Opening a business in Turkey has become an attractive option for many entrepreneurs. With its strategic location, growing economy, and favorable business environment, Turkey offers numerous opportunities for investors. In this blog post, we’ll explore the essential steps and considerations for starting a business in Turkey.
Understanding the Turkish Market
Before diving into the process of setting up your business, it’s crucial to understand Turkey’s market dynamics. The country’s diverse economy spans industries like technology, tourism, textiles, agriculture, and manufacturing. A deep dive into the market can provide valuable insights for entrepreneurs.
Assessing Opportunities: Look into rapidly growing sectors such as renewable energy, e-commerce, and real estate development. Did you know that e-commerce platforms in Turkey experience a surge in sales during Ramadan and other major holidays? Timing your product launches or campaigns around these cultural events can significantly boost your revenue.
Competitor Analysis: Analyze competitors within your chosen industry. Identify gaps they aren’t addressing, such as underserved customer segments or niche services. For example, small cities in Turkey often lack access to specialized products like eco-friendly goods—this could be your niche. Utilize tools like sectoral reports from Turkey’s Union of Chambers and Commodity Exchanges (TOBB) for localized data.
Legal Requirements for Starting a Business in Turkey
Navigating Turkey’s legal framework is essential for a smooth business setup.
Choosing the Right Business Structure: Whether it’s a sole proprietorship, a limited liability company (LLC), or a joint-stock company (JSC), the structure you choose will affect your operations, taxes, and liability. For instance, when registering a JSC, you are required to appoint a statutory auditor if your annual revenue exceeds TRY 40 million or if you have more than 50 employees.
Company Registration: All businesses must be registered with the Trade Registry Office. Did you know that when drafting your articles of association, you must explicitly list all the potential activities your business may engage in? Failure to include even minor activities could mean additional paperwork later to amend the document.
Licenses and Permits: Some businesses, such as those in the hospitality industry, need to secure municipal operating licenses, which often require compliance with local noise and environmental regulations. For example, cafés in Istanbul’s historic districts must adhere to specific aesthetic guidelines to maintain the area’s cultural integrity.
Financial Considerations
Efficient financial management is vital to your success in Turkey.
Opening a Business Bank Account: Turkish banks often require detailed documentation, including your company registration certificate, tax identification number, and proof of address. Some banks even offer expedited account opening services if you provide a local guarantor. Also, note that banks like Ziraat and İşbank have English-speaking staff in most major cities to assist foreign entrepreneurs.
Tax Obligations: Turkey has a corporate tax rate of 20%, but incentives may apply for businesses in free zones or those participating in government-supported R&D projects. Additionally, if you’re exporting goods, VAT refunds can be claimed within three months, providing significant cash flow benefits.
Hiring and Managing Employees
Turkey’s skilled and dynamic workforce is one of its key strengths.
Recruiting Talent: Leverage platforms like Kariyer.net or work with recruitment agencies specializing in your industry. Another small detail—universities in Turkey often host career fairs open to businesses. Partnering with these institutions can help you find young, qualified talent at a fraction of the cost of traditional hiring methods.
Labor Laws: Familiarize yourself with Turkey’s mandatory severance pay policy. If an employee with over one year of service is terminated without cause, they are entitled to one month’s salary for each year of service. Drafting employment contracts that explicitly outline these obligations can help avoid disputes.
Marketing Your Business in Turkey
Standing out in a competitive market requires a tailored marketing strategy.
Localization: Did you know that Turks prefer personalized interactions over automated responses? When responding to customer inquiries, avoid generic templates and opt for tailored messages to build trust.
Digital Marketing: Platforms like Instagram and TikTok are particularly popular in Turkey, making them powerful tools for engagement. Using Turkish-language hashtags like #indirim (discount) or #kampanya (campaign) can significantly increase your visibility during sales seasons.
Local Presence: Participating in industry expos like the Istanbul Trade Fair can boost your visibility. Small but critical detail: Have Turkish-language brochures ready for these events, as many attendees may not be fluent in English.
Where to Start?
Opening a business in Turkey presents exciting opportunities, but it requires understanding and navigating local legal processes. Did you know that even something as minor as signing your articles of association in blue ink instead of black can result in delays at the Trade Registry? Attention to such details is critical.
With the right guidance, however, the journey can be smooth and efficient. Whether you need help with company registration, legal compliance, or setting up your business infrastructure, Workon offers comprehensive support services to ensure your business thrives.
Explore our Business Starter Package to get started and receive a free consultation on the process of opening a business in Turkey. Partner with Workon to simplify the complexities and focus on your entrepreneurial goals.
One unexpected challenge is ensuring the use of correct ink color when signing official documents—blue ink is often required, and failure to comply can result in delays at the Trade Registry. Additionally, if your articles of association don’t list every potential business activity, you may face additional bureaucratic hurdles later to update them.
Universities in Turkey frequently host career fairs that are open to businesses. Attending these events not only allows you to connect with young, qualified talent but also provides cost-effective recruitment opportunities compared to traditional job portals or agencies.
Many banks in Turkey, such as Ziraat Bank and İşbank, have dedicated English-speaking staff in major cities to assist foreign business owners. If you lack a local guarantor, some banks offer expedited services if you provide additional documentation or work through a trusted local partner.
Yes, personalized communication is highly valued. Avoid using automated or generic responses when interacting with customers online. Engaging with Turkish-language hashtags like #indirim (discount) or #kampanya (campaign) on social media platforms like Instagram can help boost visibility, especially during sales seasons.
In historic areas, such as Istanbul’s old city districts, businesses must adhere to aesthetic guidelines that preserve the cultural integrity of the area. This can include restrictions on signage design, outdoor seating arrangements, and even color schemes for storefronts.
