January 28, 2026

Starting a Business in Turkey

Many UK entrepreneurs are drawn to Turkey. It’s a strategic location between Europe and Asia. It has strong transport links and access to the Middle East and Central Asia.

This location can cut down supply routes and open new markets. It also supports trade across borders.

However, entering the Turkey market requires careful planning. Turkey’s company formation process is now more digital. But, foreign founders still face Turkish-language paperwork and checks.

Banking, tax registration, and compliance can also be slower than in the UK. At Start Company Formations, we help you navigate these steps. We guide you from the start to making sure your business is ready to operate.

We also work with Immigration advisers. They help with residency or work permits if you need to be in Turkey. For regulated projects, we ensure you have the necessary permissions. This includes Gaming Licences and FX & Crypto Licensing Companies.

Overview of Business Opportunities in Turkey

Looking at Turkey’s market, we see its large population and growing middle class. This supports strong demand. Turkey also connects Europe, the Middle East, and Central Asia, making it great for distribution and exports.

Economic Landscape

The Turkey economic landscape is vibrant, with active trade routes and major ports. For UK founders, this means quicker delivery times and easier access to markets. The country also has a skilled workforce in engineering, manufacturing, and digital services.

Investment rules are key. Turkey welcomes foreign investors equally to local ones. In most sectors, you don’t need a Turkish partner, making it easier to start.

Key Industries

Many Turkish industries are ready for export and growth. They have established supply chains and skilled workers.

Technology and software, including fintech products and B2B platforms
Manufacturing and export-led operations, from components to finished goods
Renewable energy and clean tech, where efficiency and compliance drive demand

But, some markets need extra checks. Areas like defence, broadcasting, aviation, and maritime require special approvals. It’s smart to check these before spending money and time.

Advantages of Starting a Business

Policy tools can boost returns. Turkey’s free zones focus on exports, tech, and projects, helping with cash flow. Zones for tech and regional incentives support R&D and hiring.

When we explore Turkish markets, we consider location, sector, and rules. This helps founders pick the right structure for their business goals and Turkey’s economic landscape.

Legal Framework for Businesses in Turkey

Helping UK founders in Turkey, we focus on the rules that guide every choice. The Turkish Commercial Code outlines the basics for companies, like share types and leadership. The Foreign Direct Investment Law Turkey also plays a role, ensuring foreign investors are treated fairly.

After starting a business, there’s more to follow. Rules on jobs and data protection need to be followed, with policies that match the business’s actions. We also plan for documents, as they must be in Turkish and often need special stamps and translations.

Types of Business Entities

Turkey has various business structures, each suited to different needs. We look at these options carefully before making a choice:

Sole proprietorships for simple, owner-run businesses
Limited şirket (Limited Şirket / Ltd. Şti.) for many small and medium-sized enterprises
Anonim şirket (Anonim Şirket / A.Ş.) for bigger investments and share dealings
Collective companies and partnerships limited by shares for certain partnership types
Cooperatives for trading led by members and specific sectors
Branches and representative or liaison offices for international companies

Registration Process

The process to start a business is clear and traceable. It starts with MERSİS registration, where key details are recorded and drafts are made. Then, Trade Registry Turkey offices handle filings and announcements, including in the Commercial Registry Gazette.

We consider the time needed for signatures, capital, and official submissions. For companies outside Turkey, translation and notarisation can impact costs and timing. So, we plan ahead to avoid delays.

Permits and Licences

Some sectors need extra permissions before starting. These business permits Turkey cover things like building approvals, environmental rules, health and safety, and professional licences for certain services.

Branches and representative offices might need extra approvals, like from the Ministry of Trade. We match the permit process with the business type, ensuring smooth operation without unnecessary delays.

Steps to Start a Business in Turkey

Starting a business in Turkey is a journey we guide UK founders through carefully. We begin by checking if there’s demand for your product or service. Then, we design how your business will operate. Finally, we figure out how much money you’ll need and when you’ll need it.

