How to Expand Your Business into Turkey: A Complete Market Entry Guide (2025)

Have you ever considered a market that bridges Europe and Asia, boasts a young, digitally-savvy population, and offers a strategic hub for global trade? That market is Turkey. As we move into 2025, Turkey’s economy is showing robust growth, with a nominal GDP projected to be around $1.437 trillion. For small business owners and tech entrepreneurs looking to scale internationally, Turkey presents an unparalleled opportunity. However, navigating a new market requires a clear, well-structured approach. This guide will walk you through everything you need to know to make your business expansion into Turkey a success.

1. Why Turkey, Why Now? A Deep Dive into the 2025 Market

Entering a new market is a significant decision, and the data for Turkey in 2025 makes a compelling case. The country’s economy is recovering and showing strong signs of resilience, with GDP growth expected to remain stable. This positive outlook is fueled by several key factors:

• A Growing and Young Population: With over 85 million people and a median age of around 32, Turkey has a vibrant, consumer-driven market. This demographic is highly receptive to new products, services, and digital solutions, especially in the tech sector.
• A Thriving Digital Economy: Internet penetration in Turkey is high and growing, projected to reach over 82% in 2025. The telecom market is strong, with significant growth in mobile connections and fixed internet speeds. This digital readiness provides a perfect environment for e-commerce, software, and other tech-focused businesses. The generative AI market, for example, is projected to grow at a CAGR of over 17% from 2025 to 2033, driven by rising investments and government support.
• Strategic Location and Infrastructure: Turkey acts as a logistical bridge between major global markets. Its well-developed infrastructure, including ports and a modern transportation network, makes it an ideal base for businesses involved in manufacturing, logistics, and trade.
• Support for Foreign Investors: The Turkish government has implemented a number of policies to attract foreign direct investment, allowing 100% foreign ownership in most sectors. The company formation process is streamlined, and many services, like the Central Registry Record System (MERSIS), are digitized to facilitate a smoother entry.

2. Choosing Your Market Entry Strategy

Before you even think about paperwork, you need a solid strategy. Your approach will depend on your business model, resources, and long-term goals. Here are the most common methods for foreign businesses to enter the Turkish market:

• Establish a Local Company: This is the most popular route for long-term commitment. You can form a Limited Liability Company (LLC) or a Joint Stock Company (JSC).
  • LLC (Limited Şirket – LTD): This is the go-to for most small and medium-sized enterprises (SMEs). It’s simpler to form and manage, with a relatively low minimum capital requirement of TRY 50,000 (as of 2025). Shareholders’ liability is limited to their capital contributions.
  • JSC (Anonim Şirket – A.Ş.): A better fit for larger ventures, JSCs have a higher minimum capital (TRY 250,000) but are more suitable for attracting public investment or scaling significantly.
• Appoint a Local Distributor or Agent: This is a low-risk, low-cost option if you want to test the waters first. A local partner can handle sales, distribution, and local marketing on your behalf, providing you with invaluable on-the-ground expertise. This is particularly useful for physical products.
• Open a Liaison Office: A liaison or representative office is strictly for non-commercial activities like market research, promotion, or liaising with partners. It cannot engage in any form of commercial transaction. This is a good starting point to build a presence and understand the market before committing to a full-scale operation.

3. The Step-by-Step Legal and Administrative Roadmap (2025)

Navigating the bureaucracy can be a challenge, but with the right guidance, it can be a smooth process. Here’s a simplified breakdown of the company formation process in Turkey:

Step 1: Planning and Documentation

• Choose a Company Name: Ensure your chosen business name is available and not already in use.
• Draft Articles of Association: This crucial document outlines your company’s purpose, management structure, and shareholder details. It must be prepared in Turkish and notarized.
• Gather Required Documents: Prepare notarized and apostilled copies of passports and other identification documents for all foreign shareholders and directors. A Turkish tax identification number must also be obtained for each individual.
• Obtain a Tax ID Number: All foreign shareholders and directors will need to obtain a Turkish tax ID number from a local tax office.

Step 2: Company Registration

• Apply through MERSIS: The entire registration process is managed through the Central Registry Record System (MERSIS). You’ll submit your notarized Articles of Association and other documents electronically.
• Register with the Trade Registry Office: After the online application, you will need to submit physical documents to the relevant Trade Registry Office, pay the necessary fees, and finalize the registration.
• Open a Bank Account: Once registered, you must open a corporate bank account and deposit the minimum required capital.

Step 3: Post-Registration and Compliance

• Tax and Social Security Registration: The Trade Registry Office will notify the tax office and Social Security Institution (SGK) of your new company. You must ensure you are fully registered for corporate tax and VAT (Value Added Tax), as well as social security if you plan to hire employees. The standard corporate tax rate is 25%, and the standard VAT rate is 20%.
• Appoint a Local Accountant: It is mandatory for companies to hire a local, authorized accountant to ensure compliance with Turkish fiscal laws.
• Obtain Licenses and Permits: Depending on your industry (e.g., finance, energy, food and beverage), you may need to apply for specific licenses from relevant ministries or authorities.

For a comprehensive consultation and professional assistance with these steps, consider partnering with a firm like Tokyo Consulting Firm. Their expert services can simplify the entire process, from initial planning to full registration and compliance, allowing you to focus on your core business. You can even get started with a free consultation or a personalized assessment on their website.

4. Cultural Intelligence: The Unspoken Rules of Doing Business

Success in Turkey is not just about legal compliance; it’s about building relationships. The business culture is built on trust, respect, and personal connections.

• Building Rapport is Key: Turks value face-to-face interactions. Be prepared to invest time in getting to know your partners and clients on a personal level before jumping into business discussions.
• Be Patient and Punctual: While meetings may not always start on the dot, being on time yourself shows respect. Be patient with the decision-making process, as it may take longer than in Western cultures due to the emphasis on consensus and relationship-building.
• Language: While English is widely spoken in business centers like Istanbul and Ankara, having Turkish-speaking staff or a local translator can significantly enhance your credibility and communication, especially in meetings with government officials or smaller businesses.

Conclusion

Expanding your business into Turkey in 2025 is an ambitious and highly rewarding venture. The country offers a dynamic market with immense growth potential, especially for tech and innovative businesses. By understanding the economic landscape, choosing the right entry strategy, and meticulously navigating the legal and cultural aspects, you can lay a strong foundation for a successful and profitable presence.

Are you ready to unlock this incredible market? The journey may seem complex, but with the right partners, it’s a clear path to global growth.

FAQ Section

Q1: How long does it take to register a company in Turkey as a foreigner?

A1: The company registration process can be completed relatively quickly, often within a week, provided all required documents are prepared and in order. However, the entire process, including obtaining a tax number, bank account, and other post-registration procedures, can take a few weeks.

Q2: What is the minimum capital required for a new company?

A2: As of 2025, the minimum capital requirement for a Limited Liability Company (LLC) is TRY 50,000. For a Joint Stock Company (JSC), the minimum is TRY 250,000.

Q3: Is it mandatory to have a Turkish partner to start a business?

A3: No, it is not mandatory. Turkey’s foreign investment laws allow for 100% foreign ownership of companies in most sectors, giving foreign investors full control over their businesses.