October 2023: Company Establishments Decreased in Turkey, Closures Increased.

Company Establishments on the Rise in October, But Overall Trend is Declining

The Union of Chambers and Commodity Exchanges of Turkey has announced the statistics for companies established and closed in October 2023. According to the data, the number of companies established in October increased by 7.6% compared to September, reaching 10,505. However, this positive picture was overshadowed by the rise in the number of companies closing. The number of companies that closed in October was recorded at 2,668, reflecting a 15.1% increase; in September, 2,336 companies had closed.

Annual Review and Noteworthy Figures

When compared to the same period last year, the situation in October is even more striking. The number of companies established decreased by 2.8%, while the number of cooperatives decreased by 39.8%. However, there was a 2.2% increase in the number of sole proprietorships. In this month, the number of companies that closed increased by 10.2%, and the number of cooperatives saw a 9.9% increase, while sole proprietorships recorded a 10.6% decrease.

Distribution of New Companies and Foreign Partners

In October, of the 10,647 companies and cooperatives established, 88% were limited companies, 10.7% were joint-stock companies, and 1.3% were cooperatives. The geographical distribution of the newly established companies is also noteworthy; 35.9% were established in Istanbul, 11.6% in Ankara, and 5.6% in Izmir.

Additionally, among the 903 foreign capital companies established in October, 33 were established with partners from Iran, and 16 were established with partners from Iraq. These figures indicate that Turkey continues to be an attractive center for international investors.

Decline in Company Establishments Throughout 2023

As of the January-October period of 2023, the total number of companies established throughout Turkey reached 91,488, reflecting a 1.3% decrease. This situation can be associated with uncertainties in the economy and challenging market conditions.