A Guide for French Entrepreneurs: Starting a Business in Turkey

Turkey offers a highly attractive environment for French entrepreneurs thanks to its strategic location between Europe and Asia, a young and skilled workforce, modern infrastructure, and numerous fiscal advantages. This comprehensive guide is designed to help French entrepreneurs understand every step of setting up a company in Turkey.

1. Why Choose Turkey?

Strategic Geographic Location

Turkey serves as a natural bridge between European, Asian, and Middle Eastern markets, providing direct access to vast trade routes.

Young and Skilled Workforce

Over 60% of Turkey’s population is under 35, creating a dynamic labor pool especially in tech, services, logistics, and manufacturing.

Expanding Domestic Market

With a population of 84 million, Turkey offers a large and growing consumer base—especially in e-commerce, tourism, logistics, and renewable energy sectors.

2. Company Types and Legal Structures

Foreign investors can choose from various company structures, including:

• Limited Liability Company (Ltd. Şti.) – The most common form, requiring a minimum capital of 10,000 TRY.

• Joint Stock Company (A.Ş.) – Suitable for large-scale projects and publicly traded businesses; requires 50,000 TRY capital.

• Sole Proprietorship (Şahıs Şirketi) – Ideal for small-scale operations.

• Other options: Cooperatives, General Partnerships, Limited Partnerships, and Ordinary Partnerships.

3. Steps to Register a Business in Turkey

Here are the main steps to establish a company in Turkey:

1. Choose a suitable company structure

2. Draft and notarize the Articles of Association

3. Secure a legal address (physical or virtual office)

4. Register with the Tax Office (obtain tax & VAT numbers)

5. Register with Social Security Institution (SGK)

6. Register the company with the Trade Registry Office

7. Open a corporate bank account and deposit the required capital

📌 Tip: You do not need to be physically present in Turkey to set up a company. A consulting agency can manage the entire process on your behalf remotely.

4. Investment Zones and Tax Incentives

Investment Incentive System

Turkey is divided into six investment regions. Less developed areas (Regions 5 and 6) offer more generous incentives.

Key Benefits Include:

• VAT and customs duty exemptions

• Corporate tax reductions

• Social security premium support

• Free land allocation for investments

Special Zones

• Free Zones: Designed for export-focused businesses, offering major tax benefits

• Technoparks: Ideal for R&D and innovation-driven enterprises with full tax exemptions on R&D revenues

Double Taxation Agreements

France and Turkey have signed a Double Taxation Treaty, allowing French companies to optimize taxation and avoid being taxed twice on the same income.

5. Branches and Liaison Offices

French companies can also:

• Open a branch, which engages in commercial activity

• Establish a liaison office, which does not generate income and is used for market research or representation

6. Taxation and Financial Responsibilities

• Corporate Tax (Kurumlar Vergisi): 20%

• VAT (KDV): 1%, 8%, or 18% depending on the industry

• Other taxes: Withholding tax, stamp duty, etc.

• Social Security Contributions: Required for each employee

Hiring a certified financial accountant is highly recommended for legal and financial compliance.

7. Management and Work Permits

• If the founder does not intend to reside in Turkey, a Turkish national must be appointed as the local manager.

• Founders are allowed to repatriate profits abroad without restrictions.

• Entrepreneurs can apply for residency and work permits after forming their company.

Why Turkey is a Strategic Choice for French Entrepreneurs

✅ Direct access to high-growth emerging markets
✅ Simplified and streamlined company setup process
✅ Competitive operating costs
✅ Robust government incentives and support schemes
✅ Young, tech-savvy, and adaptable workforce
✅ Strong infrastructure to support SMEs and multinationals alike

Setting up a business in Turkey presents a strategic gateway for French entrepreneurs to expand into a dynamic and rapidly growing region that bridges Europe, Asia, and the Middle East.