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Doing Business with Turkey

A comprehensive guide to doing business, exporting, investing, and manufacturing in Turkey.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Invest in Türkiye

Tel: +90 312 413 89 00
Email: info@invest.gov.tr
Web: www.invest.gov.tr

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Turkish Customs Administration

Tel: +90 312 449 10 00
Email: ggm@trade.gov.tr
Web: www.trade.gov.tr

National Chamber of Commerce

Union of Chambers and Commodity Exchanges of Turkey (TOBB)

Tel: +90 312 218 20 00
Email: info@tobb.org.tr
Web: www.tobb.org.tr

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Trade

Tel: +90 312 204 75 00
Email: iletisim@ticaret.gov.tr
Web: www.ticaret.gov.tr

Basic Statistics about Turkey

  • Type of Government: Unitary parliamentary republic
  • Population: Approximately 85 million (2024 estimate)
  • GDP: USD 1.03 trillion (2023 estimate)
  • Corporate Tax Rate: 25% (2023)
  • Personal Income Tax Rate: 15% to 40% (progressive rate)
  • Major Exports: Automobiles, machinery, textiles, electronics, iron and steel, chemicals
  • Major Imports: Machinery, mineral fuels (including oil), chemicals, vehicles, iron and steel, plastics

Exporting to Turkey

Exporting to Turkey offers significant opportunities due to its strategic geographic position, large consumer base, and diverse economy. However, exporting goods to the Turkish market involves navigating various legal, regulatory, and procedural requirements. Below is a step-by-step guide outlining the process of exporting to Turkey.

1. Understand the Turkish Market

Before exporting to Turkey, it’s important to conduct market research and understand the demand for your products. This includes assessing local competition, consumer preferences, and distribution channels.

  • How to Proceed:
    • Identify whether there is demand for your product in Turkey.
    • Research potential customers, competitors, and pricing strategies.
    • Consider working with local partners, agents, or distributors to gain a better understanding of the market.
  • Key Contact:

2. Check Turkey’s Import Regulations

Turkey is a member of the World Trade Organization (WTO) and adheres to international trade agreements. However, there are specific import regulations and standards that apply, particularly for products such as food, chemicals, and electronics.

  • How to Proceed:
    • Verify the tariffs and customs duties applicable to your product by consulting Turkey’s Customs Tariff Schedule.
    • Ensure that your product complies with Turkish standards and regulations (e.g., labeling, packaging, health, and safety standards).
    • Some products may require an import license or additional documentation (e.g., phytosanitary certificates for agricultural products).
  • Key Contact:

3. Classify Your Goods with HS Codes

To determine the correct tariffs and duties, you must classify your goods using the Harmonized System (HS) code. HS codes are internationally standardized product codes used by Turkey’s customs authorities to classify goods for import.

  • How to Proceed:
    • Identify the appropriate HS code for your product by consulting your local customs authority or online databases.
    • This code will help you determine the applicable tariffs, customs duties, and any non-tariff barriers that apply to your product.
  • Key Contact:

4. Determine the Tariff and Taxes

Turkey applies various tariffs, customs duties, and value-added tax (VAT) on imports. The rates depend on the type of goods and their country of origin. Turkey also participates in several free trade agreements (FTAs) that may reduce or eliminate tariffs for certain goods.

  • How to Proceed:
    • Check the applicable import duties using the HS code.
    • Determine if your goods qualify for preferential treatment under any trade agreements (e.g., Turkey-EU Customs Union).
    • Take note of the applicable VAT rate, which generally ranges from 1% to 18%, depending on the product.
  • Key Contact:

5. Prepare Export Documentation

Proper documentation is critical for the customs clearance process. You will need to ensure that all required documents are complete and accurate to avoid delays or penalties.

  • Essential Documents:
    1. Commercial Invoice: Must include details of the buyer, seller, product description, quantity, price, and terms of sale.
    2. Packing List: Lists the contents of the shipment, including weight and dimensions.
    3. Certificate of Origin: Identifies the origin of the product and may be required for preferential duty treatment under trade agreements.
    4. Bill of Lading (BOL): A transport document issued by the carrier as proof of shipment.
    5. Customs Declaration Form: Submitted to Turkish customs for clearance.
    6. Insurance Certificate: Optional but recommended for high-value shipments.
  • How to Proceed:
    • Ensure all documents are compliant with Turkish customs and trade regulations.
    • Work with a freight forwarder or customs broker to facilitate the documentation process.
  • Key Contact:

6. Arrange Shipping and Logistics

Shipping goods to Turkey requires careful planning, considering the country’s customs procedures and logistics infrastructure. You’ll need to decide on the appropriate mode of transport (air, sea, or road) and ensure that your goods are properly insured and packaged.

  • How to Proceed:
    • Select a reliable shipping company or freight forwarder with experience in handling exports to Turkey.
    • Ensure your goods are properly packaged and labeled according to Turkish import regulations.
    • Secure shipping insurance to cover the value of your goods in transit.
  • Key Contact:

7. Clear Turkish Customs

Your shipment will undergo an inspection upon arrival in Turkey. The Turkish Customs Authority will verify the documentation, inspect the goods, and calculate the applicable duties and taxes before releasing the shipment.

  • How to Proceed:
    • Submit the required documents (commercial invoice, packing list, bill of lading, etc.) to Turkish customs.
    • Pay the applicable customs duties, VAT, and any other fees.
    • Ensure compliance with any import restrictions or sanitary/phytosanitary regulations if applicable to your product.
  • Key Contact:

8. Work with Local Distributors or Agents

To successfully enter the Turkish market, many exporters work with local distributors or sales agents who are familiar with the market and local regulations. Distributors can handle customs clearance, warehousing, and distribution of your products in Turkey.

