Starting an Indie Game Studio in Turkey: KOSGEB, Tax, and Legal Steps in 2026

Turkey's indie game development ecosystem has reached a small but meaningful critical mass over the last few years. New studios are being founded in Izmir, Istanbul, and Ankara, and the number of Steam titles bearing a Turkish developer's signature is climbing. But there is a real gap between starting to build a game and actually starting a game studio. The development side excites you, while the legal setup, tax options, and international sales accounting often feel like a dark corner to newcomers.

At Althera Games, we set out on this road in November 2024 from our DEPARK Tınaztepe office in Buca, Izmir. While developing Potion Rise Simulator and NightRecord: Thin Walls, we lived through our own learning curve on company formation, KOSGEB applications, and bringing Steam revenue back to Turkey. In this post we share lessons from our own journey, framed as concrete steps and watch points. The goal is not to leave you on your own and not to replace your lawyer or accountant either, but to help you make decisions with your eyes open.

1. Turkey's Game Industry in 2026: The Landscape

Turkey's mobile gaming side has been strong for years. Peak's $1.8B exit, Rollic's hyper-casual portfolio acquisitions, and Dream Games' large funding rounds brought serious capital into the ecosystem. That history created an underlying support structure that even small indie teams benefit from: experienced talent, investor interest, and active industry associations are far more visible than a few years ago.

On the indie side the picture is simpler but encouraging. The number of Turkey-made games shipping on Steam each year is climbing, and Turkish-based studios are increasingly visible in psychological horror, simulation, and story-driven indie genres. Tütev (Turkish Game Developers Association), Game Dev Istanbul, and Izmir's local meet-up groups continue to bring the community together.

What the ecosystem offers:

• Talent pool: Skilled developers comfortable with UE5, Unity, and Godot are concentrated in Istanbul, Izmir, Ankara, and Eskişehir. University game design programs feed fresh graduates into the industry every year.
• Cost advantage: Compared to Europe and North America, office rents, freelance rates, and daily operating costs remain competitive.
• Government support: KOSGEB, TÜBİTAK, and the Ministry of Industry and Technology run multiple programs aimed at newly founded companies.
• Community: Discord servers, local events, and associations such as Tütev make knowledge sharing easy.

The challenges are real too: currency volatility complicates financial planning; bank processes for international sales can be slow; and games-specific tax and legal practices are not yet daily routine for many accountants. Working with the right professionals is therefore critical.

2. Choosing a Company Type: Sole Proprietor, LTD, JSC?

Your first major decision is which company type to register. Turkish Commercial Code offers three core options, and each has different consequences for a game studio.

Sole Proprietorship (Şahıs Şirketi)

The cheapest path in. You enroll in Bağ-Kur, keep simple bookkeeping, and the registration completes within a day or two through the notary and tax office. Its strength is simplicity; its weakness is unlimited personal liability. Your personal assets are exposed to company debts. For solo developers and very small teams without revenue yet, it can be a practical starting point.

A sole proprietorship is taxed under personal income tax with progressive brackets. The marginal rate at high incomes can be significant. If you qualify for the Young Entrepreneur Exemption (age, first-time taxpayer status, and other criteria), an income tax exemption up to a defined amount may apply for a limited period. Confirm current limits with the Revenue Administration and your CPA.

Limited Liability Company (LTD Şti)

The structure most indie studios choose. A minimum capital commitment plus notary and trade registry filings are required. A single-shareholder LTD is allowed. Liability is limited to the contributed capital, so personal assets stay protected, with limited exceptions such as outstanding tax and social security debts attributable to the manager.

An LTD is taxed under corporate tax. Withholding, VAT returns, annual corporate tax filing, and quarterly advance tax create an ongoing accounting workload. In return, share transfers to investors, formal publisher contracts, and managing growth as a corporate entity all become much easier. Althera Games chose this path; for a long-term game publishing practice, a corporate shell felt like a durable investment.

Joint-Stock Company (Anonim Şirket)

JSC suits teams preparing for institutional investment or eventual public offering. Minimum capital is higher, a board of directors may be required, and the audit regime is different. For most indie studios, a JSC is not necessary in the early years, but if you anticipate Series A-scale funding or international financing, considering an early move to JSC has merit.

Which Structure Fits You?

