In recent years, Turkey has emerged as a compelling destination for entrepreneurs and investors looking to expand their business horizons. The decision to start a company in Turkey offers a unique blend of geographical advantages, economic incentives, and cultural richness that make it an increasingly attractive option for business establishment. This comprehensive analysis explores the multifaceted reasons why more international entrepreneurs are choosing to start a company in Turkey, highlighting the country’s strategic position as a bridge between Europe and Asia.
Geographical Advantage: A Natural Business Hub
When you start a company in Turkey, you immediately gain access to a strategic location that serves as a natural crossroads between East and West. Situated at the intersection of Europe, Asia, and the Middle East, Turkey offers unparalleled access to multiple markets with a combined population of 1.5 billion people within a four-hour flight radius. This geographical advantage cannot be overstated for businesses looking to establish a regional headquarters or distribution centre.
The country’s strategic position makes it an ideal gateway for companies seeking to penetrate markets in the Balkans, Central Asia, the Middle East, and North Africa. When you start a company in Turkey, you’re not just entering a single market; you’re positioning yourself to access a diverse range of economies with varying levels of development and consumer behaviour. This regional reach allows businesses to diversify their market exposure and reduce dependency on any single economy.
Economic Growth and Stability
Turkey’s economy has demonstrated remarkable resilience and growth over the past two decades, making it an increasingly attractive destination for foreign investment. With a GDP exceeding $800 billion, Turkey ranks among the world’s top 20 economies. This economic strength provides a solid foundation for those looking to start a company in Turkey.
The Turkish government has implemented significant economic reforms aimed at improving the business environment and attracting foreign investment. These reforms include streamlining the process to start a company in Turkey, reducing bureaucratic obstacles, and offering various incentives for investors. The country’s commitment to economic liberalisation has yielded impressive results, with a notable increase in foreign direct investment.
Additionally, Turkey’s banking sector has undergone substantial modernisation, providing businesses with access to sophisticated financial services. This financial infrastructure is crucial for entrepreneurs who start a company in Turkey, as it ensures access to capital and financial products necessary for business growth and expansion.
Favourable Demographics and Growing Consumer Market
One compelling reason to start a company in Turkey is the country’s favourable demographic profile. With a population of approximately 84 million people and a median age of around 32 years, Turkey offers access to a young, dynamic, and increasingly affluent consumer base. This demographic advantage translates into a growing domestic market with rising purchasing power.
The young population is not only driving consumer spending but also contributing to a skilled workforce. Turkey boasts a well-educated labour pool, with thousands of graduates entering the job market annually. When you start a company in Turkey, you gain access to this talent pool, which can be particularly valuable for businesses in technology, engineering, and other knowledge-intensive sectors.
The growing middle class in Turkey represents a significant opportunity for businesses offering consumer goods and services. As disposable incomes rise, consumption patterns are evolving, creating new market segments and niches. Entrepreneurs who start a company in Turkey can tap into these emerging opportunities, particularly in sectors such as e-commerce, fintech, healthcare, and renewable energy.
Streamlined Business Setup Process
The process to start a company in Turkey has been significantly simplified in recent years, making it one of the more straightforward jurisdictions for business establishment in the region. The Turkish government has made concerted efforts to reduce bureaucracy and streamline administrative procedures for company registration.
Today, entrepreneurs can start a company in Turkey in as little as a week, with minimal capital requirements for certain business structures. The introduction of electronic registration systems has further expedited the process, allowing for many procedures to be completed online.
Foreign investors receive equal treatment under Turkish law, with no restrictions on repatriation of capital or profits. This level playing field ensures that when you start a company in Turkey, you operate under the same legal framework as local businesses, reducing potential discrimination or disadvantages.
Investment Incentives and Special Economic Zones
The Turkish government offers a comprehensive package of investment incentives designed to attract foreign capital and encourage business establishment. These incentives can significantly reduce the initial and operational costs when you start a company in Turkey.
Depending on the sector, location, and size of investment, businesses may benefit from tax reductions, exemptions from certain duties and fees, land allocation, and support for employee social security contributions. These incentives are particularly generous for investments in priority development areas and strategic sectors such as manufacturing, technology, and renewable energy.
Turkey has also established several special economic zones, including free trade zones, technology development zones, and organised industrial zones. These areas offer additional benefits for businesses, such as exemption from customs duties, VAT exemptions, and reduced bureaucracy. For entrepreneurs looking to start a company in Turkey with a focus on export markets or technology development, these zones present particularly attractive options.
Rich Cultural Heritage and Quality of Life
Beyond purely business considerations, Turkey offers a rich cultural heritage and high quality of life that can be appealing for entrepreneurs and executives relocating to establish their businesses. When you start a company in Turkey, you immerse yourself in a country with thousands of years of history, diverse cultural influences, and world-renowned hospitality.
Major cities like Istanbul, Ankara, and Izmir offer modern infrastructure, international schools, quality healthcare facilities, and vibrant cultural scenes. This combination of professional opportunities and lifestyle benefits makes Turkey an attractive destination for business owners who want to balance work with quality of life.
Conclusion: A Strategic Decision with Multiple Benefits
The decision to start a company in Turkey represents a strategic choice that can yield multiple benefits for entrepreneurs and investors. From its unparalleled geographical position as a bridge between continents to its robust economic growth, favourable demographics, and business-friendly policies, Turkey offers a compelling value proposition for business establishment.
As global economic dynamics continue to evolve, with increasing attention being paid to emerging markets and alternative investment destinations, Turkey’s star continues to rise. For forward-thinking entrepreneurs seeking new horizons, the opportunity to start a company in Turkey merits serious consideration. With the right preparation, market understanding, and strategic approach, establishing a business in this dynamic country can serve as a gateway to regional and global success.