  • How to Proceed:
    • Identify potential local partners through trade organizations, business directories, or industry events.
    • Negotiate distribution agreements that align with Turkish laws, ensuring that terms such as payment, delivery, and responsibilities are clearly defined.
  • Key Contact:

9. Comply with Turkish Standards and Certifications

Certain products (e.g., electronics, machinery, pharmaceuticals) must meet Turkish or international standards and may require certifications or approvals before they can be sold in Turkey. These standards are often managed by the Turkish Standards Institution (TSE).

  • How to Proceed:
    • Check the Turkish Standards Institution (TSE) website to determine if your product needs certification.
    • Ensure compliance with CE marking requirements for products regulated under European standards.
    • Submit your products for testing and obtain the necessary certifications before shipping.
  • Key Contact:

10. Manage Payments and Currency Exchange

Turkey’s currency is the Turkish Lira (TRY). When exporting to Turkey, ensure that payment terms are clearly defined in your contract, and consider the implications of currency fluctuations. Common payment methods include letters of credit (LC), bank transfers, and documentary collections.

  • How to Proceed:
    • Agree on a payment method with your buyer (e.g., letters of credit for added security).
    • Ensure that your bank is familiar with Turkey’s banking and currency regulations.
    • Monitor currency exchange rates and consider hedging strategies to mitigate risks associated with currency fluctuations.
  • Key Contact:

Key Government Contacts for Exporting to Turkey

  1. Ministry of Trade of Turkey
    Website: https://www.trade.gov.tr
  2. Turkish Customs and Trade General Directorate
    Website: https://www.ticaret.gov.tr/gumrukler
  3. Turkish Exporters Assembly (TIM)
    Website: https://www.tim.org.tr
  4. Turkish Standards Institution (TSE)
    Website: https://www.tse.org.tr
  5. Foreign Economic Relations Board of Turkey (DEIK)
    Website: https://www.deik.org.tr
  6. Investment Office of the Presidency of the Republic of Turkey
    Website: https://www.invest.gov.tr/en
  7. Central Bank of the Republic of Turkey
    Website: https://www.tcmb.gov.tr

Importing to Turkey

Importing goods into Turkey involves adhering to the country’s customs regulations, obtaining the necessary certifications, and ensuring compliance with local standards. Below is a comprehensive, step-by-step guide to help you navigate the process of importing goods into Turkey.

1. Research Import Regulations and Product Requirements

The first step in importing goods into Turkey is to understand the specific import regulations for your product. Turkey has regulations that vary by product type, and some goods may require special permits, licenses, or certifications.

  • How to Proceed:
    • Check if your product is subject to import restrictions, quotas, or prohibited items.
    • Determine if your product requires special certifications (e.g., CE marking for electronics, health certificates for food and pharmaceuticals).
    • Verify if any import licenses are required for restricted products such as chemicals, pharmaceuticals, and telecommunications equipment.
  • Key Contact:

2. Obtain a Customs Registration Number

Before importing, businesses in Turkey must register with the Customs Administration. Importers need to obtain a Customs Registration Number (CRN), which is required for customs clearance.

  • How to Proceed:
    • Register your company with Turkey’s Customs and Trade Ministry to receive a Customs Registration Number (CRN).
    • Ensure that your company is also registered with the Trade Registry Gazette in Turkey.
  • Key Contact:

3. Classify Your Goods Using HS Codes

Every product being imported into Turkey needs to be classified using the Harmonized System (HS) code. This international classification system is used to determine the applicable tariffs, duties, and other regulatory requirements.

  • How to Proceed:
    • Identify the appropriate HS code for your product.
    • Use the HS code to determine the import duties and taxes applicable to your goods.
  • Key Contact:

4. Calculate Import Duties and Taxes

Turkey imposes import duties and taxes based on the HS code, the country of origin, and the product’s value. Importers must also pay Value Added Tax (VAT) and other potential fees.

  • How to Proceed:
    • Consult the Turkish Customs Tariff Schedule to determine the specific import duties for your goods.
    • Calculate VAT rates (generally 18%, though some products have lower rates).
    • Check if your goods qualify for preferential tariffs under any trade agreements (e.g., Turkey-EU Customs Union, Free Trade Agreements).
  • Key Contact:

5. Prepare Necessary Documentation

To clear Turkish customs, you will need to provide a complete set of import documents. Missing or incorrect documentation can lead to delays or penalties.

  • Essential Documents:
    1. Commercial Invoice: Provides details of the transaction, including the buyer, seller, product description, price, and terms of sale.
    2. Packing List: Describes the contents of the shipment, including weight, dimensions, and packaging details.
    3. Bill of Lading (BOL) or Airway Bill (AWB): Acts as proof of shipment and transportation.
    4. Certificate of Origin: Identifies the origin of the goods. It is required for customs clearance and any preferential tariff treatment.
    5. Import License: Required for restricted or regulated goods (if applicable).
    6. Insurance Certificate: Optional, but recommended for high-value shipments.
    7. Customs Declaration Form: Submitted electronically through Turkey’s BILGE system (customs clearance system).
  • How to Proceed:
    • Work with your supplier to ensure all documents are accurate and compliant with Turkish regulations.
    • Use a customs broker or freight forwarder to help prepare and submit the required documents.
  • Key Contact:

6. Ensure Compliance with Turkish Standards and Certifications

Certain products may need to meet specific Turkish or international standards. For example, machinery, electronics, or medical devices may need to comply with CE marking or other certifications.

  • How to Proceed:
    • Check whether your product requires certification from the Turkish Standards Institution (TSE).
    • Obtain the necessary product certifications or compliance reports.
    • Submit your product for testing if required.
  • Key Contact:

7. Arrange Shipping and Logistics

Once your goods are ready for export, you’ll need to arrange shipping to Turkey. Choose the appropriate mode of transportation (air, sea, or road) and ensure that your goods are insured and properly packaged.

  • How to Proceed:
    • Select a reliable freight forwarder or logistics provider with experience in shipping to Turkey.
    • Ensure your goods are packaged according to Turkish regulations and labeled accurately.
    • Obtain cargo insurance to cover your goods during transit.
  • Key Contact:

8. Submit an Import Declaration via the BILGE System

Turkey uses the BILGE system (computerized customs clearance system) to process import declarations.

