After receiving the suitability letter from the Ministry of Trade regarding the application, an application is made to the Trade Registry with the other documents related to company establishment. The company intended to be established can start its activities in the Free Zone after being established in compliance with the provisions of the Turkish Commercial Code.
Investors with their headquarters in Turkey and currently continuing their commercial activities in Turkey are obliged to conduct their activities in the Free Zone through a “Free Zone Branch” due to the obligation to keep separate accounting records for their activities in the Free Zone and the requirement for capital export, in addition to the provisions of the Turkish Commercial Code.
Separate accounting records must be kept for the accounting records of the company headquarters and the activities of the branch in the free zone. Companies operating in the free zone cannot record their activities outside the free zone in any way.
