Turkey is one of the fastest-growing economies in the world and makes for a great place to start your business. If you are looking to expand your business in a more dynamic market, opening a free zone company in Turkey is a great decision.
Such zones offer several incentives and perks for entrepreneurs, such as simplified customs, tax exemptions, easy market access, and so on. However, while Turkey makes the process quite straightforward, there are some things that you should know beforehand to ensure a successful endeavour.
Types of Free Zones
First and foremost, you should know about the different types of free zones turkey has to offer. Each of these comes with a set of pros and cons, and knowing which suits your company the best can significantly help you make it a success.
- Industrial Free Zones:
As the name suggests, these are areas mainly designated for industrial activities like processing, assembling, and manufacturing. Companies here can enjoy tax exemptions, easier access to skilled labour and raw materials, and easy customs processes.
- Technology-Free Zones:
If you are planning on forming a technology-related company, these areas are a perfect fit. It mainly focuses on research and development, high-tech manufacturing and software development. Companies here can expect quick access to a trained and qualified workforce, a hoard of research and development centres, and tax exemptions.
- Logistics Free Zones:
Lastly, there are areas that focus more on companies performing logistics activities like transportation, distribution and storage. Companies here will get access to a wide variety of markets, both in Turkey and outside, easier customs processes and other kinds of tax exemptions.
Legal Requirements
Once you have decided which free zone in Turkey suits your company’s needs the best, it is time you understand the legalities of the process. There are quite a few legal requirements your company needs to comply with to function in a free zone, such as:
- Acquiring a trade registry certificate from the local chamber of commerce
- Getting a tax identification number (TIN) from the concerned tax authorities
- Registering your company with the free zones genera directorate
- Compliance with all labour laws, including acquiring work permits for foreign employees
- Getting all the necessary licenses and permits for the type of company activities you perform
Customs Procedures and Tax Exemptions
One of the main reasons why entrepreneurs are rushing to open their companies in Turkey’s free zones is the several perks it offers.
For instance, here, the customs procedures are rather simple. While customs procedures take up a lot of time in other countries and are quite strict, you do not need customs clearance in a Turkey-free zone. Once your company is registered, you can import and export your goods without much hassle.
Secondly, there are a lot of tax incentives you can enjoy here. Companies in Turkey’s free zones are exempt from paying Value-added tax, customs duties, and even corporate income tax. However, this is only true for a specified period, usually ranging from 10 to 15 years. The time frame solely depends on the type of free zone you choose.
While forming a company here is quite simple, you might need professional help, especially if this is your first time. You can always seek help from a reliable agency like Foreign Operation Consultancy. They have the necessary knowledge and experience to ensure you make the right decisions.