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Startup in Turkey
Updated on Friday 29th September 2023 Rate this article
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Turkey’s large portion of young population and high internet speed represent some of the best reasons to consider setting up a startup company. The Turkish government has created the favorable conditions for such businesses to thrive and is currently working on improving the operational system for small and medium-sized enterprises (SMEs), which are usually employed for creating startup ventures.
If you are attracted by the idea of opening startups in Turkey, our company formation specialists in Turkey are at your service with full support in registering this type of business as soon as possible. You can rely on us if you want to open a company in this country, no matter the sector you want to operate in. We can help you register an Istanbul startup.
| Quick facts | |
|---|---|
| Business entities for startups | Private limited liability company |
| Who can open startups in Turkey | Both local and foreign investors |
| Legislation for startups in Turkey | - FDI Law in Turkey, - Commercial Code in Turkey |
| Minimum share capital | TRY 10,000 |
| Business plan required (YES/NO) | Yes |
| Required documents | Articles of Association |
| Business license (YES/NO) | Yes |
| Validation of business name | A name verification is required |
| Local bank account (YES/NO) | Local, but not mandatory |
| Tax registration (YES/NO) | Yes |
| Business address required (YES/NO) | Yes |
| Number of directors | At least 1 director |
| Accounting services (YES/NO) | Yes |
| We offer company formation services (YES/NO) | Yes |
| We can represent foreigners with POA (YES/NO) | Yes |
| Support intiatives for startups in Turkey | - Startup Support Organization, - programs initiated by the Small and Medium Enterprises Development and Support Administration (KOSGEB), - projects supported by The Ministry of Industry and Technology, etc. |
| Turkish startup ecosystem | The Turkish startup ecosystem has increased in recent years, driven by regulatory support, and a growing presence on the global stage. |
| VAT in Turkey | - 20% (standard), - 10% and 1% (reduced) |
| Corporate tax rate in Turkey | - 25% (general), - 30% (financial sector) |
| Secretary required (YES/NO) | NO |
| Incorporation time (approx.) | 3 months |
| Investors for startups | - angel investors, - venture capitals, - crowdfunding etc. |
| Startup hubs | Istanbul is emerging as a startup hub, with local ecosystems and support structures for entrepreneurs. |
| Popular startup sectors in Turkey | - fintech, - e-commerce, - transportation, - renewable energy, etc. |
| Virtual office available (YES/NO) | YES |
| Special licenses and permits | Depending on the business sector (hospitality and catering, import/export, etc.) |
| Obtaining residency by opening a startup in Turkey | You can obtain residency by opening a startup in the country if you qualify for the Turquoise Card or Turkey Golden Visa. |
| Can hire employees (YES/NO) | YES |
| Advantages of opening a startup in Turkey | - growing startup ecosystem, - easy process of opening a company in Turkey, - plenty of support initiatives, - diverse business sectors, - strong workforce, etc. |
| Assistance | Our specialists in company formation in Turkey can help you open a startup in the country and provide the necessary guidance. |
What is the appropriate business form for a Turkish startup?
There are several types of legal entities that can be used for the creation of startup companies in Turkey, however, the private limited liability company remains the most selected option by local and foreign investors. Its popularity resides in the fact that it is a worldwide common type of structure, while in Turkey it is one of the easiest business forms that can be incorporated. Our company formation consultants in Turkey can assist with the registration of a private limited liability company.
Key aspects in opening startups in Turkey
The Istanbul startup is a regular company, therefore does not need to comply with specific requirements. What differentiates it from other businesses is that it usually operates in innovative sectors which must meet specific needs of clients; therefore, it could require significant amounts of money for the initial and ongoing operations. For this reason, the startup will usually rely on specific funding sources, such as incubators, angel investors, and/or crowdfunding platforms.
The good news is that Turkey has made it possible for startups to operate here back in 2012 when the startup ecosystem was a rather new concept at an international level. Ever since:
- The Government created the Startup Support Organization which comprised several institutions assisting such companies.
- The Scientific and Technological Research Council of Turkey is a key player in offering startup funding to businesses.
- in 2013, the Government also launched an angel investor scheme for those seeking for returns in exchange for injecting capital in startup companies.
- The Ministry of Industry and Technology cooperated with the European Investment Fund in the creation of the Technology Transfer Accelerator.
- Starting with 2016, Turkish startups have the possibility of selling their goods and services worldwide thanks to a globalization scheme.
Creating a startup in Turkey has many advantages, as presented above. If you decide to open an Istanbul startup our company registration agents can help you. Please discover the following video presentation we have prepared:
Is there any minimum share capital for opening a startup in Turkey?
There are no requirements for the share capital of a startup company in Turkey, however, depending on the type of entity selected, a legal requirement for a specific amount of money could be required under the provisions of the Company Law. This is the case of the Turkish private limited liability company for which at least 10,000 TL (approximately 1,300 EUR or 1,200 USD) is required.