Initial Market Research

Good market research in Turkey goes beyond just reading headlines. We look at how people buy things, what they pay, and the big picture that affects costs and sales. We also examine how people pay and how goods get to customers in different places.

Next, we study your competitors, their supply chains, and the big players in the market. We compare different ways to start your business, like owning it all yourself or partnering with others. We also look at areas that need special permissions, like defence, broadcasting, and aviation.

Developing a Business Plan

After gathering all this information, we create a business plan that fits Turkey’s unique needs. This includes documents in Turkish, notarisation, and following local laws.

To keep things clear, we suggest outlining:

who your customers are and how you’ll reach them, based on real data
how you’ll get your product to market, including suppliers and partners
how you’ll follow the law, so you can start without delays

Securing Funding

Once we have a clear plan, we look at how to fund your business in Turkey. Many start with foreign direct investment, whether by putting in money, buying shares, or setting up a company owned by foreigners.

There’s also growing interest in venture capital in Turkey, especially for tech and software startups. Government grants might help with research, exports, or specific areas, but the rules are strict and the paperwork is a lot.

Turkey doesn’t have a traditional “startup visa,” but there are ways to get residency or work permits based on investment. If you need to plan for immigration, we work with experts to find the best option for you.

Choosing the Right Business Entity

Choosing a business structure in Turkey affects your risk, taxes, and growth speed. We consider your goals first. Do you want steady local trading, planned investment, or rapid growth?

Foreign ownership plans require careful governance and paperwork. These are as important as speed. Control, reporting, and profit distribution are also key considerations.

We also look at control, reporting, and how you want profits to flow. Some founders prefer a simple setup and low admin. Others need clear separation of personal and business assets from the start.

Sole Proprietorship

Sole proprietorship Turkey is quick for early-stage trading. It’s good for consultants, small shops, and solo service providers. Decisions are easy with one owner.

The downside is higher risk. The owner is personally liable for debts and claims. This can risk personal savings or property if the business struggles.

Limited Liability Company

Limited Liability Company Turkey Ltd. Şti. balances flexibility and protection well. It keeps business and personal assets separate, managing risk. It can start with one shareholder and one director.

It’s also good for foreign ownership Turkey company needs. The director can be a foreign national or a Turkish resident. This supports cross-border management. Many UK founders choose this for dealing with suppliers, leases, and staff.

Joint-Stock Company

For bigger growth, new investors, or a stock exchange listing, Joint Stock Company Turkey A.Ş. is better. It makes funding easier with share structures. This can simplify investment talks.

Joint Stock Company Turkey A.Ş. needs more capital and formal governance. Board structure and ongoing procedures are more complex than an LLC. For big deals, this extra formality is a plus.

We compare these options with your real plan. We consider liability, governance, capital needs, and hiring. While other options exist, these three are usually the first choice. The right choice helps growth and avoids surprises.

Registering Your Business in Turkey

Setting up a company in Turkey is a detailed process but it’s worth the effort. We guide UK founders through each step to avoid last-minute problems. Most delays are due to document issues, not the filing itself.

We prepare your Turkey company registration documents in Turkish. You might need to apostille, notarise, and translate them. It’s important to keep the Turkish text consistent.

Documentation Needed

The main document is the Articles of Association Turkey, which must be notarised. You’ll also need to provide personal and address details that match everywhere.

Notarised Articles of Association Turkey (often called the articles of incorporation)
Passport copies of shareholders and directors, plus Turkish Identification Numbers for Turkish nationals
A company address in Turkey, such as a rented office or a virtual office
Tax identification numbers for each shareholder and director
A bank account for capital contribution and day-to-day transactions
Power of attorney if founders cannot be physically present
Trade name approval by the Trade Registry Office

It’s wise to keep both scans and originals. Banks, notaries, and officials might ask for certified copies. This is crucial when coordinating from the UK.

