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Invest in Turkey

Yayınlayan: Sefa KATIRCI
Kategori: English, Financial Consultancy, Foreign Investor, Reporting and Certification

invest in turkey

Why Does Foreign Companies Invest in Turkey?

Turkey, an open market country, has become more attractive for foreign investors in recent years. The main reason for this situation is undoubtedly loss in value of Turkish Lira against popular currencies like Euro and US Dollar. When 1 Euro costs 6-6.50 Turkish Liras or 1 Dollar 5.30-5.70 Turkish Liras, investing in Turkey by buying or being partner with Turkish Companies or establishing a new company with foreign capital idea became more popular than ever. The reason behind this act is that the foreign investor can produce or manufacture a good with lower costs in Turkey. As lower cost we can consider workers’ wage, power consumption etc. Such expenditures are extremely low by comparison to Europe or USA. Also, Turkey’s geographic locations plays a key role for foreign investors’ attention.

The country is surrounded by seas from three side. Playing a bridge role between Asia and Europe makes transportation of products easier. The goods that produced in Turkey can easily be transferred to both Europe, Asia and Africa. Additionaly, state promotes companies whose occupation is exportation by such as VAT Exemption. As a result, a country that has an advantageous location for transportation of goods and less valuable money currency is a good opportunity to invest for a business opportunist.

According to Turkish Statistical Institute, the investment made in Turkey in 2018 is 13,163 Billion Dollars while it was 11.546 (14% less ) in 2017 (see. source)

Which Factors Should a Foreign Company Pay Attention While Investing in Turkey?

On the other side, due to reasons like Turkey’s self economical and trade laws, financial differences may occur. First of all, an investor would like to know whether a company that s/he is going to invest in Turkey is a good choice or not. In order to ensure about investment’s righteousness, best way to enlighten this matter is observing independent audit reports. Independent Audit standards in Turkey are the same as global standards. A company’s audited financial tables reflect its real financial situation.More explanation about Independent Audit can be found here. A foreing investor may need assistance for legislations, tax related matters, official works such as mandatory board meeting, some documents or certificates for production, translation of financial tables. Also, the investor should be informed about opportnities and the company’s rights that it can benefit.

Furthermore, a foreign investor that has already invested a company in Turkey, would like to follow the progress. Thus, such an investor needs a financial consultant that familiar with Turkish financial and legislation system. These situations are a must for an investment.

Our Services

As Guven Certified Public Accountancy (CPA) & Consultancy, we are offering taking control every part of the investment process in Turkey. The assistance we provide starts before establishing a company or being partner. Then, it continues with consultancy of legislation, taxation, certification, statements. Until the company successes to run the plant, we spend our all energy with our dynamic and experienced team.

Some of our services for foreign investors are demonstrated below:

  • Controlling the trial-balance, firm’s financial movements’ appropriateness (in order to avoid violating any law),
  • Financial consultancy,
  • Tax consultancy,
  • Tax refund (e.g. in Turkey when a firm exports a good, they can take the value-added tax which they pay when they buy the raw material of that good. This is just one example about tax refund. There are lots of opportunities to take that refund.)
  • Independent Audit
  • Full confirmation report (for income tax statement. The existence of this report makes the company’s auditing by the state’s inspector chance less. If the state’s auditors find some problem in financial data its consequences for a firm can be weighty.)
  • Consultancy about a firm’s official works(such as assigning a member to board of director, increasing fund of the firm and publicizing such actions on official gazette)
  • Consultancy about investment incentive certificate which provides benefits to the investors such as interest support, tax exception etc.
  • Consultancy about evaluating a company with assets and liabilities.
  • Reporting about profit-loss situation of the firm in a specific period or year.