• Solo, small scale, no revenue yet: sole proprietorship can be practical; converting to LTD later is possible.
• Team of 1 to 5, planning Steam and publisher work: LTD is usually the right call.
• Planning to raise investment or transfer shares: JSC, or an LTD with the explicit plan to convert.

All three scenarios depend on personal circumstances. Tax burden, social security position, number of partners, and share of foreign sales all interact. Do not finalize the decision without sitting down with your CPA and modeling the alternatives.

3. KOSGEB and TÜBİTAK Support Programs

The two best-known support channels for new companies in Turkey are KOSGEB and TÜBİTAK. They serve different purposes and open different doors for game studios.

KOSGEB

KOSGEB (Small and Medium Enterprises Development Organization) runs several programs aimed at SMEs. Outputs relevant to game studios usually fall under:

• Entrepreneurship Support Program: Setup and operating-period support for newly founded companies. Either Traditional Entrepreneurship or Advanced Entrepreneurship certification is required, and the training is widely available online.
• R&D and Innovation Support Program: Targeted at original projects. Innovative tools built on a game engine, AI systems, and procedural content engines can fit this scope.
• KOBİGEL Project Calls: Sector-specific or thematic calls that open periodically. "Digital content production" and "creative industries" calls do appear from time to time.
• Business Development Support Program: A package that can partially cover trademark registration, certification, and trade fair participation costs.

Critical KOSGEB note: amounts, ratios, and eligibility conditions are updated periodically. A specific number you read in a blog post might not be valid on application day. Log in to the KOBİ Bilgi Sistemi portal, read the "Active Calls" list, and check the program details that match your NACE code there.

TÜBİTAK

TÜBİTAK provides deeper support for R&D-heavy projects. The two most common paths game studios pursue:

• 1507 SME R&D Start-Up Support Program: First R&D projects of newly founded SMEs. Algorithmic developments on game engines, novel AI mechanics, and components with genuine technological innovation can qualify.
• 1512 Entrepreneurship Support Program (BiGG): For founders before company formation. Stage-gated support from idea to prototype.

TÜBİTAK evaluation cycles are long and the technical reporting load is heavy. Saying "this is a game" is not enough; you need to articulate "we are solving R&D problem X with method Y." A well-framed project pays back in both funding and the discipline of technical documentation. But if you do not have a genuine R&D angle, do not force it; these programs exist for actual R&D, not as a per-game subsidy.

4. Tax Regime and Young Entrepreneur Exemption

Turkey's tax regime contains some specific provisions that game studios should be aware of. The headlines below describe the general framework; the concrete rates and thresholds change over time, so confirm before applying with the Revenue Administration (Gelir İdaresi Başkanlığı) and your CPA.

Sole Proprietor vs Capital Company Tax Burden

Sole proprietorships fall under personal income tax with progressive brackets. Marginal rates climb quickly at higher incomes. LTDs and JSCs fall under corporate tax with a single rate applied to profit, plus dividend withholding when profit is distributed. Which regime favors you depends on your gross revenue, expense structure, profit-versus-salary mix, and whether you draw a salary from the company.

Young Entrepreneur Exemption

For founders meeting age and first-time taxpayer conditions, an income tax exemption up to a defined amount may apply on commercial income. The duration, amount, and eligibility criteria are set in Income Tax Law No. 193 and updated periodically. Benefiting from the exemption requires meeting specific obligations on time, including Bağ-Kur, and filing the right application. A misfiled application can lead to retroactive cancellation, so coordinate with your CPA from the very first registration step.

VAT and E-Invoice

Sales to customers within Turkey trigger VAT; digital service exports abroad are generally VAT-exempt. Steam revenue and other foreign-platform revenue is treated as service export, but the technical details around e-invoice format, foreign currency receipts, bank documentation, and invoice dates are extensive. Taxpayers exceeding certain revenue thresholds are required to migrate to the e-invoice and e-ledger system.

R&D Center and Technopark

Studios that meet a personnel-count and R&D-spend threshold can obtain an R&D Center certificate and benefit from income tax withholding incentives, employer-side social security deductions, and corporate tax advantages. Smaller teams can locate inside a technopark to use regional exemptions. Ankara, Istanbul, and Izmir all host technoparks that have welcomed game studios; researching the conditions in your own city is worth the time.

