Introduction
The Istanbul Financial Center (“IFC”) has been established as a strategic initiative aimed at strengthening Türkiye’s integration into the international financial system and transforming Istanbul into a global financial hub. The project is grounded in Law No. 7412 on the Istanbul Financial Center (“IFC Law”), the Regulation on the Istanbul Financial Center (“IFC Regulation”) published in the Official Gazette on July 7, 2023, and the relevant secondary legislation. Please refer our legal alert titled “Istanbul Financial Center: Details Unfolded” published on July 11, 2023 for details regarding the incorporation of the IFC.
Recently, the attractiveness of the IFC has significantly increased for both domestic and foreign investors along with comprehensive tax incentives and operational conveniences granted through participant certificate (“Participant Certificate”) to eligible institutions operating within the IFC (“Participant”) and in particular, with the implementation of the “One-Stop Bureau” model, which centralizes access to public services, has minimized bureaucratic processes. Within this framework, it is aimed that the procedures and practices applicable to companies operating in the IFC will be carried out in a more integrated, simultaneous, and expedited manner. This legal alert aims to clarify the evolving processes in special to the company incorporation and operational steps within the IFC, particularly following the implementation of the One-Stop Bureau.
Participants and Participant Certificate
In order to be Participant to IFC, no specific limitations are imposed in terms of fields of activity of companies; however, the business activities of companies are decisive in the evaluation of Participant Certificate applications and in determining the scope of the incentives granted. In this context, companies operating within the IFC are generally assessed under two main categories: financial and non-financial institutions. Financial institutions include companies operating in areas such as banking, capital markets, insurance, payment services, and similar sectors in accordance with the relevant legislation. Such institutions may benefit from various tax incentives, particularly if they engage in the export of financial services or position themselves as regional treasury and financial management centers. For non-financial institutions, priority is given to companies operating in sectors aligned with the IFC’s strategic priorities, such as logistics, commodity trading, consultancy, technology, energy, artificial intelligence, and sustainable finance whereas additional incentives are available, particularly for transit trade activities. Please refer our legal alert titled “Türkiye’s New Tax and Investment Reform Package: Key Highlights” published on May 22, 2026 for detailed information on recent incentives introduced.
The Participant Certificate constitutes the principal authorization document that companies must obtain in order to operate within the IFC. This certificate confirms that companies will operate in compliance with IFC legislation and serves as a prerequisite for benefiting from the incentives and advantageous mechanisms provided. However, obtaining a Participant Certificate does not, in itself, guarantee access to all incentives, nor can it be considered a necessary and sufficient license or permit for carrying out activities. Applications for the Participant Certificate are evaluated based on the company’s field of activity, the nature of the services it provides, and its alignment with the strategic objectives of the IFC. These criteria play a decisive role in both the issuance of the certificate and the determination of its scope. In order to support the application process of Participant Certificate, IFC Law and IFC Regulation incorporate the One-Stop Bureau model.
One-Stop Bureau
As set out under the IFC Law, in order to accelerate the processes relating to permits, authorizations, licenses, and similar approvals required for the activities of Participants, as well as the approval processes concerning their employees and the dependents of such employees, the relevant units of public institutions and organizations have been enabled to operate more efficiently under a centralized structure within the IFC through the One-Stop Bureau model. This model, regulated under the IFC Law and the IFC Regulation, has been effectively implemented as of the end of May 2026. The One-Stop Bureau not only supports the preliminary evaluation process for Participant Certificate applications but also provides guidance throughout the incorporation process of Participant candidates. In addition, it enables applicants to submit applications for activity permits, authorizations, licenses, and other administrative procedures through a single platform and allows the coordination of these processes to be managed centrally.
At present, the One-Stop Bureau includes representatives from the relevant units of various public institutions and authorities, including the Ministry of Labor and Social Security, the Ministry of Environment, Urbanization and Climate Change, the Ministry of Treasury and Finance, the Ministry of Interior, the Ministry of Trade, the Banking Regulation and Supervision Agency, the Capital Markets Board, the Insurance and Private Pension Regulation and Supervision Agency, the Central Bank of the Republic of Türkiye, the Istanbul Trade Registry, the Tax Office, the Social Security Institution, İŞKUR (Turkish Employment Agency), the Istanbul Provincial Directorate of Migration Management, and the Ümraniye Municipality. Depending on the needs of Participants operating within the IFC, the scope of institutions and organizations represented within the One-Stop Bureau may be expanded where deemed necessary.
