Doing Business with Turkey

Exporting to Turkey offers significant opportunities due to its strategic geographic position, large consumer base, and diverse economy. Below is a step-by-step guide outlining the process.

1. Understand the Turkish Market

• Identify demand for your product.
• Research local competitors and pricing.
• Work with local partners, agents, or distributors.

2. Check Turkey’s Import Regulations

• Verify tariffs using the Customs Tariff Schedule.
• Ensure compliance with Turkish standards (labeling, packaging, safety).

3. Classify Your Goods with HS Codes

• Identify the appropriate HS code for your product.
• Determine applicable tariffs and non-tariff barriers.

4. Determine the Tariff and Taxes

• Take note of the VAT rate (generally 1% to 18%).
• Check qualify for preferential treatment under trade agreements (e.g., Turkey-EU Customs Union).

5. Prepare Export Documentation

1. Commercial Invoice
2. Packing List
3. Certificate of Origin
4. Bill of Lading (BOL)
5. Customs Declaration Form

6. Arrange Shipping and Logistics

• Select a reliable freight forwarder.
• Secure shipping insurance.

7. Clear Turkish Customs

• Submit required documents to Turkish customs.
• Pay duties, VAT, and fees.

Importing goods into Turkey involves adhering to customs regulations and ensuring compliance with local standards.

1. Obtain a Customs Registration Number

• Register with the Customs and Trade Ministry to receive a Customs Registration Number (CRN).

2. Calculate Import Duties and Taxes

• Consult the Tariff Schedule.
• Check qualification for preferential tariffs under the Turkey-EU Customs Union.

3. Submit an Import Declaration via the BILGE System

• Submit declaration electronically through the BILGE system.

Key Government Contacts

1. Ministry of Trade: https://www.trade.gov.tr
2. Turkish Standards Institution (TSE): https://www.tse.org.tr

Incorporating a company in Turkey involves selecting the right business structure and registering with authorities.

1. Choose the Business Structure

• Limited Liability Company (LLC): Min. capital TRY 10,000.
• Joint Stock Company (JSC): Min. capital TRY 50,000.
• Liaison Office: For market research only.

2. Deposit the Minimum Capital

• Deposit capital into a Turkish bank account. It will be blocked until registration is complete.

3. Register with the Trade Registry Office

• Submit Articles of Association (notarized).
• Details will be published in the Turkish Trade Registry Gazette.

4. Register for Tax and Social Security (SGK)

• Obtain a Tax Identification Number (TIN).
• Register with the Social Security Institution (SGK) for employee benefits.

Turkey is a strategic location for manufacturing with access to European and Asian markets.

1. Find a Suitable Location

• Identify Organized Industrial Zones (OIZs) for ready-built infrastructure and tax incentives.

2. Acquire Necessary Permits

• Construction Permit
• Environmental Impact Assessment (EIA)
• Operational Permit

3. Apply for Investment Incentives

• Incentives include VAT exemptions, corporate tax reductions, and land allocation.

The Turkish Patent and Trademark Office (Türk Patent) manages trademark registrations.

1. Trademark Search and Nice Classification

• Conduct search via the Türk Patent database.
• Select classes under the Nice Classification System.

2. Publication and Certificate

• Acceptance results in a 2-month publication in the Official Bulletin.
• If no opposition, a certificate is issued, valid for 10 years.

1. Mandatory Mediation

• Mandatory for commercial payment claims before litigation.

2. Arbitration

• ISTAC (Istanbul Arbitration Center) is common for international disputes.

1. Social and Cultural Factors

• Etiquette: Firm handshakes, professional titles, and personal trust are vital.
• Language: Turkish is official; English is common in business centers.

2. Foreign Exchange

• Currency: Turkish Lira (TRY).
• Manage risk through hedging or using USD/EUR for large contracts.

3. Taxation

• Corporate Tax: Standard rate 25% (varies by year/incentive).
• VAT: Standard 18%.