Turkey is a thriving business hub, offering attractive opportunities for foreign investors and entrepreneurs. With a strategic location, a strong economy, and a business-friendly environment, Turkey is an excellent destination for starting a business. This guide covers everything you need to know about establishing a business in Turkey as a foreigner.
Why Start a Business in Turkey?
- Strategic Location: Gateway to Europe, Asia, and the Middle East.
- Growing Economy: One of the fastest-growing economies with increasing investment inflows.
- Government Incentives: Tax benefits, investment support, and free zones.
- Skilled Workforce: A young, dynamic, and cost-effective labor market.
Types of Business Entities in Turkey
Foreign entrepreneurs can choose from various business structures depending on their needs:
1. Limited Liability Company (LLC – Ltd. Şti.)
- Most common business structure.
- Requires at least one shareholder.
- Minimum capital requirement: 10,000 TRY.
2. Joint Stock Company (JSC – A.Ş.)
- Suitable for larger investments and businesses.
- Minimum capital requirement: 50,000 TRY.
- Can issue shares and be publicly traded.
3. Branch Office
- An extension of a foreign company.
- Must operate under the same name as the parent company.
- Requires local registration but not separate capital.
4. Liaison Office
- No commercial activity allowed.
- Used for market research and representation.
- Must obtain approval from the Ministry of Trade.
Step-by-Step Process to Register a Business in Turkey
Step 1: Choose Your Business Type & Structure
Decide which company type suits your needs and future business plans.
Step 2: Prepare the Required Documents
- Passport copies of shareholders.
- Company articles of association.
- Tax identification number for foreign partners.
- Proof of registered office address in Turkey.
Step 3: Register with the Trade Registry Office
- Submit documents to the Trade Registry Office.
- Obtain the Tax Identification Number.
- Get approval for the company’s articles of association.
Step 4: Open a Business Bank Account
- Deposit the required minimum capital.
- Activate an operational business account.
Step 5: Obtain Necessary Licenses & Permits
Depending on your industry, you may need special business permits from regulatory authorities.
Step 6: Register for Tax & Social Security
- Register with the Turkish Tax Authority.
- Enroll employees in the Social Security Institution (SGK).
Investment Incentives for Foreign Entrepreneurs
Turkey provides various incentives to attract foreign investors, including:
- Corporate Tax Reductions
- VAT & Customs Duty Exemptions
- Free Trade Zones with Special Benefits
- R&D and Innovation Support
Common Challenges & How to Overcome Them
- Language Barrier: Hiring a local consultant or lawyer can help navigate bureaucracy.
- Regulatory Complexity: Working with an experienced accountant ensures compliance with Turkish business laws.
- Finding Local Partners: Networking with business chambers and investment offices can help find strategic partnerships.
Final Thoughts
Starting a business in Turkey as a foreigner is a great opportunity, thanks to the country’s dynamic economy and investor-friendly policies. By following the proper legal steps and utilizing available incentives, entrepreneurs can establish a successful venture in Turkey.
Ready to start your business in Turkey? Stay updated with the latest investment trends and business regulations on InTurkeyHub.com.
