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    Gunstocks. From Turkish Tree to Stockers Bench. DETAIL
    Gunstocks. From ...

    An ancient Walnut Tree prior to harvest. The trees are purchased from individual landowners often in remote and inaccessible places. I have never actually been to Turkey to buy wood. I have always done this from a distance, either at the IWA show in Nuremberg each year where all the Turkish suppliers gather, or by buying from the mobile dealers who pass by the factory each year with a van load of wood. Wood buying is an essential part of the gunmaking process, I think all those responsible for the duty hate doing it but love finding the special pieces every so often. The Turks are masters at spotting even the remote interest in your expression so it is a requirement to practise a totally uninterested look in the mirror before you embark on buying from them. I have always been amazed how, even if I am the last person to view and from their wood at the shows, I am able to their very best and thus most expensive blanks of wood! I enlisted the help of one of the dealers in Turkey from whom I have, over the years, purchased some super wood. Fetin Genc of Gencoglu Gunstocks kindly sent me some photos of the first stages of the harvest of the stock blanks. Once harvested the tree is brought to the nearest road for transport to the sawmill. The root ball is the source of the highest grade figured wood. At this stage it is not known what the quality of the wood is. The fully loaded truck of walnut root balls and limbs. The first time that the quality of the wood will be revealed is when the saws get to work. The wood always looks better in large pieces! Next stop for the wood is the Halls of IWA. In March every year the Turkish wood dealers congregate to show their years harvest and buyers from all over the world race to spot the best blanks!  Piles of long rifle blanks to be sorted. Buying wood is not an easy task, firstly there is the weight of lifting and sorting and then the dazed effect as you get confused by what will look nice and what won’t! Much of the wood has the grain running wrong and this also has to be identified piece by piece. This Pair of Exhibition blanks I purchased many years ago at IWA to use on some of the first .410  lock guns we made.. This entry was posted in Gun Making, Guns & Rifles, New Guns by Simon Clode. Bookmark the permalink.

    WOODCARVING AND WOOD ARTWORK DETAIL
    WOODCARVING AND ...

    Timur's grandson Ulug Bey's casket, 1420-49, 19.5x31.2x17cm, Topkapi Museum. Seljuk Turks excelled in the working of stone and wood. The most important of the woodworking techniques was called kundekari where pieces of shaped wood are interlocked through rabbeting and mortising, without the use of any nails or glue. Before shaping, the wood was carefully treated so that it would not dry out and shrink later on. Individual pieces were cut and carved into octagons, diamonds, stars etc. according to the design intended. The composition was than framed and backed. Another Seljuk woodworking technique, popular in doors, shutters, reading desks and sarcophagi, was sunk relief where the motifs were carved into the plane of the surface. The reverse of the technique in which the motif stands out of the plane was used in calligraphic friezes and decorative borders. Latticing and openwork was developed to a high art, producing lace-like traceries in wood. Beveling, a technique favored in earlier Central Asian Turkish Art was used not as often. Walnut, apple, pear, cedar, oak, ebony and rosewood were the most popular raw materials, depending on the technique to be employed. Anatolian Seljuk wood workmanship produced its most mature examples in both quantity and quality by combining the styles and techniques brought by the Turks to Anatolia with local styles of decoration in a new synthesis. A rich decorative style is observed in this period, consisting of floral and geometric designs, inscriptions and, albeit fewer in number, figural images as well. In Anatolian Seljuk wood workmanship, carving is the technique most appropriate to, and most frequently employed for, the decorative style in which thuluth inscriptions and palmette and half-palmette motifs are often used amid rumî branches and tendrils. Decorations incorporating geometric patterns also occupy an important place in Seljuk wood workmanship. The ‘kündekâri’ technique is used especially on large surfaces such as doors, shutters, pulpits and wood panelling. Pieces of wood cut in lozenge, star or octagonal shapes are joined together inside regularly hollowed out strips of wood in an interlocking pattern. The art of woodworking, which is observed both in architecture and on decorative objects, produced some of its most beautiful examples in the Ottoman period. We see it in architecture in columns and beams; as decorative elements on doors and shutters, pulpits, mosque niches, ceiling ornaments, and balcony railings; on furniture such as lecterns, Koran stands, turban stands, trousseau chests and tables, and as accessories. The professional organization of wood workers, the foundations of which were laid by Sultan Mehmed the Conqueror in Edirne in the 15th century and completed by the end of the century during the reign of Sultan Bayezid II in the establishment of the Privy Architects’ Hearth in Topkapi Palace, were influential in determining the artistic style of Ottoman wood workmanship. When we consider that Mimar Sinan, who was trained by the Hearth, which was responsible for carrying out and overseeing all construction activity in the Empire, first learned carpentry here before architecture and that Mehmed Aga and Dalgiç Ahmed ÿavus also learned mother-of-pearl inlay here, the importance given to wood workmanship in Ottoman art is readily appreciated. In terms of style and technique, the loveliest and most magnificent examples of wood workmanship are seen in the 16th and 17th centuries. A rich combination emerges with the addition of ‘hatayi’ and other naturalistic floral motifs to the ongoing Seljuk tradition of intricate vegetal decorations consisting of rumi-palmettes and curving branches. Bursa Green Tomb Gate The technique of lacquering is conspicuous in Ottoman wood workmanship of the 17th and 18th centuries. This technique, numerous examples of which are encountered in Edirne especially, is for this reason also known as ‘Edirnekâri’. The application of this technique, which, besides wood, was also employed on cardboard and leather, is difficult and painstaking work. When all the irregularities have been smoothed out of the material to be used, a layer of varnish is first applied to prevent the surface from absorbing the paints. After drying, the decoration is applied in gold leaf or paint of various colors. When the paints have dried, the surface is again varnished; this procedure is repeated several times. The Rococo style, which arose as a style of architectural decoration in the palaces of France in the mid-19th century, also exhibits its influence in Ottoman wood workmanship, as in every branch of Ottoman art, as ‘Turkish Rococo’. On small-scale handicrafts, the classical Ottoman decorative motifs give way to floral bouquets, represented naturalistically in a vase, acanthus leaves, C- and S-curving branches, ribbons and bows. Unable to withstand the ravages of time, most objects made of wood have failed to survive to our day. Nevertheless, you may still see some of the finest examples of wood workmanship from the 8th up to the end of the 19th century in the Museum of Turkish and Islamic Art. Reference: Gonul Tekeli, Ali Konyali, SKYLIFE

    Fairs and Exhibition Industry in Turkey DETAIL
    Fairs and ...

    Exhibitions are the meeting points where the peak is shared for trade. Products and services for manufacturers and consumers come together in nature to carry a marketplace within a certain period of time and space. Exhibitions which have a particular theme, enable participating companies produce significant gains in terms of presentation which is directly to the demand. Exhibitions provide significant benefits to the countries in terms of recognizing and developing solidarity state of the world trade, economic, social and cultural relations between each other. The companies having products and services have to sell them to survive and profit. In the competitive environment, companies must follow the latest developments and act very dynamic, flexible, creative, harmonious. The ones which are cumbersome and slow have no chance to grow and survive. These companies should use some other factors as well as some marketing instruments effectively for success. That is one of the marketing tools, maybe the most important is a well-prepared exhibitions. Nowadays, there is no any other marketing tool to fulfill the functions of specialized exhibitions. Because, well prepared, in other words both the organizers and participants of this tool to better and they are prepared using the exhibition an issue in all the four five-day period, and in particular a neutral field come together and it matters a great synergy to be d. Exhibitions, TV, press ads, direct and promotional efforts, such as the most important features distinguish from other marketing tools, all the senses, and similar products and services in the same environment can be compared is that it is collectively. Products or services can be seen by visitors, features, similar products or services can be seen from the difference and superiority. Exhibition organizations also present advertising, public relations has become one of the contemporary communication facilities. Exhibitions, the company's target audience and provide information about the company's marketing mix, promotion, and to provide significant strides in strengthening the image library. Exhibition visitors center and the majority of people coming from neighboring provinces s a particular region or country and the product distribution network for companies that exhibition and sales development in terms of overall presentation is very useful. In addition, the companies entering to a new market are finding advantages in terms of dealership or distributor channels. Exhibition organizations also drastically also brings a vitality to the region where they held. Exhibitions are also important to bring people together, to communicate between them and to help cultural sharings from different countries and different cultures. Exhibition statistics show that our country has an important place and now at the level of developed countries in terms of exhibition organizations, products and services offered to the audience. Especially in recent years parallel to the current globalization, exhibition industry is gaining a major importance. It was borned in Turkey in the mid-1970s and is a new industry compared with the other countries. Exhibition sector in our country gained a major impetus in the last 10 years and began to compete with the advanced Western countries. Exhibition organizers have reached and adopt international standards. The exhibitions especially held in İstanbul, left behind many European countries in terms of area and volume, as well as a bridge between Asia and Europe trade center. According to the city compared to exhibition locations, location and international image of Istanbul come to the fore, so that can be seen. In Turkey, this area has approximately 350,000 square meter exhibition area in Istanbul, one of three remaining areas in Izmir, Ankara, Antalya, Bursa, Adana and Konya in Anatolia as the city has been determined. This is not an effective distribution when we considered Turkey's geopolitical location. The rapid development of international trade today, it is an undeniable fact that the exhibition brings vitality to the economy of its region's. For this reason, more exhibition areas should be built in other cities. Exhibitions have very important effects to serve the developments of local governments and will be a major contribution to the regional economy.

    10 Reasons to Invest in Turkey DETAIL
    10 Reasons to ...

    10 Reasons to Invest in Turkey   1. SUCCESSFUL ECONOMY Booming economy; more than tripling its GDP, reaching USD 784 billion in 2018, up from USD 231 billion in 2002 (TurkStat) Stable economic growth with an average annual real GDP growth rate of 5.5 percent between 2002 and 2018 (TurkStat) Promising economy with a bright future as it is expected to become one of the fastest growing economies among the OECD members during 2019-2024 with an average annual real GDP growth rate of 5.5 percent (OECD) 13th largest economy in the world and 5th largest economy compared with the EU in 2018 (GDP at PPP, IMF WEO) Institutionalized economy fueled by USD 209 billion of FDI in the last 16 years (CBRT) A dynamic and mature private sector with USD 168 billion worth of exports and an increase of 366 percent between 2002 and 2018 (TurkStat)    2. POPULATION A population of 82 million (2018, TurkStat) Largest youth population compared with the EU (Eurostat) Half the population under the age of 32 (2018, TurkStat) Young, dynamic, well-educated and multi-cultural population   3. QUALIFIED AND COMPETITIVE LABOR FORCE Over 32.3 million young, well-educated and motivated professionals (2018, TurkStat) Increasing labor productivity More than 800,000 students graduate annually from over 183 universities (2018, CoHE) More than 985,000 high school graduates with around half from vocational and technical high schools (2018, Ministry of National Education)   4. LIBERAL AND REFORMIST INVESTMENT CLIMATE The 2nd biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2017) Business-friendly environment with an average of 6.5 days to set up a company (World Bank Doing Business Report 2018) Highly competitive investment conditions Strong industrial and service culture Equal treatment for all investors Around 65,500 companies with international capital in 2018 (Ministry of Trade) International arbitration Guarantee of transfers   5. INFRASTRUCTURE New and highly-developed technological infrastructure in transportation, telecommunications and energy Well-developed and low-cost sea transport facilities Railway transport advantage to Central and Eastern Europe Well-established transportation routes and direct delivery mechanism to most of the EU countries   6. CENTRALLY LOCATED A natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets Easy access to 1.7 billion customers in Europe, Eurasia, the Middle East and North Africa Access to multiple markets worth USD 27 trillion of GDP 7. ENERGY CORRIDOR AND TERMINAL OF EUROPE   An important energy terminal and corridor in Europe connecting the East and the West Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region    8. LOW TAXES & INCENTIVES Corporate Income Tax reduced from 33 percent to 20 percent (22 percent for 2018, 2019 and 2020) Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation R&D and Innovation Support Law Incentives for strategic investments, large-scale investments and regional investments   9. CUSTOMS WITH THE EU SINCE 1996 Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 22 countries (Ministry of Trade) More FTAs underway Accession negotiations with the EU   10. LARGE DOMESTIC MARKET 72 million broadband internet subscribers in 2018, up from 0.1 million in 2002 (ICTA, TurkStat) 80.6 million mobile phone subscribers in 2018, up from 23 million in 2002 (TurkStat) 66.3 million credit card users in 2018, up from 16 million in 2002 (The Interbank Card Center of Turkey) 211 million airline passengers in 2018, up from 33 million in 2002 (General Directorate of State Airports Authority) 45.6 million international tourist arrivals in 2018, up from 13 million in 2002 (TurkStat)    

    Turkish Office Furniture Market DETAIL
    Turkish Office ...

