Expanding to Turkey: A Legal Guide for US Startups
- Av. Ahmet Gökay Dinçer
- 7 Eki
- 2 dakikada okunur
Expanding to Turkey: A Legal Guide for US Startups
Turkey is one of the fastest-growing markets connecting Europe, Asia, and the Middle East. For US startups—especially those incorporated in Delaware—expansion to Turkey offers access to over 85 million consumers, a strong tech ecosystem, and strategic opportunities. However, legal preparation is essential to avoid costly mistakes.
This guide highlights the key legal steps and risks US startups should consider when entering the Turkish market.
1. Company Formation in Turkey
Entity Types: Limited Liability Company (LLC) or Joint Stock Company (JSC).
Ownership Rules: Foreign shareholders are allowed 100%.
Timeline: On average 7–14 days with proper documentation.
Tip: Delaware-incorporated companies often prefer JSCs for scalability and investment.
2. Contracts and Business Agreements
Language Requirement: Contracts with Turkish parties are usually in Turkish.
Critical Clauses: Governing law, dispute resolution, payment terms.
Common Mistake: Using a US template contract without adapting it to Turkish law.
3. Employment and Hiring in Turkey
Labor Law Compliance: Written employment agreements are mandatory.
Social Security: Registration with SGK (Social Security Institution).
Termination Rules: Strong employee protection laws; severance obligations apply.
Startup Tip: Consider contractor vs. employee status carefully.
4. Data Protection (KVKK Compliance)
Turkey’s KVKK is the local equivalent of the EU’s GDPR.
Key Points: Data processing notifications, explicit consent, cross-border transfers.
Sector Impact: SaaS, fintech, and AI startups must align early to avoid penalties.
5. Intellectual Property (IP) Protection
Trademarks & Patents: Register with the Turkish Patent and Trademark Office.
Software & Copyright: Automatic protection, but registration adds legal strength.
Investor Perspective: Proper IP protection is critical for funding rounds.
6. Taxation and Compliance
Corporate Tax: Currently 25% (subject to changes).
VAT (KDV): Standard rate 20%.
Double Tax Treaty: The US and Turkey have agreements to prevent double taxation.
Advice: Work with local tax advisors for compliance.
Conclusion & Call-to-Action
Expanding to Turkey can unlock powerful opportunities for US startups. Yet, legal pitfalls—company formation, contracts, employment, data protection, and IP—must be carefully managed.
👉 At AGD Law & Consultancy, we help US startups, including many Delaware-incorporated companies, navigate the Turkish legal system with confidence.
📧 Contact us today to discuss how we can support your expansion: av.ahmetgokaydincer@gmail.com
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