The industrial sector is one of the key pillars of Turkey’s economy, playing a crucial role in increasing production capacity and promoting exports. Industrial facilities must obtain a capacity report to operate legally and benefit from various incentives.
This article provides detailed information about the Industrial Sector in Turkey and the Capacity Report Application Process, including the required documents and the general functioning of the industrial sector.
What is a Capacity Report in the Industrial Sector?
A capacity report is an official document that determines the production capacity of an industrial enterprise. In Turkey, capacity reports are issued by authorized institutions such as the Istanbul Chamber of Industry (ISO).
This report is essential for:
- Obtaining an Industrial Registration Certificate
- Accessing incentives
- Participating in tenders
- Planning industrial investments
Required Documents for a Capacity Report Application
Industrial enterprises must submit the following documents when applying for a capacity report:
- Application Petition (Written on company letterhead and signed by an authorized person)
- Valid Capacity Report Sample (If previously obtained)
- Certified Domestic Manufacturing Status Certificate (Approved by a CPA)
- Technical Information Note (Details about the production process and machinery)
- Financial Analysis Report (Prepared by a CPA, indicating domestic contribution)
- Original and Copy of Signature Circular
- Tax Certificate Copy
- Industrial Registration Certificate Copy
- List of Machinery and Equipment (Including specifications and supplier details)
Capacity Report Application Process for Industrial Enterprises
The capacity report application process for industrial enterprises consists of the following steps:
1. Application Submission
- Applications must be submitted to the Istanbul Chamber of Industry (ISO) or the relevant industrial chamber.
- If any documents are missing, the application may be rejected or corrections may be requested.
2. On-Site Inspection and Reporting
- After the application, experts conduct an on-site inspection of the enterprise.
- The production capacity, machinery inventory, and raw material usage are evaluated.
3. Issuance of the Capacity Report
- Once all evaluations are completed, the capacity report is prepared and delivered to the enterprise.
- The validity period of the capacity report is 3 years.
Importance of a Capacity Report for Industrial Enterprises
A capacity report provides several advantages for industrial enterprises:
- Mandatory for obtaining an Industrial Registration Certificate
- Necessary for benefiting from investment incentives
- Used to document production capacity for credit and financing applications
- Can be presented to institutions requiring documentation for export and import processes
Industrial Investments and Production Capacity
Turkey is an attractive market for industrial investments. Manufacturing facilities, especially those located in Organized Industrial Zones (OSB), can benefit from various tax advantages and incentives.
Key factors to consider when investing in an industrial facility include:
- Production capacity and raw material supply chain management
- Export support and incentives
- Industrial registration certificate and capacity report requirements
- R&D investments and innovation opportunities
Conclusion
Obtaining a capacity report is crucial for industrial enterprises to formalize their operations and benefit from incentives. Seeking professional consultancy services can ensure a faster and smoother process.
For more information about industrial investments and the capacity report process in Turkey, feel free to contact us.