    Turkish furniture sector is a strategical sector especially due to reasons such as foreign trade surplus it s and the employment opportunities it generates.  Despite increasing global competition, it is also seen that it has improved its competitive status in time (TUSIAD, 2006). Turkish furniture sector transforms relatively traditional law technology and capital as well as labor dense inputs into information and capital dense form in a rapid way and it proceeds as being a self-developing sector. In recent years furniture sector bears strategical importance for the country with its success that is based on exports. Contribution of sector to economy has shown a rapid growth in the last 10 years. Besides Turkey’s being a rapidly growing country, also due to increasing urbanization furniture demand increases in a parallel way. Due to reasons such as housing, new marriages, styles that change with fashion, and changing of old furniture, demand for furniture keeps on increasing every day. Furniture exports of Turkey was realized as 715 million dollars in 2005. Exports have shown an increase of 17% between years of 2010 and 2011 and exports of 1.65 billion dollars was achieved. In 2012, with an increase of 15% exports were realized as 1.89 billion. With exports of 2.25 billion dollars being achieved in 2015 with a decrease of 7% when compared with previous year, Turkey has ranked as 12th country among the countries with highest export figures. In the global furniture production within last five years, China comes to the forefront as the biggest producer. In furniture production China is the leading country with a share of 25%, as being followed by USA, Italy, and Germany with shares of 15%, 8% and 7% respectively. These four countries realize 55% of global furniture production. In 2016 Turkish furniture exports reached to nearly 2.257 billion dollars and exports were made to 225 countries in total. In years of 2015 and 2016, declines of 6% and 1% were seen respectively. Exports being made to the first 25 countries was 1.798 billion dollars and this corresponds to 83.4% of total exports. As per monetary values the first 5 countries on the list are Iraq, Germany, Libya, Azerbaijan and France. The biggest increase in exports was seen in Israel (%48,4), Romania (%26,8), and Qatar (25,4). Countries with serious declines were ranked as Egypt (%50,8), Russia (%49,7), Azerbaijan (49,7), Kazakhistan (%48,4), Turkmenistan (%45,5,), and Libya (41,6). When the countries in decline are analyzed it is seen that they were countries showing rapid development in construction area in the last 10 years and that they have entered recession and thus, it is considered that this situation should be part of future projections relating with the sector. Turkey’s Status in Global Furniture Market While in 2016 Turkey’s exports were at the level of 2.234 billion dollars and Turkey received a share of 1.31% in global furniture exports, it ranked as the 14th country. In global furniture exports China is the leading country with a share of 35%. China is followed by Germany, Italy, Poland and USA. While Turkey ranks in 14th row in global market, it is the 6th country realizing highest exports in European ranking. When declining and stable export values of European furniture producers and increasing values of Far East countries are considered, it could be stated that production center has shifted to the east. But even though it is still significant since labor prices in China increased tremendously country’s ability to competitive prices is influenced from this situation. Especially increases in countries such as Taiwan (Taipei) gives the impression that Chinese furniture producers have shifted to these countries.  Similarly the increases occurring in Sweden, Poland and Lithuania attract attention. It is seen that IKEA being one of the 3 biggest global furniture producers is being active in these countries. Annual furniture imports of Arabic countries is nearly 20 billion dollars and 926 million dollars of this figure is met by Turkey. In years of 2015 and 2016 declines of %3,6 and %5,9 were observed respectively. Countries showing increases in exports are Yemen, Jordan, Morocco, Oman, Mauritania and the most important buyer in the sector is Iraq which has formed 19% of the market. Countries showing decline are ranked as Egypt, Libya, Syria, Tunisia, and Somali. By exporting 34 percent of the produced office furniture, for a period of more than 15 years foreign trade surplus is obtained in a regular and continuous way. Today Turkey realizes 1.4 percent of global furniture exports and it is the country ranking in 12th row as furniture exporter. In global furniture consumption it ranks as 14th country. Due to the decreased VAT ratio in the country in 2017 capacity usage ratio has reached to the level of 76.8 percent. Expenditures relating with investment for R&D and designing that are supported by government with various incentives in recent periods, has been 12 million TL in 2009 and it has reached to the level of 17.8 million TL with an increase of 25 percent. Currently there are 7 pieces of design and 9 pieces of R&D centers. These studies show that future of sector will better than today and that figures will increase regularly in each year.  In summary with many sharers in the country’s economy furniture sector has set targets for achieving production volume as relating with engineering, architecture, construction and forestry and as being parallel to the developments it has become a self-renewing sector with advance vision approach. Turkish furniture sector which has realized exports of 2.234 billion dollars (-%1) to 225 countries in 2016 and imports of 605 million dollars to 130 countries (-%28,8) and which has not given rise to foreign trade deficit since 2001, has become one of the unique sectors in global market. Turkish furniture sector targets to rank as 10th country in global furniture exports and among the first 5 biggest furniture exporters in Europe with the expected production of 25 billion dollars in 2013 and exports of 10 billion dollars. Regional distribution of the sector: First 11 cities where employment is dense in furniture sector are ranking as Istanbul, Bursa, Kayseri, Ankara, Izmir, Kocaeli, Antalya, Duzce, Sakarya, Mersin and Hatay and the cities where employment is least are ranking Ardahan, Bayburt, Tunceli, Gumushane, Agri, Hakkâri, Edirne, Igdir, Kilis and Van. While employment per enterprise in the sector is 4.07%, average figure of cities ranking in first ten rows is 8.0%. Both of these average figures are below country’s average employment in production sector with a ratio of 9.2%. With respect to employment ratios per number of enterprises in cities the city with highest ratio is Duzce as having a ratio of 21%, being followed with Kayseri with ratio of %20, Bursa with ratio of %11,5, Kocaeli with ratio of 12,6, and Sakarya with ratio of %8. While it attracts attention that there are no furniture producers in Ardahan which is one of the cities with lowest ratio, in the other 9 cities number of furniture producers and employment are significantly limited. In Istanbul region although furniture sector has distributed to various places, the most important two centers are Masko that is located in Ikitelli Organized Industrial Zone and small industrial site Modoko. IMOB which is one of the 3 most prestigious furniture fairs in the world is being organized in Istanbul in the month of January in each year with participants reaching to numbers above 100 thousand. Besides starting from the year of 2016 another international furniture fair is being organized in Istanbul. With employment level of 6.4 people per enterprise on the average, it has an employment structure which is below the average of general production sector in Turkey. When Turkish furniture sector is evaluated as per product groups, growths are observed within years of 2010-2014 between ratios of 8% and 18%. But in the years of 2015 and 2016 decreases of %1 and %6 were observed respectively. According to the values of 2016 highest exports were realized with the amount of 1,2 dollars in products having customs tariff number of 9403 and lowest exports value was realized in the product group having customs tariff number of 9402. Although export ratios of Turkey have increased significantly as per product groups, its volume remains to be low with respect to competitor countries realizing global furniture exports. It can be stated that tax ratio of 50% that is placed in 2015 on products which are imported from Far East countries, has strengthened the local enterprises in the domestic market. 1.5. R&D and Technology Activities in the Sector In the big scale enterprises in the sector it is benefited from advanced production technologies. With the participation of large scale companies, in furniture production industry, technological activities, research and development studies, design and branding became the most important particulars of competition. These parameters are directly linked with the development of the sector.Patents and brands are the concrete indicators relating with research and development and technological follow up. Even though office furniture production in Turkey has passed on to modern lines after 1980s, relating with furniture production based on design with the passage to settled communal living and especially in the Ottoman period relating with the palace furniture many seats, chairs, and wooden bedrooms being produced by the artists of those times can be seen. Especially in Dolmabahce Palace and Yildiz Palace in the rooms of sultan and the relevant spaces and in guest hosting halls various examples can be seen. Similarly by reviewing the documentation of modern furniture that are produced in Turkey between years of 1930-1975 we can also see the seats and couches the designs of which can also be seen in our time.   WEIGHING SEAT OF ATATURK Wooden weighing seat which is designed especially for Ataturk, which he used for his personal bath and during his period of illness. Music box that is in the working room of Ataturk, on which there is a fixed radio and record player. This ebony coated nightstand attracts attention with its simplicity, rounded corners, and design features such as emptiness and fullness.  furniturkonline.com  

    Turkey woodworking machinery industry analysis DETAIL
    Turkey woodworking ...

    This report has been prepared in the basis of the woodworking machines sector machines of which the Customs Tariff Statistical Positions are given below. You can follow the sector's  current changes  in exports and production  from these analyzes. Sector's export Increased by 19% percent in 2017 compared to 2016 and reached 84 million dollars. When the data obtained for 18 years are examined, sector's export passed the import in 2017 and obtained foreign trade surplus for the first time. The highest Import figure In the sector was 187 million USD in 2011 whereas the highest export was enabled in 2013 with 95 Million USD.  Exports record is estimated to be broken by the end of 2018. In terms of 2018 November, export Increased by 25% according to the same period of the previous year and reached 94 million USD whereas import was 58 million USD in the same period with an Increase of 1%. HS Codes which are basis for the study  and Product Groups   846510 Machines which perform various machine operations  without changing any tool between these  operations 846520 Processing centers 846591 Saw machines 846592 Planning machine,  milling cutter or molding machines operating by cutting   846593 Grinding, sanding or polishing machines 846594 Bending or combining machines 846595 Boring or  mortising machines 846596 Splitting, chopping or stripping and opening machines In sheets 846599 Others       Table for changes of production, export and Import of woodworking machines In terms of years GENERAL STUATION 2014 2015 2016 2017 2017-NOVEMBER 2018-NOVEMBER PRODUCTION* 189.559.500 164.190.000 176.808.000 209.691.528 187.589.263 223.408.519 Change % 4,15 -13,38 7,68 18,60 - 19,09 EXPORT** 80.938.747 64.684.180 70.665.689 83.876.611 75.035.705 93.381.578 Change % -14,28 -20,08 9,25 18,69 - 25,05 IMPORT** 147.773.043 96.680.061 74.607.926 67.729.842 57.095.390 57.675.685 Change % 6,38 -34,58 -22,83 -9,22 - 1,02 OVERSEAS SALES*** 256.393.796 196.185.881 180.750.237 193.544.759 169.648.948 187.252.626 Change  % 13,20 -23,48 -7,87 7,08 - 10,38 *  Production values are estimated data of  AİMSAD .                              **  Import and export data have been received from Turkish Statistical Institute. ***  prepared  by Domestic sales figures (Production + Import – Export)  formula .    Table indicating the first 10 countries  which Turkey exports woodworking machines in 2018 (in terms of November)  (USD) Country Value (USD) Algeria 8.980.816 Iraq 5.862.678 Bulgaria 4.262.354 Romania 3.932.882 Russian Federation 3.682.862 India 3.171.498 Poland 3.146.948 Iran 3.033.802 Spain 2.951.093 United Kingdom 2.470.762 Table Indicating the first 10 countries which Turkey Imports woodworking machines In 2018(İn terms of November ) USD Country Value (USD) Italy 26.401.981 China 11.678.030 Germany 10.486.554 Taiwan 2.455.124 Austria 2.103.429 Japan 1.067.762 Switzerland 879.770 Czechia 493.015 India 337.190 Bulgaria 177.384    

    Franchising in Turkey: overview DETAIL
    Franchising in ...

