BUSINESS LICENCE OBLIGATION FOR THE WORKPLACES OF SANITARY ENTERPRISES (IN TURKISH “SIHHİ MÜESSELER”)

The Regulation on Workplace Opening and Operating Licenses (in Turkish “İşyeri Açma ve Çalışma Ruhsatlarına Ilişkin Yönetmelik”, hereinafter referred to as the “Regulation”) published in the Official Gazette dated 10 August 2005 and numbered 25902 sets forth mainly the procedures and principles applicable to the issuance of the Opening and Operating Licenses (in Turkish “İşyeri Açma ve Çalışma Ruhsatı”, hereinafter referred to as “Business License”) for the workplaces subjected thereto. As set forth in the Article 4 of the Regulation, Business License shall be deemed as the permission granted by the competent authorities to such workplaces for the opening and for the conduct of their activities.

Scope of the Regulation:

The Regulation evaluates the workplaces under three main categories for the issuance of the Business Licenses. As defined in Article 4 of the Regulation, such categories are;

1. • Non-Sanitary Enterprises (in Turkish, “gayrisıhhi müesseseler”): This category refers to the establishments damaging or having the risk to damage their neighbourhood biologically, chemically, physically, socially and morally and/or those polluting or having the risk to pollute natural resources due to their activities. The establishments falling into such category are evaluated under three sub-categories based on their danger levels.

1. • Sanitary Enterprises (in Turkish, “sıhhi müesseseler”): This category refers to those establishments that are not classified as “non-sanitary enterprises”.

• • Public Places of Entertainment and Recreation (in Turkish “umuma açık istirahat ve eğlence yerleri”): Such establishments are the places having the facilities allowing people to rest, relax and stay at night individually or together such as hotels, motels, hostels, campsites and similar accommodations; casinos, nightclubs, pubs, bars, tipsy restaurants, taverns and other places serving alcohol; video game places, internet halls, circuses, amusement parks etc.

B. Application Procedure and Required Documents for Sanitary Enterprises

a. Application and Required Documents

In order to duly open their workplaces and conduct professional activities within the scope of their field of operation, legal and real entities shall obtain the Business License to be issued by the competent public authority exclusively for the address where the given workplace is located. To this aim, an application file shall be prepared and submitted to such competent authorities.

Although the Regulation sets forth the documents that shall be requested from the applicants on a numerus clausus basis, it is, unfortunately, possible to encounter the document requirements addressed by certain local authorities to the applicants passing beyond such limitation foreseen in the Regulation, for practical reasons.

In the light of the said situation, the main documents to be comprised in a sample application file may be listed as follows:

1. 1. 1. Application form
      2. Trade registry gazette regarding the incorporation of the company
      3. Circular of signatures
      4. Tax plate
      5. Title deed
      6. Lease contract (If the company is lessee at the premises)
      7. Sublease contract ( If the company is sub-lessee at the premises)
      8. Invoice related to the fire extinguishers to be kept at the premises
      9. Environmental tax declaration for the address where the workplace is located
      10. Payment Receipt related to the Business License fees calculated and accrued by the competent authority
      11. Receipt of discharge (in Turkish “Borcu Yoktur Kağıdı”) issued for the applicant by the competent authority
      12. Fire inspection report issued for the workplace itself or for the building where the workplace is located

b. Fire Inspection

The positive evaluation of the application to the Business License by the competent authority requires the prior positive evaluation made by the competent experts regarding the compliance of the workplace with the requirements foreseen in the fire prevention legislation in force.

i, As foreseen in Article 5 of the Regulation, in cases where an affirmative fire inspection report had already been issued for the building where the workplace is located, the presentation of such report to the competent authority is deemed sufficient and no further fire inspection is required to be held at the workplace.

ii. However, if there is no such report for the building or if any change that may be significant for the evaluation conducted for the issuance thereof has been realized after the issuance of such report; a particular fire inspection report to be issued exclusively for the workplace is required. Such fire inspection report shall be issued following a fire inspection conducted at the workplace (i) by the fire inspection experts working at the Fire Inspection Department (in Turkish “Yangın Önlem Amirliği”) operating under the authority to which the application is made (e.g. local municipalities) (ii) or, depending on the location of the workplace, by the fire inspection experts working directly under the higher public authority (e.g. metropolitan municipalities).

Following such fire inspection;

• • If the workplace is evaluated being in conformity with the applicable fire inspection legislation, an affirmative fire inspection report shall be issued and submitted to the application file kept at the competent authority to which the application is made, which shall be thereafter communicated to the applicant. Upon issuance of such affirmative fire inspection report, the application file shall be transferred to the final decision – making commission for the issuance of the Business License.

• • If the workplace conditions do not comply with those required by the legislation, the deficiencies to be cured and the measures to be taken shall be indicated in the fire inspection report to be issued. Such negative report shall thereafter be submitted to the application file kept by the competent public authority to which the application was made, and shall be communicated to the applicant by the latter.

Upon its communication to the applicant, a reasonable time shall be granted to the latter for the required measures to be taken and the legal requirements to be complied with. Once it is confirmed by a subsequent fire inspection that the measures taken at the workplace, following the prior negative fire inspection report, satisfy the legal requirements with regard to fire prevention, then, an affirmative fire inspection report shall be issued and submitted to the application file kept at the competent authority to which the application is made, which shall be thereafter communicated to the applicant. Upon issuance of such affirmative fire inspection report, the application file shall be transferred to the final decision- making commission for the issuance of the Business License.

• • It shall be duly noted that, the aforementioned repetitive fire inspection mechanism shall not be used in bad faith and in a manner to gain time before the competent authorities for the continuity of professional activities at the workplace without a Business License. As foreseen in Article 6 of the Regulation, such attempt for the performance of the activities without Business License shall result in the closing of the workplace and the shutdown of the activities at such workplaces.

c. Issuance of the Business License

Once an affirmative fire inspection report is issued and submitted to the public authority competent for the issuance of the Business License, the application file shall be transferred to the final decision-making commission of the Directorate of Licenses and Auditing of such public authority.

Upon approval of the Business License by such commission followed by the issuance thereof, the applicant is ought to receive its Business License and keep it permanently at its workplace, as hung on the wall along with other official certificates which shall, by law, be hung on the wall; in a visible manner.

In case of change in the address, another application procedure shall be triggered for the issuance of a Business License to be issued for the new address.

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