Turkish Trade Registry

Registration often starts in the MERSİS system, which gives a potential tax number. This number becomes your tax ID after registration, linked to your headquarters address.

The process through the Turkish Trade Registry is usually smooth if your file is complete.

Certify the articles and supporting papers
Open a bank account and arrange the capital contribution process
Register with the relevant Commercial Registry Office
Publish the announcement via the Commercial Registry Gazette
Complete tax registration and align invoices, seals, and accounting set-up

Cost of Registration

The cost to register a company in Turkey varies. We focus on what affects the cost, not just give a figure. The type of entity, capital, and support needed all play a part.

When planning your budget, remember to include translation, notarisation, and apostille costs. Also, set aside for banking and any sector licensing. Extra certification or urgent processing can increase both time and cost.

Taxation and Obligations

We help UK founders set up in Turkey, focusing on daily compliance. Tax rules might seem complex, but a clear plan keeps risks low and cash flow steady.

Corporate Tax Rates

The standard corporate tax rate in Turkey is 25%. However, some sectors or incentives might lower this rate. We ensure your income is correctly reported and taxed.

Withholding tax in Turkey applies to payments abroad, like dividends or royalties. The relief depends on the documentation and if a double taxation treaty applies.

VAT and Other Taxes

VAT in Turkey is 20%, but some goods and services have lower rates. It’s crucial to understand invoices, delivery terms, and where the supply is made to avoid extra taxes.

Other taxes include stamp duty, special consumption taxes, and local levies. These depend on specific contracts, products, or local permits.

Filing Deadlines

Monthly VAT returns and employer reports are part of ongoing filings. Employers must register with the Social Security Institution and pay monthly contributions on time.

Keeping records is also key. Companies use e-defter Turkey and follow Turkish Financial Reporting Standards. Annual filings and financial statements are part of the monthly cycle. Missing or late submissions can lead to penalties and inspections.

Finding the Right Location

Where you set up in Turkey affects your registration, hiring, and reaching customers. We guide UK founders to pick the best city and size for their business. This ensures your setup helps your work, not hinders it.

Major Cities for Business

Istanbul is great for founders needing a strong network and easy transport. It’s perfect for export-focused businesses with access to ports and suppliers.

Ankara is ideal for teams into tenders and admin work. It offers easy access to local support and travel for meetings.

Izmir is perfect for startups looking for innovation and lower costs. It’s close to trade and has a good logistics network.

Online vs. Physical Presence

You need a Turkish address for formal notices, even if you trade online. You can lease space or use a virtual office, depending on your needs.

Meeting spaces and local phone handling are key for client work.
Remote work can save costs and keep things compliant.
Local banking and checks are easier with a presence in Turkey.

Business Culture in Turkey

Location also means culture. We plan for localisation early, including Turkish documents and workflows that fit local laws.

Communicating with customers is as important as paperwork. Aligning your messages and style with local norms builds trust and relationships.

Hiring Employees in Turkey

When we help UK founders hire in Turkey, we focus on practical compliance from the start. This includes clear contracts, clean payroll, and workplace safety. We also plan for SGK employer obligations and the day-to-day realities of managing staff across borders.

Labour Laws

Employment rules have a clear hierarchy. Social and economic rights start with the Constitution of the Turkish Republic. Then come laws and regulations, with internal policies and workplace practice below them. This is important when a handbook conflicts with statute.

Key Constitutional protections include Article 18 (no forced labour), Article 48 (freedom of work and contract), Article 49 (right and duty to work), Article 50 (working conditions and rest), Article 51 (right to unionise), Article 53 (collective agreement), Article 54 (strike and lockout), and Article 55 (fair wage).

In practice, Turkish Labour Law 4857 and the Turkish Code of Obligations No. 6098 shape most employment relationships. Depending on your sector, Trade Unions and Collective Labour Agreements Act No. 6356 and Labour Courts Law Act No. 7036 also matter, alongside regulations, notices, and Presidential Decrees.