    Franchising in Turkey: overview A Q&A guide to franchising in Turkey. The Q&A provides an overview of the main practical issues concerning franchising, including current market activity; regulation of franchising; contractual issues relating to franchising agreements (including pre-contract disclosure requirements, formalities, parties' rights and obligations, fees and payments, term of agreement and renewal, termination, and choice of law and jurisdiction); Operations Manual; liability issues; intellectual property; real estate; competition law; employment issues; dispute resolution; exchange control and withholding; and proposals for reform. To compare answers across multiple jurisdictions, visit the Franchising: Country Q&A tool. This Q&A is part of the global guide to franchising law. For a full list of jurisdictional Q&As visit www.practicallaw.com/franchising-guide. Market 1. What have been the main developments in the franchising market over the past 12 months? According to the most recent information from the National Franchise Association of Turkey (UFRAD) and the European Franchise Federation (EFF) statistics, there were 1,850 brand chains in Turkey in 2014. 34% of these brands were foreign, 64% were national brands and franchising was used by 78% of these brands. There were 1,471 franchisor chains in Turkey, which was more than in France and Germany. The total number of franchisors in Turkey has tripled over the past five years. The number of branches of franchisors has reached 47,000 countrywide. Preliminary forecasts show that the volume of Turkey's franchise market has exceeded US$43 billion and was expected to reach US$50 billion in 2015 (up-to-date data is not yet available). The sector distribution of the chains is 24% in foods, 27% in merchandise, 16% in services and 33% in the clothing sector. Turkey's foreign franchisors include global brands such as McDonald's, Domino's Pizza, Burger King, Subway and Caffè Nero. In addition, local giants like Simit Sarayi (food), Koton (clothing) and Istikbal (furniture) use franchising as their primary business model. 2. What are the most commonly used methods of local and international franchising? Local franchising The most commonly used method by the local franchisors is direct franchising. Master franchise agreements are rarely used by the local franchisors as they are already established in Turkey. International franchising The most commonly used method by international franchisors is master franchise agreements, generally due to the tax burdens. If an international franchisor decides to enter the Turkish market through the establishment of a company, it will qualify as a Turkish resident and therefore will be subject to tax on its income derived both in Turkey and abroad. On the other hand, if an international franchisor opts for the master franchising model without establishing a presence in Turkey (legal and business centres should not be located in Turkey), it will qualify as a non-resident and subject to tax only on its income derived in Turkey. 3. Are there any specific reasons for an overseas franchisor to use a separate entity for entering into a franchise agreement with a franchisee in your jurisdiction? There are no specific reasons for an overseas franchisor to use a separate entity for entering into a franchise agreement with a franchisee in Turkey. Regulation of franchising 4. What is the legal definition of franchising and/or a franchise? There is no legal definition of franchising and/or a franchise under Turkish law. However, the Turkish Court of Appeal in its decision dated 25 June 2001 numbered 819/4917 has defined franchising as a long-term and continuous contractual relationship between two independent parties where the party who holds the concession right of a product or service, grants this right to the other party by providing information and support relating to the commercial business to be carried out under certain conditions, limitations and for a definite period. 5. What are the laws regulating franchising? There is no law regulating franchise agreements. However, since both agency and franchise agreements have similar characteristics, the agency provisions under the Turkish Commercial Code will by analogy be applied to franchise agreements. In addition, provisions relating to proxy and brokerage agreements and general provisions of the Turkish Code of Obligations (in respect of termination, notice periods, compensations and non-compete clauses) will also be applied to franchise agreements. 6. What is the regulatory authority responsible for enforcing franchising laws and requirements in your jurisdiction? There is no regulatory authority responsible for enforcing franchising laws or requirements. 7. Must the franchisor be registered with a professional or regulatory body before setting up a franchise system? There are no mandatory registration requirements in Turkey before setting up a franchise system. 8. Is there a code of ethics or other means of promoting ethical franchising in your jurisdiction? The National Franchise Association of Turkey is a member of the European Franchise Federation. Therefore, the European Code of Ethics in its entirety is binding on the members of the National Franchise Association in Turkey and is considered as the main framework for promoting ethical franchising in Turkey. 9. Do franchisees benefit from any laws designed to protect consumers or small businesses? Franchisees do not benefit from any laws designed to protect consumers or small businesses. Under the Turkish Consumer Protection Law, consumer is defined as a natural or legal person acting with no commercial or professional purpose. Therefore, as franchise agreements are concluded between two business persons, franchisees are not treated as consumers under existing laws and also by the Turkish courts. 10. Are there any other requirements which must be met before a business can sell a franchise? There are no other requirements that must be met before a business can sell a franchise. Franchise agreement Pre-contract disclosure requirements 11. Is the franchisor subject to any general or formal pre-contract disclosure requirements? There is no pre-contractual disclosure requirement under Turkish law. However, the Turkish Code of Obligations requires that the will of the parties must be coherent and compatible for contractual relationships to be satisfied. In addition, if a person enters into a contract as a result of the other party's deception, this will result in the invalidity of the contract. Although not specifically regulated, the doctrine of culpa in contrahendo can expose the franchisor to certain claims of damages in this regard. Precedents established by the Turkish courts provide that even if there is no written contract, the distributor's reliance on the relationship arising from the contractual negotiations will be protected by law. Similarly, the franchisor may be exposed to damage claims for their pre-contractual statements. If the franchise agreement is in written form and includes standardised terms that are included in many of the franchisor's other agreements, the franchisor must inform the franchisee as to the existence of these terms. Otherwise, standardised terms in the franchise agreement may be deemed invalid. As there is no pre-contractual disclosure requirement for franchising agreements under Turkish law, the disclosure obligation of an overseas franchisor and sub-franchisor must be determined in accordance with the franchise agreement and the contractual requirements between the relevant parties. The general principle is that the liable party in this case would be the sub-franchisor as it is the party to the sub-franchising contract, assuming that there are no terms in the master franchise agreement dealing with such an issue. 12. Must the franchisor disclose fairly and in good faith all facts material to the prospective franchisee's decision to enter into the arrangement, or must the prospective franchisee rely on its own due diligence? In the absence of a specific law regulating franchise agreements, the general principles under Turkish Civil Code must apply. As franchise agreements require continuing and extensive co-operation between the franchisor and the franchisee, the pre-contractual trust relationship requires the parties to diligently disclose information material to the business. All facts material to the franchisee's decision must be disclosed. Formalities 13. What are the formal contractual requirements to a valid and binding franchise agreement? In the absence of a specific law regulating franchise agreements, the general provisions of the Turkish Code of Obligations on the formal contractual requirements apply. Other formal contractual requirements are as follows: Agreements between commercial entities incorporated under the laws of Turkey must be in Turkish (Law numbered 805 on the Mandatory Usage of the Turkish Language in Commercial Entities). The Court of Appeals has decided that that franchise agreements can be concluded orally or in writing and both are equally valid and binding. In addition, trade mark transactions must be in writing to ensure that the licence agreement is valid. Franchise agreements are not specifically regulated under Turkish law and are characterised as hybrid agreements, containing elements of both service and licence agreements without any precedence being attributed to the service or licence agreement aspects. Parties' rights and obligations 14. Is there a general obligation to behave fairly, reasonably or in good faith to the other party during the term of the franchise agreement? In the absence of a specific law regulating franchise agreements, every person must exercise his rights and fulfil his obligations according to the principles of good faith (Article 2, Turkish Civil Code). However, due to the general nature of this obligation, the Turkish courts must determine what steps must be taken by the parties to satisfy it. Obligations of the franchisee The main obligations of the franchisee usually contained in the franchise agreement are as follows: Obligations relating to the sale of goods and/or services, which constitute the subject of the agreement. Payment of royalties. Obligation of good faith and duty of care. Obligations of the franchisor The main obligations of the franchisor usually contained in the franchise agreement are as follows: Obligation of pre-disclosure. Obligation of providing the franchise systems to the franchisee (such as the company name, know-how and so on). These provisions cannot be overridden as they are the material elements of a franchise agreement. The franchisee is generally regarded as an independent businessman or entity and therefore its failure to satisfy its obligations usually bears no effect on the overseas franchisor. 15. Does local law require that particular provisions must be expressly included in a franchise agreement? There are no mandatory clauses for franchise agreements. However, Turkish law recognises some general contractual rules that parties must abide by (such as provisions relating to termination, notice periods, compensation and non-compete clauses). In addition, clauses contrary to the imperative provisions of the law, ethics, public order and personal rights must be deemed null and void (Turkish Code of Obligations). 16. Are exclusion and entire agreement clauses enforceable in your jurisdiction? If so, are they effective to protect the franchisor? Entire agreement and exclusion clauses are enforceable in Turkey and these are usually considered effective to protect the overseas franchisors. In addition, franchisees are generally regarded as independent businessmen or entities and therefore third-party claims against the franchisee are very unlikely to be brought successfully against the franchisor. 17. Can the franchisor impose product tying or other purchasing restrictions and non-compete obligations on the franchisee during the term of the agreement? Restrictions on purchasing and product tying Although there are no express restrictions on purchasing and product tying under Turkish law, it is generally accepted that these clauses should not be an issue if either the: Products and/or services are so related that the franchised operation/service cannot be maintained without the tied product. Clauses are necessary to ensure that the franchisor maintains its standards or exercises quality control. Franchise agreements are generally considered vertical agreements. A vertical agreement, which bears conditions that restrict competition, can be considered to be in breach of Turkish competition law. However, there is a Block Exemption Communiqué on Vertical Agreements (Communiqué), which allows vertical agreements to be exempted from restrictions under Turkish Competition Law, provided that certain requirements are fulfilled. Although the Communiqué does not refer to product tying, this practice may not raise concern if either: The products and/or services are by necessity linked in such a way that the franchised operation cannot be maintained without the tied product. Product tying is necessary to ensure that the franchisor maintains its standards or exercises quality control. Non-compete obligations and transfer restrictions The Communiqué describes non-compete obligations as any kind of obligation that directly or indirectly prevents the franchisee from producing, purchasing, selling or reselling goods or services, which compete with the goods and services that are subject to the agreement. In addition, any direct or indirect obligation on the franchisee to purchase from the franchisor, or from any undertaking designated by the franchisor, more than 80% of the subject goods or services or their substitutes in the relevant market, calculated on the basis of the value of its purchases in the preceding calendar year is a non-compete obligation. In a vertical agreement, the maximum duration of a non-compete obligation can be determined as five years (Article 5(a) Communiqué). Non-compete obligations with indefinite terms are prohibited and the exemption provided under the Communiqué will not apply to these non-compete clauses under a franchise agreement. This would not only invalidate the relevant terms of the agreement but also result in serious penalties as the activities of the parties will be considered to be against the Law on Protection of Competition. There are no legal restrictions on the ability of the franchisor to require its prior consent to transfers of the business and/or transfers of interests in the entity owning the business under Turkish Law. This can be included in the franchise agreement. Fees and payments 18. What fees are usually payable by the franchisee? Are there any restrictions on the parties' freedom to set the fees and payments, or any other payment requirements? There are no restrictions in this regard so parties can determine which fees apply. However, the parties should also consider taxation and who is liable for this under the agreement. In practice, franchisors tend state that the franchisee is responsible for the payment of stamp duty, notarisation fees (if necessary) and fees related to the registration of a trade mark licence agreement. Interest can be charged on overdue payments and the maximum amount that can be determined by the parties is twice the interest rate designated by law in the relevant year. Term of agreement and renewal 19. Are parties free to agree on the term of the franchise agreement? What is the typical term of a franchise agreement in your jurisdiction? In practice, franchise agreements are generally executed for a definite term (for three, five or in some cases ten or 15 years) and include an extension provision. However, the non-compete obligations contained in franchise agreements must not exceed five years (see Question 17). 20. What rights of renewal are usually included in the franchise agreement? Are fees paid on renewal? Commercial practice In practice, franchise agreements usually include provisions for the option to renew the agreement subject to the franchisee fully complying with the terms and conditions of the franchise agreement. Local law There are no legal requirements concerning the right of renewal or fees payable on renewal under Turkish law. Therefore, in accordance with the general principle of contractual freedom, the franchisor can refuse to renew the agreement with the franchisee (assuming that a unilateral right of renewal is not granted to the franchisee under the franchising agreement between the parties). If the franchisor does not renew the agreement and the franchising agreement expires, the franchisee can claim for ''portfolio compensation'' in the event that it brought a considerable numbers of new clients for the franchisor and the franchisor benefited from the expanded customer portfolio. However, the amount of portfolio compensation cannot exceed the average of fees and other payments collected by the franchisee during the course of the last five years (Turkish Commercial Code). Termination 21. Are there any limitations on the right of a franchisor to terminate the agreement? In the absence of a specific law regulating franchise agreements, general provisions of Turkish law apply. Therefore, a franchisee can terminate a fixed term agreement if there is justifiable cause, such as the repetitive non-payment of royalty fees, continuous lack of technical assistance and so on. A franchisor can terminate an agreement signed for an indefinite period by giving termination notice at any time. The parties can agree on the amount of compensation due to the termination or non-renewal of the franchise agreement. The franchisor can terminate the agreement and can also ask for damages arising from the franchisee's breach. A franchisor is not obliged to pay the portfolio compensation if the franchisee is the defaulting party in the termination of the franchise agreement. In addition, if the franchise agreement is terminated by the franchisee, the franchisor is not obliged to pay the portfolio compensation (see Question 20, Local law). The parties can determine the justifiable causes for terminating a franchise agreement for a fixed term. However, in all cases, the courts will consider whether the cause indicated by a party constitutes a justifiable cause or not. In general, if the continuation of the franchising relationship becomes unbearable for one of the parties, the courts may consider this a justifiable cause. Contractual penalties and liquidated damages are enforceable and parties can determine the relevant amounts. However, excessive amounts of contractual penalties can be reduced by the courts on the ground they are unreasonable. 