Company Acquisition in Turkey: Costs, Due Diligence, and Practical Insights for Foreign Investors

Introduction

Foreign investors increasingly view Turkey as a strategic gateway between Europe and Asia. With its dynamic economy, large consumer base, and well-developed corporate structures, acquiring an existing Turkish company often appears as a faster route to market entry than establishing a new entity from scratch.

However, questions frequently arise around costs, due diligence requirements, official obligations, and practical hurdles such as opening a bank account. In this article, we provide a transparent breakdown of what foreign investors should realistically expect when acquiring a Turkish company, drawing from practical experience and regulatory insights.

1. Acquisition Price: Understanding the True Cost

The acquisition price is the first element that every buyer wants to clarify. In Turkey, acquisition transactions are relatively cost-efficient compared to many European jurisdictions.

• In some cases, a symbolic discount of around EUR 500 on the purchase price can be negotiated, depending on the parties’ agreement.

• A typical EUR 2,000 service fee covers the essential steps of transferring ownership, including:

  • Share transfers

  • Appointment of authorized signatories

  • Change of company name

  • Approximate translation expenses

This transparent fee structure provides investors with a clear expectation of the baseline costs before moving forward.

2. Due Diligence in Turkey: Limited vs. Full Scope

One of the most critical steps in any acquisition is due diligence. In Turkey, this can be approached on two levels:

Limited Due Diligence

A limited review usually includes:

• Obtaining official certificates from relevant authorities confirming that the company has no outstanding debts.

• Collecting written statements from shareholders confirming the absence of commercial risks.

This is often sufficient for inactive or dormant companies, where operations are minimal.

Full-Scope Due Diligence

A full legal and financial due diligence would involve a more detailed investigation into the company’s past contracts, tax filings, compliance history, and potential litigation risks.

While comprehensive, such a process is time-consuming and more expensive. For inactive entities, most investors find that official “no debt” certificates provide adequate protection without unnecessary cost.

3. Official Fees and Annual Obligations

One of the advantages of company acquisitions in Turkey is the low level of mandatory official fees.

• There are no additional compulsory payments directly tied to the acquisition.

• However, every company must pay an annual Chamber of Commerce fee equal to 0.04% (four per ten thousand) of annual profit.

• After the acquisition, any changes such as modifying the registered legal address or appointing a new director may generate additional expenses, though these are typically modest.

For investors accustomed to high ongoing compliance costs in other jurisdictions, Turkey offers a relatively light regulatory burden.

4. Bank Account Opening: A Practical Hurdle

Perhaps the most underestimated challenge in Turkish company acquisitions is opening a corporate bank account.

• There is no separate service fee charged by consultants for preparing the necessary paperwork.

• However, Turkish banks require a wet-ink signature from the company’s authorized representative.

• This means that, in practice, the representative must travel to Turkey to complete the account opening.

Even with a power of attorney, most banks will not waive the in-person requirement. Investors should therefore factor in travel costs and scheduling considerations when planning the acquisition timeline.

5. Accounting and Employment Considerations

Running the acquired company requires attention to accounting and HR compliance:

• The quoted accounting fee is generally an average figure, subject to review if transaction volumes or complexity increase significantly.

• Some investors consider using third-party employment providers such as Easy Staff. While possible, this approach essentially circumvents the requirement for direct employment by the company and must be evaluated carefully for compliance, invoice accuracy, and sustainability.

• Importantly, there is no legal obligation to employ a local staff member. Foreign investors can operate lean corporate structures without the mandatory overhead of hiring local employees.

6. Key Takeaways for Foreign Investors

Acquiring a company in Turkey can be a cost-effective and straightforward process—provided that investors understand the key requirements upfront.

• Costs are transparent, with EUR 2,000 typically covering the essentials.

• Limited due diligence through official “no debt” certificates is sufficient for inactive companies.

• Official obligations are minimal, aside from the annual Chamber of Commerce fee.

• Bank account opening requires physical presence, a logistical detail that should not be overlooked.

• Accounting services are flexible, and there is no legal requirement for local hires.

Conclusion

For foreign investors, Turkey remains an attractive jurisdiction for business expansion and cross-border structuring. By clarifying the acquisition price, understanding the scope of due diligence, and preparing for practical matters such as banking requirements, investors can avoid surprises and move confidently through the process.

At OZM Consultancy, we provide tailored advisory services for international clients seeking to acquire, incorporate, or expand their business operations in Turkey. From due diligence to regulatory compliance, our team ensures a smooth transition at every stage.

Reach us:
If you are considering acquiring a company in Turkey, contact us today to discuss a tailored due diligence and incorporation package designed to match your business needs.

info@ozmconsultancy.com