  • How to Proceed:
    • Submit the required Customs Declaration and supporting documents electronically through the BILGE system.
    • Your customs broker can assist with submission and ensure that your documentation is correct.
    • Pay the applicable import duties, VAT, and any other customs fees.
  • Key Contact:

9. Clear Turkish Customs

Once your shipment arrives in Turkey, it will be processed by the Turkish Customs Authority. Customs officials will review the documentation, inspect the goods (if necessary), and release the shipment upon payment of duties and taxes.

  • How to Proceed:
    • Ensure that all documents are ready and have been submitted through the BILGE system.
    • Be prepared for potential customs inspections.
    • Pay any additional fees or charges if required.
  • Key Contact:

10. Arrange Distribution and Delivery

Once your goods clear customs, you’ll need to arrange for local transportation and delivery to their final destination within Turkey.

  • How to Proceed:
    • Work with a logistics provider to arrange warehousing, distribution, and delivery.
    • Ensure that your goods are delivered according to the agreed-upon terms and conditions.
  • Key Contact:

11. Comply with Foreign Exchange and Payment Regulations

Turkey’s currency is the Turkish Lira (TRY). Importers must comply with Turkish foreign exchange regulations when making payments to foreign suppliers. Ensure that your payment terms are clearly defined in your contract to avoid delays.

  • How to Proceed:
    • Make sure that your Turkish bank is aware of the foreign payment and that all necessary approvals are in place.
    • Monitor exchange rates and consider hedging strategies if necessary to mitigate currency risk.
  • Key Contact:

Key Government Contacts for Importing into Turkey

  1. Ministry of Trade of Turkey
    Website: https://www.trade.gov.tr
  2. Turkish Customs and Trade General Directorate
    Website: https://www.ticaret.gov.tr/gumrukler
  3. Turkish Standards Institution (TSE)
    Website: https://www.tse.org.tr
  4. Turkish Exporters Assembly (TIM)
    Website: https://www.tim.org.tr
  5. Turkish Chamber of Shipping
    Website: https://www.denizticaretodasi.org.tr/en
  6. Central Bank of the Republic of Turkey
    Website: https://www.tcmb.gov.tr

Investing / Incorporating in Turkey

Incorporating a company in Turkey involves several legal and administrative steps, including selecting the right business structure, registering with government authorities, and fulfilling compliance obligations. Below is a clear, step-by-step guide to help you navigate the process of incorporating a company in Turkey.

1. Choose the Business Structure

The first step in incorporation is selecting the appropriate business structure for your company. The most common types in Turkey are:

  • Limited Liability Company (LLC)
    This is the most common type for small and medium-sized businesses. It requires at least one shareholder and a minimum capital of TRY 10,000.
  • Joint Stock Company (JSC)
    More suitable for larger businesses with plans to issue shares. It requires a minimum capital of TRY 50,000 and at least one shareholder.
  • Branch Office
    Foreign companies can establish a branch office without separate legal status from the parent company. No minimum capital is required.
  • Liaison Office
    This is for non-commercial activities like market research. Liaison offices cannot conduct business or generate revenue in Turkey.
  • How to Proceed:
    • Select the appropriate legal structure based on the size, type, and scope of your business.
  • Key Contact:

2. Prepare the Articles of Association

Drafting the Articles of Association is required for registering a company in Turkey. This document outlines the company’s purpose, capital structure, management, and operational rules.

  • How to Proceed:
    • Consult a legal advisor to help draft the Articles of Association in compliance with the Turkish Commercial Code.
    • The Articles must be notarized and submitted during the registration process.
  • Cost:
    Notarization fees for the Articles of Association vary but typically range between TRY 200 – 500, depending on the complexity and number of pages.

3. Deposit the Minimum Capital

For LLCs and JSCs, the minimum capital must be deposited into a Turkish bank account. This capital is blocked until the company registration is complete.

  • Minimum Capital Requirements:
    • LLC: Minimum capital of TRY 10,000.
    • JSC: Minimum capital of TRY 50,000.
  • How to Proceed:
    • Open a temporary bank account in the name of your company.
    • Deposit the minimum required capital into the account.
    • Obtain a capital deposit receipt from the bank.
  • Key Contact:
    • Bank of your choice in Turkey (e.g., Ziraat Bank, Garanti Bank, İşbank).

4. Register with the Trade Registry Office

You must submit an application to the Trade Registry Office to legally incorporate your company. This step officially registers your business with the Turkish authorities.

  • Documents Required:
    • Articles of Association (notarized).
    • Founders’ signatures (notarized).
    • Capital deposit receipt from the bank.
    • Proof of office address (such as a lease agreement or utility bill).
    • Declaration of company managers.
    • Copy of the tax identification number for each shareholder and director.
  • How to Proceed:
    • Submit all required documents to the Trade Registry Office in the city where your company will be headquartered.
    • Once approved, the company’s details will be published in the Turkish Trade Registry Gazette.
  • Cost:
    The registration fee varies but typically ranges from TRY 500 – 1,000, depending on the location and type of company.
  • Key Contact:

5. Register for Tax and Obtain a Tax Identification Number

After registration with the Trade Registry, the company must obtain a Tax Identification Number (TIN) from the Turkish Tax Office. All companies in Turkey are subject to corporate tax, VAT, and other applicable taxes.

  • How to Proceed:
    • Apply for a Tax Identification Number at the local tax office.
    • Ensure your company is registered for corporate tax, VAT, and withholding tax (if applicable).
    • You will also need to open a tax ledger for accounting purposes.
  • Cost:
    There is no cost to obtain a tax identification number, but professional accounting services may charge for ongoing tax filings.
  • Key Contact:

6. Register for Social Security

If your company plans to hire employees, you must register with the Social Security Institution (SGK). This ensures that your employees are covered for health insurance, pensions, and other social benefits.