Preliminary Evaluation Process for Participant Certificate Applications
A comprehensive preliminary evaluation stage is conducted for companies seeking to obtain a Participant Certificate in order to operate within the IFC. During this stage, an assessment is carried out to analyze whether the applicant is capable of operating in a sustainable and effective manner within the IFC ecosystem.
Within the scope of this preliminary evaluation process, the following information is requested:
- Detailed projections regarding the company’s activities,
- Key corporate information (such as trade name, capital structure, shareholding structure, and international operations),
- Financial and corporate documentation relating to shareholders (e.g., tax filings and group structure),
- Operational information such as the planned office space, number of employees, and lease term.
The evaluation goes beyond a purely formal review and takes into consideration factors such as the company’s actual operational capacity, its international presence, its potential impact on competitiveness, its prospective contribution to the IFC and Türkiye’s financial ecosystem, and its alignment with IFC strategies. For companies that are already incorporated and wish to continue their operations within the IFC, holding the necessary licenses, where their activities are subject to licensing, is of critical importance. For companies intending to incorporate a new entity directly within the IFC, it is essential to demonstrate, during the preliminary evaluation process, that they possess the qualifications required to obtain the relevant permits and licenses for their activities. It is observed that the preliminary evaluation process is completed within approximately one month.
If the preliminary evaluation process concludes with a positive outcome, for companies that have not yet been incorporated, a letter of engagement will be executed between the IFC and the shareholder of the prospective Participant. This letter of engagement will include commitments regarding the incorporation of the company, obtaining the necessary operational permits, and the key terms to be included in the lease agreement to be signed after incorporation. At this stage, the IFC may also require additional obligations from the Participant, such as the provision of a cash deposit. For companies that are already incorporated, a positive outcome of the preliminary evaluation process leads directly to the execution phase of the lease agreement.
Company Incorporation and Lease Agreement
One of the most notable recent developments in the IFC framework is the integration of the company incorporation process with the preliminary evaluation and formal application processes carried out within the scope of the Participant Certificate. Under the previous practice, for Participants whose companies had not yet been incorporated, the approach was to incorporate the company outside the IFC and subsequently relocate its headquarters to the IFC following the completion of the Participant Certificate application. Accordingly, it was not possible for companies to be incorporated directly using an IFC address. However, under the new framework, company incorporation may now be conducted simultaneously with the preliminary evaluation and application processes.
Through the One-Stop Bureau, Participant candidates are also provided with guidance regarding company incorporation procedures during the preliminary evaluation stage. Nevertheless, despite the presence of a representative of the Istanbul Trade Registry within the One-Stop Bureau, the certification of the company’s articles of association must still be completed before the relevant directorates of the Istanbul Trade Registry. Following incorporation, the applications before the tax office, the Social Security Institution, and the relevant regulatory authorities may be carried out through the One-Stop Bureau.
In this context, once the incorporation procedures are completed and registered with the Istanbul Trade Registry, the relevant company will execute a lease agreement with the IFC. While the execution of the lease agreement is a fundamental requirement for the use of an IFC address, Participants are also required, in order to obtain a Participant Certificate, to render their office spaces operational and to complete the necessary interior fit-out and setup processes.
Final Stage: Participant Certificate Application
In order to submit an application for a Participant Certificate, participants are required to render their offices leased within the IFC operational and, concurrently, obtain the necessary activity permits through the representatives of the relevant public institutions and organizations located within the One-Stop Bureau.
Following the completion of these stages, applications for the Participant Certificate are submitted via the IFC portal. During this process, it is verified by the IFC whether the participant has been duly incorporated and has commenced its operations in line with the information provided during the preliminary evaluation phase. In practice, once the required documents are uploaded to the IFC portal, it is observed that the issuance of the Participant Certificate is typically completed within approximately one to two weeks. On the other hand, certain applications may be accepted conditionally, with additional obligations required to be fulfilled following the issuance of the Participant Certificate. In order for participants to benefit from the incentives specific to their field of activity, they are required to submit the Participant Certificate granted to them to their respective tax office.
Conclusion
In conclusion, the IFC is positioned as a strategic hub for both financial institutions and companies engaged in non-financial activities, with its comprehensive legal framework, robust incentive mechanisms, and increasingly integrated application and incorporation processes. The Participant Certificate regime constitutes not only a permitting mechanism but also serves as the fundamental gateway to becoming part of the IFC. The coordinated execution of the company incorporation process, lease arrangements, and licensing obligations, commencing from the preliminary evaluation phase, necessitates careful planning of the overall process. In particular, the introduction of the One-Stop Bureau model has streamlined administrative procedures, thereby enhancing the accessibility of the IFC for international investors and concretely supporting Istanbul’s objective of becoming a global financial center.
