Turkey Tightens Rules on Industrial Land Allocations and Share Transfers

Turkey has tightened rules on land allocations in organized industrial zones, including requiring ministry approval for major changes in a company’s ownership. According to Dünya, a regulation prepared by the Ministry of Industry and Technology was published and took effect on November 6.

If changes to a company’s shares exceed a total of 49% without ministry approval, its preliminary or land allocation can be canceled. The regulation does not ban share transfers, but the approval requirement will also be written into allocation contracts.

For preliminary allocations, a transfer of shares without ministry permission to pass on the allocation can lead to cancellation. The contract will set out how much of the payment is refunded, and when and under what conditions.

Businesses operating on a neighboring plot may receive priority when applying for an advertised plot, but only through an auction. If more than one applicant meets the same conditions, none will receive priority.

A business whose allocation was canceled after missing its investment deadline may reapply for the same plot before its payment is refunded. If the zone administration accepts the request and the ministry approves it, the plot can be allocated at its updated price without a new advertisement; no extra time extension can be granted under this provision.

The regulation also requires workplace operating permits in industrial zones to be signed electronically through an online system. It allows zone boards to approve certain rights over plots for third parties, but those rights cannot be transferred or extend beyond the plot’s allocation period.