With major reforms every 18-24 months and a streamlined company setup process, Türkiye maintains its lead as one of the most business-friendly emerging markets in the EMEA region.
For international investors and sourcing professionals, predictability, protection, and speed are as crucial as profitability. Türkiye has transformed its business landscape through a “Continuous Reform Process,” a strategy of implementing sweeping legislative changes every 18 to 24 months to ensure its regulations remain synchronized with global standards and the digital era.
Speed to Market: 7-Day Incorporation
The most visible indicator of this evolution is the ease of market entry. The time required to set up a legal entity in Türkiye has plummeted from 38 days in 2002 to an average of just 7 working days in 2025.
Through the MERSİS (Central Registration System) and “one-stop-shop” Trade Registry Directorates, investors can now:
- Complete company formation, tax registration, and social security notifications simultaneously.
- Benefit from a digital-first approach that allows many administrative steps to be handled remotely via Power of Attorney.
- Enjoy full ownership rights, as Turkish law allows 100% foreign ownership in almost all sectors.
A Secure Legal Fortress for FDI
A cornerstone of Türkiye’s investment appeal is the Foreign Direct Investment (FDI) Law No. 4875, which is based on the principle of equal treatment. This ensures that international investors have the same rights and obligations as local Turkish companies.
This domestic stability is reinforced by an expansive global safety net:
- Bilateral Investment Protection: Türkiye has signed Bilateral Investment Treaties (BITs) with 89 countries, ensuring protection against non-commercial risks.
- Tax Efficiency: With Double Taxation Avoidance Agreements in place with 93 countries, including the US, Germany, and the UK, global firms can optimize their cross-border financial operations.
- Arbitration Rights: Türkiye is a member of ICSID (International Centre for Settlement of Investment Disputes), providing a neutral ground for international commercial arbitration.
The 2024-2025 Reform Wave: HIT-30 and Green Transition
Recent reforms have specifically targeted the “Twin Transition”—digitalization and green energy. In July 2024, the government launched the HIT-30 (High Tech Türkiye) Investment Program, a $30 billion incentive package aimed at sectors like semiconductors, electric vehicles, and battery technologies.
Furthermore, on July 9, 2025, Türkiye’s parliament officially adopted the country’s first comprehensive Climate Law. This landmark legislation establishes the legal basis for the Turkish Emission Trading System (TR ETS), which is set to begin its pilot phase in 2026. This move aligns Türkiye with the European Green Deal, ensuring that Turkish-made goods remain competitive and tariff-free in the EU market.
According to the 2025 International Tax Competitiveness Index, Türkiye now ranks 12th among 38 OECD countries, outperforming major economies like France (38th), the UK (32nd), and the USA. This ranking reflects a modern, balanced fiscal structure that prioritizes growth and investment over bureaucratic complexity.
Citations & Sources
- Incentive Programs: UNCTAD – Türkiye $30 Billion High-Tech Incentive Package (HIT-30).
- Tax Rankings: Tax Foundation – International Tax Competitiveness Index 2025.
- Legislative Updates: ICAP – Turkish Emission Trading System and 2025 Climate Law.
- Company Setup: Invest in Türkiye – Establishing a Business Guide 2025.
- Reform Action Plan: Anadolu Agency – YOIKK 2025 Investment Environment Action Plan.
