Starting a business in Turkey

For foreigners, starting a business in Turkey is not only an opportunity to explore new sales markets, but also to significantly increase the company’s profits in the new environment. The government strongly supports startups and promising projects, offering entrepreneurs to take advantage of tax preferences and government subsidies. Free economic zones (FEZs) and technoparks have been created on the territory of the Republic, which facilitate the start of business and ensure its sustainable development. Turkish legislation allows foreign companies to operate in most sectors of the national economy, including trade, manufacturing, and services. According to statistics from last year, more than 95,000 foreign entrepreneurs are employed in the FEZ. The most sought-after niches turned out to be the IT industry, ship construction, and the service sector.

Advantages of starting a business in Turkey

Company registration comes with many preferences. Turkey is, first of all, a trade center between Europe and Asia. The authorities offer the same conditions for starting a business (regardless of whether the applicant is a resident of the country or not). The presence of technoparks and SEZs encourages foreign entrepreneurs to set up businesses on Turkish territory.

The advantages of starting a business are as follows:

• duty-free trade zone with the EU countries (a free trade agreement has been signed between Turkey and the EU countries);
• active support of startups from local authorities (provision of benefits and subsidies);
• low degree of economic risks (foreigners and residents of the Republic have equal opportunities to set up their own business);
• stable consumer demand (tourism sector, real estate, sphere rendering services are the most promising niches for business).

Free trade zones are one of the most important drivers of the Turkish economy. Their distinctive features are:

• Simplified administration procedure. The legal registration of a business takes several days, which makes it possible to enter the sales market in a relatively short time. Bureaucratic red tape on the part of officials has been minimized. Entrepreneurs planning to develop a business in the FEZ are given more freedom of action in terms of organizing their own business. There is no need to compensate the treasury for customs, stamp and port duties.
• Tax preferences and subsidies. Companies registered on the territory of the FEZ are not subject to income tax. Suppliers exporting goods for production purposes are exempt from VAT.
• Developed infrastructure. Many free trade zones have a strategic location (located in close proximity to seaports and airports, which greatly simplifies logistics). The FEZ contains office and production facilities that are necessary for doing business.
• Access to qualified personnel. For the purpose of self-realization, experienced specialists strive to enter technoparks and industrial zones. By hiring professionals, foreign employers contribute to improving the quality of work and services. It is aimed at attracting qualified personnel to the country, including Turkish Digital Nomad Visa program.
• Access to budget financing. Subsidies are provided for young entrepreneurs in 2025. The Turkish authorities are compensating for the costs of purchasing equipment, training and paying salaries to employees.

Starting your own business in Turkey is a process that requires a responsible approach, but at the same time it provides many opportunities for growth and development. Technoparks and innovative platforms for the implementation of business ideas open up great prospects for startups to scale.

Types of free economic zones

The Free zone is a special location that allows a foreigner to establish his own company and fully control his business. Autonomous laws governing the field of entrepreneurship, as well as individual taxation regimes, operate in such a territory. Also, a foreign investor is allowed to register an enterprise in a “free zone” with the opportunity to develop business outside of it, i.e. actually being in other countries.

The Free zone is divided into the following categories:

• technology parks;
• organized industrial zones;
• free economic zones.

Technoparks are created to carry out scientific research and attract capital to high-tech industries. Companies that are established in technological development zones do not pay corporate and income taxes. Additionally, they are exempt from customs duties and stamp duty compensation.

Organized industrial zones are characterized by a well-developed infrastructure, so investors try to create a business in them. Those wishing to purchase land in such locations are exempt from VAT.

Free economic zones contribute to the development of export business. In such locations, customs duties and some types of fiscal charges (in particular, VAT, corporate tax, employee payroll tax) have been abolished.

Tax regimes

The state authorities have provided for the following types of deductions to the budget for business owners:

• VAT (the base rate is 18%, it is lower for certain categories of goods and services (food, medicine, education – 8%; leasing of special equipment, agricultural supplies – 1%)).
• Corporate tax (the base rate is 20%, the amount of the fee depends on the status of the taxpayer, residents declare income earned both inside and outside the country; non–residents report only on profits earned in Turkey);
• The tax on banking and insurance transactions (the base rate is 5%; banking institutions and insurers contribute to the budget);
• A special consumption tax (focused on the following categories of goods: yachts, airplanes, petroleum products, tobacco products, alcoholic beverages, caviar; the rate is differentiated).

Additionally, companies are required to compensate the treasury for the stamp duty (calculated from each contract at a rate of 0.9%, for lease agreements – 0.1%).

Types of companies in Turkey

Choosing the organizational and legal form of a future enterprise is the most important stage in the successful implementation of a business idea in the Republic. Local legislation allows business registration in the following formats:

• JSC (Anonim Şirketi);
• LLC (LTD);
• Collective company (Kollectif Şirketi);
• Limited Liability Partnership/The Limited Partnership (Komandit Şirketi);
• Cooperative (Cooperatif).

