So, you are wondering about starting a business in Turkey. Well, before you put on your entrepreneurial hat, you need to know about market feasibility, legal requirements, and everything it takes to set up your business there.
Here, we have come up with five steps that will help you start a profitable business in Turkey as a foreigner.
Start A Business In Turkey
According to Forbes, Turkey is a great place to start a low-tech business from scratch due to low operating costs, less competition, strong customer spending, and high retail prices. But, before you start a business, it is crucial to know the basics of doing business there.
Some of the key factors include getting a visa for setting up a startup, getting capital investment, taxation, legal issues, residential permit, etc. Considering that you already have a visa for a startup, below are the steps to starting a business in Turkey-
Explore The Opportunities
Generally, foreigners look for a location where the language barriers won’t affect their business. Most times, they open property management companies, bars, restaurants, etc. offering services to a specific community. However, they ignore the fact that they have to speak at least some Turkish even if most of their customers are German.
So, don’t let this barrier limit your opportunities. Turkey provides foreigners with the market to venture into plenty of businesses, such as agriculture, construction companies, etc.
Besides, you can consider collective companies, limited liability companies, or cooperative companies for setting up a business. You can also go through the Turkey market analysis and consider investing in joint-stock markets.
Create A Business Plan
Put together a business plan by writing your objectives, how you are going to achieve them, how you will fund the business, etc. Though business plans are very rare in Turkey, organizing one is essential for the success of your business.
Furthermore, writing a business plan is for your own benefit. Carefully thinking about the long-term and short-term business goals and preparing a plan accordingly increases your chances of success.
Get Your Business Registered
Turkey defines many legal business structures for foreigners. The limited company requires a minimum of 5000 Turkish liras as a partner to set up a business. It is the best option for small and medium-sized businesses.
The joint-stock companies that require more capital than the limited companies and at least one stakeholder on the board are suitable for large projects. Whatever you choose, you need to register your business with the Trade Registry System. As you register, you also need to get TIN, tax identity number. TIN is required for doing all the businesses or paying taxes.
Choose A Good Location For Your Business
You also need premises from where you can operate your business. From expensive to cheap and cheerful, there is plenty of commercial properties available for rent in Turkey. As you are just starting the business, renting would be the best option as it helps save your enough capital.
Depending upon the type of business, you can start by working from home. While you don’t need a special license to work from home, a tax officer might visit you if your business is registered.
Find An Experienced Business Partner
Though you may decide to start the business on your own, most foreigners starting a business in Turkey look for an experienced partner. If you want to work with Turkish business partners, you can do so by advertising or recommendation.
But, it is necessary to do due diligence when you are considering a partnership or joint venture. The partnership should be a two-way process. They should be interested to know about you as much as you do. If it isn’t so, be aware!
Hopefully, the steps mentioned above will guide you in the process of starting your small business in Turkey.