9 Success Tips: How to Start a Small Business in Turkey for Indonesian Expatriates

Are you curious about how to start a small business in Turkey, specifically as an expatriate? Turkey occupies a strategic position as a bridge between Europe and Asia, offering a pro-investment business ecosystem and a massive domestic market. For Indonesians looking to establish a small venture, the opportunities are wide open provided you understand the legal flow, choose the right business structure, and execute market strategies with discipline.

Strategic Roadmap and Administrative Procedures for Building a Business in Turkey

Embarking on an entrepreneurial journey in Turkey requires a combination of strict legal compliance and flexible marketing strategies. To ensure you don’t get caught in bureaucratic complexities, here is a comprehensive guide detailing nine crucial aspects, from residency permits to local operational licenses, that every Indonesian expat should know before officiating their business.

1. Understand Residence and Work Permits Before Starting

Your legal status in Turkey is non-negotiable. To stay longer than 90 days, you need a residence permit. A short-term residence permit can be applied for by foreigners intending to establish a business or business connections via the official e-residence system.

To actively work in your own company, you need a work permit issued by the Ministry of Labor. This application is usually initiated by the employer (your company) and requires a valid residency base.

2. Choose a Business Entity and Note the Latest Minimum Capital

Most expats choose a Limited Liability Company (Ltd. Şti.) due to its simple and flexible structure for small businesses. As of January 1, 2024, the minimum paid-up capital for an Ltd. Şti. has been increased to TRY 50,000, while a Joint-Stock Company (A.Ş.) now requires TRY 250,000. Understanding these thresholds helps you prepare realistic financing and avoid costly revisions.

3. Validate Your Idea with Data-Driven Market Research

Before committing to rent or hiring, ensure there is market proof. Turkey is experiencing rapid growth in digital commerce. According to the Ministry of Trade, 2024 e-commerce volumes hit record highs in the trillions of liras. Consider an “online-first” or omnichannel strategy to gauge product momentum and consumer behavior across cities.

Read Also: Easy Steps to Starting a Small Business in Thailand for Beginner Expatriates

4. Follow the Registration Flow via MERSİS and the Trade Registry

Turkey utilizes a “one-stop” system at the Trade Registry Directorate through MERSİS (Central Registry Record System). The general flow includes:

• Preparing the articles of association and uploading data to MERSİS.
• Signing documents before a notary or Trade Registry officer.
• Obtaining a potential tax number for foreign shareholders.
• Paying 0.04% of the capital to the Competition Authority.
• Depositing the capital (LLCs may pay this within 24 months).
• Official registration and announcement in the Commercial Registry Gazette.

5. Manage Tax and Social Security Obligations from Day One

Once the certificate of incorporation is issued, you must activate your tax identification number, certify legal books, and activate an online tax account. The tax office receives a notification from the Trade Registry, but you must still collect your Tax Registration Certificate and verify your business address.

6. Maximize KOSGEB Incentives and SME Support

As a small business founder, you should map out government assistance schemes. KOSGEB (Small and Medium Industry Development Organization) provides various programs, from entrepreneurship training to export development grants. These incentives can significantly extend your financial runway and accelerate your break-even point.

7. Design Localized Marketing Compliant with Digital Channels

To speed up customer acquisition, build a marketing strategy that blends local SEO, Turkish-language content, and popular channels like Instagram and domestic marketplaces (e.g., Trendyol or Hepsiburada). Use seasonal trends and official e-commerce reports to ensure your budget is spent efficiently.

8. Fulfill Employment Obligations and SGK Registration

If you hire staff, you must register the workplace as an employer and manage contributions through e-SGK. Companies must comply with occupational health and safety rules. For expats wanting to work actively, the ministry typically looks for the employment of at least five Turkish citizens after the 6th month of the work permit.

Read Also: Recommended Small Business Types in Malaysia for Expatriates

9. Obtain Operational Licenses from the Local Municipality (Belediye)

In many sectors, besides company incorporation, you need a Business Opening and Operation License (İşyeri Açma ve Çalışma Ruhsatı) from the local municipality. Authorities prioritize health, safety, environmental, and local zoning aspects before granting this permit.

Download Transfez App

Transfez App can help you transfer money abroad more quickly and efficiently. Jack Finance can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.