Company formation in Turkey is open to foreign nationals on almost the same terms as Turkish citizens. In most cases you can own one hundred percent of the shares, you do not need a Turkish partner, and you do not need to live in Turkey to be a shareholder. The most common structure for foreign investors is a limited liability company, which can be formed with a single shareholder and registered through the relevant Trade Registry Directorate.
This guide explains who can incorporate, the main company types, the documents and capital involved, the step-by-step registration process, the usual timeline, the official costs, and the tax duties that follow. The figures and rules below are current as of the time this article is written. Because commercial and tax rules change, confirm the exact details with a lawyer before you act.
What Is Company Formation in Turkey?
Company formation in Turkey is the legal process of registering a new business entity with a local Trade Registry Directorate so that it can trade, sign contracts, employ staff and pay tax in its own name. The process is governed by the Turkish Commercial Code (Türk Ticaret Kanunu) and runs mainly through the MERSIS online system and the trade registry tied to the company’s province. Once registration is complete, the company has its own legal personality, separate from the people who own it.
For a foreign investor, the practical value is real. A Turkish company gives you a recognised local presence, the ability to invoice clients, a corporate bank account, the right to sponsor work permits for foreign staff, and in some cases a basis for a residence permit. The liability of the shareholders is generally limited to the capital they put in, which is why most newcomers choose a limited company rather than trading as an individual.
Can Foreigners Set Up a Company in Turkey?
Yes, foreigners can set up a company in Turkey, and foreign investors are treated equally with Turkish citizens under the Foreign Direct Investment Law. Company formation in Turkey for foreigners follows the same registration route used by locals, with a few extra document steps such as notarised and apostilled passports and translations. There is no general rule forcing you to take a Turkish shareholder or a Turkish director.
A foreign individual or a foreign company can be a shareholder. You will, however, need a Turkish tax identification number, which is straightforward to obtain, and the company must have a registered address in Turkey. A small number of regulated sectors, such as banking, insurance, private security and certain media activities, carry special licensing or ownership conditions. In our practice at Karanfiloglu Law Firm, most clients setting up trading, consulting, technology or real estate companies face no sector restriction at all, but it is worth confirming your specific activity early.
Types of Companies in Turkey for Foreign Investors
The right structure for company formation in Turkey for foreigners depends on your capital, your plans for shareholders, and whether you want a standalone company or an arm of an existing foreign business. The two most common limited-liability vehicles are the limited liability company and the joint-stock company.
Here is how the two main company types compare for company formation in Turkey:
- Limited liability company (Limited Şirket). Can be formed with a single shareholder, carries the lower statutory minimum capital, suits small and medium businesses, and is run by one or more appointed managers. Share transfers must be notarised and registered.
- Joint-stock company (Anonim Şirket). Can also be formed with a single shareholder, carries the higher statutory minimum capital, suits larger ventures and businesses that plan future share transfers or new investors, and is run by a board of directors. Shares can be transferred more simply and, in some cases, privately.
For most foreign founders, the limited liability company is the usual choice. The joint-stock company suits larger projects, businesses that plan to bring in new investors, and certain regulated activities. As of the time this article is written, the statutory minimum capital is 50,000 Turkish lira for a limited liability company and 250,000 Turkish lira for a joint-stock company, rising to 500,000 Turkish lira for a joint-stock company that uses the registered capital system. These thresholds are revised periodically, so confirm the current figure before you budget. Foreign companies that do not want a separate Turkish entity may instead open a branch office or a liaison (representative) office, though a liaison office cannot trade or earn commercial income.
Branch and liaison offices
A branch office is an extension of a foreign parent company and can carry out commercial activity in Turkey, but it does not have a separate legal personality from its parent. A liaison office, by contrast, is limited to non-commercial work such as market research and coordination, and needs permission from the Ministry of Industry and Technology. For most foreign entrepreneurs who want to trade and invoice in Turkey, forming a limited company is simpler than running a branch.
Requirements for Company Formation in Turkey
The core requirements for company formation in Turkey are a defined business activity, at least one shareholder, a registered Turkish address, share capital, and a set of incorporation documents. Turkish limited company registration in particular has become lighter over the years, and a company can now be founded by a single shareholder who is also the manager.
For a typical Turkish limited company registration you will usually need:
- a company name check and reservation through MERSIS;
- articles of association setting out the activity, capital and management;
- a Turkish tax identification number for each foreign shareholder and director;
- notarised and apostilled passport copies, with sworn Turkish translations;
- a registered business address in Turkey;
- declared share capital, with the statutory minimum depending on the company type;
- a notarised signature declaration for the company managers.
If a shareholder is a foreign company rather than an individual, you also need apostilled corporate documents. These include a certificate of activity and a board resolution approving the Turkish investment, again with sworn translations. Preparing these papers correctly at the start is the single biggest factor in a smooth registration, because errors in translation or apostille are the most common cause of delay we see.
How to Register a Company in Turkey, Step by Step
Knowing how to register a company in Turkey is mainly about following the steps in the right order, since several filings depend on earlier ones. Most of the work is done electronically through MERSIS and then finalised at the Trade Registry Directorate. The usual sequence is as follows.
- Choose the structure and activity. Decide between a limited company, a joint-stock company or a branch, and define the business scope that will appear in the articles of association.
- Get tax numbers and prepare documents. Obtain a Turkish tax identification number for each foreign shareholder and director, and gather notarised, apostilled and translated identity and corporate papers.
- Draft and submit the articles of association. Prepare the articles in MERSIS, reserve the company name, and generate the registration application.
- Notarise and sign. Sign the required declarations before a notary or at the trade registry, in person or through a representative holding a notarised power of attorney.
