The Turkish government has recognized the crucial role that companies play in driving economic growth, creating employment opportunities, and fostering innovation. As a result, Turkey has implemented a range of supportive measures and incentives to encourage and facilitate the establishment and growth of companies. In this article, we will explore some of the initiatives and programs that the Turkish state has put in place to support companies operating within its borders.
- Investment Incentives:
The Turkish government offers a comprehensive package of investment incentives to both domestic and foreign companies. These incentives aim to attract investments, promote regional development, and encourage targeted industries. They include tax exemptions, reduced corporate income tax rates, customs duty exemptions on imported machinery and equipment, land allocation, and subsidized interest rates for investment loans. The specific incentives available depend on factors such as the location of the investment, the size of the investment, and the industry involved.
- Research and Development (R&D) Support:
Recognizing the significance of innovation and technological advancement, the Turkish state has implemented various measures to support companies engaged in research and development activities. This includes tax incentives for R&D expenditures, such as a reduction in corporate income tax rates, tax deductions, and exemptions on R&D-related expenses. Additionally, the government has established research and technology development centers, technology parks, and innovation clusters to facilitate collaboration between academia, industry, and research institutions.
- Funding and Financing Support:
Access to financing is vital for the growth and expansion of companies. The Turkish government has taken steps to ensure that companies have access to various funding sources. It has established specialized funds and financial institutions to provide venture capital, equity investments, and loan facilities to support startups, small and medium-sized enterprises (SMEs), and innovative projects. These initiatives aim to enhance financial inclusion and stimulate entrepreneurial activities across different sectors of the economy.
- Export Support:
Boosting exports is a key priority for the Turkish government. To assist companies in expanding their presence in international markets, the state offers a range of export support programs. These include financial support for participation in trade fairs and exhibitions, market research and analysis, export credits and guarantees, and assistance in obtaining international quality certifications. The government also collaborates with industry associations and chambers of commerce to provide training and advisory services to help companies develop export capabilities and access new markets.
- Entrepreneurship Support:
To foster a culture of entrepreneurship and support the growth of startups, the Turkish government has implemented various initiatives. These include the establishment of entrepreneurship centers, incubation programs, and technology transfer offices in universities and research institutions. The government also provides financial support, mentorship programs, and training for aspiring entrepreneurs. Additionally, the “Turquoise Card” system allows foreign entrepreneurs and investors to establish and develop their businesses in Turkey, providing them with streamlined processes and incentives.
- Infrastructure Development:
A robust infrastructure is essential for businesses to thrive. The Turkish government has made significant investments in infrastructure development, including transportation networks, logistics hubs, industrial zones, and technology parks. These initiatives aim to enhance connectivity, reduce logistical costs, and create favorable conditions for companies to operate efficiently. The state’s efforts in developing infrastructure contribute to the overall competitiveness and attractiveness of Turkey as a business destination.
- Simplified Administrative Procedures:
Recognizing the importance of a streamlined and business-friendly environment, the Turkish government has implemented measures to simplify administrative procedures and reduce bureaucratic hurdles. Digitalization initiatives have been introduced to enable online business registration, tax filing, and permit applications, saving time and effort for companies. Moreover, the “Single Point of Contact” system provides companies with a central platform for addressing their administrative needs, ensuring efficient communication with relevant government agencies.
The Turkish government’s commitment to supporting companies is evident through its comprehensive range of initiatives and programs. From investment incentives and R&D support to funding and financing assistance, export facilitation, entrepreneurship promotion, infrastructure development, and simplified administrative procedures, Turkey offers a favorable environment for companies to establish and grow. By availing themselves of these supportive measures, both domestic and foreign companies can leverage the opportunities presented by Turkey’s vibrant economy and contribute to its continued development and prosperity.