Most of the foreign investors prefer to open joint-stock companies and LLC companies on the territory. The legal status of an enterprise determines the procedure for managing corporate property, the degree of responsibility of the founders, as well as the specifics of taxation. The possibility of attracting additional investments also depends on this parameter.

Turkish legislation imposes a differentiated set of requirements for the opening of companies of various organizational and legal forms (OPF). Let’s look at them in more detail.

Limited Liability Company (Limited Şirketi)

This format is created on the condition that the founder is willing to minimally invest 10,000 ₺ in the authorized capital. Cash is used as payment. You can deposit the amount within 2 years from the date of legal registration of the business. The maximum number of participants of a legal entity cannot exceed 50 people. In case of debts, their compensation is carried out at the expense of the company’s property. The management of the company is handled by the General Assembly and the Board of Directors.

Joint Stock Company (Anonim Şirketi)

The JSC’s fund is divided into shares. Its size depends on whether the founders plan to create an open or closed company (JSC – 50,000;; CJSC – 100,000 ₺). A quarter of the amount (25%) is deposited before the information is entered into the trade register, the rest after (in accordance with the approved schedule).

If the company has debts, the owners of the shares compensate for the damage only within the limits of their assets. The management functions in the JSC are assigned to the General Assembly and the Board of Directors.

Partnership and limited partnership

The first category of legal status can be established by only 2 participants. In the company, they have both a limited and unlimited form of responsibility. Active partners (individuals) may hold administrative positions at the enterprise. Commercial structures mainly act on the side of inactive partners.

As for limited partnerships, their fund is divided into shares. There are no requirements for its size.

The cooperative

This format of the OPF unites partnerships in which the responsibility of the participants is differentiated. There should be a minimum of 7 people among the founders of the company. Everyone’s share in capital formation is at least 100 ₺. The company’s management is handled by the General Meeting of Participants and the Board of Directors.

The easiest and fastest way to open a business in Turkey is to register a company in the LLC format. It is enough to specify 1 founder and deposit the required amount of the authorized capital. There are more bureaucratic formalities if an entrepreneur plans to hire staff (it is necessary to employ at least 5 citizens with Turkish citizenship and issue a residence permit).

How to open a company in Turkey for a non-resident

Turkish law allows foreigners to establish and manage commercial entities. They are also allowed to open subsidiaries, representative offices and branches in the Islamic State. If a foreign investor applies for an administrative position in a company, he will have to apply for a work visa.

Information about registered enterprises is recorded in the special register of the Chamber of Commerce and Industry (Chamber of Commerce and Industry).

Step-by-step procedure for starting a business

The company registration algorithm includes the following steps:

• Preparation of documentation (you will need: passports, residence permit cards, passport details of the founders, minutes of the general meeting of the founders, the Charter).
• Request ID from the tax authority (in the online via the government’s website).
• Opening an account with a banking institution (for the formation of the authorized capital; you will need a tax number and a passport).
• Submission of documents for registration in the MERSIS system (the procedure is carried out in a remote format on this Internet portal).
• Waiting for the company’s registration (an employee of the trade registry checks the availability of the necessary protocols, certificates and receipts, confirms the founder’s authority and enters information into the database).

Representatives of the trade registry notify the tax authority and social security services of the establishment of a new enterprise. In accordance with the rules of the Commercial Code, information on the establishment of a legal entity is published in the Bulletin of the Commercial Register (no later than 10 days after registration).

Required documents

To establish a company in Turkey, an interested party provides:

• application;
• the founders’ passports;
• the founders’ decision to establish a commercial structure;
• a power of attorney for a representative;
• Articles of Association;
• photos of each head – 4 copies
• samples of signatures of members of the Board of Directors;
• receipts confirming the fact of payment of the authorized capital (if it is not formed at the expense of monetary assets– a report on the valuation of property objects).

How long will it take

The standard period of legal registration of a company in Turkey varies from 10 days to 1 month. The deadline for making a decision on a candidate is determined taking into account the workload of the trade registry staff. On average, it takes 1 week to prepare the documents. It takes 1-2 days to open a bank account and receive a tax number. The company registration procedure itself is carried out within 1 hour.

Expenses

The main cost items for establishing a company in the country include:

• service fee – 150 ₺;
• registration fee at CCI – 505 ₺;
• publication of the announcement in the bulletin of the commercial register – 245 ₺;
• certification of the accounting book – 300 ₺;
• the amount of the deposit to the bank account of the antimonopoly authority – 4 ₺ (LLC), 20 ₺ (CJSC), 40 ₺ (JSC).

The total cost of opening a commercial structure in Turkey is approximately 1,200 – 1,250 rubles (excluding investments in the authorized capital).

The peculiarity of the legal registration of an enterprise in Turkey is that it will be difficult for a non-resident of the country to do it alone. You will need not only a professional who knows local laws at an expert level, but also an experienced accountant. Moreover, the services of a lawyer and accountant will be required on a regular basis.