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Open a Company in the FMCG Sector in Turkey
If you want to set up a company in the FMCG sector in Turkey, you have to become familiar with the country and the whole process of opening a company in Turkey. For years now, Turkey is Europe’s largest trading partner when it comes to food and other FMCG products. which enter the category of fast-moving consumer goods, particularly known as the FMCG industry. This sector is contributing the most to the economy in Europe.
Foreign investors are curious about starting a business in the entire EU, especially in Turkey. They are invited to contemplate the FMCG industry, which offers many opportunities. For opening a company in the FMCG sector in Turkey, there are certain regulations that you need to follow to correctly register your company as well as to continue practicing your business. This information will provide you different requirements, in brief, so you can learn how to set up a company in the FMCG sector in Turkey.
What is the FMCG Sector?
Consumer packaged goods (CPG), commonly known as fast-moving consumer goods (FMCG), are products that are sold rapidly and for a cheap price. Packaged meals, drinks, toiletries, sweets, cosmetics, over-the-counter medications, dry goods, and other consumables are examples of non-durable home products.[1]
Why Set up a Company in the FMCG Sector in Turkey?
Fast-moving consumer goods (FMCG) are one of the most thrilling sectors to work in, this sector welcomes various and active individuals. The FMCG alone is active and continually growing. With growing positive consumer trust and a record turnover in several countries, Turkey’s FMCG & retail space is once again set to lead.
With its highly developed transport and technology framework, easy access to a large number of various markets, as well as the large and different consumer base, it’s no wonder the European market is looking to Turkey to establish multinational businesses. Turkey has a lot more to offer to its residents and investors who plan on establishing their headquarters or offices in the nation.
Turkey has long been the European Union’s greatest trading partner in terms of food and other products that fall under the category of fast-moving consumer goods (FMCG). This is also the most important industry for the Turkish economy. Foreign investors who want to start a business in Turkey can look at the FMCG industry, which has a lot of intriguing prospects. In the Turkish FMCG industry, one can start the following businesses:
- Agricultural businesses,
- Shops selling over-the-counter pharmaceutical products,
- Retail shops selling beverages and tobacco,
- Shops selling electronic products.
Various Types of Companies in The FMCG Sector in Turkey
Following are some of the common types of companies in the FMCG sector in Turkey:
Food & Beverages FMCG Sector in Turkey
The global crisis has changed the field of online FMCG sold in entire Europe, especially in the food sector. In a global comparison, the food and drink industry ranks first in terms of turnover in turkey. Europe is the largest trader of food and drink products in the world.[2] In 2014, EU exports reached €92 billion.[3] With a record export performance and a growing positive trade balance in recent years, this industry has shown that it’s dedicated to delivering safe, high-quality food worldwide. So now is the perfect time to try your luck in this industry in Turkey.
Beauty & Cosmetics FMCG Sector in Turkey
The cosmetics and personal care industry provide you scientific guidance and a highly creative sector that makes large investments. There is an assumption that the cosmetics and personal care industry brings more than 20 billion euros in added value to the country’s economy each year. Therefore, beauty & cosmetics actively plays a key role in the increase of the total net yield and exports of the FMCG sector in turkey.
Fashion & Apparel FMCG Sector in Turkey
Europe is home to some of the most profitable markets for apparel and clothing worldwide. Among the leading European countries, Turkey’s clothing industry has one of the highest values, amounting to billions of U.S. dollars.[4] Open such a company to learn about various ways you can maximize your capital investment.
E-commerce FMCG Sector in Turkey
E-commerce in Turkey is changing the global retail market. As E-commerce geographically continues to mature within the European market, we predict private labels gaining a second wind of growth. Particularly within discount retailers in Europe, store brands have hit a highland.
Homewares & Design FMCG Sector in Turkey
The Europe Home Decor Market would witness market growth during the forecast period. Home decoration refers to the arts and science of making an interior space more attractive and functionally useful for its population. Anyone who has ever decorated a home has taken part in the interior design industry. You can try your luck in this sector to gain some profit.
Pharmaceuticals FMCG Sector in Turkey
Large, different, and global, the pharmaceutical industry is one of the most competitive sectors in Turkey. Thousands of people work directly in the pharma industry in Turkey, so basically it indirectly generates three to four times more employment. Drug prices are regulated and vary among the countries.
How to Create an FMCG Business in Turkey?
The process of forming an FMCG company in Turkey is similar to that of establishing any other type of company in Turkey. One can choose the proper sort of entity and register it with the Trade Register with the aid of a Turkish lawyer. The drafting of a set of paperwork and the selection of a trading name is both necessary prior to registration. It’s worth noting that Turkey authorized many restrictions for individuals selling or buying FMCG items in the country in 2011. Some of these laws apply to costs associated with the sale or purchase of items, as well as the labeling of commodities.
Registering a company in the Turkish FMCG industry
The Turkish Commercial Code, which specifies the types of entities that can be registered and the conditions for completing the company formation process, is the first legislation that a local or international investor must follow when establishing an FMCG company in Turkey. All Turkish firms in the FMCG industry must also adhere to the Turkish Competition Authority‘s requirements. These rules cover the selling of FMCG items as well as the protection of people who buy them.
The Requirement to Open a Company in The FMCG Sector in Turkey
The company registration process for the FMCG business is the same as the other types of companies in turkey. Turkish lawyers will help to select the right type of entity and register it with the Trade Register. Earlier to the registration, the preparation of a set of documents and choosing a trading name are required. Turkey has allowed various rules for those selling or buying FMCG products in Turkey.
Licenses Required to Sell FMCG Products in Turkey
After completing the company registration process, the Turkish FMCG company must get the appropriate permits in order to begin operations. A retail license is necessary for some of them. Because agricultural commodities make up the majority of the FMCG business in Turkey, specific permits for cultivating and marketing these items are necessary.
In addition, if FMCG items are to be traded, import and export permits are required. These permits may be obtained through the new Retail Information System (PERBIS), which also holds data on all Turkish retail firms, including those in the FMCG sector. The Turkish Ministry of Customs and Trade issues the permits.
For full information on how to establish a company in the FMCG sector in turkey, please visit the Turkish Trade Registry website.
Final Words and Conclusions on; “Set Up a Company in the FMCG Sector in Turkey”
Setting up a company in the FMCG sector in Turkey pays off nicely. After you’ve opened your own FMCG Company, which will sufficiently serve your business well for several years. Your investment can further earn you various other kinds of benefits. To establish a company in the FMCG sector in Turkey, it will be ideal for you to hire a skilled legal professional in Turkey to carefully assist you with the whole company registration process.
References
- Wikipedia contributors. (2021b, April 27). Fast-moving consumer goods. Wikipedia. https://en.wikipedia.org/wiki/Fast-moving_consumer_goods
- Web Editor. (2020, November 4). Data & Trends of the European Food and Drink Industry 2020. FoodDrinkEurope. https://www.fooddrinkeurope.eu/resource/data-trends-of-the-european-food-and-drink-industry-2020/
- Report on the Implementation of EU Trade Agreements (1 January 2019 – 31 December 2019) (COM (2020) 705). (2020, December). European Commission. https://www.europeansources.info/record/report-on-the-implementation-of-eu-trade-agreements-1-january-2019-31-december-2019/
- Shahbandeh, M. (2020, December 2). Textiles and clothing industry in Turkey – Statistics & Facts. Statista. https://www.statista.com/topics/4844/textiles-and-clothing-industry-in-turkey/
This article was published on 13.02.2021 and last edited on 24.06.2021.
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