How to Start a Business in Turkey: A Complete Guide for Foreigners and Locals
Turkey has become one of the most dynamic business destinations connecting Europe, Asia, and the Middle East. With its strategic geography, young workforce, growing digital infrastructure, and affordable setup costs, the country offers countless opportunities for entrepreneurs. Whether you are a Turkish citizen planning to start your own venture or a foreign investor looking to enter the market, Turkey provides a strong foundation for building and growing a business.
This comprehensive guide explains everything you need from choosing a company type and legal requirements to taxes, costs, and practical insights that help you avoid beginner mistakes.
Let’s explore how to successfully set up a business in Turkey.
Why Start a Business in Turkey?
Turkey attracts thousands of new business owners each year because it offers a unique blend of economic financial potential, cultural diversity, and strategic location. Several factors make it an ideal destination:
● A Strategic Global Location
Turkey sits at the crossroads of Europe, Asia, and the Middle East, giving businesses access to multiple high-value markets. Companies can easily import, export, manufacture, and distribute goods internationally.
● A Large and Growing Market
With more than 85 million residents and millions of tourists every year — Turkey provides a strong consumer base. Businesses in retail, tourism, food, and services can thrive quickly due to high domestic demand.
● Young, Skilled Workforce
A significant percentage of the population is under 35, offering businesses access to tech-savvy and motivated workers. Labor costs are also lower than most European countries, allowing companies to scale affordably.
● Digital Transformation
Turkey is rapidly growing in tech, fintech, and e-commerce. Platforms like Trendyol, Hepsiburada, and Amazon Turkey have made online retail extremely popular.
● Government Incentives
Tax reductions, customs exemptions, low-interest loans, and investment incentives attract foreign investors and support local entrepreneurs.
With these advantages, Turkey continues to grow as a competitive global business hub.
Choosing the Right Company Type in Turkey
Before starting your business, you must select a legal structure. The most commonly used business types include:
A. Limited Liability Company (LLC) Most Popular Option
LLCs are the preferred structure for both Turkish citizens and foreigners. They offer flexibility, low startup costs, and limited personal liability.
Requirements:
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At least 1 shareholder (can be foreign)
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Minimum capital: 10,000 TRY
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Registered office (virtual office allowed)
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Appointed director
Best for:
E-commerce, consultancy, digital services, restaurants, real estate investing, and small-to-medium businesses.
B. Joint Stock Company (A.Ş.)
This structure is common for large-scale or investment-heavy businesses.
Requirements:
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Minimum 1 shareholder
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Capital: 50,000 TRY
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Mandatory board of directors
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Suitable for IPOs and large investments
Best for:
Manufacturing, industrial projects, financial services, and companies seeking external investors.
C. Sole Proprietorship (Şahıs Şirketi)
A very simple and fast structure — often used by freelancers or very small businesses.
Advantages:
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Easy setup
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Low cost
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Simple tax reporting
Disadvantages:
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Higher personal tax rates
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No legal separation between owner and business
Best for:
Freelancers, bloggers, individual consultants, small traders.
Step-by-Step Process to Start a Business in Turkey
Setting up a company in Turkey is straightforward when you understand the process. Here is a detailed step-by-step guide:
Step 1: Obtain a Tax Number
A tax number is required to start all legal procedures.
Foreigners can apply at the tax office or online.
Step 2: Choose a Company Name and Activity Code
You must select a unique business name and identify your NACE code (the activity type of your business).
Step 3: Prepare the Articles of Association
This document outlines:
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Shareholder structure
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Capital amount
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Business activities
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Company rules
Most entrepreneurs work with a lawyer or accountant to prepare this correctly.
Step 4: Deposit Company Capital in a Bank
LLC capital requirement: 10,000 TRY
For Joint Stock Company: 25% must be deposited upfront.
Banks issue a capital deposit letter for registration.
Step 5: Register Through MERSIS
MERSIS is Turkey’s centralized company registration system.
Your company becomes legally recognized once the documents are approved.
Step 6: Notary Procedures
Shareholders must sign documents at a notary.
You will also notarize:
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Signature circular
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Company address declaration
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Board resolutions
Step 7: Register with the Trade Registry Office
This generates:
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Your tax registration
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Commercial registration certificate
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Activity documents (Faaliyet Belgesi)
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Chamber of Commerce membership
Within a few days, your company becomes officially active.
Step 8: Get a Business Address or Virtual Office
Turkey requires all companies to have a registered address.
Virtual offices are allowed and affordable for startups.
Step 9: Hire an Accountant (Muhasebeci)
Every Turkish company must have a certified accountant.
They are responsible for:
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Monthly tax filings
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Employee payroll
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Corporate records
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VAT declarations
A good accountant is essential for compliance.
Understanding Business Taxes in Turkey
Taxes depend on your company type and industry. Here is a simplified breakdown:
Corporate Tax (for LLC and A.Ş.)
Standard corporate tax rate: 25%
VAT (KDV)
Rates vary by sector:
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1%: Some food items, books
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8%: Tourism, basic goods
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20%: Standard products & services
Income Tax (for Sole Proprietors)
Ranges from 15% to 40% depending on profit.
Social Security Contributions (SGK)
Employees and employers must pay social security costs.
Employers pay roughly 22% of salary as SGK.
Cost of Setting Up a Business in Turkey
Here is the typical cost breakdown for starting an LLC:
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Capital (remains in your bank): 10,000 TRY
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Notary fees: 1,500–3,000 TRY
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Trade registry: 3,000–7,000 TRY
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Accountant: 1,000–2,500 TRY/month
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Virtual office: 500–1,200 TRY/month
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Legal fees (optional): 5,000–15,000 TRY
In total, expect around:
15,000–25,000 TRY
to start a small company without employees.
Industries With Strong Potential in Turkey
Turkey’s business environment supports a wide range of industries. The strongest and fastest-growing sectors include:
● E-Commerce
Demand has skyrocketed due to platforms like Trendyol, Amazon TR, and Hepsiburada.
● Tourism & Hospitality
With over 50 million tourists annually, travel businesses thrive.
● Real Estate & Construction
Turkey remains popular for foreign property buyers and investors.
● Technology & SaaS
Strong government support for digital transformation.
● Food & Restaurants
Turkey’s culinary heritage attracts both locals and tourists.
● Import–Export
Thanks to its global location, Turkey is ideal for trade businesses.
Challenges Entrepreneurs Should Expect
Although Turkey is promising, it’s important to understand the challenges:
● Currency Instability
The Turkish lira fluctuates frequently.
Plan carefully if you deal with USD/EUR.
● Bureaucracy
Government processes can be slow at times.
● Language Barriers
Many official documents are in Turkish only.
A translator or Turkish-speaking consultant helps greatly.
Tips for Business Success in Turkey
Use these strategic tips to grow faster:
Build Connections
Networking is essential for business success in Turkey.
Hire a Reliable Accountant
They handle tax filing and legal compliance.
Analyze Your Market
Choose industries with strong demand and stable growth.
Learn Basic Turkish
Even small phrases help build trust.
Use Social Media
Turks use Instagram, TikTok, and YouTube heavily.