Company Formation in Turkey: A Guide for Foreign Investors
Foreigners can set up a company in Turkey by choosing a company type (usually a limited liability company or a joint stock company), meeting the minimum capital, and registering with the Trade Registry through the MERSIS system. You can own 100% of the shares with no Turkish partner, and you can complete the whole process from abroad through a power of attorney. This guide walks you through each step, the real costs, the timeline, and the legal rules as they stand in 2026.
Can Foreigners Own a Company in Turkey?
Yes. Under the Foreign Direct Investment Law (Law No. 4875), foreign investors are treated the same as Turkish nationals. There is no prior approval or screening requirement for most sectors, and in nearly all cases a foreigner can hold 100% of the shares of a Turkish company with no mandatory local partner.
The same law guarantees the free transfer of profits, dividends, sale proceeds, and liquidation balances abroad, and protects your investment against expropriation without compensation. The company itself is formed under the Turkish Commercial Code (TTK, Law No. 6102), while contracts and obligations are governed by the Turkish Code of Obligations (TBK, Law No. 6098).
A handful of regulated sectors are the exception. Banking and insurance need a licence; civil aviation and maritime cabotage carry foreign-ownership caps; broadcasting is limited under RTÜK rules; and some energy and mining activities require permits. If your business touches one of these, confirm the sector rules before you commit capital — our team can check this for you as part of company formation in Turkey.
LLC vs JSC: Choosing the Right Company Type
Foreign investors almost always pick one of two structures under the TTK: the Limited Liability Company (Limited Şirket / LLC) or the Joint Stock Company (Anonim Şirket / JSC). Both give you limited liability — your personal assets are protected and you risk only the capital you commit. The differences are in cost, governance, how easily you can transfer shares, and one important point about public debts.
| Feature | LLC (Limited Şirket) | JSC (Anonim Şirket) |
|---|---|---|
| Minimum capital | 50,000 TRY | 250,000 TRY |
| Shareholders | 1 to 50 | 1, no upper limit |
| Capital paid before registration | None | 25% of cash capital (blocked in a bank) |
| Share transfer | Notarised + registered (slower, stamp duty) | Generally easier, no notarisation |
| Liability for unpaid public debts (tax, SGK) | Shareholders liable pro rata | Falls on directors, not shareholders |
| Governance | Simpler; one or more managers | Board of directors; stricter reporting |
| Best suited to | SMEs, owner-run businesses | Larger ventures, investors, future share sales |
When an LLC is the better fit
The LLC is the most common form for small and medium foreign-owned businesses. It is cheaper to capitalise, simpler to run, and fine for an owner-operated company that does not plan to bring in outside investors soon. Its one real drawback: under Law No. 6183, LLC shareholders can be held personally liable for the company's unpaid public debts — taxes and social security (SGK) premiums — in proportion to their shares.
When a JSC is the better fit
Choose a JSC if you expect to raise capital, bring in venture or strategic investors, or sell shares later. Share transfers are smoother and not subject to notarisation, and ordinary shareholders are not personally liable for the company's tax debts — that liability passes to the board members and legal representatives. The trade-off is higher minimum capital and more formal governance. If you are planning future funding rounds or an exit, our corporate and M&A structuring team can map the share structure before you incorporate.
Minimum Capital and Payment Timing
Since 1 January 2024, the minimum share capital is 50,000 TRY for an LLC and 250,000 TRY for a JSC (higher — currently 500,000 TRY — for a JSC that opts into the registered-capital system). These figures were raised by Presidential Decree under TTK Articles 580 and 332.
When you have to pay the capital is the single most misunderstood point, and the rules differ sharply between the two types:
- LLC: nothing is due before registration. Since Law No. 7099 (15 March 2018), an LLC pays no cash capital up front; the full amount is payable within 24 months after the company is registered.
- JSC: 25% of the cash capital must be paid before registration and blocked in a bank account, with the balance due within 24 months. The blocked amount is released to the company after registration.
Who can be a shareholder or director
- Shareholders may be individuals or legal entities, of any nationality, and need not live in Turkey.
- Directors / board members can be foreign nationals; having at least one fully authorised signatory makes day-to-day operations far easier.
- A registered Turkish address for the company's headquarters is required.
Individual foreign shareholders need a Turkish tax identification number, and corporate foreign shareholders must provide apostilled and sworn-translated incorporation documents.