22. Are post-term restrictive covenants enforceable? Post-term non-compete restrictive covenants in franchise agreements should be limited in terms of time, place and subject and should not result in economic destruction of the franchisee. A post-term non-compete restrictive covenant may be deemed invalid by the courts, to the extent that it eliminates or reduces the economic independence and jeopardises the economic condition of the franchisee. Unless the franchise agreement explicitly provides a post-term confidentiality restrictive covenant, it is unlikely that Turkish courts will grant its injunction. However, the principle of good faith must also be taken into account by the courts. Under the Block Exemption Communiqué on Vertical Agreements (Communiqué), any direct or indirect obligation imposed on the purchaser, prohibiting it from producing, purchasing, selling or reselling goods or services is defined as a non-compete obligation. A non-compete obligation is only valid if all of the following applies: It does not exceed one year after the expiry of the agreement with the condition that the prohibition relates to goods and services in competition with the goods or services that are the subject of the agreement. It is limited to the facility or land where the franchisee operates during the agreement. It is compulsory for protecting the know-how transferred by the franchisor to the franchisee. The Turkish courts are less reluctant to grant injunctions in the event that the franchisee continues to operate the business or use the assets and IP rights transferred or made available for the sole purpose of running the franchised business. In this case, the franchisee would be liable for unfair competition. 23. Can the franchisor or a replacement franchisee continue to sell to the former franchisee's customers? The franchisor or a replacement franchisee can continue to sell to the former franchisee's customers. However, the franchisee can claim for ''portfolio compensation'' (see Question 20). Choice of law and jurisdiction 24. Will local courts recognise a choice of foreign law in a franchise agreement for a business operating in your jurisdiction? Local courts can recognise and uphold choice of foreign law clauses. However, mandatory provisions of Turkish law (such as rules regulating public order) still apply. 25. Will local courts recognise a choice of foreign jurisdiction in a franchise agreement for a business operating in your jurisdiction? The local courts will recognise a choice of foreign jurisdiction in a franchise agreement, provided that both: There is a foreign element in the case. The court assigned by law is not exclusively competent. Operations Manual 26. How does the franchisor ensure that the franchisee complies with the business standards, systems and requirements? The franchisee must comply with the rules set out in the Operations Manual and the franchisor's instructions, given within the scope of the objectives of the franchising system. The scope of the franchisee's duty to comply with instructions of the franchisor is extensive and relates to almost every aspect of the activities of the company. The franchisor cannot vary instructions previously provided if they are contrary to the objective of the franchise agreement. The franchisee's obligation to follow the instructions of the franchisor exists as long as these instructions are consistent with the: Marketing strategy of the franchise agreement. Co-operation between the parties. Interests of the franchisee contained in the franchising agreement or ancillary documents such as the operation or development agreements. 27. Can the franchisor change the Operations Manual unilaterally, as is usually required? See Question 26. Liability issues 28. What are the franchisee's remedies against the franchisor for deceptive or fraudulent selling practices? The franchisee can apply for the deceptive or fraudulent practices to be ceased and ask for compensation in respect of damages suffered as a result of these practices. 29. How can third-party claims against the franchisee be brought successfully against the franchisor? Indemnity A franchisee is generally regarded as an independent businessman or entity so third-party claims against the franchisee cannot usually be brought against the franchisor. An exception to this is in the event of spin-offs structured in the form of an asset deal or business transfer. In these circumstances, the transferor of a business will be jointly liable with the transferee (for the liabilities arising out of the business prior to the transfer) for a period of two years following the transfer of the business. In addition, the franchisee can claim against the franchisor for losses related to third-party claims, provided they are the result of a defect in the production, management or marketing system imposed on the franchisee by the franchisor. These claims can be excluded by contract, save for the cases of wilful misconduct or misleading conduct by the franchisor. Precautions Franchisors often include an indemnification clause in the franchise agreement, which requires the franchisee to indemnify the franchisor for the claims arising out of his operations. The franchisor can also publicise the franchisee's independence by publishing the business transfer arrangement or the de-merger resolution in the Trade Registry Gazette. Intellectual property 30. What provisions are usually made in relation to intellectual property rights (IPRs), including know-how? The franchisor must grant the franchisee the right to use its intangible assets (such as patents, trade marks, corporate name, trade name of the commercial enterprise and know-how) which are essential for the operation of the franchise system. However, the franchisor can set certain limits to the use of IPRs and confidential information, which is generally done by way of a licence agreement registered with the Turkish Patent Institute. In this licence agreement, the franchisor can prescribe the terms and conditions applicable to the use of IPRs provided. If the franchisee violates any of the terms and conditions, the franchisor can terminate the licence agreement and deny the franchisee's access to the IPRs. 31. What are the registration requirements for licensing IPRs? Under Turkish law, copyright is granted automatically by the Turkish Code on Intellectual and Artistic Works and therefore no registration is required for the protection of rights other than for cinematographic and musical works and video games. However, formal registration is required for protection of IPRs such as trade marks, patents and industrial designs The competent body for the registration of trade marks and industrial designs is the Turkish Patent Institute (TPI). An invention can also be registered as a patent or a utility model. The registration of the patent allows the parties to enjoy the protection of IPRs and the competent body is also the TPI. Under Turkish law, it is not necessary to have a separate licence and franchise agreement. A separate licence agreement or franchise agreement can be registered with the TPI. If registered, these agreements will allow the parties to refer to the registered documents in the case of a dispute. Real estate 32. Are consents from landlords difficult to obtain when transferring leases or granting subleases from a franchisor to a franchisee? A lease agreement cannot be transferred to another person without the landlord's written consent (Article 323, Turkish Code of Obligations). However, the landlord can only refuse to give consent if he has a valid reason. In practice, landlords tend to give this consent in return of a payment called an ''ingoing'' (that is, a sum of money that can be freely determined by the landlord in return for its consent). The landlord's consent to the transfer of the lease or the granting of the sublease can be obtained by amending the existing lease agreement. If the original lease agreement is registered with the Turkish Land Registry, the amendments must also be registered. In practice, the transfer of the lease can be completed within two to three business days. 33. How can a franchisor prevent the franchisee from occupying the premises after the franchise agreement has ended? The franchisor can prevent the franchisee from occupying the premises after the franchise agreement has ended by ensuring that the expiry or termination of the franchise agreement would also result in the termination of the lease or sublease granted to the franchisee. Generally, this is done by drafting the termination clause of the lease agreement so that the lease agreement regarding the use of the concerned real estate comes to an end on expiry or termination of the franchise agreement. 34. How can the franchisor effectively acquire the franchisee's premises at the end of the franchise relationship? If the real estate to be purchased by the franchisee is owned by the franchisor, the franchisor can acquire title to the real estate at the end of the franchise term by way of a repurchase agreement to be signed between the parties. On the other hand, if a third-party owns the real estate to be purchased by the franchisee, the franchisor must conclude a promise of sale in written form with the franchisee stating that the franchisor can acquire the title of the real estate when the franchise term has come to an end. Despite being non-mandatory, it is recommended that the purchase agreement is registered with the relevant land registry in order to grant enforceability to the repurchase right and prevent third party claims made in good faith. However, the repurchase agreement must have a maximum term of ten years. 35. If the franchisor leases or subleases its own site to its franchisee, can it pass on all related costs to the franchisee? Can the franchisor charge its franchisee tenant a rent expressed as a percentage of the franchisee's sales? Under Turkish law, lease and sublease agreements are flexible. In this respect, the franchisor can pass its site-related costs to the franchisee and charge a rent expressed as a percentage of the franchisee's sales, provided that these terms are incorporated into the lease or sublease agreement. Competition law 36. What is the effect of competition law rules on franchising agreements? Are there any available exemptions? Competition law The Competition Law and the relevant secondary legislation are very similar to the EU competition legislation. All agreements that have as their objective, effect or likely effect, the prevention, distortion or restriction of competition directly or indirectly in a particular market for goods and services are illegal and prohibited (Article 4, Competition Law). Exemptions Despite the above restrictions, there are the following exemptions (Block Exemption Communiqué on Vertical Agreements): The franchisor can set a fixed or minimum sale price for the franchisee, provided that these are recommended or maximum sale prices that do not amount to an indirect way of achieving resale price maintenance. Although it is forbidden to restrict the territory into which or the customers to whom the buyer can sell, the following exceptions are applicable: restrictions on active sales by a buyer into an exclusive territory or to an exclusive consumer group reserved either to itself or to another buyer; restrictions on active and passive sales to end-users by a buyer at the wholesale level; restrictions on sales to unauthorised distributors by the members of a ive distribution system; and restrictions on active and passive sales of components for incorporation into another product to competitors of the supplier. Online/e-commerce restrictions There is no regulation that prohibits a franchisee from having its own website presence, from promoting its business on the internet (simply advertising the brand and business), or from engaging in e-commerce (selling products or services online). These restrictions/prohibitions can be decided mutually by both parties under the principle of contractual freedom. Employment issues 37. Can a franchisee be regarded as an employee of the franchisor? The relationship between the franchisor and the franchisee has not been treated as one of employer-employee by the Turkish courts. Dispute resolution 38. How are franchising disputes typically dealt with? What provisions for handling disputes are usually included in domestic franchise agreements? Franchising disputes are typically dealt with by litigation in the local courts. Arbitration is sometimes preferable for parties to franchise agreements, due to the fact that the trials before the Turkish courts are usually lengthy. However, the recognition of arbitral awards in Turkey also takes a considerable amount of time. Since the Law of Mediation for Civil Law Disputes numbered 6325 entered into force on 22 June 2012, mediation has also become a recognised form of native dispute resolution. In disputes between an overseas franchisor and the local franchisee or master franchisee, the parties can freely determine the jurisdiction and governing law in the agreement, provided that there is a foreign element in the case and the court assigned by law is not exclusively competent (Code concerning Private International Law and Civil Procedure). 39. How are foreign judgments or foreign arbitral awards enforced locally? Turkey is a signatory to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention). Turkey also has reciprocity agreements with other non-New York Convention signatories. In these cases, Turkish courts readily recognise arbitral awards granted by these non-signatory countries. Under Turkish law, the enforcement of a foreign judgment is subject to the following conditions (Turkish International Private and Civil Procedure Code): There must be reciprocity between the country where the judgment is obtained and Turkey. The judgment must not be issued on a matter where Turkish courts have exclusive jurisdiction. The judgment must not be against the public order of Turkey. The defendants must be duly served with the points and claim and must be requested (and therefore granted the opportunity) to serve their defence. The judgment must be binding and final. Exchange control and withholding 40. Are any exchange control or currency regulations applicable to payments to an overseas franchisor? Investors can freely transfer the following abroad: Net profits. Dividends. Proceeds from the sale or liquidation of all or any part of an investment. Compensation payments. Amounts arising from licence, management and similar agreements. Reimbursements and interest payments arising from foreign loans through banks or special financial institutions. However, banks must report outbound flow of Turkish lira and foreign currency exceeding certain amounts (such as US$50,000) to the Central Bank of Turkey (Decree numbered 32, Protection of Value of the Turkish Currency). 41. Is there a withholding obligation on payments made to an overseas franchisor? If a foreign franchisor decides to enter the Turkish market by incorporating a company in Turkey, it will be qualified as a Turkish resident and subject to tax on its income derived both in Turkey and abroad. However, if a foreign franchisor opts for the master franchising model without establishing any presence in Turkey (legal and business centres should not be located in Turkey), it will qualify as a non-resident and will be only subject to tax on its income derived in Turkey. Reform 42. Are there any proposals to reform the laws affecting franchising? Although not specifically related to franchising, the Industrial Property Law entered into force on 10 January 2017. Previously, the protection of industrial rights (including trade marks, geographical indications, designs, patents, utility models and conventional product names) was mostly governed by separate decree laws. The Industrial Property Law harmonised all industrial rights under one uniform law and its reforms relating to trade mark law include the ability to register new kinds of marks, shorter registration periods, trade mark co-existence, administrative invalidation, and the regulation of procedures relating to international applications in accordance with the Common Regulations under the Madrid Agreement concerning the International Registration of Marks and the Protocol Relating to that Agreement 2004. To date, there are no proposals to introduce voluntary self-regulation in relation to franchising.   Contributor profiles Ilknur Peksen, Partner               ErsoyBilgehan Lawyers and Consultants Leyla Ulucan, Senior Associate  ErsoyBilgehan Lawyers and Consultants Yusuf Mansur Özer, Associate   ErsoyBilgehan Lawyers and Consultants Şule Akkuş, Legal Trainee         ErsoyBilgehan Lawyers and Consultants THOMSON REUTERS.

