Turkey is a thriving economic hub with a strategic location bridging Europe and Asia, making it an attractive destination for foreign entrepreneurs. The country offers a business-friendly environment with opportunities in various sectors such as tourism, real estate, technology, and manufacturing. If you’re a foreigner considering starting a business open company in turkey, this guide will walk you through the key steps, legal requirements, and benefits of establishing your company.
Why Start a Business in Turkey?
- Strategic Location – Turkey’s geographical position allows easy access to markets in Europe, the Middle East, and Asia.
- Growing Economy – As one of the world’s emerging economies, Turkey offers numerous investment opportunities.
- Favorable Business Climate – The government provides incentives for foreign investors, including tax benefits and simplified company registration procedures.
- Low Startup Costs – Compared to many European countries, the cost of starting and operating a business in Turkey is relatively low.
- Access to a Large Market – With a population of over 85 million people, Turkey offers a significant domestic market for businesses.
Steps to Start a Business in Turkey as a Foreigner
1. Choose the Right Business Structure
Foreigners can establish different types of businesses in Turkey, including:
- Limited Liability Company (LLC – Ltd. Şti.) – The most common and recommended type for small to medium-sized businesses.
- Joint-Stock Company (A.Ş.) – Suitable for larger businesses requiring higher capital and shareholders.
- Branch Office or Liaison Office – Ideal for foreign companies expanding into Turkey.
For most entrepreneurs, an LLC (Limited Liability Company) is the best option due to its flexibility, simple setup, and lower capital requirement.
2. Choose a Business Name and Register It
The business name must be unique and comply with Turkish trade laws. You can check and reserve a name through the Turkish Trade Registry Gazette.
3. Prepare the Required Documents
To register a company, you will need the following:
- Passport copies of all shareholders
- Tax ID numbers for each foreign investor (obtained from the Turkish tax office)
- Articles of Association (prepared and notarized)
- Address of the company (a virtual or physical office is required)
- Minimum share capital (10,000 TRY for LLCs)
4. Register Your Company with the Trade Registry Office
Once your documents are ready, you need to register your company at the local Trade Registry Office (Ticaret Sicili Müdürlüğü). This process takes about 1-2 weeks. After approval, your business will receive an official registration certificate.
5. Open a Corporate Bank Account
After registering your company, you need to open a business bank account in Turkey. Some of the major banks that offer corporate accounts include:
- İşbank
- Garanti BBVA
- Akbank
- Ziraat Bank
A business bank account is required to deposit your company’s minimum capital and for financial transactions.
6. Obtain a Tax Number and Register for VAT
You must register your business with the Turkish Tax Office (Vergi Dairesi) to receive a corporate tax ID and VAT number. This process ensures that your company is legally recognized for tax purposes.
7. Obtain Necessary Permits and Licenses
Depending on the industry you’re entering, you may need additional licenses or permits. Common regulated industries include:
- Tourism (requires approval from the Ministry of Culture and Tourism)
- Real Estate (requires a special business license)
- Finance and Banking (regulated by the Banking Regulation and Supervision Agency)
8. Hire Employees (If Needed) and Register for Social Security
If your business requires employees, you must register with the Social Security Institution (SGK) to ensure compliance with labor laws. Turkey has specific employment rules for hiring both local and foreign workers.
Legal Considerations for Foreign Entrepreneurs
- Foreign Ownership: Foreigners can own 100% of a business in Turkey without the need for a local partner.
- Work and Residence Permits: If you plan to live in Turkey, you need a residence permit and a work permit linked to your company.
- Tax System: Corporate tax in Turkey is currently 20% (subject to change). VAT varies between 1% and 18%, depending on the sector.
Business Opportunities for Foreigners in Turkey
Some of the best business sectors for foreign investors in Turkey include:
- Tourism and Hospitality – Turkey is a top global tourist destination, making hotels, travel agencies, and restaurants profitable ventures.
- Real Estate and Construction – Foreigners can invest in property, benefiting from Turkey’s real estate boom.
- Technology and Startups – Istanbul and Ankara are growing tech hubs with government incentives for entrepreneurs.
- Export and Trade – Turkey’s location makes it an excellent place for international trade and export businesses.
- E-commerce and Retail – Online businesses are growing rapidly due to increasing internet penetration and digital payments.
Challenges of Starting a Business in Turkey
- Language Barrier – Most official documents are in Turkish, so hiring a local consultant or lawyer can be helpful.
- Bureaucratic Processes – While business registration is straightforward, some industries require additional permits that may take time.
- Cultural Differences – Understanding Turkish business culture and etiquette can help in negotiations and partnerships.
Final Thoughts
Starting a business in Turkey as a foreigner is a promising opportunity due to its economic growth, strategic location, and favorable business environment. By following the legal steps and understanding the market, you can successfully establish and grow your business.
If you need assistance, consulting a business lawyer or investment advisory firm in Turkey can help you navigate the legal procedures and ensure a smooth registration process.
Would you like more details on a specific industry or legal requirements? Let me know how I can help!