Advantages of starting business in Turkey
Recently foreigners more and more prefer to open a business from the very beginning or to buy the existing business in Turkey. When choosing the activity at the territory of another country the entrepreneurs usually choose that activity they were occupied with in their native country. To buy an already working firm is of course simpler than to open from the beginning but both cases have their peculiarities.
If comparing with a lot of other countries having business in Turkey is rather simple because of the absence of acute bureaucracy in country – necessary license, certificate or some document can be received fast. One of the most important advantages of a business start here is that the foreigners have the same rights as the citizens of the country. Dotation and benefits provided by the state for a foreign entrepreneur in Turkey also make the idea of starting a business attractive.
A distinctive feature of business in Turkey is its legacy, for getting income a person should work in accordance with law.
Each year the state creates special state programs which are aimed at the foreign investments into the country. For instance, there is a program, observing the conditions of which a businessman is exempted from taxes.
Investment zones of the country and peculiarities of economy
For stimulating the foreign capital the special investment zones were created and are functioning now in Turkey.
- Zones of technical development. Here the research engineering is supported; investments are engaged into the high tech spheres. For example, the income got from the software development is exempted from the income tax.
- Organized industrial zones. The main advantages within these territories are the absence of the VAT when buying the plot of land, there is no tax for the real estate during 5 years from the moment of building of enterprise; benefits for gas, water, communication and other.
- Free – territories out the boundaries of the customs zone, usually these are territories located close to the European and Eastern markets and also the ports at the Aegean Sea, Black Sea and Mediterranean Sea. Free zones have a lot of advantages, among which the most important may be called the 100% exemption from the VAT, customs and other taxes. The enterprises are 100% exempted from the taxes for the employees’ wages when observing peculiar conditions.
In spite of the rather hard economic crisis in Turkey in 2000-s today its economy is the 15th strongest economy in the world and 6th in Europe. To engage the foreign capitals Turkish government gave the same rights for the home and foreign investors.
The main moments that provided Turkey with the high economic growth:
- Reduction in the income tax
- Liquidation of the customs barriers for the technology and equipment import
- Excellent conditions of engaging the foreign investors
- Industrial zones
- Small-scale business support by the state
We may characterize the Turkish economy today with the several words: hothouse conditions for investors, export protection and comfortable zone for a small business.
If you plan to start a business in Turkey
In spite of a lot of advantages of business in Turkey it’s important to remember that there are another important moments. Before starting a business you should have a precisely developed business plan. You should pay attention to the marketing research of the home market, study of the legislation and taxation system.
This is a labor-consuming process which needs considerable costs and forces. That’s why a businessman should decide on starting a business only after the consistent calculation of profitability and risks. The best variant will be to contact the reliable and experienced company that will explain to you all the aspects of entrepreneurship in Turkey and will consult you on all questions you are interested in.
Consulting company “SOVET” provides various consulting services within Turkey during 15 years. Employees of “SOVET” have an extensive experience in Financial, legal, personnel and other kinds of consulting. Professionals work as a team that will find a solution to any problem. Contacting this firm you will receive a highly qualified help in questions related to the business start or management in Turkey.