Documents You Need to Open a Company in Turkey
Getting the paperwork right in advance is what determines your timeline. Apostille and sworn translation steps in your home country usually take longer than the Turkish registration itself, so start here.
- Passport copies of all individual shareholders and directors, with sworn Turkish translations.
- Turkish tax identification number for each foreign individual (we can obtain this).
- For corporate shareholders: apostilled certificate of incorporation / activity, the board resolution approving the new Turkish company, and a signatory's authority document — all apostilled and sworn-translated.
- Power of attorney (notarised and apostilled) if a Turkish lawyer will incorporate on your behalf.
- Articles of association drafted and registered through MERSIS.
- Proof of registered address (title deed or lease) for the company headquarters.
- Signature declarations of the authorised managers/board members and recent photographs.
Step-by-Step Company Registration
Company formation in Turkey is centralised and, once your documents are ready, moves quickly through the Trade Registry and the MERSIS online system.
- Draft and file the articles of association — company name, scope of activity, capital, and shareholders — on MERSIS.
- Notarise signatures and issue powers of attorney (a power of attorney lets your lawyer complete everything while you stay abroad).
- Handle capital and the Competition Authority fee. A JSC blocks 25% of its cash capital in a bank account before registration; an LLC has no pre-registration capital to deposit. The Competition Authority contribution of 0.04% of capital is now collected via the MERSIS / HTS fee-tracking system (process updated October 2024).
- Apply to the relevant Trade Registry Directorate (Ticaret Sicil Müdürlüğü), which registers the company and announces it in the Trade Registry Gazette.
- Obtain the tax number and open the corporate bank account.
- Register with the Social Security Institution (SGK) if you will employ staff, and obtain any municipal or sector permits.
How Much It Costs and How Long It Takes
Two questions every founder asks: what will it cost, and how long will it take? Here is an honest picture. Beyond the share capital itself, budget for the formation and first-year running costs below. Exact amounts vary by city, capital amount, and your accountant.
| Item | What it covers |
|---|---|
| Notary fees | Articles of association, signature declarations, powers of attorney |
| Sworn translation + apostille | Passports and foreign corporate documents |
| Trade Registry Gazette | Mandatory publication of the registration |
| Competition Authority fee | 0.04% of capital, paid via MERSIS / HTS |
| Stamp tax (damga vergisi) | On the lease and certain contracts |
| Certified accountant (SMMM) | Monthly retainer for bookkeeping and filings |
| Legal fees | Drafting, filing, and managing the registration |
Realistic timeline
The Turkish registration steps — MERSIS draft, notary, tax office, Trade Registry, then Gazette publication — can often be completed within a few business days once everything is in order. The longer part is preparing and apostilling your foreign documents, which is done in your home country and can take a week or more. Plan around that lead time rather than the registration itself.
Tax, Accounting and Ongoing Obligations
Once registered, a Turkish company has continuing compliance duties. The headline items are:
- Corporate income tax on company profits — the standard rate is currently 25%, and a minimum corporate tax (asgari kurumlar vergisi) regime took effect in 2025. Rates are set by law and change, so confirm the current year's figures.
- Value Added Tax (VAT / KDV) on goods and services, with periodic returns.
- Withholding tax on salaries, rent, and certain payments.
- Stamp tax (damga vergisi) on the articles of association, leases, and many contracts.
- Mandatory bookkeeping by a certified Turkish accountant (SMMM), e-invoice / e-ledger where thresholds apply, and annual financial statements.
- Independent audit if the company exceeds the legal size thresholds.
- Annual general meeting and Trade Registry filings, plus monthly SGK declarations for employees.
Turkey has double-taxation treaties with more than 85 countries, which can reduce withholding on dividends, interest, and royalties paid abroad. Structuring this correctly at the outset is what lets you use those treaties. And once you are trading, recovering unpaid invoices in Turkey runs through the Enforcement and Bankruptcy Law (İİK No. 2004) — our team handles debt collection and enforcement for businesses, and our guide on collecting unpaid invoices in Turkey explains the process.
Branch and Liaison Office: The Alternatives to a Subsidiary
Forming an LLC or JSC creates a separate Turkish company (a subsidiary). It is not your only option. A foreign company can instead register a branch or a liaison (representative) office, and the right choice depends on what you actually want to do in Turkey.
