Factory or Middleman? 7 Ways to Tell a Turkish Manufacturer from a Trading Company

Many Turkish suppliers describe themselves as manufacturers. Some run their own factory; others are trading companies that place your order with another producer. Working with a trader is not wrong in itself. The problem is believing you are dealing with a factory when you are not.

The risks of an undisclosed middleman* Price: every company in the chain adds its margin. You may pay a trader's price while thinking you buy at factory price.

* Quality: you do not see production, and the trader may not either. If the producer changes, quality can change too.

* Responsibility: your contract is with the trader. If goods are defective, you may have no direct claim against the producer.

* Transparency: it becomes harder to know which factory made the goods and with which raw materials.

1. The activity code on the tax certificate and the Trade Registry GazetteA Turkish tax certificate (vergi levhası) shows the company's main activity code and description. Check whether the code describes manufacturing or wholesale trade. More: how to verify a Turkish tax certificate.

The founding notice in the Trade Registry Gazette (Ticaret Sicil Gazetesi) sets out the company's field of business. If it lists only buying, selling, import and export, with no production, ask about it. More: how to read the Turkish Trade Registry Gazette.

2. Is the address a factory or an office?* Is the address in an organised industrial zone (OSB) or an industrial estate, or is it a floor in an office building?

* Look at street and satellite views. Can you see a production building, a loading area and truck access?

* If production is at a separate address, is it registered as a branch (şube)? Branch openings are also published in the Trade Registry Gazette.

* To check the legal name, tax number and addresses in one place, see our Turkish company registry guide.

3. The chamber capacity reportTurkish manufacturers often hold a capacity report (kapasite raporu) issued by their chamber of industry or chamber of commerce and industry. It lists machinery, products and annual capacity. The legal name and address on the report must match the company in your contract exactly. Check the issue date and validity. A report in another company's name, or one that has expired, is a warning sign.

4. Ask specific production questions* Which machines do you have, how many, and which make and model?

* What is the monthly capacity for this product, and how full is it now?

* Which steps are subcontracted (for example dyeing, coating or printing)?

* Where do raw materials come from, and how are batches traced?

* Who does quality control, and at which stages?

A manufacturer answers in detail and consistently. A trader often answers in general terms or says it will "check with the factory".

5. Ask for an unannounced video callRequest a video call at short notice and ask to see the production floor, the machine that would make your product and the warehouse. Ask to see the company sign and the building entrance too. Calls that keep being postponed, or only ever take place in an office, are a question mark.

6. Documents and bank account in the same company's nameThe proforma, invoice, certificates and bank account should all belong to the same legal entity. If a certificate shows one company and the proforma another, ask for the relationship in writing. Check that the person signing the contract is authorised in the signature circular. More: signature circular in Turkey (imza sirküleri).

7. An on-site inspectionFor large or long-term orders, the strongest evidence is seeing the production site in person: machines running, work similar to your product in progress and staff actually on site.

When a trading company makes senseA trader can be useful when you buy small quantities of many different products, want one shipment from several producers, or want someone else to handle language and follow-up. What matters is choosing it knowingly, verifying who the trader is and writing responsibility clearly into the contract.

Warning signs* The address is an office suite, but the supplier speaks of "our factory".

* The activity code is wholesale trade, but the company presents itself as a manufacturer.

* The capacity report, certificates or photos are in another company's name.

* Products from very different sectors are offered from the same "factory".

* Video calls and visits are repeatedly postponed.

How we helpEnterTurkey Pro ($499, 48 hours) researches the company's registered activity in official sources and checks the address from outside the premises, with dated photos. Enterprise (from $1,500) adds a review inside the facility of production and capacity, with the supplier informed and taking part. See the packages.

This article is general information, not legal or financial advice.

Frequently asked questionsIs it legal to buy from a Turkish trading company?Yes. Trading companies are common in Turkey and operate legally. What matters is that you know you are dealing with one and that the contract states who is responsible.

Is the activity code on the tax certificate enough?No. The activity code is a strong clue, not proof. Weigh it together with the address, the capacity report, a video call and the documents.

How do I get the capacity report?Ask the supplier for a copy. A genuine manufacturer usually shares it without difficulty. The legal name, address and date should match the company in your contract.

What if I cannot visit the factory?Have the official records and the address checked, ask for an unannounced video call and keep the first order small. For large orders, seeing the facility in person is the strongest evidence.