  • How to Proceed:
    • Register your company with the Social Security Institution (SGK).
    • You will need to provide details such as your company’s tax ID, address, and workplace registration.
    • Ensure that payroll complies with Turkish labor laws and that appropriate deductions are made for social security contributions.
  • Cost:
    There are no direct fees for registration, but companies are required to contribute to social security on behalf of their employees (approximately 34.5% of gross wages).
  • Key Contact:

7. Obtain Necessary Licenses and Permits

Depending on your industry and the nature of your business, you may need to obtain specific licenses or permits to operate legally in Turkey. For example, food businesses, pharmaceutical companies, and construction firms require special permits.

  • How to Proceed:
    • Check with the relevant ministries or local authorities to determine if your business requires any specific licenses.
    • Submit the necessary applications and ensure compliance with sector-specific regulations.
  • Key Contact:
  • Cost:
    The cost of licenses and permits varies by industry and location.

8. Open a Permanent Bank Account

Once your company is officially registered, you can open a permanent bank account in the company’s name. This account will be used for daily operations, including paying suppliers, taxes, and employee salaries.

  • How to Proceed:
    • Visit a Turkish bank of your choice and provide the company’s registration documents, Tax Identification Number, and authorized signature list.
    • Set up online banking and other necessary services for your business.
  • Key Contact:
    • Turkish banks (e.g., Ziraat Bank, Garanti Bank, İşbank).

9. Hire an Accountant and Set Up Accounting Records

By law, all Turkish companies must maintain proper accounting records and submit annual financial statements. Hiring a local accountant or accounting firm is advisable to ensure compliance with Turkish tax and accounting regulations.

  • How to Proceed:
    • Hire a professional accountant or accounting firm that is familiar with Turkish tax laws.
    • Set up payroll and ensure compliance with VAT, corporate tax, and social security filings.
  • Cost:
    Accountant fees vary depending on the size of the company and the complexity of the work, typically starting from TRY 500 – 1,500 per month.
  • Key Contact:

10. Publish in the Turkish Trade Registry Gazette

Once your company is incorporated, the final step is to publish the company’s details in the Turkish Trade Registry Gazette. This is a legal requirement for all companies operating in Turkey.

  • How to Proceed:
    • The Trade Registry Office will handle the publication of your company’s registration and related details in the official Turkish Trade Registry Gazette.
  • Cost:
    Publication fees typically range from TRY 200 – 500 depending on the size and type of the publication.
  • Key Contact:

Key Government Contacts for Incorporating a Business in Turkey

  1. Ministry of Trade of Turkey
    Website: https://www.trade.gov.tr
  2. Turkish Trade Registry Gazette
    Website: https://www.ticaretsicil.gov.tr
  3. Turkish Revenue Administration
    Website: https://www.gib.gov.tr
  4. Social Security Institution (SGK)
    Website: https://www.sgk.gov.tr
  5. Union of Chambers of Certified Public Accountants of Turkey (TÜRMOB)
    Website: https://www.turmob.org.tr

Manufacturing in Turkey

Turkey is a strategic location for setting up a manufacturing plant due to its growing economy, favorable trade agreements, and access to both European and Asian markets. However, establishing a manufacturing facility involves several legal, regulatory, and logistical steps. Below is a clear, numbered guide to help you navigate the process of setting up a manufacturing plant in Turkey.

1. Conduct Feasibility Study and Market Research

Before making any formal commitments, it’s essential to conduct a feasibility study and market research for your manufacturing plant. This will help you understand Turkey’s business environment, labor market, raw material availability, and local demand.

  • How to Proceed:
    • Analyze the industry landscape, including local and global competitors.
    • Assess the availability of raw materials, utilities (power, water), and skilled labor.
    • Identify potential local suppliers and distribution channels.
    • Consider the transportation infrastructure and proximity to ports, airports, and highways.
  • Key Contact:

2. Select the Appropriate Business Structure

To operate a manufacturing plant legally in Turkey, you’ll need to establish a legal entity. The most common options for foreign investors are:

  • Limited Liability Company (LLC): Suitable for small and medium-sized enterprises.
  • Joint Stock Company (JSC): Recommended for larger businesses with plans to issue shares.
  • Branch Office: For foreign companies wanting to establish a presence without creating a separate legal entity in Turkey.
  • How to Proceed:
    • Choose the legal structure that best suits your business model.
    • Register the company with the Turkish Trade Registry.
  • Key Contact:

3. Find a Suitable Location

The success of your manufacturing plant depends heavily on its location. Industrial zones in Turkey offer incentives such as tax exemptions, government grants, and simplified customs procedures.

  • How to Proceed:
    • Identify potential industrial zones or free zones based on your industry. Turkey has several organized industrial zones (OIZs) with ready-built infrastructure.
    • Consider proximity to suppliers, customers, transportation networks, and the availability of utilities.
    • Check whether the area offers government incentives or subsidies for setting up manufacturing facilities.
  • Key Contact:
  • Organized Industrial Zones (OIZ):
    Website: https://www.osbuk.org.tr/en/

4. Acquire Necessary Permits and Licenses

Before you can begin construction and manufacturing operations, you’ll need to obtain various permits and licenses from the Turkish authorities.

  • Permits Required:
    • Construction Permit: Required if you are building a new facility or making changes to an existing structure.
    • Environmental Impact Assessment (EIA): Required for certain types of manufacturing activities (e.g., chemical, energy, mining sectors).
    • Operational Permit: Issued by the local municipality once the facility is ready to begin operations.
    • Health and Safety Permits: Needed to ensure compliance with local safety regulations.
  • How to Proceed:
    • Apply for permits at the local municipality or Ministry of Environment, Urbanization and Climate Change.
    • For projects requiring an EIA, submit your environmental impact assessment report for approval.
  • Key Contacts:
    • Ministry of Environment, Urbanization and Climate Change
      Website: https://www.csb.gov.tr
    • Local Municipalities: Depending on the location of your plant.

