Foreign Direct Investment (FDI) into Turkey reached USD16.5 billion in 2015; this represented a growth rate of 32 per cent over the preceding year. The monthly average of FDI exceeded USD1 billion during the course of the year; the highest annual FDI figure since the global financial crisis.
Turkey ranked 55th in the World Bank's 2016 Doing Business rankings, down from 51st in the year prior. Turkey's rank fell in a number of categories; notably starting a business fell by six points, obtaining credit by eight points, paying taxes by five points, enforcing contracts by 19 points and resolving insolvency by 22 points. Nevertheless, it was noted that Turkey had made dealing with construction permits easier by streamlining the process to obtain the fire clearance.
Key facts about starting a business in Turkey:
Turkey offers enormous investment opportunities for overseas investors. Yet, it is critical to understand the nuances of any local regime. The manner in which people conduct business in Turkey may differ from the home countries of investors. Furthermore, variations on these distinctions may exist in different regions of Turkey and the industry in which a company operates.
Turkish is the country's official language and therefore the lingua franca of business. Nevertheless, English is the most commonly spoken foreign language so most business people speak English. Dress codes in the workplace are typically conservative.
Turkish people value formality and tradition when conducting business; punctuality is important. A handshake is the typical business greeting. Gift giving is not customary as part of Turkish business etiquette.
Those looking to establish a business in Turkey will often turn to countries across Europe as alternative options. Turkey continues to enact the reforms necessary for accession to the EU. This means that similarities may be drawn in aspects of the legal, tax and audit regimes. Nevertheless, Turkey can be differentiated on the following factors:
Turkey is forecast to be the second fastest growing country in the world by 2018, according to the OECD. This makes the country an extremely attractive investment location. Nevertheless, significant challenges exist for businesses as the country attempts to improve its business and legal system.
This guide has been developed to provide businesses with an overview of Turkey, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in Turkey. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.
Please note that the Country Guides may only be available in English.
|1||Trade Registry Gazette|
|2||Ministry of Finance|
|3||Ministry of Customs and Trade|
|4||Ministry of Interior Directorate General of Migration Management|
|5||Turkish Patent Institute|
|6||Invest In Turkey|
|7||Ministry of Labour and Social Security|
|1||UNCTAD World Investment Report|
|2||Doing Business Rankings|
|3||Employment Pass - Used PracticalLaw which is a legal service Grant Thornton subscribes to|
|4||TI Corruption Perceptions Index|
Download Country Guide - Turkey (4.35MB, PDF)
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