Turkey 2024: Business Insights for Entrepreneurs

It is for various reasons that Turkey is a popular destination with tourists and emigrants from all over Europe. The country offers multiple perks for starting or moving a business. Here, you can benefit from incorporating companies in local free zones, as well as tempting tax incentives and reliable banks. Assisted by the International Wealth team and our Turkish partners, you will be able to launch a business in Turkey quickly and safely.

Best business ideas in Turkey for 2024

According to the World Bank, Turkey ranks 33rd out of 190 countries in the ease of doing business index, which measures the regulatory environment and the obstacles to starting companies and operating them. It means that Turkey has a favorable and competitive business climate, with strengths in market size, infrastructure, innovation, and labor market.

To start your business in Turkey in 2024, consider these sectors:

E-commerce: It is one of the fastest-growing and most profitable industries in Turkey, as the country has a large and young population, with high internet and smartphone penetration rates. The most popular online shopping categories here are fashion, electronics, food, and beverages. Therefore, starting an online store or platform that sells products or services in these categories is a lucrative business idea for 2024.
Tourism: One of the most important and resilient sectors in Turkey, tourism plays a vital role in the country’s economy. Turkey boasts a rich and diverse cultural and natural heritage, attracting millions of visitors from around the world. According to the Ministry of Culture and Tourism, the jurisdiction welcomed 25 million tourists in 2021, despite the COVID-19 pandemic, and expects to host 40 million in 2024. The most popular destinations to come to are Istanbul, Antalya, Mugla, and Izmir. For these reasons, starting a tourism-related business (a hotel, restaurant, travel agency, or tour operator) can be a profitable initiative for 2024.
Education: As the country’s population is mostly young and enterprising, with a high demand for quality and affordable education, the sector is among the most promising ones in Turkey. With 65,000 schools, 19.5 million students, and 1.2 million teachers in the country, starting a school, university, language center, or online learning platform is likely to bring you both money and respect in 2024.

Best locations for opening a company in Turkey in 2024

Although a bit tricky, choosing the right location for your company in Turkey is also important, as different regions and cities come with varying benefits and disadvantages. To hit the nail on the head, you will need to consider and compare factors like market size, infrastructure, labor force, costs, and incentives.

If you want to enjoy the maximum advantages as a company founder, think of these locations first thing:

Istanbul: The largest and most populous city in Turkey with a population of 16.3 million, Istanbul is the country’s economic, cultural, and historical center. It is a strategically located metropolis, with a diverse and dynamic population, developed infrastructure, and cosmopolitan lifestyle. Offering not only a huge potential market but also skilled labor force and high quality of life, Istanbul comes highly recommended for business setup in 2024.
Izmir: The main industrial and commercial hub of the Aegean region, Izmir accounts for 6.5% of the country’s GDP. This coastal city with a mild climate is among the top places for those who seek to launch a business in Turkey in 2024. Would you like to set up a company in the sphere of tourism, agriculture, or renewable energy? Definitely head for Izmir!
Ankara: The capital city is the second-largest one in the country. As of 2023, its population was 5.8 million. The place is a center of gravity, with a variety of political, administrative, and scientific events taking place here. Ankara is also one of the best locations for opening a company in Turkey in 2024, especially if you operate in education, health, and technology, as it offers a large and loyal market in combination with skilled innovative employees and a high level of stability.

Why choose Free Zones for company incorporation in Turkey

Free zones in Turkey provide valuable benefits and incentives for foreign investors who want to start a business in the country. All in all, Turkey has 20 free zones, each with its own rules and regulations, in different country’s regions and cities.

Wonder what advantages and incentives your company will enjoy if you set it up in a Turkish Free Zone? Well, here are some of them:

Tax exemptions: Companies that operate in free zones do not pay corporate, income, and value-added tax (VAT), as well as customs and stamp duties. Profits generated in free zones may be transferred to anywhere in the world with no restrictions or taxes to pay. The dividends distributed to foreign shareholders are also exempt from withholding tax.
Foreign ownership: Free zone businesses have 100% foreign ownership. Overseas investors can also benefit from the protection granted to them by bilateral investment treaties that Turkey has signed with many countries.
Operational flexibility: These enterprises also enjoy easy and fast registration and licensing, simplified customs and trade regulations, and access to various facilities and services. They are free to import and export goods and services without any quota or tariff.
Infrastructure and logistics: Free zones per se and businesses operating therefrom benefit from excellent roads, ports, airports, warehouses, offices, and utilities in these areas. Since most of the Turkish free zones are located near major cities and transportation hubs, free zone businesses can also efficiently access both the domestic and international markets.

NB: To set up an offshore company in a Turkish Free Zone, first register a business under the Turkish Commercial Code, then relocate it to the free zone with tax and customs benefits.

You may surely try to do it on your own but the truth is only professionals can competently handle the registration of a foreign company with a business bank account in Turkey. We encourage you to contact International Wealth now to begin creating a new business entity in Turkey with an overseas founder tomorrow. Feel free to reach out to our team if you have any questions on company registration in Turkey, and we will respond quickly.