How to Set Up a Business in Turkey

Turkey is a growing hub for international business, with its strategic location between Europe, Asia, and the Middle East. Whether you’re launching a small startup, opening a franchise, or establishing a branch of a large company, Turkey offers many opportunities. In this complete guide, we will walk you through the steps of setting up your business in Turkey in 2025, ensuring a smooth start.

1. Understand the Legal Framework for Businesses in Turkey

Before starting your business in Turkey, it is essential to understand the country’s legal requirements. Turkey has a well-established legal framework that is designed to support business owners. The most common types of business structures in Turkey include:

• Limited Liability Company (LLC) – The most common structure for foreign investors.
• Joint Stock Company (JSC) – Ideal for larger companies with more shareholders.
• Branch Office – Suitable for foreign businesses that wish to open a branch in Turkey without forming a new legal entity.

Foreign investors can fully own their businesses in Turkey, which makes it an attractive choice for entrepreneurs worldwide.

2. Choose the Right Business Structure

Selecting the appropriate business structure is crucial because it affects various aspects of your business, such as taxes, liability, and paperwork. Here’s an overview of the most common options:

Limited Liability Company (LLC)

• Requires at least one shareholder.
• Minimum capital requirement: 10,000 Turkish Lira.
• Provides limited liability, meaning shareholders are only responsible for their capital contributions.

Joint Stock Company (JSC)

• Requires a minimum of one shareholder.
• Minimum capital requirement: 50,000 Turkish Lira.
• Often chosen by larger businesses aiming to raise capital through shares.

Branch Office

• Foreign companies can set up a branch office in Turkey, but it must be linked to the parent company.
• The branch must be registered with the Turkish Trade Registry.

Each structure has its own set of advantages, depending on the size and goals of your business.

3. Register Your Business in Turkey

After choosing your business structure, the next step is registering your company with the relevant authorities. The process includes several important steps:

A. Register with the Turkish Trade Registry

To officially establish your business, you must register with the Turkish Trade Registry. You will need to provide:

• The company’s articles of association.
• Information about the company’s founders.
• Proof of the company’s physical address.

B. Obtain a Tax Identification Number (TIN)

Your business needs a Turkish Tax Identification Number (TIN) to handle taxes. Apply for this number through the Turkish Revenue Administration.

C. Notarization and Signature Authorization

Certain documents, such as your articles of association, must be notarized. The signatures of company founders also need to be authorized by a notary.

4. Open a Business Bank Account

To operate legally in Turkey, you must open a business bank account. This account will be used for transactions, tax payments, and other financial matters. To open an account, you’ll need the following documents:

• Company registration certificate.
• Turkish Tax Identification Number (TIN).
• Proof of identity for the company’s owners.

Choosing a reliable local bank is essential, especially if you plan to handle international transactions.

5. Obtain the Necessary Permits and Licenses

Depending on the nature of your business, you may need specific licenses and permits to operate in Turkey. For example, a food business requires health and safety permits, while other sectors, such as construction or education, have their own regulatory requirements.

It’s crucial to check which licenses apply to your industry and ensure that you meet all local regulations.

6. Comply with Turkish Labor Laws

If you plan to hire employees in Turkey, you must comply with Turkish labor laws. Key considerations include:

• Social Security and Insurance: Employers are required to register employees with the Turkish Social Security Institution (SGK) and make contributions to healthcare and social insurance.
• Employment Contracts: All employees must have written contracts that outline their duties, salary, and working conditions.
• Minimum Wage: Make sure to comply with Turkey’s minimum wage laws, which are updated annually.

7. Understand the Tax System in Turkey

Turkey’s tax system is straightforward but requires careful attention to avoid penalties. Businesses in Turkey are subject to several taxes, including:

• Corporate Tax: The standard corporate tax rate is 20%, although some deductions and exemptions are available.
• Value Added Tax (VAT): The standard VAT rate is 18%, though some goods and services qualify for reduced rates.
• Income Tax: Individuals and business owners must pay income tax on their earnings.

Hiring a local accountant can help ensure compliance and optimize your tax strategy.

8. Grow Your Business and Market Effectively

After setting up your business, the next challenge is growth. Here are some strategies for marketing your business in Turkey:

• Digital Marketing: Use social media, search engine optimization (SEO), and online advertising to reach your target audience.
• Networking: Attend industry events, trade shows, and business conferences to connect with potential clients and partners.
• Local Partnerships: Forming partnerships with Turkish businesses can help you gain credibility and navigate the local market.

Conclusion

Starting a business in Turkey offers immense potential for both local and international entrepreneurs. With its growing economy, strategic location, and welcoming environment for foreign investors, Turkey is an excellent choice for establishing a new business. By following this step-by-step guide and ensuring compliance with legal requirements, you can successfully launch your business and thrive in Turkey’s dynamic market.