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Why Turkey is so Popular
Why Turkey?
Turkey attracts the attention of many investors due to its geographical location and various investment advantages. In this context, Turkey has become an attractive destination for foreign business owners to invest and expand their business abroad. Turkey is strategically located in the Anatolian peninsula and partially in the Balkan peninsula. Ankara, Izmir and Bursa, like other big cities in Turkey, are the cities that are the next choice of investors. If you are asking why I should invest in Turkey, you are at the right address. Now, let’s look for an answer to the question of why Turkey.
Why Invest in Turkey?
It is possible to give the following answers to the question why invest in Turkey.
Excellent Location and Infrastructure
Turkey’s strategic location covers Asia and Europe. Cities such as Istanbul, Ankara, Adana, Izmir or Bursa are among the best options for businessmen who want to establish their companies in this country. In addition to the developed maritime sector, the gateways to the Black Sea, Marmara, Aegean Sea and the Mediterranean gave great importance to the economic sectors of the country. Approximately 8,500 km of the coastline has important and developed ports for the smooth functioning of trade activities.
The railway system in Turkey covers approximately 11,000 km and is improving daily thanks to modern and well-planned government reforms. This is an important transmission in Turkey, which has direct impacts on different economic sectors inside and outside the country. Besides that, the road system is very consistent and covers about 383,000 km.
Sectors with High Potential
The energy, construction, chemical and automotive industries provide individuals with an excellent work environment. Turkey, where the tobacco industry is also extremely attractive, is the third largest exporter of tobacco products. Alongside these important sectors, manufacturing represents about 30% of annual GDP. Due to its excellent location and the country’s smooth climate, the tourism sector has been developed with full potential businessmen, numerous accommodation, hotels and high-class buildings. Foreign investors and those who choose to establish a company in Turkey have the opportunity to recruit the existing workforce there.
The law on foreign investments in Turkey provides accessibility and a suitable approach to all overseas entrepreneurs. Regarding taxes, many companies are exempt from certain fees and corporate tax is set at 20%.
Simplified Business Formalities in Turkey
Turkey’s business environment provides a number of advantages, including those related to a company’s registration process. In most cases, international entrepreneurs deal with fast business establishment without having to deal with seemingly complicated bureaucratic procedures. The establishment process in Turkey has been simplified over the last few years to attract as many businessmen as possible. Limited company in Turkey is the most admired and used business form due to the lack of strict registration regulations.
- A name verification and reservation is required prior to the incorporation process.
- Information on the company, its activities, general rules, business address, company owners, termination and many more will be included in the articles of association;
- Specific licenses and permits are required for certain activities in Turkey;
- Registration is mandatory for tax and social contributions in Turkey.
Population
Turkey is a country with a population of 81 million. Half of Turkey’s population, which is the most populous young country compared to the European Union, is under the age of 31.7. In this context, it is possible to state that the country has a dynamic, young, multicultural and educated population structure.
Skilled Workforce
Considering that 31.6 million of Turkey’s population is educated, we can say that it has a highly qualified workforce.
A Liberal and Innovative Investment Environment
Turkey is in the position of the second largest reform among OECD member countries due to the restrictions on investment since 1977. There are competitive investment conditions in the country, which is a business-friendly environment that offers company establishment within an average of 6 days. At the same time, all investors are treated equally in the country.
Infrastructure
Having a highly developed infrastructure, Turkey is among the most developed countries in terms of railways in the Middle East and Europe. It is also in continuous development in the telecommunication and energy sectors.
Europe’s Energy Corridor
Being an energy terminal connecting the East and the West, Turkey has an important position in energy transfer.
Establishing a Branch or Subsidiary in Turkey
Opening a branch or subsidiary in Turkey is not difficult as long as you get the necessary licenses and permits from the competent authorities. In this regard, a written decision of the parent company wishing to establish a business in Turkey is required. Limited company can represent a suitable business form for branches and subsidiaries. However, a joint stock company may be another alternative.
Large Scale Investments in Turkey
If there is an investment of at least 50 million TL in Turkey, it means that entrepreneurs are big investors. Most such investments are in sectors such as oil and gas, pharmaceuticals, ports and fisheries, air, sea and land transport. Also, some may be interested in automotive, electronics or transit pipeline transport services, where there is a demand for foreign investment.
What are the Priority Investments in Turkey?
The following investment categories can be the subject of any investment and attract the attention of many entrepreneurs:
- Investments made in the accommodation sector in order to survive and develop in the field of tourism in Turkey.
- Defense industry, which is approved by the Undersecretariat of Defense Industry.
- Investments in the transportation sector (sea, aid and land) in Turkey.
- Mine removal, nurseries, aircraft training and mall units.
- Companies using waste heat-based electricity generation .
Investors who have obtained an exploration license in agreement with the Mining Law in Turkey can invest in this area. In addition, some entrepreneurs may want to place their investments in OIZ or Organized Industrial Zones and benefit from a number of government incentives. It is important to know that investments made in the first three developed regions of Turkey can benefit from various incentives provided by the state if the investment is directed to the medium-high technology sector. This normally appeals to international players who want to invest more than 1 million TL. The legislation regulating foreign investments in Turkey complies with international standards and all foreign investors are welcome to this country without any discrimination. The main laws in the field of foreign investments no.4875 and 5084 and their main objective is to encourage foreign investment and protect the rights of investors. Any foreign citizen is free to invest in Turkey as long as they respect local laws. Before starting an investment in Turkey, a foreign entrepreneur should know the basic regulations regarding doing business in this country.
If you want to invest in Turkey and get professional support in this regard, all you have to do is contact us.
Všetky vlastnosti
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