Organized Industrial Zones (OIZs) : Industy Bases of Turkey
Organized Industrial Zones in Turkey are designated areas designed to encourage industrial activity and provide a more organized, structured environment for businesses. These zones offer various benefits, such as infrastructure support, tax incentives, and easier access to labor and resources. Turkey has many OIZs spread across the country, and they play a crucial role in its economic development by fostering both local and foreign investment.
Key Benefits of Operating in OIZs
Infrastructure: OIZs typically offer ready-to-use infrastructure such as electricity, water, sewage, telecommunication, and paved roads.
Tax Incentives: Companies operating in OIZs may benefit from various tax exemptions, including reduced or exempted VAT and customs duties on certain imports.
Land Allocation: Businesses can lease or purchase land at competitive rates within these zones.
Reduced Bureaucracy: The management of OIZs is centralized, which helps in reducing administrative complexities.
Logistics & Connectivity: OIZs are often strategically located near key transportation routes (ports, highways, railways) for easier distribution of goods.
Skilled Labor: Many OIZs are located in areas with proximity to educational institutions, ensuring access to skilled workers.
Types of OIZs
Standard OIZs
These zones offer basic infrastructure and facilities to support manufacturing industries. They are available for various sectors, including textiles, automotive, machinery, and more.
Specialized OIZs
These zones are tailored for specific industries or sectors. Examples include:
- Chemical OIZ for only chemical sector and related areas.
- Defense and Aerospace Industry Zones for companies involved in defense manufacturing.
- Energy OIZ for energy-related projects.
Free Trade Zones (FTZs)
- FTZs allow businesses to carry out international trade activities without being subject to certain duties and taxes.
- Foreign investments are especially encouraged in these zones.
- These FTZs are not considered as OIZs.
- They are subject to a different legislation.
Major OIZ Locations
İstanbul
İstanbul OIZ: As one of the most industrialized cities, İstanbul has several OIZs. These zones host a variety of industries, from automotive to electronics.
Kocaeli
Kocaeli OIZ: Located near İstanbul, Kocaeli is an industrial hub, particularly for automotive, petrochemical, and machinery industries. The Gebze OIZ is particularly well-known in the region.
Dilovası OIZ: Major industrial zone specializing in manufacturing, with a focus on automotive, machinery, and chemical industries.
Bursa
Bursa OIZ: One of the most important OIZs in Turkey, focused on automotive and textiles. It is home to several international companies and plays a vital role in Turkey’s automotive supply chain.
Ankara
Ankara OIZ: The capital city has a well-developed OIZ with a diverse range of industries, including defense, electronics, and machinery.
İzmir
İzmir Atatürk OIZ: Located in the country’s third-largest city, this OIZ is significant for its focus on textile, automotive, and electronics industries.
Aegean Free Zone (Ege Serbest Bölge): An FTZ in Izmir that attracts international businesses and has a strategic location for trade with Europe, Asia, and the Middle East.
Antalya
Antalya OIZ: This region is known for tourism, food processing, and light manufacturing industries. The OIZ helps accommodate businesses seeking proximity to the Mediterranean region.
Konya
Konya OIZ: Known for manufacturing industries, including agricultural machinery, automotive parts, and textiles.
Mersin
Mersin OIZ: Located along the Mediterranean coast, Mersin has one of Turkey’s busiest ports, making it an attractive location for logistics, manufacturing, and export-oriented businesses.
Gaziantep
Gaziantep OIZ: A hub for textiles, food production, and machinery. It is one of Turkey’s major export centers, especially in textiles and food products.
Sakarya
Sakarya OIZ: This zone is increasingly becoming an industrial center for the automotive sector and parts manufacturing.
Tekirdağ
Tekirdağ OIZ: Located near the Marmara Sea, Tekirdağ OIZ is known for industries like automotive, textiles, and metalworking.
Kayseri
Kayseri OIZ: Known for its diverse manufacturing, including textiles, machinery, and furniture, Kayseri is an important industrial city in central Turkey.
Eskişehir
Eskişehir OIZ: This zone is known for its focus on the railway, aerospace, and defense industries, as well as machinery manufacturing.
Denizli
Denizli OIZ: Famous for its textile industry, Denizli OIZ supports the city’s role as a major textile production center.
How to Invest or Set Up a Business in an OIZ
Research: Identify the most suitable OIZ for your industry and location preferences.
Contact the OIZ Administration: Each OIZ is managed by board of directors and zone administration. Contact the local OIZ administration for detailed information about land availability, regulations, and pricing.
Prepare Documents: You will need to prepare standard company documents (e.g., articles of association, tax number, proof of capital) for submission.
Submit Application: Submit your application to the OIZ administration, including information on your planned business activities, projected employment, and investment plans.
Sign Lease/Purchase Agreement: Once approved, you can lease or purchase land within the OIZ to set up your manufacturing or office facilities.
Start Operations: After fulfilling all legal and infrastructure requirements, you can begin your operations in the zone.
Key Factors to Consider
Tax and Incentives: OIZs typically offer various tax benefits, including exemptions from VAT on certain equipment, reduced corporate tax rates, and incentives for R&D and technology businesses.
Employment Benefits: Depending on the zone, there may be subsidies or reduced social security premiums for companies that hire local employees.
Logistics: Proximity to ports, highways, or railroads can be a key factor in choosing the right OIZ.
Organized Industrial Zones in Turkey provide a well-structured and supportive environment for a wide variety of industries, ranging from textiles to high-tech manufacturing. These zones not only offer essential infrastructure but also various financial incentives, making them attractive to both local and foreign investors. Each OIZ has its own unique advantages, depending on your business needs and industry. By carefully selecting an OIZ based on factors like industry specialization, location, and available incentives, businesses can effectively leverage these zones to enhance their operations in the country. Please feel free to contact us for more information and further inquiries about our unique services. You can also subscribe to Tacirsoft Hukuk Bilgi Sistemi, that is Turkey’s only Corporate Law and OIZ Law database.