5. Steam Payments and FX Management

The moment you publish on Steam, the bulk of your revenue starts arriving in USD or EUR. Small details in this practical area produce big differences.

How Steamworks Payouts Work

Valve issues payouts at the end of the month following the calendar month in which revenue accrues (general practice; your contract terms govern). The payment lands in your bank account as a SWIFT transfer. When opening the account, whether your bank offers a corporate FX account, the transfer fees, and any intermediary bank deductions all matter. Tracking your inflows in a simple spreadsheet during the first year is highly worthwhile.

Service Export Invoicing

In Turkish practice, Steam payouts and similar foreign-platform payments require a "service export invoice." The customer field shows Valve or the relevant Steam corporate entity. Your CPA should confirm the invoice template and the correct VAT exemption codes are in place.

FX Differences

The Central Bank buy rate on the invoice date will differ from the rate on the day you actually convert the money. That delta is recorded in accounting as FX gain/loss. Over a year these movements accumulate and can meaningfully affect profit and loss. In volatile TRY periods this is not just an accounting line, it is a real cash flow management issue.

Practical Tips

• If you accumulate revenue in a separate FX account, plan when to convert how much; rushed TRY conversions create extra losses.
• After your first sales, track marketing spend with discipline; seeing which channel returned how much in real numbers is what allows healthy budgeting next time.
• Do not skip Steam's tax forms (W-8BEN-E or equivalent); the right form prevents US-source withholding.
• Export the payout dashboard monthly into Excel or Google Sheets to make period-end closes painless.

6. IP: Trademark, Copyright, and Contracts

The most valuable asset of a game studio is not its codebase but its intellectual property. The studio name, logo, character designs, world-building, and even specific mechanic names are part of it. Growing without protecting that asset leaves you in a weak position later, against both competitors and former partners.

Trademark Registration

Türkpatent is the central authority for trademark registration in Turkey. The core purpose of a registration is granting you exclusive use of your name and logo. Choosing the right NICE classes during application is critical. Game software, entertainment services, and digital content correspond to different classes; missing a class weakens your protection.

Practical recommendation: file applications for your studio name and your first game's title before opening your Steam page. Running a name conflict check before the Steam application ensures the same or similar name has not already been claimed. For international markets, evaluate Madrid Protocol coverage with an IP lawyer.

Copyright

Under Turkish Law No. 5846 on Intellectual and Artistic Works, copyright arises automatically with creation, no registration required. Even so, archiving your development stages (commits, design doc dates, backup timestamps) is critical for proof. Date evidence becomes pivotal in a dispute.

Contract Foundation

Every external counterparty your studio works with should sign a written contract. At minimum, prepare these templates:

• Freelance/Contractor Agreement: For audio, music, translation, art, and programming contributions. Must include a clear work-for-hire assignment or a comprehensive license; otherwise the external creator retains rights to the work they produced.
• NDA: Before the first conversation with publishers, investors, or potential partners.
• Publishing Agreement: Watch the royalty rate, territory, term, kill switch, and termination clauses. Signing a publishing deal without legal review is one of the most common painful mistakes.
• Founder Agreement: If you have multiple founders, share splits, vesting (protecting equity if a founder leaves), and decision-making mechanics belong on paper. Verbal agreements are the most expensive document later.
• Steam and other platform agreements: These are standardized, but understanding the practical implications of what you sign is still required.

7. Investor and Publisher Search: The Turkish Market

At a certain point indie studios start looking for funding, distribution, and marketing support through publishers or investors. The Turkish market for this is not huge yet, but it has begun to take shape.

Investor Landscape

Turkey-based VCs have grown more interested in games over the last few years. After mobile hyper-casual successes, multiple funds began allocating budget to indie and premium PC/console titles as well. Angel investors, founder-operators, and family offices provide early-stage capital. That said, the PC/console indie pocket remains far smaller than mobile, so realistic expectations matter.

The minimum kit you should bring to an investor conversation: pitch deck, team CVs, a playable demo or clear vertical slice, financial projections, and a clear use of funds. Investors want to see that money will go into making the game and not drift into unrelated buckets.