    50 Best Small Business Investment Opportunities in Turkey DETAIL
    50 Best Small ...

    Do you want to start a profitable business in Turkey as a foreigner? If Yes, here are 50 best small business ideas & investment opportunities in Turkey. As of present, Turkey’s economy is the sixteenth largest in the world and the sixth largest in Europe. This drives home the fact that Turkey is a high-growth market for many investments and businesses. Turkey’s recent growth record, its young and talented workforce, and its strategic location between Europe and Asia make the country a very attractive destination for growth and investment. Turkey is a country that is located between Europe and Asia and its capital city and seat of power is Ankara. Istanbul is its largest city and it is considered by many as the commercial capital of Turkey. Turks are predominantly Muslims but they are considered liberal because of the religious views and lifestyle that is largely different from Muslims in the Middle East. Turkey is known to be responsible for about 80% of the world’s hazelnut exports and it has the world’s 17thlargest GDP by Purchasing Power Parity. Turkey’s economy is driven predominantly by the exporting sector with the automotive industry leading in this regard. Key exports from Turkey are hazelnut, Ships, oil and chemical vessels, consumer electronics and home appliances (with Beko and Vestel as the top brand), petrochemical products, textiles and processed foods et al. The services sector accounted for about 65% of Turkey’s GDP, while the Agric sector accounted for about 26% but the Agric sector still remains one of the highest employers of labor in Turkey. Tourism is a major revenue generator for Turkey as a matter of fact; Turkey is ranked as the 6th most popular tourism destination in the world. The banking and the construction industry is also another major income generator for Turkey. Turkey is vastly becoming a darling country for foreign investors since the government of Turkey has deemed it fit to reform the economy by privatization of government owned industries and also the liberalization of other key sector of the economy. So if you are an investor and you intend starting your business in Turkey, then you should consider these top 10 business opportunities in Turkey; 50 Best Small Business Investment Opportunities in Turkey Salt production company Turkey is the 15th-largest salt producing country in the world, and it averages 4,000,000 metric tonnes annually. The top 10 countries by salt production are: China, United States, India, Germany, Canada, Australia, Mexico, Chile, Netherlands, Brazil. Turkey is surrounded by the sea in three directions, and salt production from the sea is gaining in importance, thus making it a profitable business to start in the country. The process of natural raw salt production includes, Recrystallization, evaporation, salt excavation and storage, and you can carry out this process in a small scale serving your intimidate community, or in a large scale for the international community. Open a tourism agency One of the most beneficial business opportunities that would serve you well in Turkey is opening a tourism agency. The reason why entrepreneurs should take this opportunity is because Turkey has become one of the most visited places in the world. So then, it can be a very great idea for you to provide all the best services for the tourists in the country. In simple words, it will be nice if you to start a business that can provide essential services to tourists, such as helping them book their hotels and flights, arranging for sightseeing and taxi services, etc. The best part is that there are no complicated and difficult regulations or requirements that you have to meet before you start this business. Become a tour guide An easier and less stressful form of starting a tourist agency is becoming a tour guide. There are 13 spots in Turkey inscribed on UNESCO’s list of World Heritage Sites, and a whopping 62 on the tentative list. They range from a Mesolithic temple (Göbekli Tepe) to a Biblical city (Ephesus) to a World War One battlefield (Gallipoli), and all these help make Turkey the sixth most-visited tourist destination in the world. The country is ranked to be the world’s sixth most visited lands. So becoming a tourists’ guide is surely one of the great small business ideas you can start in Turkey. One good thing about this business is that you can start it with little or no startup capital. Roadside Assistance service A country with a huge population, and a steady influx of tourists need a roadside service in order to help stranded road users. With more people using their vehicles in Turkey, you would never lack for business especially if your assistance service is located in a visible point of the road. Note that in this type of business, the more stands you have, the better for the road users and your business, so you should endeavor to expand your business as soon as possible. Cleaning Services In Turkey, there is a huge demand for cleaning services. A large number of people visit Turkey and to keep the interest of travellers, the city should be kept clean. It will be great to start a cleaning service to earn good profit in Turkey. This is another business that does not require an arm and a leg to start. You can start small and grow it big. Goods Delivery Services Another profitable business you can start in Turkey is a gods delivery service. This business is guaranteed to thrive because a large number of local stores do not provide delivery services. You can be the one to help the consumer as well as the store owners to deliver the desired products to the consumer’s location safely. What you need to make a success out of this business is a means of delivering your goods such as a vehicle, motorbike or even a bicycle. Hazelnut farming and exportation Statistics has it that Turkey is responsible for about 80% of the world’s production and export of hazelnut. In case you don’t know what Hazelnut is, it is a sweet-flavored nut that grows easily in Turkey. It is also known as filberts. If you intend investing in the agric sector in Turkey, you should consider going into hazelnut farming and exportation since Turkey is one of the most fertile grounds to grow this nut. You only need to identify countries that need this nut and start negotiating export terms with them. Open a Construction Company Construction is one of the key sectors in Turkey, and equally one of the main drivers of public and private investment. There are large construction companies as well as small ones that undertake niche services. If you want to establish a profitable business in Turkey, you will be well served to open a construction company. Supply Vehicle parts Turkey is a market of 74 million people, with a great majority of this population owning cars. The largest automotive companies such as Ford, Fiat, Renault, Toyota, Hyundai, Mercedes, Citroen, etc., have factories in the country, thus helping in the steady supply of vehicles. But the country is still in need of industries that can supply automobile parts as the ones in existence are hardly sufficient. This has just opened up a business idea for the savvy entrepreneur. You can start a business in this industry and either manufacture or import your vehicle spare parts. As this is still a growing industry, you are guaranteed a good portion of the market. Become a telecom subcontractor In the market there are few telecom operators because of the huge entry barriers (state regulation, mainly). However, there are interesting opportunities in the provision of services, especially for the integrators which subcontract directly these operators.  So, if you have the ability and capability, you can become a telecom subcontractor in Turkey. This business is quite complicated and can prove to be capital intensive, but it is a very profitable venture. Start a waste management company The environment sector has gained in importance in recent years as one of the priority sectors for the Turkish government. Turkey’s rapid industrialization and high population growth (one of the highest in the OECD) along with the expansion of cities, have d complex environmental problems related to public services, especially that of waste management. You can start a business in a niche area in the waste management industry and make make loads of profits. Note that you can start up by setting up a business that supplies waste water treatment services, sewage treatment and management, solid waste management, etc. Turkey as a country is ever ready to support businesses in this area. Open an energy plant The clear intention of deregulation and privatization of the Turkish government in the last decade coupled with a solid legal framework and increasing domestic demand, makes Turkey a key country for energy investment. Government sources said the sector needs an investment of approximately 130,000 million by 2020, and is urging investors to key into this field. Though energy is a high capital investment sector, but it would be easy to recoup your investment and make profits if your business goes well. Produce medical equipment Since 2008 after the government announced the introduction of universal health care system in Turkey, the country has been trying to improve on their healthcare sector, especially in the construction and equipping of hospitals. Almost all the medical equipment used in the country is imported, thus indicating a key industrial need to be met in the country. If you have the financial wherewithal, you can set up a company that manufactures medical equipment in the country. Start a frozen food business The Turkish food industry has grown steadily in the recent years. The growth of the disposable income and the changes in consumer trends, along with the increasing number of women employed full-time (in a still conservative society in general), have caused the increasing in the interest in processed meals and frozen foods. To meet this need, you can set up a food business that produces and sells process and frozen meals so that people cam buy them, heat and then consume them without much stress. If your business manages to take off, it would become profitable because people always have to eat. Mine natural stone Turkey is the fourth largest producer of natural stone in the world with over one hundred varieties of marble, travertine, limestone, slate, basalt, tuff, andesite, diabase, granite and onyx. It owns the 40% of the world reserves of marble. So it is a great idea to start the business of natural stones in Turkey. One way to do this is to set up a business that mines these natural stones. While dong this, you have to make sure to obey the rules and regulations as it relates to mining so you don’t get in trouble with the law. Start a textile business The textile industry is one of the most important sectors of the Turkish economy. Representing approximately 10,8% of GDP, it one of the leading sectors in manufacturing, employment, investment and macroeconomic indicators. You can take advantage of this growing sector to set up a business where textile of every kind is manufactured. If the market in Turkey is saturated, you can easily export your textile to other countries that have the same culture as you. Become a financial analyst The Turkish financial sector is undertaking a major development process, with the financial services expanding solidly on the basis of the current economic growth, low inflation and a decrease interest rate. Despite the global financial crisis the Turkish banking sector has maintained a stable position in the world. You can as well become a financial analyst to help individuals and businesses with their financial problems. Start a bio-chemical company The Turkish chemical sector has been developing continuously in recent years. Today the industry provides not only raw-materials but also intermediate products to other actors in the economy, especially automation, leather products, glass, textiles and paper. You can set up a bio-chemical company where you get to manufacture improved products that would edge out old ones and get a comfortable place in the market. Start a Water Damage Restoration and Repair Service Every year in Turkey, unanticipated emergencies produce havoc in the lives of residents: heavy rainstorms, flash flooding, burst pipes, overrunning cleaning machines, and a wide range of other unanticipated accidents soak carpets, drapes, upholstery and other house or business furnishings. These crises often harm costly floor covering, and warp wooden paneling and furniture. They may cause molds and mildews to proliferate in drywall and basements, or threaten the integrity of decks, stairs, and other wooden structures. This is where a Water Damage Restoration and Repair Service comes in. You can start this business to help residents curtail water damages to their homes. Become an Industrial subcontractor The Turkish subcontracting sector has developed widely over the last few years. Thus, a lot of companies are into the subcontracting industry. The subcontracting industry in Turkey is set to bloom and it would serve you well to start a business in this area. Start an export business Exports have been one of the main drivers of Turkey’s economic growth together