- Subsidiary (LLC/JSC): a distinct Turkish legal entity. The parent's liability is limited to its capital. Best for genuine local operations, hiring, and contracting.
- Branch: an extension of the foreign company, not a separate entity, so the parent remains liable for its obligations. It can trade and invoice in Turkey but is more closely tied to the parent.
- Liaison office: permitted only for non-commercial activity — market research, promotion, coordination. It cannot earn income or invoice, and it operates under a Ministry of Industry and Technology permit.
For most foreign investors who want to trade, employ people, and limit risk, a subsidiary is the cleaner choice. If you are testing the market first, a liaison office can be a low-commitment start.
Free Zones, Incentives and Residence
Investors who export or manufacture should look at Turkey's free zones, which offer corporate and customs advantages. We cover this in our guide to setting up a free zone company in Turkey.
Turkey also offers investment incentive certificates, regional incentives, and R&D and technopark benefits depending on the sector and location.
Can your company give you residence?
Running a Turkish business can support a work and residence permit. Residence permits are governed by the Law on Foreigners and International Protection (Law No. 6458), and work permits issue under Law No. 6735. For a foreign company partner seeking a work permit, the authorities typically expect the company to meet employment and capital conditions — commonly a minimum number of Turkish employees and a minimum paid-up capital — assessed case by case. Our work and residence permit for company owners team can tell you whether your structure qualifies.
Separately, larger qualifying investments may open a route to Turkish citizenship by investment. Our explainer on how qualifying investments lead to Turkish citizenship sets out the routes and current thresholds. Both residence and citizenship outcomes depend on your specific facts.
Frequently asked questions
Do I need a Turkish partner to open a company in Turkey?
No. In nearly all sectors a foreign national or foreign company can own 100% of a Turkish LLC or JSC with no local partner, under the Foreign Direct Investment Law (No. 4875). Only specific regulated sectors impose ownership limits.
How much capital do I need to start a company?
The minimum share capital is 50,000 TRY for a limited liability company (LLC) and 250,000 TRY for a joint stock company (JSC). An LLC pays no capital before registration and the full amount within 24 months after registration. A JSC must block 25% of its cash capital in a bank before registration, with the balance due within 24 months.
How much does it cost to set up a company in Turkey?
Beyond the share capital, budget for notary fees, sworn translation and apostille of your documents, the Trade Registry Gazette publication, the 0.04% Competition Authority fee (now paid via MERSIS), stamp tax on the lease and contracts, legal fees, and a monthly certified-accountant (SMMM) retainer. Exact amounts vary by city and capital level.
Do I have to travel to Turkey to register the company?
No. Incorporation can be completed by a Turkish lawyer acting under a power of attorney, so most foreign founders set up their company without leaving home. Note that opening the corporate bank account may still require the shareholder or director to attend in person, because of bank KYC rules.
What documents do I need to open a company in Turkey?
Typically: passport copies with sworn translations, a Turkish tax number for each foreign individual, apostilled and sworn-translated incorporation documents and a board resolution for corporate shareholders, a notarised power of attorney, the articles of association, proof of a registered address, signature declarations, and photographs.
How long does company formation take?
Once all documents (articles of association, sworn translations, powers of attorney) are ready, registration through the Trade Registry can often be completed within a few business days. The longer part is usually preparing and apostilling your foreign documents in your home country, which can take a week or more.
Should I choose an LLC or a JSC?
An LLC is simpler and cheaper and suits owner-run SMEs, but its shareholders can be personally liable for the company's unpaid taxes and SGK premiums. A JSC has higher minimum capital and more formal governance, but share transfers are easier and ordinary shareholders are not liable for company tax debts, which makes it the usual choice when you plan to raise capital or sell shares.
Can a foreigner open a Turkish bank account for the company?
Yes, but it is often the slowest step. Turkish banks apply KYC and anti-money-laundering checks and increasingly ask the foreign shareholder or director to attend in person, even when the company was incorporated remotely by power of attorney. Confirm your bank's requirements early.
Can owning a company give me residence in Turkey?
Running a Turkish company can support a work and residence permit under Law No. 6458 and Law No. 6735, usually subject to employment and capital conditions assessed case by case. Larger qualifying investments may lead to Turkish citizenship. Each application is decided on its facts.
