The Regulation Regarding the Allocation of the Parcels Without Charge in the Organized Industrial Zones ("Regulation") Published in the Official Gazette and Entered into Force

Regulation determines principles and procedure regarding the allocation of the parcels in the organized industrial zones, wholly or partially and free of charge, to the real or legal persons as stipulated conditions by the Organized Industrial Zones Law No. 4562.

Abdülkadir Güzeloğlu & Tarık Kurban

Conditions for Free Allocation of the Parcels

According to the Regulation, unassigned parcels that is owned by an OIZ which is using Ministry loan can be allocated partially or wholly without any charge to the real or legal persons that is envisaging employment of at least ten persons in the event that a decision is taken by entrepreneur committee or general assembly of OIZ.

In the case a decision is taken by entrepreneur committee or general assembly of OIZ, unallocated parcels that is owned by the OIZs that have not used Ministry loans and the OIZs that have completed their infrastructures on their own and the OIZs that have completed their infrastructures and finished the paying of the Ministry loan, may be partly or wholly allocated to the real or legal persons without any charge.

The Regulation also gives the opportunity to benefit from free parcel allocation for the participants who allocate the parcels with charge in the OIZs, which are borrowing loans to the Ministry, before the date of entry into force of relevant article of the OIZ Law No: 4562. In order to benefit from this opportunity, it is necessary to fulfill the following employment conditions:

• For parcels up to 5.000 m2 at least 10 employee,

• For parcels from 5.000 m2 to 10.000 m2 at least 20 employee,

• For parcels from 10,000 m2 to 20,000 m2 at least 30 employee,

• For parcels larger than 20,000 m2 at least 50 employee.

Within the scope of the regulation, the real or legal entities who are requesting the parcel allocation should apply to the OIZ.

As per to the Regulation, upon the application for the allocation of parcels, the board of directors shall make an evaluation and must take a decision within the framework of the principles that is determined by the entrepreneur committee or general assembly of OIZ. The decision must be given within thirty days and shall be reported to the investors.

It is expected that the planned investment to the OIZs will increase with the help of the incentives programs of the Ministry. In this respect, the unemployment rate will drop, and the economy will be progressed. Thus Turkey's OIZ, one of the leading organized industry practice in the world, will proceed its place and looking forward to new developments with incentives, grants and supports that is provided by the Ministry.

Should you have any questions or inquiries Law No: 4562 on Organized Industrial ZonesTurkish investment legislation, incentives provided to investors or setting up business within a Turkish Organized Industrial Zone, please do not hesitate to contact us at

Author: Abdülkadir Güzeloğlu & Tarık Kurban
Relevant Fields: Organized Industrial Zone Law