Turkey - Market Entry and Legal Services

Lawyer & Law Firm in Turkey

With the GDP of USD 1024 billion in 2023, according to IMF, Turkey is the 17th largest economy in in the world. Turkey pursued ambitious reforms and enjoyed high growth rates between 2006 and 2017, which pushed the country to attain the upper-middle-income class status and lowered the poverty rates. Since the turn of the 21st century, Turkey has often been recognized as a newly industrialized country. It is the fourth most visited country in the world having more than 1500 R&D centres established by domestic and international firms. Furthermore, it is a leading producer of agricultural products, textiles, transportation equipment, construction materials, consumer electronics and motor vehicles.

Over the years, the economic and commercial cooperation between India and Turkey has significantly deepened, constituting a vital aspect of their bilateral relationship. Various bilateral agreements and institutional mechanisms, both at the governmental and business-to-business levels, serve as frameworks for enhancing economic ties. High-level visits and parliamentary exchanges have also been instrumental in fostering mutual understanding. The establishment of the 'India-Turkey Policy Planning Dialogue' reflects a commitment to deepening strategic engagement and exploring new avenues for collaboration.

COMMERCIAL RELATIONS BETWEEN INDIA-TURKEY

• The Bilateral Trade Agreement between India and Turkey, signed in 1973, laid the foundation for economic cooperation. Subsequently, the establishment of the India–Turkey Joint Commission on Economic and Technical Cooperation (JCETC) in 1983 further solidified the partnership. Under this agreement, JCETC meetings are regularly held to foster collaboration in various sectors.
• In 1996, the India-Turkey Joint Business Council (JBC) was formed between the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Foreign Economic Relations Board of Turkey (DEIK). This council plays a crucial role in promoting bilateral trade and investment.
• Notable events such as the Indian Turkey–CIS Business Forum organized by the Turkish Chamber of Commerce and Industry (TUSKON) in 2013 have facilitated business interactions between Indian and Turkish entrepreneurs. Additionally, participation in international fairs and the exchange of business delegations have further bolstered economic relations.
• The investment landscape between the two countries has also seen significant developments, with over 150 Indian companies establishing a presence in Turkey. Conversely, Turkish companies have made investments in various sectors in India, including infrastructure, aviation services, and pipeline projects.

BUSINESS ADVANTAGE FOR INDIAN COMPANIES IN TURKEY

Indian companies operating in Turkey benefit from several strategic advantages that contribute to their success in the market. Firstly, Turkey's strategic geographical location serves as a bridge between Europe, Asia, and the Middle East, providing Indian businesses with access to a diverse array of markets. This advantageous position facilitates trade and fosters business expansion opportunities for Indian companies looking to reach global markets. Moreover, Turkey boasts a large and dynamic consumer market with a population exceeding 80 million.

This sizable consumer base presents lucrative opportunities for Indian companies across various sectors, including consumer goods, electronics, automotive, and pharmaceuticals. By tapping into this growing market, Indian businesses can capitalize on the demand for their products and services, driving revenue growth and market share expansion. Turkey's strong economic growth trajectory and ongoing investments in infrastructure and manufacturing create a conducive business environment for Indian companies. This growth momentum opens up avenues for partnerships, joint ventures, and investment opportunities, enabling Indian businesses to establish a strong foothold in the Turkish market and leverage the country's economic prosperity for mutual benefit.

Turkey offers a supportive regulatory framework and business-friendly policies that encourage foreign investment and entrepreneurship. Indian companies benefit from a transparent legal system, simplified procedures for company registration, and various incentives provided by the Turkish government to promote foreign direct investment. The combination of Turkey's strategic location, large consumer market, robust economic growth, and favourable business environment makes it an attractive destination for Indian companies seeking to expand their global footprint and capitalize on emerging opportunities in the dynamic Turkish market.

