INVESTING TURKEY
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General Information About Turkey
Turkey is located between Europe and Asia. The country shares borders with European countries as well as Eastern countries. Turkey is surrounded by the Black Sea, Mediterranean Sea, and Aegean’s Coast. Turkey’s biggest city İstanbul is located on two continents, which is divided by Bosphorus.
The Republic of Turkey was established in 1923. The new Republic regarded the West for industrialization and the establishment of a secular political system under the guidance of the new Republic’s first President Mustafa Kemal Atatürk, whose reforms constituted the framework for the development of the modern Turkish Republic.
Turkey is a founding member of the United Nations (UN), the Organization of Islamic Cooperation (OIC), the Organization for Economic Co-operation and Development (OECD), and the Organization for Security and Co-operation in Europe (OSCE), a member state of the Council of Europe and NATO. Since 2005, Turkey processes negotiations with the European Union. The negotiations have been launched with the adoption of the Negotiation Framework by the Council of the European Union. Turkey is also a member of the G20 industrial nations which brings together the 20 largest economies of the world.
2. Economy and Currency
Turkey’s economy is in a growing acceleration. This growth in years and countries liberal economic policies attracts both national and international investors. Here are the listed attracting points of Turkey and Turkish Economy;
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Turkey is located on two continents, which automatically makes the country an energy corridor.
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Due to negotiations with European Union, trade relations has expanded with Europe, which is approx.40%.
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Since Turkey’s population’s 92.8% is living in cities and half of the population is below age 32, there is a qualified workforce. Turkey offers an accessible, skilled and cost-effective workforce.
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Turkish Government provides various incentives to foreign investors. These incentives are listed as; VAT exemptions on machineries and equipment used on production, offering free land and energy support for companies settled on priority regions.
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Turkey expands R&D investments in every sector and supports high-tech businesses with diverse incentives.
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To encourage and support foreign investment, Turkish government introduces flexible exchange rate policies in line with liberal import policies.
3. Founding a Company in Turkey
Turkish Government allows foreign investors having equal rights and liabilities with the local. Establishing a company has same requirements too. Founding a company is now only carried out at Trade Registry Offices located in Chambers of Commerce and designed to be a ‘one-stop shop’. The process is completed within the same day. There are three stages of for setting up a company in Turkey.
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Deciding the type of company: Once it is decided to establish a company in Turkey, next step would be deciding on what type of the company will be established.
Most Common Company Types under Turkish Commercial Code are as follows:
A. CORPORATIONS/SUBSIDIARIES
B. BRANCHES
C. LIASIONOFFICES (Representative Offices)
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Trade Registry: The company registration process must be completed with the local office of Trade Register where it will operate. The Turkish Trade Register is administered by the Chamber of Commerce.
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Tax Registry: Tax registration is one of the company registration steps in Turkey. This step essential because it will allow the company to account for all its commercial transactions.
Above, advantages of investing in Turkey and Turkish economy are encapsulated.