Setting Up a Company in Turkey and Its 5 Advantages
Find the five advantages and benefits of setting up a company in Turkey
There are several advantages of incorporating a company in Turkey, some of which are:
1. The easiness to start your business in Turkey by low capital
- Incorporating a Limited Liability Company in Turkey can be registered within a week. As per the standard policy, the company is incorporated even with a single Director and a single Shareholder without any restriction on the nationality and local residents. The company can be fully owned by the foreign owner;
- As per the company incorporation regulations, the limited liability company should have at least 10,000 Turkish Lira (€1,850) of shared capital for successful incorporation. The personal visit of the client is not required for the entire company formation process.
2. Any company registered under the Turkish Free Zone can enjoy the flexibility of all tax exemptions including:
- The Turkish Free Zone company is not liable for the corporate tax, value added tax or the customs duty;
- The Turkish Free Zone company can also leverage the benefit of repatriating the profits back to the parent company.
3. Turkey is one of the rapidly growing economies in the Europe region:
- Turkey has threefold growing GDP rate compared to the GDP during 2002 and 2012;
- Between the years 2012-2017, the country of Turkey is expected to have strong potential to be the fastest growing economy in the entire Europe region. The country has organized economy which is fueled by around €91 billion through FDI. The country of
- Turkey ranks at the 13th position among all the attractive destinations in the world for FDI (FDI Confidence Index)
4. Importing and Exporting goods in/out of Turkey is simple as:
- Turkey has well-connected railway routes across Europe & Asia, and direct railway routes to China which are in the process (upcoming in the next decade);
- Turkey is situated in a conveniently positioned centrally at European and Asian continents which ultimately reduces the cost of transport;
- Turkey has high-quality low-cost sea transport infrastructure in place, allowing quick shipment of goods throughout Europe.
5. Turkey has a lucrative business platform for startups as there are several advantages like:
- The population of young age individuals below 25 is more than 27 million which offers a perfect platform of highly skilled and unskilled laborers. The student population is more than 600,000 graduates annually from the Turkish universities which gives a great opportunity to choose cream crowd of fresh graduates;
- Turkey ranks at the 20th position among the best countries offering maximum protection to investors as per the global study of Doing Business by the international organization International Finance Corporation. The country holds better OECD average in almost every aspect of providing protection to business investors and implementation of safer investment options;
- The fast-track legal system of Turkey is a point of boast which has the track record of settling disputes and contracts settlements four months quicker than Europe. It has also implemented property rights law across the nation;
- Entrepreneurs who invest in Turkey are not required to submit their personal details for the public record, thereby allowing greater privacy;
- Turkey is an economical country compared to other European countries because it has a low rental for office space and apartments. Comparatively, the cost of living in Turkey is 1/6th of the cost in London.