Turkey has emerged as a prime destination for foreign investors and entrepreneurs. With its strategic location bridging Europe and Asia, a dynamic economy, and a supportive government, Turkey offers immense potential for business growth.
Whether you are interested in online company registration in Turkey or exploring the overall process of setting up a business in Turkey for foreigners, this guide has everything you need.
In this guide you will learn about:
Benefits of Starting a Business in Turkey
1. Strategic Location
Turkey’s position at the crossroads of Europe and Asia provides access to diverse markets, making it a hub for international trade. Its proximity to major economies in Europe, the Middle East, and Central Asia makes it a prime choice for businesses seeking global reach.
2. Growing Economy
Turkey is one of the fastest-growing economies in the world, with a focus on sectors like manufacturing, tourism, and technology. A young and dynamic workforce also contributes to its robust economic growth.
3. Business-Friendly Environment
The Turkish government has implemented policies to attract foreign investment, including tax incentives, reduced bureaucracy, and various free trade agreements.
4. Affordable Costs
From Turkey company registration costs to operational expenses, starting and running a business in Turkey is often more cost-effective than in many Western countries.
5. Infrastructure
One of the key factors attracting foreign investors is the presence of essential infrastructure and reduced transportation costs. Turkey has made significant strides in developing its core infrastructure, including transportation, communications, energy, and technology.
6. Top quality workforce
Turkey offers a well-educated workforce emerging from top universities, providing access to skilled professionals. Labor costs also remain highly competitive, often significantly lower than in most European and global markets.
Who Can Start a Business in Turkey?
Anyone can start a business in Turkey. However, things are a lot easier if you obtain citizenship. Luckily, the Turkey Citizenship by Investment program offers one of the fastest ways to obtain citizenship, with a designated option for starting a business.
The investment scheme invites qualifying applicants to invest in Turkey, in exchange for lifelong citizenship rights. To qualify for Turkish citizenship by investment, you must:
- Create jobs for at least 50 people in Turkey OR
- Contribute $500,000 to government bonds OR
- Acquire at least $400,000 worth of real estate OR
- Invest a minimum of $500,000 in fixed capital contributions OR
- Deposit at least $500,000 into a Turkish bank account OR
- Make a $500,000 fixed capital investment into a Turkish business
Business Opportunities in Turkey for Foreigners
If you’re considering opening a business in Turkey, knowing which industries are lucrative can be a big help. The following business opportunities are ideal for starting a business in Turkey as a foreigner:
- Real estate: Turkey’s real estate market continues to attract foreign investors, with opportunities in both residential and commercial properties. Whether purchasing rental units, investing in luxury developments, or acquiring office spaces, buying property in Turkey offers strong returns.
- Hospitality and tourism: As a globally recognized travel destination, Turkey’s tourism sector offers lucrative opportunities. Investors can explore ventures such as hotels, resorts, restaurants, and travel agencies, as well as the growing field of medical tourism.
- Technology: The Turkish government actively promotes the tech industry, encouraging both local startups and foreign IT companies. Opportunities exist in areas such as software development, IT outsourcing, and tech innovation.
How to Start a Business in Turkey as a Foreigner
Foreign entrepreneurs in Turkey have the same rights as citizens (those with a Turkish passport) when it comes to business ownership. Here is a step-by-step overview of the business setup process:
Step 1: Choose Your Business Structure
The most common types of businesses for foreigners in Turkey are:
- Limited Liability Company (LLC): Requires at least one shareholder and a minimum capital of 10,000 TRY.
- Joint Stock Company (JSC): Ideal for larger businesses and requires a minimum capital of 50,000 TRY.
Step 2: Obtain a Tax Identification Number
You’ll need a tax ID to carry out legal transactions. This can be obtained from any local tax office with your passport.
Step 3: Register Your Company Name
Conduct a Turkey company register search through the Turkish Trade Registry to ensure your desired business name is available. You’ll need to reserve the name during the registration process.
Step 4: Prepare Required Documents
Document requirements for starting a business include:
- Articles of Association
- Proof of address (lease agreement or ownership documents)
- Copies of shareholders’ passports
- Notarized signatures
Step 5: Submit Documents and Pay Registration Fees
Submit your documents to the Trade Registry Office. Upon approval, you’ll receive a Turkey company registration certificate and your Turkey company registration number.
