Starting a Consulting Company in Turkey

Consulting in Turkey: Overview

Turkey has a well-developed professional services market, with consulting firms operating across management consulting, IT consulting, financial advisory, engineering, legal, HR, marketing, and many other fields. Foreign investors frequently establish consulting companies in Turkey to:

• Serve Turkish and regional clients
• Provide a formal local presence for an international consulting practice
• Staff a team of Turkish specialists for cross-border advisory work
• Support a parent company’s operations in Turkey and surrounding markets

Consulting is a broadly accessible sector — most consulting activities do not require a specific government license beyond standard company registration, though certain professional categories are regulated.

Step 1: Choose the Right Company Structure

LLC (Ltd. Şti.)

For most consulting businesses, an LLC is the ideal structure:

• Minimum capital: 50,000 TRY
• 100% foreign ownership permitted
• Flexible management (one or more managers)
• Formation: 5–10 business days
• Suitable for 1–50 shareholders

See our LLC formation guide.

Sole Proprietorship

Foreign consultants who are Turkish residents may consider a sole proprietorship, but the LLC is typically preferred due to liability protection and often lower effective tax rates. See our Sole Proprietorship guide.

JSC

For consulting firms planning to scale significantly, bring in multiple partners, or eventually raise external capital, a JSC offers more structural flexibility. See our JSC guide.

Step 2: Define Business Activities in Articles of Association

The articles of association (ana sözleşme) must include your consulting activities as stated business purposes. Be comprehensive:

• Management consulting
• Business strategy advisory
• IT consulting and software services
• Human resources consulting
• Financial and tax advisory
• Marketing and communication consulting
• Training and education services

Turkish tax and trade law ties company activities to the articles, so it is better to be inclusive rather than restrictive.

Step 3: Professional Licensing Requirements

Most general consulting does not require a license. However, certain professions are legally restricted to licensed professionals:

If your consulting company employs licensed professionals to deliver regulated advisory services, those individuals must hold the required licenses. The company itself may operate under their professional credentials.

For general management, strategy, marketing, HR, or IT consulting, no special license is required beyond standard company registration.

Step 4: Tax Registration and VAT

Corporate Income Tax

Consulting company profits are subject to 25% corporate income tax. Consulting is a service business with relatively low capital expenditure, so the main costs are typically staff salaries, office expenses, and professional fees — all deductible.

VAT (KDV)

Consulting companies must register for VAT and charge 20% VAT on services provided to Turkish clients. Monthly VAT declarations and payments apply.

B2B vs. B2C:

• Services to Turkish VAT-registered businesses: 20% VAT, invoiced and collected normally
• Services to Turkish individual consumers: 20% VAT collected and remitted
• Services exported to foreign clients (non-resident recipients, consumed abroad): Potentially zero-rated as exported service — specific conditions apply; obtain tax advice

Reverse Charge for Cross-Border Services

When a Turkish consulting company purchases services from a foreign supplier (e.g., subscribes to international software or hires foreign subcontractors), the Turkish company must apply the reverse charge mechanism (sorumlu sıfatıyla KDV) — paying VAT to the Turkish tax office on behalf of the foreign supplier, then recovering it as input VAT.

See our VAT Registration guide for more detail.

Step 5: Invoicing and Accounting

E-Invoice (e-Fatura) and e-Archive Invoice

Consulting companies must issue proper invoices for all services rendered:

• e-Invoice (e-Fatura): For invoices issued to other e-invoice registered companies (mandatory for both parties if both are e-invoice registered)
• e-Archive Invoice (e-Arşiv Fatura): For invoices to consumers and non-e-invoice businesses

Enrollment in the GİB (Revenue Administration) e-invoice system is mandatory above certain turnover thresholds and for specific business types.

Bookkeeping

Consulting companies must maintain Turkish-compliant accounting records. Engaging a licensed accountant (Mali Müşavir) is practically essential and is legally required for payroll tax filings.

Step 6: Hiring Consultants and Staff

Consulting firms frequently hire both employees and independent contractors:

Employees

Full employment contracts (iş sözleşmesi) under Turkish Labor Law apply. Employees receive:

• Written employment contract
• Minimum wage compliance
• SGK registration
• Paid annual leave (minimum 14 days/year)
• Severance pay entitlement

Independent Contractors

Turkish law increasingly scrutinizes “contractor” relationships and may reclassify them as employment if they resemble employment in substance. Use genuine contractor relationships where the consultant:

• Works for multiple clients
• Uses their own equipment
• Sets their own working hours
• Bears risk of their own consultancy activities

Foreign Consultants

Foreign national employees require work permits (processing: 4–8 weeks). See our Work Permits guide.

Working with International Clients

Turkish consulting firms can freely contract with international clients. Key considerations:

• Currency: Contracts with non-resident clients can be denominated in foreign currency (USD, EUR, etc.)
• Export VAT: Services consumed abroad may be exempt from Turkish VAT if conditions are met
• Transfer pricing: Consulting services to related foreign entities must be priced at arm’s length
• Withholding tax: Some jurisdictions may withhold tax on service fees paid to Turkish companies — check applicable double taxation treaties

See our Double Taxation Treaties guide for withholding tax rates.

Costs and Profitability

Consulting is a capital-light business model. Key ongoing costs:

Frequently Asked Questions

Do I need a specific consulting license to operate in Turkey? No universal consulting license exists. General management, strategy, IT, and similar consulting activities require only standard company registration. Regulated professions (legal, financial, engineering) require relevant professional body membership.

Can I invoice in foreign currency? Yes. Contracts and invoices with non-resident clients can be in foreign currency. VAT on invoices to Turkish clients is typically applied in Turkish Lira equivalent.

Is profit from consulting exported abroad subject to Turkish corporate tax? Yes. A Turkish company is taxed on all worldwide income. However, if the consulting services are genuinely performed and consumed outside Turkey, there may be export VAT exemption available. Corporate income tax applies regardless of where the client is located.

How do I hire a foreign consultant for a short project? Short-term project engagement can sometimes be structured as a service contract with the consultant’s foreign company rather than direct employment. If the individual will work in Turkey for the duration, a work permit is required regardless of contractual structure.