with numerous opportunities. Turkey is a prime location to host headquarters for many multinational companies thanks to its excellent connectivity, unique setting, and strong bonds with its neighbors. Turkey is a good exporter country because Turkish products are as quality as European products and as cheap as Chinese or a bit expensive than Chinese. Also Turkey is stable country that has a a lot of trade agreement with nations all around the World and s and international organizations. Another reason why it is great to start an export business in Turkey is that the country has low export taxes. Start packaging meals for sale  In Turkey, along with men, a great percentage of women are employed and the number is increasing day by day. This is the reason why the business of packaged foods is booming in Turkey and the demand is increasing continuously. You can start a business that prepares and packages meals for sale. The market of this kind of business is growing rapidly in Istanbul and other cities of the country at a fast pace. Starting Uber Business The business of Uber in Turkey has been growing tremendously. You can either hire a driver, and let him drive your car while using the Uber app, or you can simply drive of your own; it depends on your budget, priorities and a few more factors. Your income can be increased as you increase the number of your working hours. It is an excellent idea of business in Turkey today. Pet Care Business A large number of people in Turkey love keeping pets, peculiarly dogs. They need someone to take care of them, to provide them pet care services, to take them for walk, etc. They are not reluctant to spend money for getting a surety that their pet is safe and doing well. So it can be one of the suitable small business opportunities in Turkey for foreigners who have enough experience with keeping pets and taking care of them. If you do not have a lot of disposable income to start a pet care service, you can start with a pet sitting or pet walking service that would not make much demands from you financially. Start a Petrochemical Business The industry of petrochemicals is also booming in Turkey. You can start this business on a small scale initially and then expand it with the passage of time as you gain more experience and exposure. You should not just relegate yourself to the business of raw materials but you can also start dealing with the finished goods like leather and glass. This is one of the profitable business ideas you can start in Turkey. Open a Salon The people of Turkey are very trendy and they are conscious about their looks. So, if you are a good makeup artist and hair stylist, you should in fact, start nursing the idea of starting a hair salon in Turkey. This business is not only profitable, but it is easy to start. What you have to make sure of is that you have the required skills to get customers coming back to you. If you do not have the finances to rent a facility for your salon, you can start a mobile salon business. All you need for this business are your tools and the vehicle to take you around. Start a business of processing precious ls Mining in Turkey is driven by numerous small-to-medium sized mining and exploration firms that are working to get precious ls out of the ground for the use of the government and its citizens. If you do not have the capital to take part in full scale mining, you can can start processing the precious ls that have been mined out of the earth. Know that the precious ls cannot be used until there are processed to bring out their beauty and economic value. If you want to run this business, you have to work with mining agencies so that they they can give you l processing contracts. Open an art gallery Turkey has a very exciting art scene that boasts of over 300,000 viewers yearly. The country hosts various interesting art shows that attract visitors from all across the world. An example of this is the Istanbul Biennial, now in its 14th edition. It ranks among the top contemporary art shows in the world. This shows that Turkey is a well known art destination. If you are an artist, you can open your own art gallery where you stock your pieces as well as those of other artists. Become a grain farmer Turkey is the world’s 10th-biggest grain producer. For anyone willing to start a business as a farmer, one of the businesses you can start is to become a grain farmer. Turkey has had a lot of success with growing and exporting grain, and you can take advantage of this industry to set up a business for yourself. If you are not able to set up a grain farm, you can start processing the grains for farmers. Start a pilgrims assistance service Turkey’s population may be 99% Muslim, but the land draws tens of thousands of Christian pilgrims each year. The Ecumenical Patriarch, spiritual leader of the world’s 300 million Orthodox, lives in Istanbul, a vestige of the Byzantine Empire. The grotto dug by the Apostle Peter in Antioch was the first Christian house of worship, while a 1st-century patriarchal church is said to have been located underground in today’s unprepossessing Istanbul district of Fındıklı. Istanbul is also home to the 1,500-year-old Hagia Sophia cathedral, now a museum. And the Armenian Apostolic Church was founded 1,700 years ago in what’s today the city of Kayseri. With all these pilgrim sites, Turkey draws in huge numbers of pilgrims yearly. You can start a pilgrims assistance service where you get to help these pilgrims have a comfortable stay in the country. Open a movie studio Turkey is one of the few countries where domestic films rake in more at the box office than Hollywood’s offerings, and its movies and television series are a major soft-power export in the Middle East. For this reason, starting a movie studio is a viable and profitable business one can start in the country. If you are not able to start a full studio, you can become a movie director, that is if you have the required skills. Become a ski instructor Turkey is surrounded by sea on three sides. The Mediterranean in the south, the Aegean in the west, and the Black Sea in the north. The Marmara Sea, in the northwest, includes the Istanbul and Dardanelles Straits and it is the territorial water of Turkey. This goes to show that skiing is a big business in the country. Take advantage of this, you can become a ski instructor where you teach people how to ski. Start a hotel business Every country that has tourist destinations need hotels, and good ones for that matter. People always need where to stay when they are away from home, and building hotels are one way to draw in tourists. Adding breakfast to your offerings may help you get frequent patronage because it is on record that people prefer hotels that offer meals than ones that don’t. This business is very capital intensive, so you have to prepare for it. You can equally skip the hassles of building a big hotel and just start a small and manageable bed and breakfast that you can run with your family. Start a destination wedding service A popular trend for adventurous couples is destination weddings, or getting married in a faraway location. Turkey can boast of a couple of scenic locations that smitten couples can get married at. If you reside in places like islands with pristine lakes and scenic views, a destination wedding service may be a smart business for you to start. You can offer wedding planning, or help couples who decide to get married on the spur of the moment during their vacation get the necessary paperwork they need, including an officiant, a location, photographers etc. Start a Recycling Business Another business that you can set up and profit from in Turkey is a recycling business. A recycling facility engages in the recycling of plastic, paper and glass from waste locations. Once these materials have been separated and sorted, operators go ahead to refine them into useable products and then sell them to wholesalers as well as manufacturers. You can run a small recycling plant in Turkey where you can recycle either paper, plastic, ls or the likes. Recycling is big business and the interesting part is that you can start with small initial startup capital. Start a car rental service Some people are very independent and would always want to drive themselves around no matter which continent they are at any particular point in time. These set of people would always want to rent cars when they arrive at new places in order to explore the scenery the way they want. You can start a car rental service to cater to visitors who would prefer to ride themselves. You can make available cheap as well as expensive cars in your rental service and you can as well rent motorcycles and bicycles to cater to every pocket. Start a craft business A craft is an activity involving skill in making things by hand. If you have any artistic skills or crafty hobbies, you might just have one of the essential building blocks of a successful business, especially if you reside in a tourist location in Turkey because visitors always value indigenous crafts. If you have accumulated quite a number of handmade crafts, you can set up a small shop in the city where you get to sell your crafts. You can also approach other crafts people and offer to market their products too. Open an ice cream and smoothie bar Everybody love treats, and with Turkey being a warm country because of its climate, the weather is almost always suited for ice cream. In initiating an ice cream store, proper business plan or project plan is required. Ice cream comes in different qualities, so you need to decide which ones you want to sell. Decide the store space, products, and marketing plan. You can start your ice cream store business in two ways. One is through buying the franchise of an established brand or by having your own store. If you are starting the business with no experience, then buying a franchise would be the most prudent decision. Calculate your monthly fixed overhead cost and make a financial planning with ROI calculations. The sale will increase as per the location you choose and which target audience you . Make sure that your location will be a crowded place such as playgrounds, malls, offices, and markets etc. You equally need to hire experienced people who have either worked with an ice cream company or who know a thing or two about the business. Open a Spa service A spa is a business that provides a variety of services for the purpose of improving health, beauty and relaxation through personal care treatments. Spas offer a variety of services such as manicures, pedicures, hair care, seaweed wraps, aromatherapy, facials, waxing, acupuncture, facial and full body massages. These services are almost essential because people need to relax and pamper themselves after working so hard during the week. If you have the skills, you can set up a spa service in your area and target tourists for better income. Open a Cleaning business If you are quite comfortable with the mop and rag, then you could start a cleaning service in Turkey. You can easily start your own cleaning business, or if you have saved up enough money, you could buy a cleaning franchise. You can focus on retail businesses and keep your customers clumped into one or two blocks. If you provide great services, it would serve as a mode of advertising for you because your customers will come by word of mouth. Veterinary business Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis and treatment of disease, disorders and injury in animals. The scope of veterinary medicine is wide, covering all animal species, both domesticated and wild, and it takes care of a wide range of conditions which can affect different species. In Turkey, people take good care of their pets and as such a vet doctor would not have a problem sustaining his or her business. Vacation rental business There are a lot of good sights and places of interest in Turkey, making it a nice tourist destination. In order to take advantage of what the country has to offer, you can start renting out vacation homes to tourists and visitors. Since vacations do peak at summer, so your business may likely be a seasonal business, but the profits you would make during the season may likely carry you to the next if you work hard enough. Become a Translator or Interpreter Turkey is a great attraction for tourists. Every year, a huge number of tourists visit the country. For them, it is difficult to understand the local languages of the country. Moreover, the locals also prefer to speak their own language. So, if you know English, Turkish and some other local languages, you can start your business by making the communication between tourists and locals much more effective. You can set up your hourly rates and then earn accordingly. This can prove to be a successful business for you. Start Greenhouse Commercial Farming Turkey is an agriculture inclined country and one business you can start in this regard is a commercial greenhouse farm. Greenhouse farming gives room for greater control over the growing environment of various crops. Dependent upon the technicality and specification of a greenhouse design, some of the important factors which may be controlled include temperature, levels of light and shade, irrigation, fertilizer application, and atmospheric humidity et