Step 6: Open a Bank Account
You’ll need a local business bank account to deposit the minimum share capital and manage financial transactions.
Step 7: Register for Social Security and Taxes
All businesses in Turkey must be registered with the Social Security Institution and obtain a tax registration.
Step 8: Obtain Necessary Permits
Depending on your business type, you may need specific permits or licenses.
Online Company Registration in Turkey
Setting up a company in Turkey can be done entirely online through MERSIS (Central Registry Record System), the country’s digital business registration platform. This system streamlines the process by allowing entrepreneurs to submit all necessary documents for online company registration in Turkey electronically.
Foreign investors looking to expand can easily register a company in Turkey for foreigners, you’ll need to provide key documents such as the Articles of Association and proof of capital. These are submitted via the Turkish Trade Registry Gazette’s digital platform. Once approved, your company is officially registered, enabling you to start operations without the need for extensive paperwork or in-person visits.
Costs of Starting a Business in Turkey
Here’s an overview of the main expenses you may incur for company formation in Turkey:
Company Registration Fees | Approximately 1,000 to 2,000 TRY |
| Notary and Translation Costs | 500 to 1,000 TRY |
| Legal Assistance | 2,000 to 5,000 TRY (optional but recommended) |
| Minimum Capital | 10,000 TRY for LLCs and 50,000 TRY for JSCs |
Corporate Tax in Turkey
Based on taxes in Turkey, corporate tax is currently set at 25%. This rate applies to most companies, however a higher rate of 30% applies to financial institutions such as banks and insurance companies.
Turkey also has 18 free zones, offering a special tax regime, including:
- No stamp duty
- No corporate or income tax
- No property or real estate taxes
- No VAT on logistics to third party countries
Challenges and Solutions for Foreign Entrepreneurs in Turkey
Navigating Bureaucracy
Turkey’s bureaucracy can be a daunting challenge for foreign entrepreneurs. Complex procedures for business registration, obtaining permits, and meeting legal requirements may result in delays and frustration.
Common hurdles:
- Language barriers when dealing with government offices.
- Lengthy processes for acquiring work permits and business licenses.
- Confusion over the specific company documents required for various filings.
Solutions:
- Hire a local law firm or legal advisor: Experienced professionals can guide you through the registration process, ensuring all documents are accurate and submitted on time.
- Learn basic Turkish: While not mandatory, understanding key phrases can help smooth interactions with local officials. Additionally, if you’re planning on moving to Turkey, learning some of the local language is highly recommended.
Understanding Turkish Business Culture
Cultural differences can sometimes lead to misunderstandings or inefficiencies in the workplace. Turkish business culture places significant emphasis on relationships, trust, and communication.
Key differences to consider:
- Building trust and rapport is essential before finalizing any agreements.
- Meetings often include informal discussions before diving into business matters.
- Hierarchies are respected, and decisions are typically made by senior leaders.
Tips for smooth operations:
- Invest in networking: Attend local business events and connect with Turkish entrepreneurs. Personal connections often facilitate smoother negotiations.
- Be patient and flexible: Building trust takes time; don’t rush the process.
- Adapt to communication styles: Direct communication is appreciated, but politeness and courtesy are equally valued.
Ensuring Compliance with Turkish Laws
Staying compliant with Turkish laws is critical to avoid penalties and ensure long-term success. Taxation, employment regulations, and trade compliance are areas that require close attention.
Key areas to monitor:
- Tax regulations: Ensure timely filing of Value Added Tax (VAT), corporate income tax, and payroll taxes at the relevant tax office.
- Employment laws: Understand the minimum wage, working hours, and social security contributions.
- Trade compliance: Follow import/export regulations if your business involves international trade.
Solutions:
- Hire a certified accountant: Local accountants are well-versed in Turkish tax laws and can help maintain accurate records and meet deadlines.
- Stay updated on changes: Regularly check announcements from the Revenue Administration (Gelir İdaresi Başkanlığı) and other regulatory bodies.
- Use legal support: Consult with lawyers specializing in Turkish business law to review contracts and ensure full compliance.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
