The decision of how many employees it is profitable to employ when creating a company in Turkey depends on several factors, including your business model, industry, long-term goals, and financial resources. There is no one-size-fits-all answer, but here are some considerations:
|Type of Business
|If your business in Turkey requires a physical presence, such as a retail store, restaurant, or manufacturing facility, the number of employees needed to run the company operations effectively will be higher. However, if you have a technology-based or online business, you may require fewer employees initially.
|Consider the demand for your products or services in Turkey. If there is a substantial market opportunity that justifies hiring employees to serve it, it may make sense to establish a company.
|Budget and Resources
|Creating a company involves startup costs, ongoing operational expenses, and compliance-related expenditures. Evaluate your budget and resources to determine if you can sustain the business with the necessary employees.
|Think about your growth strategy. If you anticipate rapid expansion and foresee the need for a larger workforce, establishing a company may be a strategic choice.
|Compliance and Administrative Burden
|Keep in mind the administrative and compliance responsibilities associated with running a company, such as payroll, taxes, legal compliance, and reporting. These tasks can become more complex as you hire more employees.
|Expertise and Skills
|Consider the skills and expertise required for your business. Hiring skilled professionals may be necessary for certain industries or projects.
|Local Market Understanding
|If you are not familiar with the Turkish market, you might benefit from hiring local employees who understand the market dynamics, customer preferences, and regulatory environment.
|If your business model relies heavily on outsourcing or subcontracting work to local service providers or freelancers, you may not need to hire many employees directly.
In general, creating a company in Turkey becomes more financially viable and attractive as you scale your operations and when you can justify the associated costs and administrative burden. For some businesses, this might mean starting with a small team and gradually expanding as the business grows, while others may establish a larger presence from the outset. It’s crucial to conduct a detailed business analysis and seek advice from our legal and financial experts to make an informed decision based on your specific circumstances and goals.
Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.