Starting up your own business in Turkey
Turkey is not only a country where it is particularly interesting to invest in, but also starting up your own company in Turkey has many great benefits. We have listed the main features of business in Turkey here below.
As a foreigner, you benefit the same rights in the Turkish business world as a Turkish entrepreneur in the field of commercial law.
Simple and easy
The public and business administration in Turkey works fast and smoothly, and as a the result the necessary applications for permits, certificates and the like are processed and awarded expeditiously.
Grants from the Turkish government
Foreign entrepreneurs and investors in Turkey are supported in many ways by the Turkish government. Turkey has a very friendly economic climate towards foreign businessmen who want to invest and /or start up a business in Turkey. In several industry branches, such as – of course – tourism, energy production and agriculture; foreign investors in Turkey are subsidised. Every year, these funding programs for foreign investors and entrepreneurs are adapted the to the actual needs of the country.
Despite the fact that some gossip is circulating about Turkey; the Turkish legislation is fair and this makes Turkey even more one of the most attractive countries of the OECD (Organisation for Economic Cooperation and Development) for foreign investors. The Turkish government makes special efforts to attract foreign investors; and this resulted, among other things, in the Direct Foreign Investments Act. The main elements of this act are:
- Foreign and Turkish companies are equal before the law
- The procedures for the establishment and start-up of foreign companies in Turkey have been simplified
- Work permits can be obtained unlimited
- Financial transfers are unlimited
- Free choice of name for the company
Trade Agreements were signed with a large number of countries (80) to promote the establishment and investment of foreign companies in Turkey and free trade zones were agreed. Bilateral agreements were concluded with 68 countries, including on favourable tax rates for foreign investments in Turkey.
Special Economic Zones
To stimulate the economy in Turkey a number of dedicated zones were conceived:
- FZ = Free Zones: these zones are designed for companies which are not located at the customs territory, but nevertheless are export oriented. Currently, there are 19 such zones in Turkey, and they offer – thanks to their location at major ports – easy access to international trade routes.
- OIZ = Organised Industrial Zones: special industrial zones, aimed at the larger industrial companies. The companies located in the OIZ enjoy significant tax benefits and even tax exemptions, can obtain substantial discounts in energy costs and also get preferential rates when they take out a loan.
- TDZ = Technological Development Zones: these zones are focused on high-tech innovation. Their number is increasing constantly and they are spread all over Turkey.
The profits are high in Turkey, among other things by the above-mentioned benefits (e.g. favourable tax rates, lower energy bills) and, moreover, thanks to the relatively cheap labour: the labour costs in Turkey are considerably lower than in Europe. Witness to this are the more than 15.000 international and large companies – such as Toyota, Honda, Renault, Ford, Bosch, ... – which have a branch in Turkey.
To be fair, we should also mention that this is partly caused by the high import taxes applied by Turkey, whereby international companies who want to sell their products in Turkey more or less are forced to open a local branch, because otherwise, their prices are no longer competitive on the Turkish market. However, the economic climate for foreign companies in Turkey is so advantageous that most companies not only produce here for the domestic market but are also, even especially export-oriented.
By now, it will be clear that Turkey not only is a great country to go on holiday. In addition to the opportunity to do excellent property investments, Turkey is, thanks to its strong growth economy, also one of the most interesting countries to do business.
RealProinvest is always standby to assist you in market research, to find a suitable location, to provide legal information and to help you with all other matters involved in starting up a business in Turkey. Please feel free to contact us for additional information.