Free Trade Zones of Türkiye - Part II
Source: Export Promotion Center of Türkiye - Trade Point Ankara
How to Operate in Free Zones How to Start Operating in
a Free Zone Principles
With Regard to Work Permits Criteria to Assess Operating Licence Applications
How to Operate in Free Zones In order
to engage in operations in free zones, an Operating License have to be
obtained from Undersecretariat of Foreign Trade General Directorate of Free
Zones. An application form for Operating License can be obtained from
General Directorate of Free Zones, Zone Directorates or Zone Operator,
Founder/Operator Companies and has to be completed and the documents
mentioned below have to be attached to the copy of the said form.
(i) Descriptive
information about the Applicant and its Free Zone operation, (ii)Authorization
document and specimen signature of the signatory and power of attorney (if
any) and specimen signature of the representative of the firm (if any),
(iii) Turkish Trade Registration Gazette that announces the establishment
of the applicant firm showing its current capital composition (For foreign
firms Trade Registration Document ratified by the related Turkish
Consulate), (iv) Last three years’ balance sheets, income statements of the
firm, (v) The original receipt of application fee deposited to the Central
Bank of Türkiye, and its copy, (vi) Documents related to the foreign
currency brought to Türkiye during the last three years, (if any), (vii) Branch
Establishment Permit obtained from General Directorate of Banking and
Foreign Exchange for Banks, Off-Shore Banks and Financial Leasing
Institutions and from General Directorate of Insurance for Insurance
Institutions. The above mentioned documents have to be sent to
Undersecretariat of Foreign Trade General Directorate of Free Zones through
Zone Operator, Founder/Operator Company. Top
How to
Start Operating in a Free Zone Tenant
users may start to operate when they receive their Operating Licenses. On
the other hand investor users after receiving their Operating License must
obtain a “construction license” to implement their construction projects.
When the construction is completed they must get a permission to settle in
before they start to perform their activities. However they may perform their
free zone activities by renting a closed area during the construction
period.
Principles
With Regard to Work Permits (CIRCULAR 98/3)
Application
1) ‘Foreign Personnel Application Form’ and its
attachments must be completed and submitted to the Undersecretariat
together with a petition. 2) In the presence of a Work Permit issued
earlier by the Undersecretariat of Treasury, General Directorate of Foreign
Investment, this permit must be cancelled and the certificate in evidence
of this cancellation must be attached to the application file. 3) If the
person in question requesting the Work Permit is the owner or the partner
of the firm, a translation and a copy of the diploma is not required. 4) In
order to extend the term of a Work Permit, a fully completed Foreign
Personnel Application Form, an original copy of the prior work permit, six
photographs and payment documents showing the social security payments in
relation with the working period must be attached to a petition.
Assessment
1) If the foreign citizen requesting work permit
is not the owner or the partner of the firm, he/she must be a qualified
personnel or a manager scarce in the native country. It is essential to
prove his/her expertness with a diploma, otherwise with a certificate or
reference from his/her prior employers. 2) The number of Turkish workers
stated in the Operating Licence Application Form will be taken into
consideration during the foreign personnel requests. 3) If the number of
requested foreign personnel exceeds the amount stated in the Operating
Licence Application Form, this must be justified to the
Undersecretariat.
Cancellation
1) The Work Permit is cancelled if a foreign
personnel who has received a residence permit from the Ministry of
Interior, has not started to work in the free zone within one month or the
social security registration is not documented within the framework of the
prevailing provisions of the Turkish social security legislation according
to Article 21 of the Free Zones Governing Regulation. The Ministry of
Interior is informed accordingly on this situation and the Residence Permit
is also cancelled. ( However, in cases when there is an agreement between
Türkiye and any other country regarding social security, provisions of such
an agreement shall also apply.) 2) If it is proved that a foreign personnel
who has a Work Permit is employed in Türkiye, the Operating Licence of the
employer is cancelled according to article 14 of the Free Zones Governing
Regulation. 3) The Work Permit of the foreign personnel is kept by the user
during the employment period and the user is responsible of the Work Permit
in every aspect. If the Work Permit is lost, The Undersecretariat must be
informed accordingly. Furthermore, the original of the Work Permit of the
personnel who has left the job or whose Work Permit is cancelled must be
returned to The Undersecretariat within a week. Top
Criteria
to Assess Operating Licence Applications (CIRCULAR 98/4) Free zone users must comply with the
declarations stated in the Operating Licence Application Form during the
operation period. Investor users must start their commercial/production
activities after the issue of settlement licence and tenant users must
start operations within six months after the date of issue of the Operating
Licence. Unless there is force-majeure, continuance is sought in free zone
activities. Therefore; it is important that Operating Licence Application
Form include correct information on the activities to be performed.
Assessment Criteria
1) In principle, most of the final consumption
goods produced or goods subject to purchasing-selling activities in a free
zone must be sold to third countries on a yearly basis. Users holding
purchasing-selling operating licences are allowed to purchase and sell
goods other than the goods mentioned in the Operating Licence on the
condition that, they inform the Free Zone Directorate accordingly. However;
in this case too, most of the final goods must be sold abroad.
2) If real or legal persons intend to operate in
a free zone have an operational business either in Türkiye or in a foreign
country, this situation shall be preferable in granting Operating Licences.
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