agricultural investment in turkey

This slide describes steps of agricultural investment in Turkey. 1. Establishing a company in Turkey 2. Getting residence permission 3. Getting official permissions and licenses (EIA, municipality,

industrial zone etc.) 4. Benefit grants (EU IPARD, Food Agricultural and Livestock,

Regional development agency etc.) 5. Getting incentive license

http://www.invest.gov.tr/en-

US/INVESTMENTGUIDE/INVESTORSGUIDE/Pages/EstablishingABusinessInTR.aspx

It is possible to establish a company by applying to the relevant trade registry office with the required documents. The company is established once the founders declare their intent to set up a joint stock company in the articles of association, which have been issued in accordance with the law, and where they, with their notarized signatures, unconditionally acknowledge and undertake to pay the whole capital. The company receives its “legal entity” status upon registration with the trade registry.

Types of Companies Joint-stock company (A.Ş.) Limited liability company (Ltd. Şti.) Commandite company Collective company Cooperative company

This slide describes cost of establishing Limited Liability Company.

1. Notary, registering of company and other works is almost

3.500 TL.

2. ¼ of company’s capital must be deposited to bank. Minimum capital is 10.000 TL. So, 2.500 TL has to be deposited.

3. Accountant fee is between 1.000 TL to 2.000 TL per month.

4. Staff salary.

5. Office, facility or farm rent fee or cost

Consultancy companies helps the foreign investors to get residence permission.

Cost of this service changes according to period of residence

EIA (environmental impact assessment), building, farm, municipality, industrial zone etc.

These cost depends on size and place of farm or facility.

So, official permissions and license cost changes according to the size, investment type and place of facility or farm.

EIA (environmental impact assessment), building, farm, municipality, industrial zone etc.

These cost depends on size and place of farm or facility.

So, official permissions and license cost changes according to the size, investment type and place of facility or farm.

There are various grant program for agriculture investment in

Turkey. These are;

TKDK (EU IPARD)

Ministry of Food, Livestock and Agriculture

Regional Development Agency

EU supports agriculture and food investment in Turkey. Only 42 provinces can benefit TKDK grants. These provincies;

TKDK grants; 1. Milk producing enterprises (Farm) The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 1.000.0000 € Maximum Grant Amount : 500.000 €

2. Meat producing enterprises (Farm) The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 1.000.0000 € Maximum Grant Amount : 500.000 €

TKDK grants; 3. Milk processing and marketing (dairy, yoghurt, chess, pasteurized

milk etc.) enterprises The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 3.000.0000 € Maximum Grant Amount : 1.500.000 €

4. Meat processing and marketing (slaughter house, sausage,

processed meat etc.) enterprises. The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 3.000.0000 € Maximum Grant Amount : 1.500.000 €

TKDK grants; 4. Fruit or Vegetable processing and marketing enterprises. The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 1.250.0000 € Maximum Grant Amount : 625.000 €

4. Fish processing and marketing. The scope of the support (grant) : machinery-equipment,

construction, service procurement (engineering, project etc.)

Maximum Project budget : 1.500.0000 € Maximum Grant Amount : 750.000 €

Ministry of Food, Livestock and Agriculture grants amount and subject changes by year. We can summarize the grants such as supports existing farms or facilities or new investments.

1.New investment such as farm, fruit-vegetable, meat, milk

processing, licensed warehouse etc. The grant amount is between 100.000 $ to 200.000 $ last year.

2. Supports for existing farms and facilities are fertilizer, organic

agriculture, analysis, plantation, ovine, bovine, milk producing, vaccine, fuel etc. These are operational supports.

Within the framework of the implementation of support measures, Level 2 Regions, as specified in the Statistical Classification of Regional Units determined by the Council of Ministers Decree dated 28/8/2002 and No:2002/4720, have been divided into 6 rregions by considering their socio-economic development status.

Investments are supported through 4 different incentive schemes and 9 different incentive instruments designed within the scope of the new program. Contributions provided to investors through incentive instruments depend on the characteristics of the investment and applicable schemes. This chapter elaborates on the scope of incentive instruments in order to clarify the details of such contributions. There are concrete examples, presented below, for providing investors with more information on the incentive instruments. Livestock, greenhouse, milk, meat, food production investment are located in regional investment incentive scheme.

The Regional Investment Incentive Scheme offers supports in 6 regions, grouped according to their socio-economic characteristics, for certain industries identified in line with the competitive potentials and economic scales of these regions. This scheme provides support at different rates and terms depending on the economic development level of the specific region. For instance, considering two investment projects of the same kind in an industry supported both in Region 1 and 6, the one in Region 6 will receive a higher contribution rate in terms of tax deduction, SSP Support for Employer’s Share for a longer term and a higher rate and amount of interest rate support. Additionally, the same project will benefit from SSP Support for Employee’s Share and Income Tax Withholding Support, which are not available for investment projects in other regions.

http://www.economy.gov.tr/

THANKS Emin Ugur Divitci

Investment Consultant

Electrical-Electronic Engineer

Phone: +90.532.4252357

Email : emin.divitci@gmail.com