The Turkish company formation procedure can be handled by our local specialists in the case of foreign investors who do not want to come here for the incorporation stage.
Documents required to open an Istanbul startup
In terms of documents, there are no special papers to prepare other than the Articles of Association, a business plan, and a business model. The latter will be used for promoting the business and gathering funds from investors.
The Articles of Association alongside information about the shareholders and directors’ information must be filed with the Trade Register and based on them the startup will obtain its Certificate of Registration. The tax identification number is usually issued after the company is registered. The procedure of registering a startup with the Trade Register can be overseen by our Turkish company formation representatives.
Are you looking for accountants in Turkey? We recommend our team of specialists, who can help you align with the accounting requirements for the owned company. You will need bookkeeping, audits, payroll, preparation and submission of annual financial statements, as well as debt monitoring. In addition to these services, those interested can also ask for expert advice or investment consultancy. We are here to help you with the tax registration of your company. The following infographic comprises information on this topic:
Who can open startups in Turkey?
Both domestic and foreign entrepreneurs can decide on startups in Turkey. The startup ecosystem is quite appealing to investors who want to develop their activities in this country and who want to generate profits and enjoy a solid business climate. Our company formation specialists in Turkey are at your disposal if you are interested in a startup in Turkey, so please feel free to send your inquiries and let us help you.
Business management offered by our specialists in Turkey
A startup in Turkey can be easily established, if the conditions imposed are respected. However, the support of a specialist in this field will prove extremely helpful because he/she will know how to create a business plan tailored to the needs of the entrepreneurs. Business management is important for every company and it involves a series of tasks.
One of our company formation in Turkey will explain to you what business management is. There are specific administrative tasks to consider, like budget analysis, accounting, marketing and promotion, implementation of business solutions, and many more. Looking for advice for your startup in Turkey? It is quite easy to get in touch with us and discover how we can help in this matter.
If you are interested in payroll in Turkey, you can opt for the services offered by our specialists in the field. The calculation and delivery of salaries in the company are done according to certain criteria and rules already established. This service involves a series of documents that must be approved by the company's managers. But you can find out everything you need to know about this type of service if you contact us by phone or online. We are at your disposal with complete information to benefit from personalized offers and complete services.
FAQ about startups in Turkey
1. Who can open startups in Turkey?
Local and foreign entrepreneurs are welcome to open startups in Turkey, in respect with the Company Act in Turkey. The registration process can be overseen by one of our company formation agents in Turkey.
2. Do I need a minimum share capital for a startup in Turkey?
If you decide on a private limited liability company in Turkey, the minimum share capital is set at EUR 1,300. Our agents can tell you more.
3. Are there specific requirements for an Istanbul startup?
No, there are no particular conditions for startups in Turkey. The registration process of a startup in Turkey is straightforward and exempt from hard formalities or complexities. The support of our company formation agents in Turkey will prove extremely helpful throughout the entire registration process.
4. What are the documents for startups in Turkey?
The Articles of Association are the main documents of a startup in Turkey. These must comprise information about the owners of the startup, activities, business place, and many more.
5. Can I get help for creating the business plan for my Istanbul startup?
Yes, a business plan is the starting point of a company in Turkey. We have experience in this field and we can create the proper business plan for your startup in Turkey.
6. Do I need to register the startup for taxation in Turkey?
Yes, the registration for taxation of a company in Turkey is required. You can talk to us and receive support.
7. Do I need a business address in Turkey?
Yes, the startup will activate in Turkey, therefore, a business address in the chosen city is required. We have a wide range of solutions for your startup in Turkey.
8. Can I solicit accounting services for my startup in Turkey?
Yes, it is best to hire the services of an accounting firm in Turkey instead of having a whole department. You can talk to our specialists and ask for support in this sense.
9. Is it hard to register a startup in Turkey?
No, the formalities for opening a startup in Turkey are not complex. Plus, the support of our company formation agents in Turkey will be quite helpful, in order to have a smooth registration process.
10. Can I solicit the services of a company formation specialist in Turkey?
Yes, our company formation agents in Turkey can help young and experienced entrepreneurs start a business in this country. You are invited to solicit our help and guidance if you intend to open a startup in Turkey.
Making investments in Turkey
Turkey offers plenty of business opportunities in most fields of interest, sustained by many advantages. Being a country found on two continents, the business climate is appealing to international entrepreneurs who want to expand their activities in this country, in sectors like manufacturing, food & beverages, energy, automotive, construction, and tourism, to give some examples.
Turkey is the third-largest tobacco exporter in the world, a sector that generates huge profits. Turkey already hosts subsidiaries and branches of large companies from overseas, protected from a taxation point of view, and many more. The encouragements offered by the Turkish government are quite appreciated by international investors looking not only for a stable economy and business climate but also for incentives that can sustain the operations and future developments. A startup in Turkey can be an ideal business option for domestic and foreign entrepreneurs.