INCENTIVES AND SUPPORT PROGRAMS BY TURKEY FOR INDIAN COMPANIES

• Investment Incentives: Turkey offers a range of investment incentives to foreign companies, including tax incentives, financial support, and exemptions from customs duties.
• Foreign Direct Investment (FDI) Law: Turkey's FDI Law provides a favourable legal framework for foreign investors, facilitating the establishment of foreign-owned companies, joint ventures, and wholly owned subsidiaries in Turkey.
• Special Economic Zones (SEZs): Turkey has established several SEZs across the country, offering preferential tax rates, customs exemptions, and streamlined administrative procedures for businesses operating within these zones.
• Technology Development Zones (TDZs): TDZs in Turkey focus on fostering innovation, research, and development activities. Indian companies engaged in technology-driven industries can benefit from incentives such as tax breaks, R&D grants, and access to skilled workforce and research institutions within TDZs.
• Investment Support and Promotion Agencies: Turkey's Investment Support and Promotion Agencies, such as the Investment Office of the Presidency of the Republic of Turkey (ISPAT), provide comprehensive support services to foreign investors including assistance with investment project identification, location selection, regulatory compliance, and business setup procedures.
• Public-Private Partnership (PPP) Projects: Indian companies can participate in PPP projects through joint ventures, consortiums, or as independent investors, benefiting from opportunities for long-term investment and collaboration with the Turkish government.
• Sector-specific Incentives: Turkey offers sector-specific incentives to attract investment in priority industries, including automotive, textiles, energy, tourism, and healthcare.

HOW TO SET UP BUSINESS IN TURKEY

• Obtain a Tax Number from a Tax Office
• Determine the Company's Location and Legal Structure (JSC or LLC)
• Appoint an Accounting Outsourcing Company
• With the help of accounting firm, register your company with concerned authority.
• Open a Company Bank Account.

VISA AND IMMIGRATION

Turkey provides different types of Visas to foreign nationals depending upon the purpose and duration of their visit. Here are the common types of visas available for individuals planning to either set up business or find employment in Turkey:

• Business Visa (Short-Term)
• Work Visa (Long-Term)
• Investor Visa
• E-Visa for Business
• Residence Permit for Business Purposes

To summarize, its strategic location, rapidly growing economy and vast customer base makes Turkey a lucrative destination for Indian entrepreneurs looking to internationalize their business. However, prior to entering the Turkish market, it would be beneficial to carry out an in-depth market analysis to understand the cultural, regulatory, and business landscape of the country. Armed with thorough market study, comprehensive business plan and tailored market strategy, Indian businesses can successfully thrive in Turkish market.

To read more about the Turkey market and various business opportunities – CLICK HERE

HOW DO WE HELP?

India Law Offices LLP (ILO) is steadfast in providing high quality legal services to its clients both in India and overseas. For over twenty years, the firm has worked extensively in building its global foothold by forming strategic partnerships, both formal and informal, with notable professionals from premier law firms based in major commercial centres worldwide. These partnerships have enabled our firm in providing effective and seamless representation to our clients in any jurisdiction. Our expansive international network also helps us in addressing to varied requirements of our clients ensuring that they receive best legal support across borders.

Being part of various esteemed international legal and business networks and having robust global partnerships has helped us making business possible for our clients in any part of the world. We offer comprehensive support to Turkish Companies that are keen to enter the Indian market and assist them in setting up a subsidiary or branch office in India, negotiating important commercial contracts and navigating the intricacies of regulatory compliances. Simultaneously, we provide tailored legal and corporate support to Indian entities that are willing to expand their business to Turkish market. ILO along with its counterpart in Turkey provides advise to both Indian and Turkish businesses on all types of cross-border transactions spanning Mergers and Acquisitions (M&A), Joint Ventures, Technology Licensing, and other related strategic alliances. We are committed in supporting our clients in successfully navigating the challenges involved in India-Turkey business collaborations. Following are some of the key areas where our firm provides assistance:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

OUR PARTNER IN TURKEY

India Law Offices work closely with AKT Law Office, a reputed Turkish Law firm to provide comprehensive legal services to clients on various cross-border matters that arise between India and Turkey. The alliance between both firms is based on their mutual membership in Warwick Legal Network (WLN), an international network of independent business and commercial law firms from around the world. AKT Law Office located in Istanbul, Turkey specializes in Corporate and Commercial Law, Dispute Resolution, Banking and Finance, Real Estate, Civil Law, Taxation, Insurance and Reinsurance, and International Trade.

If you are a Turkish company or individual seeking assistance in India or an Indian entrepreneur planning to enter the Turkey market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated and committed in providing best guidance and support based on your specific requirements.