Registration of an LLC in the Free Economic Zone of Antalya

The issue that worries every businessman looking for a territory to register a business company is the tax rate, the probability of getting profits, and access to international trade routes. That is why many people pay attention to the offshore conditions of Turkey in 2022 as this is a country where you can register an LLC within 10 days in one of the existing Free Economic Zones (FEZ), get access to the international level, and receive tax benefits.

If you choose a FEZ to register your company, you really should get acquainted with one of the Turkish port cities, Antalya. The city has access to the markets of Asia, East and Europe, and the government shows its interest in foreign investors by creating the most favorable conditions for this with a zero tax rate and minimal restrictions on foreign exchange transactions (which is not the case in other countries!).

Turkey for Investors

Turkey is a country with huge financial opportunities and minimal risk of losses for foreign investors that are really welcomed by the state. Over the past two years, almost 40% of businessmen previously operating in European countries have chosen to transfer their business to the Republic of Turkey.

The outflow of investors from Europe increased due to the rigid position of the EU, the authorities of Italy, France and Spain, and the recent situation related to Ukraine. Currency controls imposed by the Money Laundering Directive and restrictions on the anonymity of beneficiaries have pushed entrepreneurs to look for tax havens where they will not have to undergo endless audits and where they will freely dispose of their capital. 

Offshore companies in their classical sense have virtually disappeared from the European map, and it becomes almost impossible to carry out entrepreneurial activities incognito. That is why many businesses prefer quiet and non-conflict cities like Antalya where you can register a company even with 100% foreign capital, get tax benefits, and enter the international market without supervision from regulators.

In 2022, the Turkish authorities aim to increase investment revenues in the country, attracting foreign business to free economic zones. In the FEZ of Antalya, Istanbul and other regions of Turkey, you can get a full exemption from taxes and customs duties, quietly conduct any of the available activities and get a work permit for all family members.

What is FEZ in Turkey

Free economic and industrial zones in Turkey are created to improve foreign economic relations and open horizons to the world market for foreign companies. All FEZs are adjacent to the ports of the Mediterranean, Aegean and Black Seas, which opens access to international highways. These territories are considered to be located outside the customs zone of the state, and operations related to the production and delivery of products are regulated by foreign economic standards. 

Note: if you have an LLC registered in Singapore, you can safely transfer the business to the FEZ in Istanbul or Antalya, which depends on the sphere of the organization’s activity.

Business Tax Rates in the FEZ of Turkey

If we talk about a foreign company (LLC) registered in any Turkish city on a general basis, it falls under the established norms of tax legislation at the following rates:

• corporate tax in the range from 20 to 22%
• dividend tax – 18%
• VAT is paid by type of activity and can vary from 1% to 18%
• the profit rate is also progressive and is calculated on the amount of income – from 15% to 40%

Banks of Turkey in 2022

Several state and commercial banks have been opened in Turkey, and they are recognized by foreign investors to be the most reliable ones in the world. Bank assets make up almost 90% of the jurisdiction’s GNP, and the established rates are attractive due to their flexibility and loyalty.

An LLC in FEZ is registered with the support of our international portal on offshores along with the opening of a corporate bank account in one of the country’s financial institutions. This service is included in the price and is one of the clauses in the contract we will sign with you.

FEZ in Antalya

In the FEZ of Antalya (Turkey), you can open independent foreign enterprises or invest jointly with the national capital. These territories can also be used directly for the export/import of goods by other countries for duty-free import/export of products.

The Act on Free Trade Zones in Turkey (No. 3218) has been in force since 1987, when the first economic zones were established in Mersin and Antalya. Subsequently, the number of FTZs increased and today they are located in the major port cities of the state, where there is direct access to air and sea transportation for the export of goods across the border.

There are 21 free trade zones in Turkey, some of which are close to the EU and Middle East markets:

• FTZs of the Mediterranean region: Mersin, Antalya and Adana-Yumurtalyk Free Zones
• Aegean: Aegean Sea (FTZ Izmir), Denizli
• Free zones in the Marmara Sea region: Istanbul Atatürk Airport, Istanbul Industrial and Trade, Istanbul Tracia, European, Kocaeli, Tubitak Technological Zone, and Bursa
• Black Sea Region: Trabzon, Rize and Samsun Free Zones
• Southeast Anatolian Region: Gaziantep and Mardin Free Zones
• Central Anatolian region: Kayseri Free Zone

What Business to Open in the FEZ of Antalya

Registration in a FEZ of Antalya is the first step to the international market with minimal financial costs. This area is chosen by manufacturing and trading enterprises, as well as the banking sector and insurance agencies. Here are the most popular business spheres for LLCs in the FEZ of Antalya:

• lease of premises and real estate services
• repair and assembly of equipment
• banking and insurance
• trade as the highest priority among foreign investors, especially against the background of the current food crisis and the violation of customary import routes
• manufacturing products, including textiles and food products
• construction of recreational yachts, which has become one of the leading business areas since 2000

Reference: The Antalya Free Trade Zone (FTZ) is directly connected to the port of the city, where a customs corridor is established for the duty-free shipment of products to the partner countries.

