15 Mistakes Foreigners Make When Starting a Business in Turkey

Over the years, I've seen hundreds of cases where foreigners lost money, time, and stress due to the same mistakes. Most of these could have been avoided if the entrepreneurs had known about the pitfalls in advance.

1. Incorrect selection of NACE codes

This is the most common and most costly mistake. NACE codes determine what activities your company can conduct, what taxes you'll pay, and even whether you can open a bank account.

• The bank may refuse to open an account if the codes are not suitable for your activities.
• Incorrect codes lead to problems with the tax authorities
• Adding new codes after registration is time-consuming and expensive.

2. Registration without a clear business plan

Many people register a company without understanding why they need it or how it will be used. The result is an improper structure, unnecessary taxes, and compliance issues.

3. Working with non-professional performers

"We'll find an accountant for $100-200" is one of the most dangerous phrases. Skimping on accounting can result in fines, account freezes, and problems with MASAK.

• Unprofessional performers do not understand international transactions
• They cannot explain to the bank the origin of the funds.
• Reporting errors lead to audits

4. Ignoring MASAK compliance

MASAK is Turkey's financial intelligence agency. If a bank detects suspicious activity on your account, it freezes it and sends a request to MASAK. Unblocking it can take months.

5. Lack of a real office

A virtual address can be a problem when opening an account or undergoing audits. Banks and tax authorities want to see a physical office, especially for companies with international operations.