Over 2,000 Turkish company closures rise by 7.8% in November

The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) reported on Friday that 2,631 companies were closed in November, marking a 7.8% monthly increase in closures.

TOBB released its statistics on business formations and closures for November 2024, revealing a decline in new company registrations and a surge in closures. Key data highlights are as follows:

Newly established companies

• The number of newly established companies, sole proprietorships, and cooperatives fell by 6.6% to 10,092, 11.0% to 209, and 11.4% to 1,430, respectively, compared to the previous month.
• Compared to November 2023, newly established companies declined by 3.0%, sole proprietorships by 10.1%, and cooperatives by 19.6%.
• For the first eleven months of 2024, newly established companies decreased by 11.4% to 102,804, sole proprietorships by 19.8% to 14,229, and cooperatives by 15.4% to 2,486.

Turkish company, cooperative closures

• The number of closed companies and cooperatives rose by 7.8% to 2,631 and 12.1% to 102, respectively, compared to the previous month. In contrast, closures of sole proprietorships declined by 1.1% to 1,425.
• Compared to November 2023, the number of closed companies and cooperatives increased by 8.9% and 27.5%, respectively, while closures of sole proprietorships plummeted by 83.9%.
• During the January-November period, company and cooperative closures rose by 19.7% to 23,861 and 3.1% to 809, respectively, while sole proprietorship closures fell by 48.4% to 14,913, compared to the same period in 2023.

Companies with foreign partners

• In November 2024, 599 companies with foreign partners were established, with 349 having Turkish partners, 26 Iranian partners and 18 Azerbaijani partners.
• Of these foreign shareholding companies, 77 were incorporated and 522 were limited liability companies.
• Total capital of companies with foreign partners surpassed ₺1 billion ($28.5 million), comprising 86.4% of foreign partner capital in November. By year-to-date, this figure reached ₺25.8 billion ($735.6 million) with a 75.9% share of foreign partner capital.
• In 2024, 873 newly established companies with foreign partners engaged in wholesale trade for stores in malls not allocated to specific commodities. Additionally, 323 operated in residential or non-residential construction, while 318 focused on management and other administrative consultancy services.