Significant Drop in Company Registrations During the First Nine Months of 2024: A Surge in Company Closures

Sharp Decline in New Company Registrations

Between January and September 2024, a total of 81,904 companies were established in Turkey. This figure marks a 13.3% decrease from the 94,482 companies set up during the same period in 2023. Individual commercial enterprises also saw a notable decline of 23.8%. Cooperative establishments decreased by 13.5%. Experts attribute this decline to economic uncertainties, high inflation, and financing difficulties faced by entrepreneurs.

September 2024: A Mixed Picture

In September 2024, the number of new company registrations fell by 6.7% compared to the same month last year, with 10,243 new companies established. However, individual commercial enterprises saw a 20.6% increase in the same period. Cooperative registrations fell by 15.7%. This mixed performance suggests that while overall company registrations slowed, certain sectors, particularly individual businesses, managed to grow.

Rising Company Closures

The number of company closures in September increased by 7.8%, with 2,156 companies ceasing operations. Notably, the wholesale and retail trade, construction, and manufacturing sectors experienced the highest number of closures. In the first nine months of 2024, a total of 18,790 companies shut down, a significant 23.1% increase compared to the same period in 2023. Closures of individual commercial enterprises, however, saw a 34.8% decline.

Increase in Foreign-Owned Companies

In September 2024, 658 foreign-partnered companies were established in Turkey. Most of these were based in Istanbul, with foreign partners holding an 86.8% share in company capital. The majority of foreign-partnered companies were formed in partnership with investors from Iran, Germany, and Turkey, and the sectors most represented included wholesale trade, construction, and consulting services.

Sectoral Distribution

In September 2024, the trade, construction, and manufacturing sectors led in company registrations. A total of 3,485 companies were established in the trade sector, followed by 1,481 in construction and 1,273 in manufacturing. Among cooperatives, housing cooperatives were the most prevalent, making up the majority of new cooperatives formed.

No Company Established in Ardahan

According to TOBB, no new companies were registered in Ardahan in September 2024. Istanbul, Ankara, and Izmir accounted for 53.5% of total company registrations, positioning them as key hubs for entrepreneurial activity in Turkey.

Surge in Capital

The total capital of companies established in September 2024 saw a significant increase of 76.2% compared to the previous month. This sharp rise in the capital of joint-stock and limited liability companies suggests that investors remain focused on specific sectors.

Looking Ahead

Economists expect that company registrations may rebound as the economy stabilizes in the coming months. However, factors such as high inflation, interest rates, and finan

Kaynak: Industrial News Agency