Manufacturing Company Formation in Türkiye: Comprehensive Guide

Türkiye has emerged as one of the most compelling manufacturing destinations for international investors seeking cost efficiency, market access, and regulatory predictability. With its customs union with the EU, competitive labor force, developed industrial zones, and robust logistics infrastructure, Türkiye offers an advantageous environment for manufacturing company formation in 2026 and beyond.

At Finlexia Turkish Accounting Firm, we have been advising foreign investors on Turkish company formation and corporate governance since 2017. As a full-service accounting firm based in Istanbul, we provide end-to-end legal, tax, and compliance support to manufacturing companies across multiple sectors, including automotive, machinery, textiles, electronics, chemicals, and food production.

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Manufacturing company formation in Türkiye is primarily governed by the Turkish Commercial Code (TCC), Foreign Direct Investment Law, and sector-specific regulations. Türkiye adopts a liberal investment regime, granting foreign investors the same rights and obligations as local investors.

Foreign nationals and foreign legal entities may establish a manufacturing business without prior approval, except for limited regulated sectors. Most manufacturing activities do not require special investment permits; however, environmental licenses, zoning approvals, and operational permits may apply depending on the industry.

Understanding the Turkish Manufacturing Landscape

The manufacturing sector represents the backbone of Türkiye’s economy, accounting for approximately 20% of the country’s GDP. The government has implemented comprehensive industrial policies designed to attract foreign investment, particularly in strategic sectors such as automotive, textiles, machinery, electronics, and chemical production. These initiatives include substantial tax incentives, reduced bureaucratic procedures, and dedicated support for technology transfer and innovation.

Foreign investors establishing manufacturing facilities in Türkiye can access the European Union Customs Union, providing preferential trade advantages with EU member states. Additionally, Türkiye maintains free trade agreements with numerous countries across the Middle East, North Africa, and Central Asia, offering manufacturers an unparalleled export platform.

Legal Structure Selection for Manufacturing Operations

When pursuing company formation in Türkiye, manufacturing businesses typically consider several legal structures. The most common option for foreign investors is the limited liability company formation, which provides liability protection while maintaining operational flexibility.

A limited liability company requires a minimum capital of 50,000 Turkish Lira, though manufacturing operations typically benefit from higher capitalization to demonstrate financial stability and access certain incentive programs. Joint stock companies represent an alternative structure suitable for larger manufacturing ventures planning substantial capital investment or future public offerings.

Foreign ownership restrictions in the manufacturing sector are minimal, with international investors permitted to own 100% of Turkish manufacturing companies in most industries. However, certain strategic sectors may require partnership with Turkish entities or government approval.

Investment Incentive Programs for Manufacturers

The Turkish government operates a comprehensive incentive system specifically designed to support manufacturing investments. The Investment Incentive System categorizes projects based on sector, location, and investment size, offering tailored benefits including:

General Incentive Scheme: Available to manufacturing investments across Türkiye, providing VAT exemptions on imported machinery, customs duty exemptions, and reduced corporate tax rates ranging from 10% to 25% depending on the region.

Regional Incentive Scheme: Offers enhanced benefits for investments in less-developed regions, including social security premium support, interest rate support, and land allocation at discounted rates.

Strategic Investment Incentive Scheme: Reserved for large-scale manufacturing projects with significant technological content, providing the most comprehensive support package including extended tax reductions and guaranteed energy pricing.

Technology-Focused Incentive Scheme: Supports manufacturing operations emphasizing research and development, innovation, and advanced technology implementation.

Essential Steps in Manufacturing Company Formation

Establishing a manufacturing company in Türkiye requires careful planning and execution of several critical steps. Working with experienced Turkish company formation lawyers ensures compliance while optimizing the setup process.

Pre-Formation Planning

Before initiating formal registration, manufacturing investors must conduct comprehensive market research, identify suitable industrial zones or production facilities, and develop detailed business plans demonstrating economic feasibility. Environmental impact assessments may be required depending on the manufacturing sector and production processes involved.

Documentation and Registration

The required documents for company formation include notarized passport copies, proof of address, articles of association, and detailed information about planned manufacturing activities. Manufacturing companies must also prepare technical documentation outlining production processes, environmental compliance measures, and workplace safety protocols.

Registration with the Trade Registry typically takes five to seven business days once all documentation is properly prepared. Manufacturing operations must simultaneously register with the tax office, social security institution, and relevant sector-specific regulatory bodies.

Licensing and Permits

Manufacturing operations require additional authorizations beyond standard company registration. The Ministry of Environment, Urbanization and Climate Change issues environmental permits based on the production sector and potential environmental impact. Workplace operating licenses from the Ministry of Labor and Social Security are mandatory before commencing production activities.

Sector-specific permits may be required for food processing, pharmaceuticals, chemicals, or other regulated industries. Operating in designated industrial zones or organized industrial districts often streamlines the permitting process while providing access to shared infrastructure and services.

Financial and Tax Considerations

Understanding Türkiye’s taxation guide is essential for manufacturing operations. Corporate income tax stands at 25%, though incentive programs can substantially reduce effective tax rates for qualifying investments. Manufacturing companies benefit from accelerated depreciation schedules for production equipment and machinery.

Value-added tax typically applies at 20%, though reduced rates of 1%, 10%, or 18% may apply to certain manufactured goods. Manufacturing companies producing for export can reclaim VAT on inputs and may qualify for export incentive payments.

Transfer pricing regulations require arm’s length pricing for transactions with related parties, particularly relevant for manufacturers operating within international corporate groups. Proper documentation of pricing methodologies and comparable transactions is essential for tax compliance.

Operational Banking and Financial Management

Establishing reliable financial infrastructure begins with bank account opening specifically structured for manufacturing operations. Turkish banks offer specialized accounts for companies engaged in import-export activities, providing advantageous foreign exchange services and trade finance facilities.

Manufacturing companies require robust accounting & bookkeeping systems compliant with Turkish Accounting Standards and International Financial Reporting Standards. Monthly tax declarations, quarterly financial statements, and annual audited reports are mandatory, necessitating professional accounting support familiar with manufacturing sector requirements.

Timeline for Establishing Manufacturing Operations

The timeline for fully operational manufacturing company formation in Türkiye varies based on project complexity and sector-specific requirements. Basic company registration typically completes within two to three weeks. However, securing all necessary manufacturing licenses, permits, and incentive certificates may extend the process to three to six months.

Facility preparation, equipment installation, and workforce recruitment add additional time considerations. Manufacturers should anticipate six to twelve months from initial planning to full operational capacity, though this timeframe can be compressed through careful advance planning and expert professional guidance.

Contact us for Manufacturing Company Formation in Türkiye

Navigating the complexities of manufacturing company formation in Türkiye requires experienced legal guidance and comprehensive support throughout the establishment process. Finlexia Turkish Accounting Firm has been Türkiye’s trusted partner for international businesses since 2017, offering full-service company formation and governance solutions in multiple languages.

Our dedicated team of legal professionals specializes in manufacturing sector investments, providing end-to-end support from initial planning through operational launch. We guide clients through incentive applications, licensing procedures, and regulatory compliance while ensuring optimal legal structures and tax efficiency.

Contact Finlexia Turkish Accounting Firm today to discuss your manufacturing investment in Türkiye. Our Istanbul-based team is ready to transform your industrial vision into operational reality with professional, efficient, and personalized service that has distinguished us for over 9+ years.