al. Greenhouses are used to overcome shortcomings in the growing qualities of a piece of land, such as a short growing season or poor light levels. They are also designed to improve food production in marginal environments like deserts. Restaurant and Bar Business In any area people live, one essential business to start there is a restaurant and bar. This is because, regardless of the nature of the economy, people must surely eat. This is a very profitable business in Turkey, but at the same time it is a competitive business. So, for that, you have to provide best quality and delicious food. Your workers should also be well-trained. Initially you can start your business on a small scale and then you can expand it if you start making some good profit. It is one of the amazing business opportunities in Turkey if you start it with proper planning. Property Rental There has been a significant property boom in Turkey and the real estate market has significantly improved. The scenario now is very different from what it was a few years ago and therefore property rentals are an excellent idea for budding entrepreneurs or people willing to earn some extra money. You can rent out properties to different demographics and for different purposes. The key point here is to provide something unique to the people and make sure that the service you provide is good enough to get you more clients in the future. Flea Market sales A flea market would provide great possibilities for you if you don’t look down on it. You can stock a whole lot of functional items that people need on a regular basis. People love to spend weekends rummaging through tables full of other people’s unwanted items, looking for treasures. If you want to keep attracting people to your stand, you need to change your layout quite often and put new stuff out for sale often. You don’t even need to have that much new stuff to make things look new. Just moving an item from a table to the top of a bookshelf might get it noticed, even though the item has been in your inventory since you first started having sales. Become a Personal Concierge/Assistant A concierge provides assistant services to people. This business is for someone who is supremely efficient and has the ability to make things happen. People who hire you will expect things done when they want them and you need to be able to come through with not only what they want, but with a personal touch and a smile on your face. The most likely clients for a concierge service are top executives who find themselves at the office by 7 a.m. and are there most nights until 9 p.m., leaving them with very little time to take care of their daily affairs. Start an outsourcing business The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them, is known as outsourcing. Job functions can be outsourced to either a company or an individual. Outsourcing has become a major trend in human resources over the past decade; so you can hinge your business apron here. You can find specific areas of business you can handle and start sourcing for jobs around those areas. Again, you can hire other independent contractors into your fold so you can be able to offer more jobs to customers. Sell umbrellas and raincoats The climate in Turkey varies according to the region. Generally, the country’s climate is moderate, and the Black Sea region is known to be quite rainy. If you live around this region, one business that you can start up is the sale of raincoats and umbrellas. You can start your business from a storefront and even online, but know that you will make more money from a storefront because raincoats and umbrellas are mostly impulse buys. You can also repair umbrellas to add to your income. Food truck The food truck industry is growing an alarming rate. For those with big culinary dreams but small risk tolerance, food trucks are a winning native to restaurants. Food trucks are much less expensive to start and operate, and the failure rate of food trucks is much lower than conventional restaurants. You can specialize on cuisines from other countries and see how the people like it. Sell Gluten-free products Gluten free products are benefiting from a built-in customer base of those who suffer from Celiac Disease, but a lot of people have embraced this food trend. Because of this, it is estimated that gluten-free product sales would cross the $2.34 billion mark by 2019. You can take advantage of this expanding industry and start a business selling gluten-free products. You can also give online courses on gluten-free dieting, food preparation and certifications too. More Small Business Investment Opportunities in Turkey 51. Construction Being one of the main drivers of public and private investment, construction is one of the key sectors in Turkey. While there are many construction firms in the country, there are still many gaps in the environmental and energy infrastructures. So, there are huge opportunities for investors in the construction sector. With a solid background in engineering or construction, you can flag off a construction business in Turkey. Better yet, you can start a business that sells raw materials used for construction. 52. Information technology Due to the huge entry barriers by state regulation, there are few telecom operators in Turkey. But there are huge opportunities in the provision of services, especially for integrators which subcontract these operators. This sector might be very difficult to explore, as the required startup capital is usually high. 53. Automotive and l Although, only 25% of the Turkish population have an own car, the consumerist middle class has been growing steadily since 2000. This represents huge potential in terms of domestic utilization of cars and automotives. Moreover, the automotive industry is lacking in suppliers for various kinds of automotive spare parts. So, if you can start a business that sells automotives or spare parts, you will make a lot of money in Turkey. 54. Energy The various moves by the Turkish government in the last couple of years to achieve deregulation and privatization along with strategies to increase domestic demand for reliable energy has made Turkey a good place for energy investment. The energy sector in Turkey is one of those few sectors into which the government readily welcomes new investors. The government has declared that the sector needs an investment of about $130 billion by the year 2020. 55. Packaged fast foods Due to the increasing number of women employed full-time, there is increased demand for packaged and processed meals and frozen foods as well as snacks. The food industry in Turkey has enjoyed steady growth over the recent years, and changes in consumer trends are making the market grow at more rapid rate. 56. Textile The textile industry is one of the most important in the Turkish economy, representing about 10.8% of the GDP. Turkey is also known as a major producer of textile and the industry is open for more investors to come in. It is one of the leading sectors in terms of investment, employment, manufacturing, and macroeconomic indicators. So, there’s huge demand in Turkey for textile products. If you are looking for a business to invest in, if you have the intention to come into Turkey as a big time investor; then you should consider establishing your own textile manufacturing company. The market for textiles that are manufactured in Turkey is indeed large. 57. Environment The environment sector has, in recent, years become one of the priority sectors of the Turkish economy. Along with the rapid growth in population and industrialization come environmental problems that are far more than what the government alone could handle. So, there are huge opportunities for businesses that handle solid wastes and sewage and offer water treatment services. The Turkish government welcomes investors into this sector. 58. Natural stone With over hundred varieties of natural stones like onyx, limestone, basalt, turf, granite, travertine, andesite, diabase, and slate, Turkey is the fourth largest producer of natural stone in the world. The country owns a whopping 40% of the world’s marble reserves. Unfortunately, Turkey has serious shortcomings in terms of expertise in mineral exploration and processing. This, of course, opens a door of opportunities for investors. 59. Chemicals The demand for chemicals in Turkey is booming. For this reason, the chemical industry has enjoyed tremendous growth in recent years. The chemical industry in Turkey provides not only raw materials but also intermediate products to manufacturers of products such as leather, glass, textiles, and automobiles. 60. Tourism According to 2011 statistics, Turkey ranked 6th among the most visited countries in the world and 9th in income generated from tourism. This statistic proves that tourism is a key sector of the country’s economy, which still has even more potential – thanks to Turkey’s natural beauty and rich cultural assets. 61. Hazelnut farming and exportation Statistics has it that Turkey is responsible for about 80% of the world’s production and export of hazelnut. In case you don’t know what Hazelnut is, it is a sweet-flavored nut that grows easily in Turkey. It is also known as filberts. If you intend investing in the agric sector in Turkey, you should consider going into hazelnut farming and exportation since Turkey is one of the most fertile ground to grow this nut. 62. Electronics and Home Appliances Store Turkey’s electronics and home appliances manufacturing industry is quickly gaining prominence in some European countries and in Asia simply because of brands like beko and vestel that has proven over time to be a strong competitors to world’s top electronics brands. If you start your own retailing of electronics and home appliances in any of the cities in Turkey, you will definitely make good profits in the business. 63. Petrochemical Production Company The petrochemical industry is another thriving industry in Turkey and if you choose to establish your own Petrochemical Production Company in Turkey, your products will be widely accepted in the global market especially if you are known to produce products that meet up with world standards. 64. Financial Consultancy Services The service industry is arguably the leading contributor to the GDP of Turkey with the financial sector taking the lead in this industry. If you are a financial expert, you can consider establishing your own financial consultancy business and you can be sure to have clients ranging from small scale enterprise to even large conglomerates depending on your track records and your business skills. This kind of business is indeed a lucrative one in Turkey. 65. Bureau de Change Business The fact that Turkey is ranked as the 6th most popular tourists destination in the world means that any business that is geared towards servicing visitors will indeed thrive in Turkey. Bureau de Change is a very easy business to establish in Turkey and it is profitable because of the high volume of travelers and visitors that comes to Turkey. If you intend establishing your own Bureau de Change business, just ensure that you rent an office space that is within the airport premises or close to some of the top hotels in Turkey. 66. Specialized Catering Services for the Aviation Industry This unique business is designed to only service the aviation industry and it is indeed a very profitable and thriving business that is still largely open to investors. The fact that most airline companies contract their catering services to vendors makes it open to all. If you are well positioned, then you will have enough airlines to service. 67. Cleaning Services Company (Specialize in Pre and Post Construction Cleaning): The construction industry is another major contributor to the GDP of Turkey. If you don’t have the financial muscles to invest as a construction contractor, you can come into the industry as a specialized pre and post construction cleaning agency. The major capital you have to spend to establish this kind of business is the money you’ll spend acquiring all the cleaning equipments and the good thing is that if you procure good equipments it would serve you for a long period. You can also add other cleaning services like public building cleaning, parks cleaning, amongst others, to your cleaning offerings. 68. Fixture and Automation Company If you establish your own fixture and automation company in any of the cities in Turkey, and you are involved in mass production, you would have enough industry to service. You services would be highly needed in the automotive industry, the agric sector, railway sector and in most manufacturing companies. 69. Holiday Apartments and Booking Company If you want to take your own share from the tourism industry, you may consider establishing your own holiday apartments and bookings company in Turkey. No doubt you would have enough clients patronizing your business if you are well positioned and if your facilities are affordable. Having discovered 10+ lucrative markets in Turkey, it is up to you to sit back and brainstorm for ideas on how to explore any of these markets you choose. With the required knowledge of the market and enough startup capital, you can start a profitable business in Turkey. profitableventure.com  May. 2019  