Safety duties are not optional. Under Occupational Health and Safety Law 6331 and the Occupational Health and Safety Services Regulation, employers must manage hazards, train staff, provide suitable tools, update measures when conditions change, monitor compliance, and match tasks to the worker’s ability to follow safety procedures.

From 01.01.2025, appointing an on-site workplace doctor and occupational safety specialist becomes mandatory for all employers, regardless of headcount and hazard class.
2025 fine ranges can include TRY 35,416–106,248 for failing to take OHS precautions, provide tools, or adapt measures.
Not assigning an occupational safety specialist: TRY 88,663–265,989 per month while non-compliance continues.
Not assigning a workplace doctor: TRY 88,663–265,989 per month while non-compliance continues.

Recruitment Process

Hiring starts with a role profile, a compliant offer, and a clear onboarding plan. We also align payroll setup early, because SGK employer obligations include registering staff and managing monthly contributions on time.

Employment agreements can be verbal or written, but the writing rules are strict. If the term is one year or longer, the contract must be in writing, and all fixed-term agreements must be written whatever the duration. This is where the employment contract Turkish language point can decide how a dispute is read.

Under the Law on Compulsory Use of Turkish, where contracts are executed between Turkish citizens and companies incorporated under Turkish law, the contract must be in Turkish. Dual-column formats are possible, but the Turkish version prevails, so wording must be precise from the start.

Employee Rights

Employee protections sit at the centre of day-to-day HR. Under Article 5 of the Employment Law, employers must apply equal treatment, and differences need a valid reason, such as seniority, qualifications, or the nature of the job.

Working time definitions can also affect risk. Part-time is up to 30 hours per week; if you set 30 hours as the cap, overtime may trigger arguments that the role is effectively full-time. Trial periods are limited to two months for individual contracts, and up to four months under a collective agreement.

Termination planning should include notice periods Turkey under Article 17, which vary by length of service:

2 weeks for less than 6 months
4 weeks for 6 months to 1.5 years
6 weeks for 1.5 to 3 years
8 weeks for more than 3 years

When these steps are aligned with Turkish Labour Law 4857, supported by Occupational Health and Safety Law 6331, and backed by tidy SGK employer obligations, hiring becomes far easier to scale and manage.

Understanding Turkish Business Culture

To succeed in Turkey, we need more than a good plan. Progress depends on understanding and acting on expectations with various parties. Getting Turkish business etiquette right early helps avoid delays and confusion.

Importance of Relationships

In many sectors, trust is more important than speed. Building strong relationships in Turkey can speed up introductions and problem-solving. We tell UK founders to see meetings and small gestures as part of their work, not extras.

Keep commitments small, clear, and consistent.
Show up prepared, then follow up in writing.
Respect seniority and decision pathways within teams.

Communication Styles

Clear communication is key, not just about being polished. Official steps require precise forms and records. This is where understanding Turkish language is crucial.

We plan for exact wording and consistent terms in all documents. This helps with coordination, especially when deadlines are tight.

Negotiation Tactics

Negotiation in Turkey works best with clear terms from the start. We focus on clauses that prevent disputes, like employment notice periods and VAT rules. This approach supports smooth operations after signing, not just a quick win.

Agree governance and signing authority before pricing details.
Document responsibilities for payroll, tax, and reporting.
For regulated work, align the deal with a licensing plan for Gaming Licences and FX & Crypto Licensing Companies.

Marketing Your Business in Turkey

Marketing in Turkey works best when it fits how business is done every day. We focus on clear details like documentation, pricing, and delivery proof. This builds trust with Turkish consumers.

Digital Marketing Strategies

A good digital strategy in Turkey starts with localisation. This supports conversion, not just visibility. We make sure Turkish-language pages, terms, and messages are part of the funnel.

Aligning campaigns with your business setup is key. This is especially true if you sell in Turkey or use it for brand expansion. Your checkout, invoicing, and KDV handling should match your registration and sales reporting. When numbers and messages align, acquiring customers is smoother.