5. Set Up Utilities and Infrastructure

To operate a manufacturing plant, you’ll need to ensure that the necessary utilities (electricity, water, gas, and telecommunications) are set up.

  • How to Proceed:
    • Contact the local utility providers to arrange connections for electricity, gas, water, and internet services.
    • Ensure that the infrastructure (roads, power supply, waste disposal) within the industrial zone or free zone is sufficient for your needs.
  • Key Contact:

6. Recruit and Hire Employees

Turkey has a large, relatively young workforce with a wide range of technical and professional skills. To hire employees, you must comply with Turkish labor laws and register your company with the Social Security Institution (SGK).

  • How to Proceed:
    • Create a hiring plan based on your operational needs.
    • Register your company with the Social Security Institution (SGK) for employee benefits such as health insurance and pensions.
    • Ensure that employment contracts comply with Turkish labor laws, including minimum wage, working hours, and health and safety regulations.
  • Key Contact:

7. Comply with Health and Safety Regulations

Health and safety regulations in Turkey are governed by the Occupational Health and Safety Law. This law requires employers to create a safe working environment and provide necessary personal protective equipment (PPE) to employees.

  • How to Proceed:
    • Perform a risk assessment and create a Health and Safety Plan for your factory.
    • Appoint a health and safety officer (required for companies with more than 50 employees).
    • Ensure that all employees undergo health and safety training and that your facility complies with fire safety and emergency evacuation standards.
  • Key Contact:

8. Purchase Equipment and Machinery

After the facility is set up, you’ll need to purchase and install the necessary machinery and equipment for your manufacturing process. Machinery imports may be subject to customs duties and VAT, but you may qualify for investment incentives.

  • How to Proceed:
    • Source suppliers for equipment, either domestically or internationally.
    • Ensure that the equipment complies with Turkish and international standards.
    • Apply for customs duty exemptions or tax incentives if applicable (especially in free zones or for strategic sectors).
  • Key Contact:
  • Turkish Standards Institution (TSE)
    Website: https://www.tse.org.tr

9. Apply for Investment Incentives

Turkey offers a range of investment incentives for local and foreign investors, particularly in the manufacturing sector. These incentives can include tax exemptions, reduced customs duties, VAT exemptions, land allocation, and social security premium support.

  • How to Proceed:
    • Apply to the Ministry of Industry and Technology or the Investment Office of the Presidency for investment incentives.
    • Check if your business qualifies for regional investment incentives, R&D incentives, or strategic investment incentives.
  • Key Contact:

10. Begin Production and Comply with Reporting Obligations

Once your plant is operational, you must ensure compliance with Turkish laws regarding taxes, social security contributions, environmental reporting, and financial audits.

  • How to Proceed:
    • Set up a tax filing system and hire an accountant to ensure compliance with corporate tax and VAT obligations.
    • Submit regular reports to the Social Security Institution (SGK) for employee contributions.
    • Ensure compliance with environmental regulations, including waste management and emissions reporting.
  • Key Contact:

Key Government Contacts for Setting Up a Manufacturing Plant in Turkey

  1. Investment Office of the Presidency of the Republic of Turkey
    Website: https://www.invest.gov.tr/en
  2. Ministry of Industry and Technology of Turkey
    Website: https://www.sanayi.gov.tr
  3. Ministry of Environment, Urbanization and Climate Change
    Website: https://www.csb.gov.tr
  4. Turkish Standards Institution (TSE)
    Website: https://www.tse.org.tr
  5. Turkish Trade Registry Gazette
    Website: https://www.ticaretsicil.gov.tr
  6. Social Security Institution (SGK)
    Website: https://www.sgk.gov.tr
  7. Turkish Revenue Administration
    Website: https://www.gib.gov.tr

Trademark Registration in Turkey

Registering a trademark in Turkey provides legal protection for your brand and prevents others from using similar names, logos, or symbols in commerce. The Turkish Patent and Trademark Office (Türk Patent) is responsible for managing trademark applications and registrations in Turkey. Below is a step-by-step guide to help you navigate the trademark registration process in Turkey.

1. Conduct a Trademark Search

Before applying for trademark registration, it is important to conduct a preliminary search to ensure that your proposed trademark is not already registered or pending registration by another entity.

  • How to Proceed:
    • Use the Turkish Patent and Trademark Office’s online database to search for existing trademarks and pending applications.
    • Check for trademarks that are identical or confusingly similar to yours in the same or related classes of goods or services.
  • Key Contact:
  • Cost:
    The search can be conducted for free using the online database.

2. Choose the Right Class for Your Goods or Services

Trademarks in Turkey are registered under the Nice Classification System, which divides goods and services into 45 classes (34 for goods and 11 for services). You must specify the classes under which you want your trademark to be protected.

  • How to Proceed:
    • Review the Nice Classification to determine which class(es) best describe your goods or services.
    • You can register your trademark in multiple classes, but additional fees will apply for each class.
  • Key Contact:

3. Prepare the Application Documents

Once you have confirmed that your trademark is available and selected the appropriate class(es), you can proceed to prepare the application. The application includes several key pieces of information.

  • Documents Required:
    • Applicant Information: Name, address, and contact details of the applicant.
    • Representation of the Trademark: A clear image or description of the trademark (e.g., logo, wordmark).
    • List of Goods or Services: Clearly define the goods or services to be covered under the specific class(es).
    • Power of Attorney (if applicable): If you are using a trademark attorney or representative, you will need to provide a power of attorney.
  • How to Proceed:
    • Ensure that all information is accurate and complete before submitting the application to avoid delays or rejection.

4. Submit the Trademark Application Online

The trademark application can be submitted electronically through the Turkish Patent and Trademark Office’s online portal. The online submission process is straightforward, and you will receive an application number once the submission is complete.

