Foreign investors can establish and fully own manufacturing companies in Turkey. Depending on the type of production, investors may also need sector-specific licences, permits and registrations before starting operations.
This guide explains how to establish a manufacturing company in Turkey, the main legal requirements, minimum capital, licensing procedures, investment incentives and the key issues foreign investors should consider before starting production.
Can a Foreigner Start a Manufacturing Company in Turkey?
Yes. Foreign investors can establish and own manufacturing companies in Turkey.
In general, a foreign investor can own 100% of a Turkish company, and a Turkish shareholder is not required simply because the company is foreign-owned.
Manufacturing businesses are generally established as a Limited Liability Company (LLC) or Joint Stock Company (JSC). The most appropriate structure depends on factors such as the size of the investment, number of shareholders, financing plans and the nature of the manufacturing activity. Foreign investors can learn more about the incorporation process in our Company Formation in Turkey guide.
How to Register a Manufacturing Company in Turkey?
The incorporation process for a manufacturing company is generally similar to other Turkish companies. However, investors should determine the planned manufacturing activity and facility requirements at an early stage, as these may affect licensing and operational approvals.
01 — Choose the Company Type
Determine whether an LLC or JSC is more appropriate for the investment.
02 — Determine the Manufacturing Activity
Define the products to be manufactured and the company’s intended fields of activity.
03 — Determine the Business and Production Address
Select an appropriate registered office and, where applicable, the location of the manufacturing facility.
04 — Prepare the Incorporation Documents
Prepare the shareholder, company and corporate documents required for registration.
05 — Complete Trade Registry and Tax Registration
Register the company with the relevant Trade Registry and complete the necessary tax procedures.
06 — Obtain the Required Operational Approvals
Before commencing production, determine and obtain any licences, permits, registrations or sector-specific approvals required for the particular manufacturing activity.
What Licenses and Permits Are Required for Manufacturing in Turkey?
There is no single licence that applies to every manufacturing company in Turkey. The permits, registrations and approvals required depend on the products being manufactured, the production process, the location of the facility and the industry in which the company operates.
Depending on the activity, a manufacturer may need a workplace opening and operation licence, environmental permits, fire and safety approvals, industrial registrations or sector-specific authorisations before commencing or continuing production.
Manufacturers operating in regulated industries such as food, cosmetics, chemicals, medical devices or certain industrial activities may be subject to additional registrations, certificates and approvals. For professional assistance, see our Licenses and Certificates in Turkey service.
Where Can a Manufacturing Facility Be Established in Turkey?
Manufacturing facilities in Turkey may be established in different locations depending on the nature of the production activity, zoning rules, licensing requirements and the investment model. The location should therefore be evaluated before the production facility is finalized.
Organized Industrial Zones (OIZs)
Organized Industrial Zones provide planned industrial areas where manufacturing companies may benefit from established infrastructure and an environment specifically designed for industrial activities.
Turkish Free Zones
Free Zones may be particularly attractive for certain export-oriented manufacturing activities. Companies operating in these zones may be eligible for specific customs and tax advantages where the applicable conditions are met.
Other Suitable Industrial Premises
Manufacturing may also take place outside organized industrial or free zones where the premises, zoning status and relevant permits allow the intended production activity.
zoning status, environmental requirements, workplace licensing and sector-specific rules should be checked before entering into a long-term lease or purchasing an industrial property.
What Investment Incentives Are Available for Manufacturing in Turkey?
Manufacturing investments in Turkey may qualify for various investment incentives depending on factors such as the sector, investment amount, location, technology level and strategic importance of the project.
Depending on the applicable incentive program and the characteristics of the investment, available support may include tax, customs, social security and financing-related advantages.
Potential Incentives May Include
- VAT exemptions or other VAT-related advantages
- Customs duty exemptions
- Corporate tax reductions
- Social security premium support
- Interest or financing support in eligible investments
- Additional support for certain strategic or regional investments
What Should I Consider Before Opening a Factory in Turkey?
Establishing a manufacturing company is only one part of starting production in Turkey. Investors planning to open a factory should also evaluate the location of the facility, zoning and licensing requirements, infrastructure, environmental obligations, workforce needs and the suitability of the premises for the intended manufacturing activity.
For a more detailed overview of the practical and legal considerations involved, see our guide on Opening a Factory in Turkey.
Should I Manufacture in a Turkish Free Zone?
Turkish Free Zones can be an attractive option for certain manufacturing investments, particularly where production is focused on international markets. Depending on the activity and applicable conditions, businesses operating in a Free Zone may benefit from specific customs and tax advantages.
When Can a Free Zone Be Particularly Attractive?
- When a significant part of production will be exported
- When the business regularly imports raw materials or components
- When customs procedures are important to the business model
- When the investment qualifies for available Free Zone advantages
Learn more about the legal framework and potential advantages in our
Turkish Free Zones guide.
What Taxes Apply to Manufacturing Companies in Turkey?
Manufacturing companies established in Turkey are generally subject to the Turkish tax system in the same way as other resident companies. However, the actual tax position may vary depending on the company’s activities, transactions, investment structure and available incentives.
Main Taxes and Obligations May Include
- Corporate income tax
- Value Added Tax (VAT)
- Withholding taxes where applicable
- Payroll taxes and social security obligations for employees
- Other taxes, duties or charges depending on the company’s transactions and activities
Certain qualifying investments may benefit from tax reductions, VAT or customs-related advantages and other investment incentives. Free Zone manufacturers may also be subject to a different framework where the relevant conditions are satisfied.
