What is a Capacity Report? What is it Used For?

Do you have a factory but don’t know how to officially document your capacity? Or do you get confused when asked for a “capacity report” while applying for government support? In this article, we explain what a capacity report is, for whom it is mandatory, what it is used for, and step-by-step how to obtain it.

What is a capacity report?

A capacity report is the document that officially certifies the production power and technical capacity of industrial enterprises. This report is prepared by taking into account elements such as the company’s machinery, production area, raw material usage, workforce, and annual production amount. Thanks to this report, the maximum production capacity that the enterprise can theoretically reach is determined and becomes official.

In Türkiye, the preparation and validity of the capacity report is guaranteed by various legal regulations, primarily the Law No. 5174 on the Union of Chambers and Commodity Exchanges of Türkiye and Chambers and Commodity Exchanges, the Law No. 6948 on Industry Registration, and the Council of Ministers’ decision dated 1975. The obligation to have a capacity report in many areas, such as import-export transactions, incentive applications, and industry registration records, is based on these legal foundations.

For whom is a capacity report mandatory?

The capacity report is mandatory for all industrial enterprises engaged in production activities. Enterprises that are registered with the trade registry, are actively engaged in production, and have established machinery and equipment infrastructure, are required to obtain it. In addition, for enterprises that want to obtain an industry registration certificate, the capacity report is a fundamental requirement. Whether in the public or private sector, all enterprises that can technically document their production capacity must have a capacity report prepared.

What is a capacity report used for?

When applying for government-provided investment incentive certificates, KOSGEB supports, energy tariff discounts, or various grant programs, it is necessary to officially document the technical capacity and production power of the enterprise. In this respect, the capacity report plays an important role both in the enterprise’s relations with public institutions and in benefiting from incentive and support programs, serving as the main document showing whether the enterprise actually meets the specified conditions.

In relations with official institutions, the capacity report is a mandatory document in many areas, from obtaining an industry registration certificate to customs procedures, from import-export activities to public tenders. The capacity report is also referenced in certifications such as the Domestic Goods Certificate or the Manufacturing Competence Certificate. Government institutions also use these reports to measure industrial production potential, carry out sectoral planning, and shape economic policies. Therefore, the capacity report is indispensable both for enabling the enterprise to benefit from support and for carrying out official procedures without interruption.

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How to obtain a capacity report?

In Türkiye, the capacity report is mainly issued by the Chambers of Industry or Chambers of Commerce, and these chambers are authorized within the framework of TOBB (The Union of Chambers and Commodity Exchanges of Türkiye). The process that enterprises must follow to obtain a capacity report generally consists of the following steps and documents. However, since local Chamber (Industry/Commerce Chamber) practices may show slight differences, it is necessary to check the specific conditions of the institution to which the application will be made.

Application process steps

Membership status and chamber selection
Before applying, the enterprise must be a member of the Chamber of Industry or Chamber of Commerce. Industrial enterprises are usually registered with the Chamber of Industry, while small enterprises or those with small-scale production may be registered with the Chamber of Commerce.

Application via the relevant system
Applications are mostly made through the Industry Information System or the Chamber’s online application system. Company information, production site address, business activity, and similar data are entered electronically.

Preparation of required documents
All required documents must be collected before the application. If there are missing documents, delays may occur in the application process.

Payment transactions
Chamber service fees and TOBB approval fees are paid. In some chambers, there may be additional fees such as expert fees.

Expertise/on-site inspection
An expert team assigned by the Chamber visits the enterprise and verifies technical elements such as the enterprise scale, machinery, and production line on-site. It is checked whether the entered data and the declared machinery/equipment actually exist.

Preparation and submission of the report for approval
Once the inspection is completed, the capacity report is prepared and sent to relevant authorities, such as TOB, B, for approval. After approval, the document is delivered to the company or sent to the relevant address by the Chamber.

Validity period and renewal
The validity period of the report is usually 2 years, but if the machinery is rented or in special circumstances, this period may be shorter. Renewal applications must be made before the expiration date.

Required documents

The documents generally required are as follows:

• Duly completed capacity report application form (most Chambers may require two copies).

• Company signature circular (notarized original or copy), signature declaration/authorization form.

• A photocopy of the tax certificate and the company trade registry certificate.

• Industry registration certificate (if available).

• Machinery and equipment list; their ownership, values; if the machinery is rented, lease or leasing agreements and similar documents.

• SGK (Social Security Institution) notifications, the number of workplace employees, and worker insurance information.

• Quality certificates/permits/trademark registration or other special documents belonging to the enterprise, if any (ISO certificates, CE certificates, licenses/permits, etc.).

• Title deed or lease agreement of the workplace; relevant documents according to whether the workplace is owned or rented.

Points to consider during the application process

There are several important points to consider when applying for a capacity report. First of all, documents must be up to date. In particular, the validity of documents such as SGK records, certificates, and signature circulars should be checked. In addition, the machinery, equipment, and production facility must be actually operational; otherwise, a negative report may be received during the expert inspection. During the application, attention should be paid to the payment methods and fees determined by the Chamber, and the application form must be filled out completely and correctly. Incorrect or missing information may prolong the process. Tracking the application is also very critical. Through online systems, the stage of the process can be monitored, and if a missing document notification is made, it should be completed quickly. Finally, it is necessary not to miss the renewal time of the capacity report. If the validity period of the report has expired, some official procedures may be delayed or obstructed.

 

Sources: 1, 2.  

 

This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences arising from them.