For global startups with big ambitions and lean budgets, expanding into new markets like Turkey can be both a huge opportunity and a daunting legal challenge. With its strategic location, highly skilled workforce, and affordable labor costs, Turkey is becoming a go-to destination for companies looking to scale.
But many founders face the same hurdle:
“Do we have to open a legal entity in Turkey to hire talent there?”
Fortunately, the answer is no.
Thanks to services like an Employer of Record (EOR), foreign startups can hire employees in Turkey without a legal entity, saving time, cost, and administrative complexity.
In this article, we’ll show you how this works in practice—with real-world case studies from startups that successfully hired Turkish talent using EOR models. These examples will demonstrate why this route is not just compliant, but also efficient and scalable.
What Is an Employer of Record (EOR) in Turkey?
An Employer of Record in Turkey is a third-party organization that legally employs workers on behalf of a foreign company. The EOR manages employment contracts, payroll, social security contributions, and compliance with Turkish labor laws—while the client company controls the employee’s daily work.
This means startups can build remote teams in Turkey without:
- Registering a business entity
- Hiring local accountants or lawyers
- Navigating complex HR regulations
- Taking on legal risk or tax liability
Instead, they pay a single monthly fee and focus on what matters—growing their business with the right talent.
Why Startups Are Turning to Turkey for Talent
Before diving into the case studies, here’s why Turkey is so attractive to fast-growing startups:
- Large pool of STEM graduates and developers
- English-speaking young workforce
- Lower salary costs compared to Western Europe and the U.S.
- Time zone alignment with Europe
- Remote-work readiness post-COVID
From Istanbul to Izmir, from Ankara to second-tier cities like Eskişehir or Gaziantep, Turkey offers excellent infrastructure and strong cultural fit for global collaboration.
Case Study 1: A Berlin-Based SaaS Startup Builds Its Dev Team in Ankara
Industry: Software-as-a-Service (SaaS)
Headquarters: Berlin, Germany
Need: Build a remote front-end and QA team to reduce hiring costs
Solution: EOR Turkey partnership
Background:
A German SaaS startup wanted to double its engineering team without burning cash on Berlin salaries. After assessing Eastern European markets, the CTO turned to Turkey and identified promising developers in Ankara through GitHub and LinkedIn.
Rather than setting up a Turkish subsidiary, the startup chose to hire 3 Turkish developers through an EOR.
Results:
- Hiring completed in 2 weeks
- No legal entity or Turkish accountant needed
- Employees received full benefits: healthcare, vacation, SGK contributions
- Developers integrated into daily standups and company Slack
The company saved ~40% in salary costs and retained 100% legal compliance.
Case Study 2: A Canadian Fintech Hires a Turkish Marketing Lead Remotely
Industry: Fintech
Headquarters: Toronto, Canada
Need: Hire a regional marketing lead fluent in Turkish and English
Solution: Single-person hire via Employer of Record Turkey
Background:
A Toronto-based fintech startup wanted to grow in EMEA markets and needed someone who understood both digital marketing and Turkish financial consumer behavior. They found the perfect candidate—but she lived in Izmir and was unwilling to relocate.
The startup didn’t want to delay the opportunity with legal setup or relocation. They turned to an EOR in Turkey to onboard her as a full-time employee.
Results:
- A compliant employment contract created in 48 hours
- Monthly salary, taxes, and SGK handled entirely by the EOR
- No issues with cross-border payments or misclassification
- The marketing lead helped triple Turkish user acquisition in six months
The EOR structure allowed the startup to be agile and talent-first.
Case Study 3: A U.S. Startup Converts a Long-Time Turkish Freelancer
Industry: EdTech
Headquarters: San Francisco, USA
Need: Convert a freelance backend developer into a full-time employee
Solution: Freelancer-to-employee transition via EOR
Background:
A U.S. EdTech company had worked with a Turkish freelancer for over two years. As the product grew, they needed him to take ownership of backend infrastructure and manage junior developers.
They realized the legal risk of continuing the freelance relationship and chose to convert him to a full-time employee through an EOR Turkey provider.
Results:
- Smooth transition with full social security and health coverage
- Developer received paid vacation and holiday bonuses
- Startup avoided the legal risk of misclassification
- Long-term retention improved, and the employee now leads a team of 4
This was a textbook example of how EORs protect both the company and the worker.
Why These Startups Chose an EOR Over Setting Up a Legal Entity
| Challenge | EOR Advantage |
|---|---|
| Legal entity setup costs | EOR requires no incorporation |
| Need for fast hiring | EOR hires in days, not months |
| Unfamiliarity with Turkish law | EOR ensures full compliance |
| One or two hires only | EOR is scalable without overhead |
| No in-house HR team | EOR handles contracts, payroll, taxes |
Opening a branch or subsidiary in Turkey takes 4 to 6 months and requires Turkish legal counsel, bank accounts, tax registration, local address, and often a minimum capital deposit. For lean startups, this is a major distraction.
An EOR solves all of that—instantly.
Common Roles Foreign Startups Hire in Turkey via EOR
- Software engineers (front-end, back-end, full-stack)
- Product designers and UI/UX specialists
- Customer success and support agents
- Digital marketers and SEO professionals
- Sales development reps (SDRs)
- Data analysts and QA testers
These roles don’t require physical presence and benefit from Turkey’s strong university and tech ecosystem.
Key Legal Benefits of Using an EOR in Turkey
- Employment contracts in Turkish and English
- SGK registration and health insurance
- Compliance with severance pay, leave, and notice periods
- Payroll, tax withholding, and reporting
- No worker misclassification risk
- Peace of mind with a local HR partner
Final Thoughts: EOR as a Scalable Hiring Strategy for Startups
For foreign startups looking to hire employees in Turkey without a legal entity, an Employer of Record is not just a workaround—it’s a strategic tool for global team building, legal risk management, and faster execution.
Whether you’re hiring a single developer or building an entire remote team, the EOR model provides a fast, flexible, and compliant pathway to accessing Turkish talent—without the red tape.
Want to hire in Turkey without setting up a company?
We help startups go global with our turnkey EOR solutions in Turkey. Let’s talk about your hiring needs today.
