It is true that use of Professional Employment Organisations in Turkey is increasing fastly for several reasons. Why PEO in Turkey is so popular ?
Before to answer to this question, we need to know why Turkey is an economical attractive attractive destination for foreign companies wishing to develop their activities.
PEO Turkey and growth of Turkish Economy
The Turkish economy is enjoying significant economic growth compared to its neighbors in the Middle East. The growing key sectors are attracting the interest of international investors as the country develops an important plan, the centenary of the republic in 2023.
First economy of the Middle East and eighth of the Old Continent, Turkey has a significant number of assets making it the 18th largest economy in the world in terms of gross domestic product (GDP), which amounts to 721 billion dollars (682 billion euros). For the centenary of the founding of the republic, the country aims to be the 10th economic power in the world.
A robust economy, rich and resistant to political instability
The sectors of tourism, agriculture, industry, research and development, textiles, automotive and energy enjoy constant development and have aroused enormous interest from the international community since several decades.
Despite an unstable political situation following the failed coup on the night of July 15, figures released by the International Monetary Fund (IMF) illustrate stable economic health.
From the 4.5% increase in household consumption to 68% of GDP in 2015, to economic growth estimated at 3.9% for the current year and passing through the significant decrease in the unemployment rate in the country (1.6% in 2014 against 28.8% in 2003), Turkey continues to attract investors from all over the world.
A safe bet in the eyes of the international community?
For more than half a century, Turkey has repeatedly engaged in bilateral agreements between several countries. In addition, the promulgation of the 2003 law for the encouragement of foreign investments accentuated this opening.
The country has signed bilateral agreements with more than 94 countries, 75 of which have been ratified. In addition, a free trade agreement was signed with the European Union in 1996 and with more than 37 other countries thereafter.
In terms of banking, the country has more than 53 Turkish banks representing more than 70% of the financial sector, a third of which hold foreign capital up to 30%. In 2001, in the midst of the financial crisis, Turkey successfully implemented structural reforms, enabling it to strengthen its banking sector and to attract ever more investors.
In addition to good transportation infrastructure and low-cost labor, these banking agreements and reforms have provided the country with a very favorable business environment for investors.
Key Sectors of the Turkish Economy in the 21st Century
Among the main sectors promoting economic growth and protecting the country from a financial crisis, the agricultural and industrial sectors take the lion’s share.
The seventh largest agricultural producer in the world thanks in part to its leadership in the production of dried figs, hazelnuts, seedless raisins, dried apricots and milk production, agriculture in Anatolia accounts for 8% of its GDP.
The aquaculture market is developing rapidly in the country which holds 7.2% of the world market, increasing by 8% per year. As for citrus fruits, Turkey produced almost 4 million tonnes in 2015.
Despite the three million agricultural businesses, mostly family-run and small, the growth in demand for agricultural products continues to increase and calls for new investments in this area.
This agricultural strength comes in part from the mild climatic conditions, but what sets Turkey apart from its neighboring countries is the incentives taken by its government.
Among the country’s main assets, its skilled and inexpensive workforce, its more flexible regulations, tax relief, exemption from Value Added Tax (VAT) and the presence of an agency dedicated to supporting and promoting investments.
Increase in French investors in Turkey
Since the signing of the labor agreement on April 8, 1965, bilateral relations between the two countries have grown steadily. In 2015, France was the 6th largest customer of Turkish products, the bilateral trade volume amounted to more than 13.4 billion dollars (12.7 billion euros), and there were more than 400 establishments generating 100,000 jobs.
Turkey has many French companies on its soil operating in several business sectors with good development prospects. Among them, the automobile (Peugeot, Michelin, Valeo,…), construction materials (Saint-Gobain, Lafarge), the food industry (Danone, Bongrain,…), the pharmacy (Sanofi), health, new communication techniques, R&D, services and tourism, banking and even electrical construction.
The environmental field also has its share of innovations and offers very interesting prospects for French investments in the field of water, waste management and elimination and industrial pollution control. An investment of 70 billion dollars (66.2 billion euros) is planned for these areas.
Why PEO in Turkey is attractive ?
By using PEO services in Turkey, you facilitate your entry in the Turkish Market. Lets us explain you the functioning of Payroll in Turkey which is quite easy.
PEO in Turkey manual
- Prospects target companies
- Negotiates fees
- Carry out mission
- Declares activity days
- Receives salary
- Supports client companies in the development of their activity
- Provides support and solutions
- Establishes with the client a service contract according to the nature of the assignment, its duration, the amount of fees
- Invoices client
- Pays to employee the salary after deduction of social charges and management fees
The benefits of PEO in Turkey
By opting for the PEO you limit your risk of entering the Turkish market. In fact, you will have precious help from the PEO who will take care of all the administrative procedures for you without having to open any company. Otherwise, you could be subject to certain dangers such as not knowing certain rules concerning the opening of a business, the duties of the employer and the rights of the employee.
Do you want to invest in the Turkish market by taking advantage of the services offered by a PEO in Turkey ? Why not contact us directly? Our team would be happy to support you during all stages of your establishment on the Turkish market.