By EWN • 08 October 2021 • 10:19
Turkish economy still in progress
Turkey’s economy is still dynamic. Recently, it rebounded at its fastest rate in more than two decades in the second quarter, providing some good news for its local economy and his ruling party but also prompting fears of rising inflation.
GDP (Gross Domestic Product) surged 21.7 % in the last three months to June, its fastest rate of expansion since a long time: 1999.
Turkey, considered as one of the most important growing market in the word, is attracting more and more investors.
As many companies all over the world, you’re looking to explore new markets.
Foreign companies often aim to recruit a local profile to start their business.
Then, a legal question appears: how to recruit him ?
– May we set-up a legal entity ?
– Or to outsource this service via Umbrella Company also called PEO Turkey (Professional Employer Organisation), EOR (Employer of Record Services) or Payroll in Turkey?
Set-up a company or outsource via Payroll Turkey solutions ?
In this article, we’ll explore the advantages and difficulties of each solution.
First question to answer: what will be the size of your local staff ?
The bigger your team, the more you will have to think about set-up your own company.
For small team, if you’re interested in cost effective approach, PEO (Professional Employer Organization) solution is the right answer:
– Local service provider can manage recruitment process
– and additionally, they manage payroll on your behalf. It means:
– Signature of employment contract with your employee,
– Pay salary / process to taxes payments.
– Rent a car (if needed)
– Manage expenses (Mobile, travel expenses…) & allowances (Private insurance…)
This solution avoids you to set-up an entity.
Advantages of PEO solution in Turkey
Just have a look at the information below to better compare.
If you set up a company, there will be additional costs:
– set up fees and also administrative fees
– monthly fees including accounting
– you have to rent an office and have an official address (or virtual office is also possible)
If you have a small team, there will time consuming tasks:
For all these reasons, most of the time, up to 5/6 employees, most convenient way is to recruit in Turkish market via PEO / Payroll services.
Among the strengths of Turkish market, we can list below advantages:
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our
Your email address will not be published. Required fields are marked *
Download our media pack in either English or Spanish.