  • How to Proceed:
    • Create an account on the Türk Patent online portal.
    • Complete the online application form, upload the necessary documents, and select the relevant classes.
    • Pay the application fee electronically to complete the submission.
  • Key Contact:

5. Pay the Trademark Application Fee

The application fee for registering a trademark in Turkey depends on the number of classes you are applying for. Each class incurs an additional fee.

  • Application Fees (as of 2024):
    • Base application fee for one class: TRY 1,600.
    • Additional fee for each extra class: TRY 1,600 per class.
  • How to Proceed:
    • You can pay the application fee online via the Türk Patent e-payment system.
    • Be sure to keep a record of the payment receipt for future reference.
  • Key Contact:

6. Examination by Türk Patent

Once your application is submitted, it will undergo a formal examination by the Turkish Patent and Trademark Office to check for compliance with legal requirements. If there are no formal deficiencies, the application will proceed to a substantive examination to evaluate the distinctiveness and eligibility of the trademark.

  • How to Proceed:
    • The formal examination typically takes 1-2 months.
    • During the substantive examination, the office will search for potential conflicts with existing trademarks and assess whether your trademark complies with Turkish trademark law.
    • If the application is accepted, it will be published in the Official Trademark Bulletin.
  • Key Contact:

7. Publication in the Official Trademark Bulletin

If your trademark application passes the examination, it will be published in the Official Trademark Bulletin for a period of 2 months. During this time, third parties can file oppositions if they believe your trademark conflicts with theirs.

  • How to Proceed:
    • Monitor the Trademark Bulletin to check if any oppositions are filed.
    • If an opposition is filed, you will have the opportunity to respond and defend your trademark.
    • If no oppositions are filed, or if they are resolved in your favor, the trademark will proceed to registration.
  • Key Contact:

8. Receive the Trademark Registration Certificate

If there are no oppositions, or if your trademark overcomes any opposition challenges, your trademark will be officially registered, and you will receive a Trademark Registration Certificate.

  • How to Proceed:
    • After the opposition period ends and no objections are sustained, you will receive an official notification of registration.
    • The Trademark Registration Certificate will be issued, allowing you to use the ® symbol to signify that your trademark is registered and fully protected under Turkish law.
  • Registration Fee:
    • TRY 2,200 (as of 2024) for the issuance of the Trademark Registration Certificate.
  • Key Contact:

9. Maintain and Renew Your Trademark

A registered trademark in Turkey is valid for 10 years from the date of filing. You can renew the trademark indefinitely, but renewal must be done every 10 years.

  • How to Proceed:
    • Apply for renewal within 6 months before the expiration of the current 10-year period.
    • If the renewal deadline is missed, there is a 6-month grace period, but additional late fees will apply.
  • Renewal Fee (as of 2024):
    • TRY 4,000 for each class.
    • Late renewal fee: TRY 6,000 if renewed within the 6-month grace period.
  • Key Contact:

Key Government Contacts for Trademark Registration in Turkey

  1. Turkish Patent and Trademark Office (Türk Patent)
    Main Website: https://www.turkpatent.gov.tr
    Online Application Portal: https://epats.turkpatent.gov.tr
    Trademark Search Tool: https://online.turkpatent.gov.tr/trademark-search/pub/trademark_search
  2. World Intellectual Property Organization (WIPO)
    Nice Classification: https://www.wipo.int/classifications/nice/en/

Commercial Dispute Resolution in Turkey

Commercial disputes in Turkey can be resolved through negotiation, mediation, arbitration, or litigation. The Turkish legal system supports multiple methods for settling disputes, depending on the nature of the issue and the preferences of the parties involved. Below is a step-by-step guide to help you navigate the process of resolving commercial disputes in Turkey.

1. Attempt Negotiation

The first step in resolving a commercial dispute in Turkey is to attempt to settle the matter through negotiation. This is a voluntary process in which both parties try to reach a mutually agreeable solution without formal legal proceedings.

  • How to Proceed:
    • Engage with the other party directly or through legal representatives to discuss the dispute.
    • Attempt to resolve the issue by finding a common ground or settlement that satisfies both parties.
  • Cost:
    No formal costs are associated with negotiation, but legal fees may apply if you involve legal counsel.

2. Consider Mandatory Mediation

In Turkey, mediation is mandatory for certain types of commercial disputes before filing a lawsuit. Mediation is a process where a neutral third party (the mediator) facilitates negotiations between the disputing parties to help them reach an agreement.

  • Types of Disputes Requiring Mandatory Mediation:
    • Commercial disputes involving payment claims.
    • Disputes related to employment contracts (in cases of wrongful dismissal, severance, etc.).
  • How to Proceed:
    • Apply to a registered mediation center or directly to the Ministry of Justice Mediation Department to engage a certified mediator.
    • The mediation process typically lasts up to 3 weeks, but this can be extended if both parties agree.
  • Costs:
    • The mediation fee is determined based on the amount in dispute. If an agreement is reached, the cost is shared equally unless otherwise agreed by the parties.
    • For disputes with no monetary value, the mediator is paid a flat fee, usually around TRY 300–500 per hour.
  • Key Contact:

3. Filing a Lawsuit (Litigation)

If negotiation and mediation fail, the next step is to resolve the dispute through litigation in the Turkish courts. Commercial litigation in Turkey is governed by the Turkish Commercial Code and the Code of Civil Procedure.

  • How to Proceed:
    • File a lawsuit in the appropriate commercial court. This is handled through the Turkish court system, which includes specialized commercial courts in larger cities.
    • The plaintiff must submit a written statement of claim detailing the dispute, the legal basis for the claim, and the requested remedies (e.g., compensation, performance of contract).
  • Jurisdiction:
    • Commercial disputes are generally heard in commercial courts of first instance.
    • If the dispute involves a foreign party, international jurisdiction rules may apply, and the case may be heard in Turkey if the dispute has a connection to Turkey.
  • Costs:
    • Court fees depend on the value of the claim but typically range from 1-2% of the total amount in dispute.
    • Expert fees, attorney fees, and filing fees are additional costs that can vary depending on the complexity of the case.
  • Key Contacts:

4. Consider Arbitration

Arbitration is a popular alternative to litigation for resolving commercial disputes, particularly for international commercial disputes. Arbitration allows the parties to appoint an independent arbitrator or arbitration panel to resolve the dispute outside of the court system.