Turkish-language pages with local payment and delivery expectations
Clear returns, warranty terms, and customer support wording
Pricing that reflects KDV rules and invoice requirements

Traditional Advertising

Traditional channels are still effective, especially in regulated sectors. They signal stability. We ensure marketing in Turkey is compliant by checking claims and rules before spending.

This approach helps with cross-border brand expansion. It reduces the need for rework in marketing materials. It also makes Turkish consumers see you as a serious operator.

Social Media Presence

Social platforms are where Turkish consumers test your responsiveness. We aim for consistent posting, tone, and quick replies. A calm, helpful voice is more valuable than a viral post.

We handle customer data responsibly. Personal information should be treated with care under local expectations. When your social support and CRM practices align, scaling your digital strategy in Turkey is easier.

Networking and Business Associations

When we enter a new market, networks help us quickly reduce risk. The right connections can save us months of trial and error. They help us find reliable buyers, suppliers, and advisers early on.

For UK founders looking to Invest in Türkiye, relationships move faster than paperwork. A strong network also helps with smoother onboarding with banks, distributors, and key decision makers.

Key Organisations

We start with Invest in Türkiye for a clear view of incentives and guidance. It helps us compare regions and plan according to our budget and timeline.

We also rely on chambers of commerce Turkey, especially in Istanbul and Ankara, for market insight. These bodies can introduce us to vetted suppliers and sector groups, and point us to local events.

For warm introductions, business associations Turkey and bilateral groups are invaluable. The American-Turkish Business Council and the German-Turkish Chamber of Industry and Commerce often bring founders, investors, and corporates together.

Trade Shows and Exhibitions

Before setting up fully, trade shows Turkey let us test demand in person. We can meet distributors, review competitor offers, and check price points in real time.

We treat exhibitions as a field study. A short visit can validate product-market fit, highlight compliance questions, and reveal active channels in each region.

Building a Professional Network

To avoid delays, we build a local bench for quick responses when documents are needed. This is crucial when dealing with KYC checks, notarised copies, and translations.

A certified accountant (SMMM) to manage bookkeeping, payroll, and tax filings with clear records.
Legal counsel for regulated sectors and any licensing steps that affect operations.
Banking contacts who can clarify account requirements and speed up onboarding.

We also make time for the startup ecosystem Istanbul to meet mentors, accelerators, and early hires. In many cases, one trusted introduction leads to a chain of practical support.

Challenges of Doing Business in Turkey

Starting a business in Turkey can be tricky, but it’s doable. UK founders might find the process slower than expected. We prepare for these challenges to keep operations running smoothly.

Economic Volatility

Changes in prices and exchange rates can impact your business. We set clear pricing rules to manage these risks. This way, we can keep costs and income in the same currency.

Using multi-currency accounts helps with daily transactions. It’s especially useful for paying imports or receiving foreign income. This approach also makes planning for dividends and repatriating capital easier, with FX risks tracked from the start.

Regulatory Challenges

Turkish bureaucracy can be overwhelming, especially for routine tasks. You’ll often need notarisation, apostille, and sworn translations. So, it’s crucial to have Turkish language documents ready and consistent.

There are many ongoing obligations, like VAT returns, payroll, and corporate tax. You’ll also need to set up e-defter.
Some sectors, like broadcasting and defence, have stricter rules and approvals.
Opening a bank account can take time due to KYC checks and document verification.
For a Joint-Stock Company, a 25% pre-registration capital deposit is required, affecting cash flow.

Audits are common, so it’s important to keep records clear and up-to-date. This makes it easier to provide proof when needed.

Cultural Differences

Localisation is more than just translation. It’s about how decisions are made and followed. Turkish teams work better when roles and responsibilities are clearly defined in Turkish agreements.

We also make communication direct yet respectful. Meeting notes and action points are confirmed in writing. This helps in smoother negotiations and keeps documents in line with partner expectations.