- Deposit capital and pay fees. Pay the portion of capital required at incorporation and the competition authority contribution, and deposit funds as the rules require for your company type.
- Register at the Trade Registry. File the application with the Trade Registry Directorate, which registers the company and publishes the incorporation in the Turkish Trade Registry Gazette.
- Complete post-registration steps. Have the tax office record the company, certify the legal books, obtain an e-signature and e-notification address, and register for social security before hiring staff.
Many foreign founders complete the process through a lawyer acting under a power of attorney, so they do not have to be physically present in Turkey for every signature. This is a common way for clients we advise in Istanbul to set up a company without travelling back and forth.
Timeline and Official Costs of Setting Up a Company in Turkey
Setting up a company in Turkey is usually quick once the documents are ready, and a straightforward limited company can often be registered within a few business days to about two weeks. The longer part is normally gathering apostilled and translated documents from abroad, not the registration itself, so the realistic timeline depends heavily on how fast you can produce clean paperwork.
The official costs of setting up a company in Turkey typically include several items:
- notary fees for signatures and document certification;
- trade registry and Trade Registry Gazette fees;
- a Competition Authority contribution calculated on the declared capital;
- translation and apostille costs for foreign documents;
- the share capital you commit to the company;
- professional fees if you use a lawyer or accountant.
Treat any single figure you read online as indicative only, because these official charges are revised periodically. A lawyer or accountant can give you a current, itemised estimate for your specific plan.
After Registration: Tax and Ongoing Obligations
Registering the company is the start, not the finish. A Turkish company must keep proper accounting records, file regular tax returns, and meet corporate tax, value added tax and withholding obligations administered by the Turkish Revenue Administration. Corporate income tax is charged on company profits at the rate in force for the year, and monthly and annual filings are mandatory even in quiet periods.
If the company employs staff, it must register them with the Social Security Institution and pay the related premiums. Most foreign-owned companies work with a local accountant to handle monthly bookkeeping, payroll and tax filings, because the deadlines are strict and penalties for late filing add up. Company formation in Turkey for foreigners is therefore best viewed as the first step in an ongoing compliance relationship rather than a one-off event.
Summary
Company formation in Turkey is realistic and well-defined for foreign investors: you can usually own the whole company, a limited liability company is the standard vehicle, and Turkish limited company registration runs through MERSIS and the Trade Registry Directorate. Understanding how to register a company in Turkey, preparing apostilled and translated documents early, and planning for the tax and accounting duties that follow are what keep the process on track. Because the rules, capital thresholds and official fees change, a short consultation before you file can save weeks of delay.
Talk to a Lawyer in Istanbul
If you would like advice on your own situation, Karanfiloglu Law Firm is a registered law office in Istanbul serving foreigners and Turkish clients across Turkey. You can reach us by phone or WhatsApp at +90 532 659 35 11, by email at [email protected], or visit us at Mecidiyeköy Mah. Büyükdere Cad. No:67-71, Alba İş Merkezi, Kat:8, Şişli, İstanbul. Contact us to discuss your situation.
Frequently Asked Questions
Can a foreigner own one hundred percent of a company in Turkey?
Yes. In most sectors a foreign individual or a foreign company can own one hundred percent of a Turkish company, with no requirement to take a Turkish partner. Company formation in Turkey for foreigners is based on equal treatment with local investors, apart from a few regulated sectors that carry special licensing conditions.
How long does company formation in Turkey take?
A straightforward limited company can often be registered within a few business days to about two weeks once the paperwork is complete. The slowest part is usually collecting apostilled and translated documents from abroad rather than the registration at the Trade Registry Directorate itself.
Do I need to live in Turkey to set up a company there?
No. You do not need to be a resident to be a shareholder, and setting up a company in Turkey can be completed through a lawyer acting under a notarised power of attorney. You will, however, need a Turkish tax identification number and a registered company address in Turkey.
What is the minimum capital for a Turkish limited company?
As of the time this article is written, Turkish limited company registration requires a declared share capital of at least 50,000 Turkish lira, while a joint-stock company has a higher minimum of 250,000 Turkish lira. These statutory thresholds are updated periodically, so confirm the current figure before you budget.
How do I register a company in Turkey from abroad?
To register a company in Turkey from abroad, you typically grant a notarised and apostilled power of attorney to a lawyer in Turkey, obtain a Turkish tax number, and provide apostilled identity or corporate documents with sworn translations. Your representative then completes the MERSIS filing and trade registry steps on your behalf.
Does setting up a company in Turkey give me residency?
Owning a Turkish company can support a residence permit application, but it is not automatic, and you must still meet the relevant immigration conditions. The company and the residence permit are separate processes, so it is sensible to plan both together with a lawyer.
What taxes does a Turkish company pay?
A Turkish company is generally liable for corporate income tax on its profits, value added tax on most sales, and withholding tax in defined situations, all administered by the Turkish Revenue Administration. Monthly and annual filings are required, so most foreign-owned companies engage a local accountant.
About the Author
Kaan Karanfiloğlu is the founder of Karanfiloglu Law Firm, an Istanbul-based registered law office serving Turkish and international clients across Turkey. He is a lawyer registered with the Istanbul Bar Association (Reg. No. 58270) and the Union of Turkish Bar Associations (No. 133074), and has practised law in Turkey since 2017. He holds an LL.B. from Galatasaray University Faculty of Law (2016) and advises clients in Turkish, English and French; the firm also serves clients in Russian and Chinese with experienced in-office translators.
Disclaimer: This article provides general information about Turkish law and is not legal advice. Laws, regulations, official fees and procedures change over time and every situation is different. For advice on your specific circumstances, please consult a qualified lawyer. No liability is accepted for any loss arising from reliance on the information in this article.