  • Types of Arbitration:
    • Domestic Arbitration: Governed by the Turkish Code of Civil Procedure.
    • International Arbitration: Governed by the International Arbitration Law of Turkey and international conventions such as the New York Convention.
  • How to Proceed:
    • Include an arbitration clause in your commercial contracts, specifying the rules and location of arbitration.
    • If a dispute arises, apply to an authorized arbitration center to initiate proceedings.
    • The parties agree on the arbitration rules, arbitrators, and the venue for arbitration (e.g., Istanbul Arbitration Center).
  • Costs:
    • Arbitration fees vary based on the amount in dispute, the arbitration institution, and the number of arbitrators. Arbitration can be more expensive than litigation but offers faster resolution.
    • Institutional arbitration (e.g., through the Istanbul Arbitration Center) typically costs 2-5% of the disputed amount.
  • Key Contacts:

5. Enforce Court Judgments or Arbitral Awards

Once a court judgment or arbitral award has been issued, the next step is to enforce the decision. If the losing party does not voluntarily comply, the winning party can take steps to enforce the judgment through the Turkish enforcement system.

  • How to Proceed:
    • Court Judgments: File for enforcement through the Turkish Enforcement Offices.
    • Arbitral Awards: If the arbitral award was rendered in Turkey, it can be enforced directly. If it was rendered abroad, apply to the Turkish courts for recognition and enforcement under the New York Convention.
  • Costs:
    • Enforcement fees depend on the value of the judgment and the effort required to enforce it (e.g., seizing assets).
    • Additional costs may include hiring legal counsel or enforcement agents.
  • Key Contacts:

6. Appeal Court Decision (if necessary)

If either party is dissatisfied with the outcome of the litigation, they may appeal the decision to a higher court. Appeals in Turkey are heard by regional courts of appeal and ultimately by the Court of Cassation (the highest appellate court in Turkey).

  • How to Proceed:
    • File an appeal notice within 2 weeks of the original court’s decision.
    • The appellate court will review the case, and if necessary, the Court of Cassation will make a final ruling on matters of law.
  • Costs:
    • Appeal fees are usually a percentage of the claim’s value, ranging from 1-2% of the total amount.
    • Attorney fees and expert fees may also apply.
  • Key Contact:

7. Alternative Dispute Resolution (ADR)

In addition to the above methods, Turkey also encourages Alternative Dispute Resolution (ADR) mechanisms, such as conciliation and expert determination, for resolving commercial disputes. These methods are less formal than arbitration and can be faster and more cost-effective.

  • How to Proceed:
    • Agree with the other party to engage in ADR as an alternative to court proceedings.
    • Use conciliation to involve a neutral third party who will help guide the parties to a settlement.
    • Expert determination is often used for technical disputes, where an independent expert is chosen to decide on specific issues.
  • Costs:
    • ADR costs vary depending on the complexity of the dispute and the professionals involved (experts, conciliators).

Key Government Contacts for Resolving Commercial Disputes in Turkey

  1. Ministry of Justice of Turkey
    Website: https://www.adalet.gov.tr
    Mediation Department: https://www.adb.adalet.gov.tr
  2. Istanbul Arbitration Center (ISTAC)
    Website: https://www.istac.org.tr/en
  3. International Chamber of Commerce (ICC) Turkey
    Website: https://icc.tobb.org.tr
  4. Court of Cassation (Yargıtay)
    Website: https://www.yargitay.gov.tr
  5. Turkish Enforcement Offices
    Website: https://www.adalet.gov.tr
  6. Ministry of Justice – Department of International Law and Foreign Relations
    Website: https://www.uhdigm.adalet.gov.tr

Other Notes on Doing Business with Turkey

Turkey is a dynamic, rapidly developing country with significant opportunities for businesses. However, understanding the social, cultural, political, and economic environment is crucial for success. Below is a guide to some key factors that foreign investors and businesses should consider when entering the Turkish market.

1. Social and Cultural Factors

  • Cultural Etiquette:
    Turkish culture blends Eastern and Western traditions, and business etiquette reflects this diversity. Business meetings are generally formal, and personal relationships play an important role in building trust. Turks value hospitality and often consider business lunches or dinners as part of relationship-building.
  • How to Proceed:
    • Greetings: A firm handshake is common, but it is advisable to wait for the other party to initiate physical contact.
    • Titles: Use professional titles (such as “Doctor,” “Engineer,” or “Professor”) or address individuals as Mr. (Bey) or Ms. (Hanım) followed by their first name.
    • Punctuality: While punctuality is important, meetings may not always start on time, particularly if they are informal.
  • Language:
    Turkish is the official language, and while English is commonly spoken in major cities and by professionals, it’s useful to have a Turkish-speaking representative or translator for ease of communication, especially in legal and formal matters.
  • Business Attitudes:
    Turkish businesses tend to place a high emphasis on trust, loyalty, and long-term partnerships. Decision-making can sometimes be hierarchical, so understanding the corporate structure and who the decision-makers are is essential.

 

2. Political Environment

Turkey has a relatively stable political system, but it is essential for businesses to be aware of the geopolitical factors and domestic political developments that may impact the business environment.

  • Government Relations:
    The Turkish government actively promotes foreign direct investment (FDI) and offers various incentives, particularly for projects in technology, manufacturing, energy, and infrastructure. However, government policies can change, so it is important to stay informed about any new regulations or political shifts.
  • Geopolitical Location:
    Turkey’s strategic position between Europe and Asia makes it a key player in regional politics and trade. However, the country is also affected by regional conflicts (e.g., instability in neighboring Syria and Iraq), which can have implications for security, trade routes, and business operations.
  • Bureaucracy and Corruption:
    While Turkey has made significant strides in improving its regulatory framework, bureaucratic inefficiencies and corruption can still pose challenges for foreign businesses. Transparency International ranked Turkey 101st out of 180 countries in its 2022 Corruption Perception Index.