Foreign investors should therefore evaluate taxation together with the investment structure, location and available incentive programmes before starting production.
Can a Manufacturing Company Employ Foreign Workers in Turkey?
Yes. Manufacturing companies in Turkey can employ foreign nationals, provided that the applicable work permit in Turkey and employment requirements are satisfied.
Foreign engineers, technical specialists, managers and other employees may therefore be employed by a Turkish manufacturing company. However, work permit eligibility and the requirements applicable to the employer and employee should be evaluated before employment begins.
Establishing or owning a company in Turkey does not automatically provide authorization to work in Turkey. Foreign shareholders and managers who actively work in the business may also need to obtain the appropriate work authorization depending on their position and circumstances.
Why Invest in Manufacturing in Turkey?
Turkey offers a broad industrial base and a strategic location between Europe, Asia and the Middle East, making it an important production and distribution hub for many international investors.
Manufacturing investors may benefit from access to domestic and international markets, established industrial zones, developed transport infrastructure, a large workforce and a wide network of suppliers across multiple industries.
Key Advantages May Include
- Strategic access to European, Middle Eastern and regional markets
- Established manufacturing and supplier ecosystems
- Organized Industrial Zones and Free Zone alternatives
- Investment incentive programmes for qualifying projects
- Access to skilled and technical labour
- Strong logistics and export infrastructure
Manufacturing Industries in Turkey
Manufacturing requirements in Turkey vary considerably depending on the industry. Foreign investors should consider sector-specific licensing, facility, supply chain and regulatory requirements before starting production. Explore our industry guides below for more detailed information.
Automotive Manufacturing in Turkey
Explore the key considerations for foreign investors planning automotive manufacturing operations in Turkey.
Chemical Manufacturing in Turkey
Learn about company setup, facility planning and regulatory considerations for chemical manufacturing investments.
Plastic Manufacturing in Turkey
Discover the main business, production and regulatory considerations for establishing a plastic manufacturing operation.
Textile Manufacturing in Turkey
Explore the key considerations for establishing a textile manufacturing company in Turkey, particularly for export-oriented production.
Food Manufacturing in Turkey
Learn about private label food manufacturing in Turkey and the main considerations for foreign businesses planning food production.
Solar Panel Manufacturing in Turkey
Discover the setup requirements and potential investment incentives for solar panel manufacturing projects in Turkey.
Pharmaceutical Manufacturing in Turkey
Explore the licensing and regulatory requirements for foreign investors planning pharmaceutical manufacturing operations in Turkey.
Manufacturing Costs & Operations in Turkey
The cost and practical requirements of manufacturing in Turkey depend on factors such as workforce, energy consumption, raw materials, facility requirements and the location of production. Explore our detailed guides below to evaluate some of the key operational considerations before starting a manufacturing investment in Turkey.
Labor Costs in Turkish Manufacturing
Explore labor costs and workforce considerations for foreign investors planning manufacturing operations in Turkey.
Electricity Costs for Manufacturing
Understand electricity costs and energy considerations when evaluating the operating expenses of a manufacturing facility in Turkey.
Raw Material Imports for Manufacturing
Learn about key import rules and considerations for manufacturers sourcing raw materials from outside Turkey.
Manufacturing Facility in Turkey
Explore the main considerations when selecting, establishing and operating a manufacturing facility in Turkey.
Manufacturing Investment & Market Opportunities in Turkey
Turkey’s location, industrial base and access to regional markets can create different opportunities for international manufacturers. Explore our guides on foreign direct investment, cost-focused manufacturing strategies and international trade developments affecting manufacturing investments in Turkey.
Foreign Direct Investment in Turkish Manufacturing
Explore Turkey’s manufacturing sector from a foreign investment perspective and the key considerations for international investors entering the market.
Low-Cost Manufacturing Opportunities in Turkey
Examine cost considerations and potential opportunities for foreign investors evaluating Turkey as a competitive manufacturing location.
Manufacturing in Turkey for the US Market
Explore how Turkey may fit into manufacturing and sourcing strategies for businesses evaluating US tariffs and international supply chains.
Frequently Asked Questions About Manufacturing in Turkey
Find answers to common questions from foreign investors about establishing and operating a manufacturing company in Turkey, including company ownership, factory locations, licences, investment incentives, taxes and employment requirements.
Can foreigners own a manufacturing company in Turkey?
How much does it cost to start a manufacturing company in Turkey?
What licences are required to manufacture products in Turkey?
Where can foreign investors establish a factory in Turkey?
What investment incentives are available for manufacturing companies in Turkey?
Can a manufacturing company operate in a Turkish Free Zone?
What taxes do manufacturing companies pay in Turkey?
Can manufacturing companies in Turkey employ foreign workers?
How Can FO Consultancy Help You Start Manufacturing in Turkey?
Starting a manufacturing operation in Turkey involves more than registering a company. Foreign investors may need to coordinate corporate establishment, facility selection, licences, tax matters, employment requirements and other regulatory procedures before production begins.
FO Consultancy assists foreign investors throughout the establishment process and coordinates the professional services required for their investment in Turkey.
Our Support May Include
- Company formation and corporate structuring
- Assessment of licences, permits and registrations
- Factory and business location considerations
- Free Zone and Organized Industrial Zone guidance
- Investment incentive coordination
- Work permit and foreign employee procedures
- Bank account opening in Turkey assistance
- Legal support with an English speaking lawyer in Turkey,
- Translation services in Turkey
- Notarial services in Turkey coordination
Contact FO Consultancy to discuss your planned activity, investment structure and the requirements that may apply before establishing your manufacturing operation.