The Publisher Path

Indie publishers offer distribution, localization, QA, and marketing in exchange for a royalty share. Finding a Turkey-focused domestic publisher can be difficult; most indie teams end up working with European or North American publishers. Before publisher conversations, having strong Steam wishlist numbers, demo feedback you have collected, and a clear historical communication track all stack the odds in your favor.

Government-Backed Programs

Strategic program frameworks of the Ministry of Industry and Technology, KOSGEB project calls, and TÜBİTAK 1507/1512 supports are all paths to check before going to investors. These programs can be grant-style rather than repayable credit, so even a modest tranche can meaningfully aid cash flow. Read the conditions early and plan applications months ahead.

A Turkey-Specific Approach

Our Althera Games observation: in Turkey, game entrepreneurship usually walks a path of solo or small teams gradually formalizing into companies. Rather than rushing to raise large rounds, shipping a first game, accumulating real Steam wishlist and sales data, and only then approaching publishers and investors with that data tends to be the healthier route. A bad contract signed at the start of the road can render years of labor practically worthless.

Frequently Asked Questions

Answers below are general information. Always consult a CPA and a games-savvy lawyer about your specific case.

Sole proprietorship or LTD — which is better?

In general terms, a sole proprietorship has low setup cost and simple bookkeeping and can be a practical starting point for solo developers with small revenue; the owner has unlimited personal liability for company debts. An LTD provides limited liability, supports multiple shareholders, and falls under corporate tax — usually a better fit if you plan to take investment, sign with a publisher, or hire employees. The right choice depends on revenue expectations, number of partners, share of foreign sales, and risk profile.

What support does KOSGEB offer for game studios?

KOSGEB runs several programs available to companies that meet Turkey's SME definition: Entrepreneurship support (start-up and operational support for newly founded companies), the R&D and Innovation Support Program, KOBİGEL project calls, and training/consulting programs. The most common path for game studios is completing the Traditional Entrepreneurship or Advanced Entrepreneurship certificate program and applying for the new-company support package. Amounts and conditions are updated periodically, so always verify the current program and active calls on kosgeb.gov.tr and the KOBİ Bilgi Sistemi portal before applying.

How is Steam revenue reported in Turkey?

Steam payouts arrive in foreign currency from Valve's resident jurisdiction and are typically treated as service exports in Turkey. For sole proprietorships, this revenue feeds the annual income tax return; for limited and joint-stock companies, it enters the corporate tax base. VAT-wise, digital service exports to foreign customers usually qualify as exempt, but proper archiving of e-invoices, foreign currency receipts, and bank statements is mandatory. TL conversion uses the Central Bank rate. The details get nuanced in practice, so review your specific case with a CPA.

Are you required to hire employees?

No, employment is not mandatory. You can operate as a sole proprietorship or single-shareholder LTD without staff. That said, some KOSGEB and TÜBİTAK programs require a minimum employment commitment to qualify, in which case adding staff becomes necessary for program access. Working with freelancers under contract is a practical middle path for many small studios since it does not trigger SGK obligations beyond Bağ-Kur for the founder. The right employment strategy depends on your growth plan and tax structure.

When should you register your trademark?

Begin the Türkpatent registration process for your studio name and first game title as early as possible; the application date establishes priority. Running a name conflict check and filing the application before opening your Steam page, claiming social handles, or spending serious marketing budget reduces the risk of someone else registering an identical or similar name and challenging yours later. For international markets, consult an IP lawyer about extending coverage through the Madrid Protocol.

Conclusion: Building a Studio Before It Has to Exist

Starting a game studio in Turkey is a marathon best run alongside the right CPA and lawyer. Structure choice, tax regime, KOSGEB applications, Steam payment flow, and trademark registration each look small in isolation, but together they define the long-term health of the studio. Postponing any of them with a "we'll handle it later" mindset usually means handling it later at much higher cost.

The summary from our experience: build the legal shell first, then focus on development. Going live on Steam without a registered company, or running large marketing campaigns before trademark filings, looks like time saved in the short term but loses far more in the long run.

What helped us most on Althera Games' November 2024 journey was starting early with a CPA who understands the industry and refusing to sign contracts without a lawyer's review. Your journey will likely need similar characters around it. Read more about our studio on the about page, browse our games on Steam, and follow our development process through the rest of the blog.

Good luck out there. Every new studio shipping out of Turkey strengthens the ecosystem a little more.