20 startup ideas for Turkey
If you are planning a change of destination and want to do business in Turkey, then you can discover the following startup ideas to inspire you. Depending on the allocated budget, the business can be successful from the beginning, but we also remind you that you can benefit from the support and assistance of our team of company formation agents in Turkey. So, here are 20 business ideas you can try in Turkey:
1. A workspace instead of the classic offices - Services of renting a friendly workspace for those who work on their own can be on your list of business ideas. This type of business can be addressed to those who work remotely and do not have or need to go to the office.
2. Virtual assistance services - Because many businesses are growing on the internet and are successful with this recipe, you can think of virtual assistance services dedicated to companies that want to be better organized. You can customize these services according to customer requirements.
3. A credit company - As financial services are in high demand, you could turn to a startup in Turkey of this kind. Financing in the form of credit requires an advanced business plan.
4. An eco-friendly car wash business - Concern for the environment continues to attract the attention of authorities around the world. Turkey is no exception, so you might consider setting up an eco-friendly car wash, where you can use environmentally friendly products. More about startups in Turkey can be offered by our specialists.
5. A travel agency - Turkey attracts an impressive number of tourists every year, and the services dedicated to this sector are improving at a fast pace. A travel agency that addresses domestic and foreign tourism can be a good startup idea in Turkey.
6. An insurance company - Another good business idea is to set up an insurance company in Turkey. Even if such activities require a larger budget to be integrated into the market as soon as possible, such a startup can be successful.
7. An event organization company - Such activities can be implemented in any field, whether we are talking about organizing weddings or business meetings. In this case, personal contacts will be important for rapid development and corresponding profits.
8. Graphic designer services - There are many companies looking for outsourced graphic services. You can set up startups in Turkey offering such facilities in this country, but also abroad.
9. Website creation services - As mentioned above, many businesses have turned their attention to online and the possibilities offered. Therefore, you can provide website creation services that can bring consistent profits.
10. An interior design company - This business is addressed to both enthusiasts and specialists in the field, who want to operate on their own and make money. The market in this direction is constantly evolving, and such a startup can be a good business idea.
11. A catering company - Turkey is known for its rich and diverse cuisine. You can take advantage of this and set up a catering company to distribute locally.
12. A restaurant in Turkey - Startups in Turkey can also involve a restaurant business. Regardless of whether you adopt a menu with local or international products, the business idea will be a successful one, considering the huge profits registered every year in this industry.
13. A grocery store - Another good business idea is to open a vegetable and fruit store in a city with touristic potential. Not only will you address the locals in search of fresh products, but you will also attract tourists from that area.
14. A vegan store - The idea of veganism has grown in recent years in Europe and Asia, with more and more people adopting a new lifestyle. That's why a store that offers vegan and vegetarian products can be a great business idea.
15. An internal and external transport company - The transport of people and goods is a guaranteed successful business. As the market is open in this direction, you can turn your attention to this kind of business.
16. A jewelry store - Turkey is known for its rich gold resources and for the production of jewelry that reaches export goods all over the world. You can think of a business in this field and open a jewelry store in Turkey.
17. A fishing company - One of the most prolific sectors in Turkey is fishing. The profits generated by this field are huge every year, and here you can try a business that addresses both local and international clients.
18. A company in the FMCG sector - Consumer goods such as cosmetics, food, or hygiene have a short shelf life due to fast sales. This field is advantageous all over the world, and Turkey is no exception.
19. Agricultural activities - Turkey is a country rich in good lands for agriculture. Farms generate huge profits, so it doesn't hurt to explore this type of business.
20. An online store - Internet business is a profitable sector and continues to expand internationally. If you want profits in the e-commerce field, you can open an online shop to offer various products, including clothing, footwear, jewelry, and more.
The Turkish startup ecosystem
According to the Turkish Investment Office, the startup ecosystem in Turkey has developed quite a lot in the past few years thanks to the large number of techno parks which has reached 61 in 2019. Apart from these:
- - in 2018, 109 startups benefitted from 62 million USD from angel investors and venture capital funds;
- - in 2019, 94 startups received 102 million USD from similar investments;
- - in 2019, the total investments in startup companies increased by 66% compared to the previous year;
- - most of the investments went to fintech startups in 2019 – 8,4 million USD.
If you want to open a startup in Turkey, please contact our company formation specialists in Turkey and solicit comprehensive information and support.
Meet us in Istanbul
Call us now at +90 532 351 66 77 to set up an appointment with Cagatay Altunsoy, one of our specialists in company formation in Istanbul, Turkey. Alternatively you can incorporate your company without traveling to Turkey.
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