Pros of Antalya Free Zones for Business Planning

The advantages of the FTZ and FEZ of Antalya for the registration of LLCs by foreign and local natural persons/legal entities include:

• territorial location – three major ports of the Mediterranean, Aegean and Black Seas
• the goods from the FEZ can be supplied to both the foreign and domestic markets of the country
• low land rent in the sector
• areas are located outside customs borders, which has a significant impact on duties and tariffs
• any convertible currency may be used for settlements
• zero rate on taxes on activities in the FEZ, as well as a minimum tax on certain groups of goods and transactions
• VAT exemption at all stages of construction, design, calculation and approval
• production companies are fully exempt from income tax
• income generated from activities in the FEZ can be freely transferred to the account in other countries and banks
• there is a law on passports, investments, as well as a treaty on avoidance of double taxation in the Turkish free zones

The Advantages of a Turkish LLC

Limited Shirket (Ltd) in Antalya is a legal form of business in Turkey that can be registered by any foreign individual or legal entity on an equal basis with Turkish residents. 

The advantages of an LLC in Turkey include:

• the amount of the authorized capital is at least 10,000 liras
• mandatory contribution to the current account is ¼ of the authorized capital at the time of business registration, with the remaining part payable within 2 years
• the minimum number of company founders is 1 person, and the maximum number is 50
• there are no restrictions as to the citizenship of the company founders and the CEO
• equal rights for doing business for foreign and local nationals

How to Open a Company in the FEZ of Antalya in 2022

All procedures related to the company registration in the FEZ of Antalya are regulated by the General Directorate within the Foreign Trade Secretariat of the Republic of Turkey. The same department is authorized to license business according to the established rules.

Here are the stages that a foreign entrepreneur will have to pass to register an LLC in the FEZ of Antalya:

1. Register an LLC/Ltd in Antalya with the support of our Turkish partners or independently.
2. The second step is to apply for business licensing, which also requires compliance with the established algorithm of actions.
3. In case of application approval, you will need to issue a lease agreement for premises, warehouses and lands with FEZ operators within 30 days.
4. Upon registration of the lease agreement, you can re-apply to the Main Department, which will issue a license for doing business in the FEZ of Antalya.

Documents for the License in the Process of Setting Up a Company in the FEZ of Turkey

You need to know the requirements established by the local authorities and prepare a package of documents to obtain a license to avoid unforeseen obstacles during the registration of business documents in the free economic zone of Antalya.

Here are the documents you will need:

• application on an official form
• original and copy of the bank statement that confirms payment of the registration fee to the FEZ Fund in the Central Bank of Turkey
• information about the company’s expected activities
• confirmation of signatures of the company’s top executives
• a copy of the extract from the Commercial Register
• certificate of financial receipts to the LLC’s account in the last three years, which will be required for companies previously doing business in Turkey that decided to move their operations to a FEZ
• if the sphere of your LLC’s activity is related to financial services and banking, the Treasury Secretariat’s permission to establish a bank branch or subsidiary in the Antalya free economic zone will be required.

Why are We Trusted?

Most entrepreneurs choose to transfer their powers to a trustee rather than register a company independently in the free economic zone of Antalya. 

Why businessmen trust us:

• we take 50% prepayment before the start of cooperation, and full payment is made only after the documents have been transferred to the applicant
• a contract concluded with us is an official document that has legal force
• our Turkish partners have many years of experience and offer an expanded range of services in legal, accounting, consulting, and real estate services, including accreditation of a foreign branch in Turkey
• the partners’ office is located in Antalya, which significantly reduces the time for the preparation of documents and company establishment: an LLC can be incorporated in Antalya is 5-7 days! And if you need registration in the FEZ, the term will be extended up to 3 weeks.
• we work with many jurisdictions, including non-European Union ones, with the exception of the countries sanctioned by the EU.