    Starting a Profitable Small Business in Turkey as a Foreigner DETAIL
    Starting a ...

    Are you interested in starting a business in Turkey? If YES, here is a complete guide plus legal requirement for starting a business in Turkey as a foreigner. Okay, having provided an in-depth analysis of the top 50 best small business opportunities in Turkey and a series of industry-specific sample business plan templates; we will now analyze in detail the legal requirements, market feasibility and every other thing it takes to start a business in Turkey. So put on your entrepreneurial hat and let’s proceed. Within the past few years Turkey has attracted foreign investment due to its unique trading location between Asia, Europe and the Middle East. Turkey is recognized globally as a country of significant importance, with many public and international companies opening offices in and around its major cities.   Why Start a Business in Turkey as a Foreigner? The vast majority of these larger companies base themselves in Istanbul and Ankara. With its thriving economy, geopolitical position, promising growth opportunities, a hard-working business community, and a young population, the country is a wonderful business location for entrepreneurs. According to data, since 2017, foreign investors can now obtain Turkish citizenship and its combined benefits by establishing a business in Turkey. Turkish citizenship right has been given to foreign nationals who make investment of a certain amount and employment or keep the deposit. If you make capital investment of at least $500 thousand, or at least 50 person employment, or purchase immovable property worth of $250 thousand, or keep deposit of at least $500 thousand in the banks operating in Turkey for minimum 3 years, or purchase government debt securities of at least $500 thousand provided that they are kept for 3 years, you can acquire your Turkish citizenship. These, and many more are the reasons starting a small business in Turkey can be a promising and lucrative. So, if you’re interested in leveraging the vast opportunity available in Turkey, below are the necessary steps to take before starting your business.   Starting a Profitable Small Business in Turkey as a Foreigner Identify an opportunity Most times in Turkey, foreigners tend to consider starting a business where the language barrier wouldn’t affect their ventures. They open bars, restaurants and property management companies, or they set up a business offering services exclusively to the expat community. However, this is rather narrow-minded. This idea also ignores the fact that, even if you’re running a bar where the large majority of your customers are Germans for instance, you will still find it difficult if you do not speak at least some Turkish. You will need to buy your supplies and you will need to deal with local customers. Do not let this barrier limit your thinking as Turkey provides you with the market to venture into a variety of businesses like Construction companies and agriculture. Do not allow your options to be constrained by unnecessary fear of working in a new environment. Check if your business idea will work Once you have had your ‘eureka!’ moment and seen a fantastic opportunity in Turkey, it is very tempting to fire ahead and develop the business. But, before doing so, it is advisable you check that your brilliant idea is actually going to work. The first port of call for many is their lawyer. Be sure to employ the services of a good legal advisor that knows business laws in Turkey and has previously helped expats set up successful businesses. Also, it is very helpful if you have had previous experience working in the same area of activity. Without experience, starting and running a restaurant or hotel is hugely difficult and very likely to fail. Even with experience, the risk of failure is significant. Even if you don’t have any directly relevant experience, you may find that you have very relevant transferable skills. For example, you may have worked for many years as a car mechanic but see better opportunities as a mechanic (engineer) looking after foreigners’ boats in Turkey. It’s also pertinent you learn as much as you can about the country. Speak to any expats you know, or even strangers. People are often extraordinarily helpful. Put together a Turkish business plan A business plan sets out, in writing, your objectives, why they will work, how you’re going to achieve them, and how you’re going to fund the business. Surprisingly, business plans are relatively rare in Turkey: at least at the level of the businesses usually set up by foreign clients. Yet, organising a written business plan is essential to your business success. The process of putting things down on paper and working out all the numbers will usually identify lots of potential problems and challenges. It is very necessary even if you don’t need to show the plan to anybody. Have it in mind that writing a comprehensive business plan is mainly for your own benefit. The simple acts of thinking things through and preparing the plan significantly increases your chances of success. Meanwhile, it’s important to state that a Turkish-format business plan will be somewhat different from the business plan produced and presented to your bank or business partners in the US, Germany or the UK. Those plans, in turn, will usually be a little different from each other. If the business plan is only for your own personal use, then this doesn’t matter. But if you plan seek finance, to present to a bank or to involve a local partner, then it really needs to be in the format with which the reader will be most comfortable. Note there are two main differences – apart from the language – between a Turkish format business plan and (for instance) a UK format business plan. The first is that the Turkish plan lays much more emphasis on your CV (resume). Not just your experience in this sector of business, but your personal life and general experience. Secondly, a Turkish business plan will often have cash projections going forward for 12 years rather than the three or four years that is more common in other countries. Do not let the process of writing a Turkish business plan deter you. Once you have prepared your business plan, your Turkish accountant can convert it into the Turkish format. Register your business The Turkish Commercial Code defines several legal business structures, all open to foreigners. The limited company, requiring a minimum of one partner and 5,000 Turkish liras in capital, is relatively simple to set up and is hence one of the most popular corporate forms for small and medium businesses. The joint stock company, involving a minimum capital of 50,000 Turkish liras and a minimum of one shareholder on the board, is more suitable for larger-scale projects. It must be registered with the Capital Market Board and obtain a stock certificate. Which ever legal structure you choose, you will be mandated to apply for registration with the Trade Registry System (MERSIS), providing notarised copies of the company’s statuses and of the partners’ identification documents, a tax identity number for the company, bank receipts stating that at least 25% of the capital has been deposited and that another 0.04% has been transferred to the Turkish Competition Authority via the Central Bank or a public bank. The Turkish minimum gross monthly salary is set at 1,777 Turkish liras. Moreover, the employer must contribute to the social security fund (22.5% of wages) and to the national unemployment insurance plan (2% of wages). Employees’ working time should not exceed 45 hours a week, with overtime paid at a rate of 1.5. Working on public holidays entitles workers to double pay. Choose a suitable location for your business Most businesses will need some premises from which to operate. There are ample commercial properties available for rent in Turkey. It is of all types, from the opulent to the cheap and cheerful. For most people, renting a property is the most sensible solution: although, again, your accountant will be able to advise you on the most appropriate in your case. The main reason why renting tends to be the best option is that it conserves your available capital. It will often be very hard for you to replace or add to that capital from any other source. But one major disadvantage to operating a business from a rented property is that if your landlord cancels your lease – which he can do each year on the anniversary of the lease once the initial period stated in the lease has passed – he will be left not only with all the improvements that you have carried out on the premises but also with a ready-made property of some value. This is why many people prefer owning the property from which their business operates. The big downside of owning a property is that it consumes lots of cash. Also, there is an additional problem in that the cost of acquiring and selling commercial property is quite expensive (about 10% and 5% respectively of the value of the building) and you may find that you outgrow the premises quite quickly or that, for some other reason, they turn out to be unsuitable. That is then wasted money. You can also start off your business by working from home. Clearly, this is not possible in all cases – it might be a bit tricky if you’re running a bar – but it can be a very useful way of testing whether your business is going to succeed and to delay incurring major expenditure until it does. Although, no special licence is needed to work from home, but you can expect to be visited by the tax office if your business is registered at your home address. This is to check if the business is real and so that the claims and deductions that you might be making are justifiable. Secure adequate funding for your business  It can be extremely hard to obtain funding within Turkey for a new business being started by a foreigner who has recently arrived in Turkey. No one would want to lend money to a foreigner who had just arrived in the country. But it is also possible to raise funds either from banks or private investors; but this will usually only be possible if you have lots of available security and/or personal guarantees from people of some substance who are resident in Turkey. Most individuals starting up their businesses will, therefore, fund them themselves or partly through family and friends. Some people can decide to fund their business by taking out a mortgage on a property that they already own. Often, that property would have been owned for many years. They would simply approach their bank, extract the accumulated value and use the money to fund their business idea. This can be done through a ‘personal needs loan’ scheme. This is a type of loan under which the banks will agree to increase the size of an existing mortgage or to grant a new mortgage on a property that had not previously been mortgaged. In theory, these loans are still available. Loan-to-Value ratios (LTVs) will be low: typically no more than 40-50%. Interest rates will typically be 1.5% per month (measuring interest on a monthly basis in this way is very common in Turkey). This is, however, still considerably more expensive than an ordinary mortgage, which might be 1% per month. Find the right business partners Although you may decide to set up a small business entirely on your own, majority of foreigners starting a business in Turkey do so in this way. But, quite a number also recognise the benefits of having an experienced partner. This could be a local Turkish person or a fellow expat. Each has its advantages and disadvantages. If you are going to seek local Turkish partners, then there are two major ways of doing so. Advertising and recommendation (word of mouth). In Turkey, 90% of successful partnerships are as a result of recommendation. No one would be comfortable responding to an offer that has been advertised. Sometimes your accountant or lawyer will be able to suggest people he knows who might be a good match for your skill set and business idea. Have it in mind that choosing the right partner can be challenging. To put it bluntly, there are many conmen looking to make money out of inexperienced foreigners. Sometimes, those conmen are Turkish but, far more often, you will find yourself at risk from people of your own nationality. That is because they find it easier to gain your confidence and they have enough knowledge of how things work in Turkey to appear plausible. So, you need to conduct due diligence when it comes to forming a partnership or joint venture. The process of due diligence when it comes to forming a partnership or joint venture should be a two-way process: they should want to know as much about you as you do about them. You should be suspicious if it is not so. Start your business and perform your responsibilities as a business owner in Turkey Note that for every type of business, except those run through public companies – where the responsibilities are more onerous – a business in Turkey is expected do the following: Every month (or, in some cases, three months), pay the taxes that you owe. This will include any tax payable by any company you are operating or – if you’re not operating the business through a company – your own personal taxes. You must employ an accountant for this Pay your insurances: indemnity for directors, possible business insurance and so on Every month, you must pay your social security payments (for yourself and for any employees) Every month, your tax declaration must be submitted by your accountant: you will need to pay your accountant a book keeping fee to do this These are your primary obligations but your accountant will advise you of any other thing required in the case of your particular business. Conclusion Recent legislation to promote foreign investment means it’s easier than ever before to set up a business in Turkey. It’s easy to see why Turkey appeals as a destination for new companies: half its 70-million strong population is aged under 30, and they’re increasingly educated and solvent, with cash to spend. Also, when you’re setting up a new business, it’s too easy to forget about some of the smaller tasks that can make a great deal of difference a few years later. One of these things is to make sure that the name of your business and any relevant trade or service marks and other ‘intellectual property’ rights are protected. This is something you should raise with the lawyer advising you about the creation of the business. www.profitableventure.com    May. 2019

    History of ottoman: A small piece of furniture named after a large empire DETAIL
    History of ottoman: ...

    History of ottoman: A small piece of furniture named after a large empire The ottoman not only relaxes your tired feet but also encourages sociopetal seating. But did you know its history is connected with namesake Turkish rulers too? Let’s deconstruct Photo caption: The term ottoman was christened after its founder Osman I (‘Uthman’ in Arabic). Photo courtesy Deborah Martin Designs When Raaj Kumar mouthed that cinematic dialogue to Meena Kumari in Pakeezah, “Aapke paaon … zameen par mat utaariyega, maile ho jaayenge,” was he indirectly imploring her to land her feet on a fine upholstered ottoman instead? Possible. Placing a footstool beneath someone’s tired soles (or better, gifting them a piece) is nothing less than a royal gesture. Royal, because the practice of using footstools can be traced back to the Ottoman Empire (and probably even some parts of India). The footstool culture from those days later gave rise to an army of equally comforting objects—the hassock, pouffe, tuffet and ottoman. Photo caption: The ottoman’s design and form is historically credited to Turkish weavers. Photo courtesy Deborah Martin Designs Ottoman: A Curious Case We’ve all been taught that the ottoman, the much coveted upholstered backless seat, received its title from its namesake empire, christened after its founder Osman I (‘Uthman’ in Arabic). As per common belief, it was the norm back then for people to prop their feet on stools stacked with cushions at home or in tents. The credit for the ottoman’s design goes to Turkish carpet weavers, who d such footrests using bales of cotton, says Debbie Koopman, a spokesperson at catalogue company Spiegel Inc. This method, in turn, was possibly derived from the ancient Egyptian technique of turning cloth and soft natural materials into low stools—a contraption meant to compensate for the sparsity of wood in the desert country. (The odd wooden frame would be padded with leather so it was comfortable to sit or kneel on.) Photo caption: The furniture piece got its name due to its role in Turkish daily life. Photo by Perry Mastrovito via Getty Images Ottoman: Alternate History Another theory states that the ottoman was the main form of residential seating in medieval-era Turkey and that it facilitated human bonding. Says Engin Ozcan, a researcher at Ankara’s Bilkent University, the word ‘ottoman’ also means ‘divan’—banquette-like sectional furniture that hugs or wraps around three walls of a room. Typically piled with pillows, this style of seating was a common sight during council meetings (also known as divan) between sultans and their commanders. The ottoman arrived in Europe in the late 18th or early 19th century and got its name due to its role in Turkish daily life. Photo caption: The thereabouts of the ottoman range from Egypt to France. Photo by Vostok via Getty Images The earliest evidence of the term’s usage was in France in 1729 as ‘ottomane’. But the word entered the English lexicon after Thomas Jefferson’s memorandum revealed his purchase of a velvet ‘ottomane’—probably an armchair—in 1789 during his Paris tour. Moreover, it was perhaps after its arrival in the west that the divan-like piece shrank into smaller units that easily stood in a corner or, as seen in the lobbies of many present-day hotels, circular seats surrounding a vertical pole or column. Photo caption: Ottomans today come with buttoned upholstery, castors or storage. Photo by Jorge Juan Perez / EyeEm via Getty Images Ottoman: Turn of The Century By the 19th century, the ottoman had shifted from the walls to assume centre stage and also became circular or octagonal. While these versions had backs or arms, the ottoman today features none of these and usually comes with buttoned upholstery, castors or storage. But why ‘ottomane’? And where did the ‘e’ go? Photo caption: The Egyptians in the 18th century used ottomans to rest their tired, tortured feet. Photo by Robert Daly via Getty Images Ottoman: The ‘Napoleonic’ Version As per another theory, when the French invaded Egypt at the turn of the 18th century, they saw the locals use a distinct style of footstool. Egypt then was an ottoman territory, and the masses often suffered acts of cruelty and punishment. When the people came home after their ordeal, they would rest their tired, tortured feet on these footstools. The French later took back this style of furniture. Contrarily, it’s possible that travellers from Western Europe brought home this Near Eastern design from their tours of Greece and the Balkans. Still, why the name ‘ottomane’ and then ‘ottoman’? Was it a literal attempt to keep the ottoman under one’s feet? That’s something to sit and mull over. With inputs by Deborah Martin, owner and creative director, Deborah Martin Designs, Associate ASID, NKBA Priyanka Agarwal  architecturaldigest.in​