Leveraging Technology in Business

Technology can make daily tasks easier in Türkiye. We focus on systems that clear up reports, cut down manual work, and prepare you for audits. The right setup can also help with growth, managing cash flow, and making better decisions.

E-commerce Trends

In e-commerce Turkey, being ready is as important as meeting demand. Payment gateways that use TRY and support international payments can lower cart abandonment and speed up reconciliations.

We also make sure online sales match up with invoicing and KDV treatment. This is based on your tax status and how you fulfill orders. It helps avoid any mismatches between platform reports, bank statements, and official records.

Digital Tools for Efficiency

A back office focused on compliance is a big plus, not a hassle. We often start with a certified accountant (SMMM) and a clear plan for monthly and yearly filings.

Then, we use automation to cut down on repetitive tasks like document capture and approval trails. For keeping records, e-defter digital books help keep ledgers consistent and make handovers smoother between teams.

Cybersecurity Considerations

Cybersecurity is also a legal must when handling personal data. If you process data of people in Türkiye, the data protection law Turkey 6698 kicks in before you start.

Obligation to inform: give a privacy notice that explains how, why, and the legal reasons; collect explicit consent when needed.
Fine risk: the Personal Data Protection Board can fine you up to TRY 1,362,021 (2025), adjusted annually.
Data security obligations: follow the Board’s technical and organisational measures, like internal policies and breach response plans.

We see security controls as part of everyday work: managing access, logging, training staff, and testing backups. This keeps systems strong and supports trustworthy customer experiences across all sales channels.

Support and Resources for New Businesses

When we help UK founders set up in Turkey, we focus on support first. This approach keeps costs down and speeds up your journey. The right mix of grants, tax reliefs, and networks makes early decisions easier.

Government Initiatives

Turkey offers incentives for strategic investments in areas like technology and exports. The details matter, as eligibility depends on the sector, spending, and location.

Founders often look at free zones in Turkey for tax breaks and customs benefits. These zones can help with exports and make cross-border trade easier.

Teams focused on innovation might find benefits in technology development zones. These zones offer lower taxes for qualifying activities. R&D incentives in Turkey also support product development and engineering, provided the work is documented correctly.

Regional incentives vary by location and sector. We compare different sites to find the best fit for your business.

Private Sector Support

Good advisers can speed up your journey and reduce risks. They help with hiring and corporate governance. UK owners often turn to specialist law firms for advice on labour laws.

Moroğlu Arseven (founded 2000) is a full-service law firm advising employers of all sizes.
Han & Partners Law Firm offers comprehensive support, from legal advice to setting up a business.

Startup Accelerators

Istanbul, Ankara, and Izmir now have many incubators and accelerators. These focus on tech, health, and exports. They’re great for pilots and meeting investors.

Startup accelerators in Istanbul also help with hiring and getting into the local market. We see them as part of the support network, helping you grow without extra hassle.

Contact Information for Assistance

Ready to expand into Turkey? We make the next steps easy and stress-free. Our team offers reliable Turkey business setup support, without any confusion. We also help you compare timelines, costs, and compliance needs before you decide.

Start Company Formations Overview

At Start Company Formations, we make the whole process simple. From picking the right entity to being ready to trade, we guide you. We help with sole proprietorship, Ltd. Şti., and A.Ş., matching your risk and growth plan.

We handle Turkish-language notarisation and sworn translation. We also support MERSİS and Trade Registry filings, and help with tax registration and operational readiness. If your business needs regulated licenses, we plan ahead for Gaming Licences and FX & Crypto Licensing Companies. For residence or work permits, we work with Immigration advisers to help your case.

Contact Us at 0204 504 1544

Need tailored guidance on Turkey business setup support? Call us and we’ll outline the best path for your goals. If you want us to manage your formation and cross-border steps, call 0204 504 1544. For Turkey company formation services UK support that’s practical and responsive, call 0204 504 1544.