3. Foreign Exchange Considerations

The Turkish economy has experienced currency volatility in recent years, particularly with the Turkish Lira (TRY). Understanding how foreign exchange risks can impact your business is critical.

  • Exchange Rate Fluctuations:
    The Turkish Lira has seen periodic devaluation due to macroeconomic instability and high inflation. Currency fluctuations can impact the cost of imports, exports, and the value of foreign investments.
  • How to Mitigate Risks:
    • Hedging: Many businesses in Turkey use currency hedging strategies to mitigate the risk of exchange rate fluctuations.
    • Dollarization: In some sectors, especially in real estate and large contracts, transactions are conducted in euros or USD to reduce currency risk.
  • Economic Policies:
    The Turkish government has implemented policies to stabilize the currency, including interest rate adjustments and foreign currency interventions by the Turkish Central Bank. However, policy shifts can create uncertainty, so businesses need to stay updated on economic developments.

 

4. Rule of Law and Legal Environment

Turkey has a well-developed legal system based on civil law, influenced by European legal principles. However, understanding the rule of law and the legal environment is crucial for businesses.

  • Legal Framework:
    Turkish commercial law is primarily governed by the Turkish Commercial Code, which is aligned with European Union (EU) standards. Contracts, property rights, and intellectual property rights are all protected under the law. Enforcement of contracts is generally reliable, but the legal process can be slow and bureaucratic.
  • Dispute Resolution:
    As mentioned in the previous guide, businesses can resolve disputes through litigation, arbitration, or mediation. Turkey is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which makes arbitration a reliable option for international businesses.
  • Judicial Independence:
    Judicial independence in Turkey has occasionally been a concern for foreign investors, particularly in politically sensitive cases. While commercial disputes are generally handled fairly, it is important to ensure contracts include robust dispute resolution mechanisms.

5. Foreign Investment and Business Environment

Turkey is an attractive destination for foreign direct investment (FDI) due to its customs union with the EU, strategic location, and large, youthful workforce.

  • Foreign Investment Laws:
    Turkey’s Foreign Direct Investment Law No. 4875 guarantees equal treatment for foreign investors. Foreign companies can establish businesses in Turkey under the same conditions as domestic companies, with 100% foreign ownership allowed in most sectors.
  • Investment Incentives:
    The Turkish government offers various investment incentives to foreign businesses, including corporate tax reductions, VAT exemptions, and customs duty exemptions. Special incentives are offered for investments in organized industrial zones (OIZs), technology development zones, and free zones.
  • Key Sectors for Investment:
    • Manufacturing
    • Energy
    • Information Technology (IT)
    • Automotive
    • Tourism
  • Regulatory Environment:
    The regulatory environment in Turkey is generally business-friendly, but it is important to comply with local regulations, including labor laws, taxation, and environmental regulations.
  • Labor Market:
    Turkey has a large, young, and well-educated workforce. The minimum wage is set by the government, and labor laws provide strong protections for employees, including regulations on working hours, severance pay, and social security contributions.

6. Taxation

Turkey has a competitive tax regime designed to attract foreign investment. However, businesses should understand the various taxes they will be subject to.

  • Corporate Income Tax:
    The standard corporate income tax rate in Turkey is 20%, but temporary reductions or increases may apply periodically.
  • Value-Added Tax (VAT):
    VAT rates in Turkey vary depending on the type of goods or services. The standard VAT rate is 18%, but reduced rates of 8% and 1% apply to certain products and services.
  • Withholding Tax:
    Withholding tax may apply on dividends, interest, and royalties paid to foreign entities. Turkey has double taxation treaties with many countries to avoid the double taxation of income.

7. Infrastructure and Connectivity

Turkey has invested heavily in infrastructure development, making it an attractive location for businesses with logistics and transportation needs.

  • Transportation:
    Turkey’s advanced logistics network includes modern highways, railways, ports, and airports. Major infrastructure projects such as the Istanbul New Airport and the Baku-Tbilisi-Kars railway enhance Turkey’s connectivity to Europe, Asia, and the Middle East.
  • Digital Infrastructure:
    Turkey has strong telecommunication networks and is rapidly expanding its 5G infrastructure. The country’s e-commerce sector is also growing, driven by a young, tech-savvy population.

8. Environmental and Sustainability Regulations

Turkey is increasingly focusing on sustainable development and environmental protection. Businesses must comply with environmental regulations, particularly in sectors such as energy, manufacturing, and construction.

  • Environmental Impact Assessments (EIA):
    Certain projects, especially those with potential environmental risks (e.g., in mining or energy), require an Environmental Impact Assessment (EIA) before licenses can be issued.
  • Renewable Energy:
    Turkey encourages investments in renewable energy. The government offers incentives for solar, wind, hydroelectric, and geothermal energy projects, including feed-in tariffs and tax exemptions.

Key Government Contacts and Resources

  1. Investment Office of the Presidency of the Republic of Turkey
    Website: https://www.invest.gov.tr/en
  2. Ministry of Trade
    Website: https://www.trade.gov.tr
  3. Ministry of Treasury and Finance
    Website: https://www.hmb.gov.tr/en
  4. Ministry of Environment, Urbanization, and Climate Change
    Website: https://www.csb.gov.tr
  5. Central Bank of Turkey
    Website: https://www.tcmb.gov.tr
  6. Turkish Statistical Institute (TurkStat)
    Website: https://www.tuik.gov.tr
  7. Union of Chambers and Commodity Exchanges of Turkey (TOBB)
    Website: https://www.tobb.org.tr

Our Members Include Leading Organizations in Turkey

Ask our Experts on Doing Business in/with Turkey

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