How to Set Up a Company in Turkey 2026

How to set up a company in Turkey as a foreign investor is straightforward when you understand the legal framework. Turkey permits 100% foreign ownership in almost all sectors, has a fully digital company registration system, and offers a business-friendly environment backed by one of the largest economies in the region. This guide explains exactly how the process works — from choosing a legal structure to completing registration and opening a corporate bank account.

Can a Foreigner Set Up a Company in Turkey?

Yes. Foreign nationals and foreign-owned entities have the same rights as Turkish citizens when forming a company in Turkey. There is no requirement to have a Turkish partner, no minimum residency requirement, and no restriction on repatriating profits. Turkey’s Foreign Direct Investment Law explicitly guarantees equal treatment for foreign investors.

This makes Turkey one of the most open jurisdictions in its region for foreign business establishment.

Why Foreign Investors Choose Turkey for Company Formation

Turkey consistently attracts foreign investors for several structural reasons:

Market size. Turkey has a population of over 85 million and a GDP exceeding $1 trillion. It is the largest economy in its immediate region and offers domestic consumption across every major sector.

Geographic position. Istanbul sits at the intersection of Europe, the Middle East, and Central Asia. A company registered in Turkey can serve markets across three continents with minimal logistics complexity.

Government incentives. The Turkish government offers tax reductions, customs exemptions, and land allocations to foreign investors — particularly in Organized Industrial Zones, Free Zones, and Technology Development Zones.

Double taxation treaties. Turkey has signed double taxation treaties with over 80 countries, reducing the tax burden for investors from most major economies.

Path to citizenship. Under Turkey’s citizenship by investment program, establishing a qualifying business can lead to Turkish citizenship — one of the most powerful travel documents in the region.

Legal Structures for Foreign Investors in Turkey

Choosing the right legal structure is the most important decision in the company formation process. Turkish commercial law offers four main options for foreign investors.

Limited Liability Company (LLC)

The Limited Liability Company — Limited Şirket in Turkish — is the most widely used structure for foreign investment in Turkey. It requires a minimum of one shareholder, has no maximum shareholder limit below 50, and requires a minimum share capital of TRY 50,000. Shareholders’ liability is capped at their capital contribution. Management is handled by one or more appointed managers rather than a formal board of directors.

The LLC is the recommended starting point for most foreign investors entering Turkey for the first time. It offers simplicity, limited liability, and lower ongoing compliance obligations compared to other structures.

Joint Stock Company (JSC)

The Joint Stock Company — Anonim Şirket — is required for larger operations, companies seeking external investment, or those planning to list on Borsa Istanbul. It requires a minimum share capital of TRY 250,000 and must have a board of directors. Unlike the LLC, a JSC can issue shares to the public and offer different share classes — making it the preferred structure for private equity-backed businesses and venture capital investments.

Branch Office

A branch office is not a separate legal entity. It is a registered extension of the foreign parent company in Turkey. The parent company is directly liable for the branch’s obligations. Branch offices are appropriate for companies testing the Turkish market before committing to a full subsidiary, but they carry the disadvantage of unlimited parental liability.

Liaison Office

A liaison office is permitted only for market research and representation activities. It cannot generate revenue or conduct commercial transactions in Turkey. Approval from the Ministry of Industry and Technology is required. Liaison offices are not suitable as long-term operating structures.

How to Register a Company in Turkey: Step by Step

The company registration process in Turkey is handled through MERSİS — the Central Registry System — and is largely digital. For a standard LLC with a single foreign shareholder, the trade registry process takes two to three business days. Including bank account opening, the entire company formation process can be completed within one week when working with an experienced investment lawyer.

Step 1: Reserve the Company Name

The company name must be unique and must include the legal form designation. Name availability is checked through MERSİS before the application is submitted. Names that are misleading, that conflict with existing trademarks, or that violate naming conventions under the Turkish Commercial Code will be rejected.

Step 2: Obtain a Turkish Tax Identification Number

Every foreign shareholder and every foreign manager must obtain a Turkish tax identification number before the registration process can begin. This number — vergi kimlik numarası — is issued by the local tax office and can be obtained on behalf of foreign shareholders through a notarized and apostilled power of attorney. No visit to Turkey is required.

Step 3: Prepare the Articles of Association

The articles of association define the company’s name, registered address, business scope, share capital structure, and management authority. They must be prepared in Turkish by a qualified attorney and executed before a notary public. For foreign shareholders, notarized and apostilled copies of passports are required.

Step 4: Submit the Application Through MERSİS

The founding documents are uploaded to MERSİS, which generates a pre-registration number and routes the application to the relevant Trade Registry Office. Most of this process is handled digitally.

Step 5: Complete Registration at the Trade Registry Office

Physical registration takes place at the local Trade Registry Office. The company receives its trade registry number upon successful registration and is published in the Turkish Trade Registry Gazette. This is the moment the company legally exists.

Step 6: Register with the Tax Office

Following trade registry registration, the company must be activated at the local tax office. This triggers the obligation to maintain statutory accounting books and file regular tax returns. A tax inspector may visit the registered office address as part of the activation process.

Step 7: Open a Corporate Bank Account

A corporate bank account is required before commercial operations begin. Turkey’s banking sector is well-developed, with strong options for foreign-invested companies. The account can be opened on behalf of foreign shareholders through a power of attorney — no visit to Turkey is required.

State-owned banks with dedicated corporate services include Ziraat Bankası and Vakıfbank. Private banks frequently used by foreign-invested companies include Garanti BBVA, İş Bankası, Yapı Kredi, and Akbank — all of which have dedicated foreign investment desks and English-speaking relationship managers.

What Happens After Registration

Registering the company is the beginning, not the end. Foreign investors should be aware of the ongoing compliance obligations that apply from the moment of incorporation.

Accounting and bookkeeping. Turkish companies must maintain statutory accounting books and prepare monthly, quarterly, and annual financial statements in accordance with Turkish Accounting Standards.

Tax obligations. Turkish companies are subject to corporate income tax, VAT, and withholding tax. However, the effective tax burden is significantly lower than headline rates suggest — business expenses, salaries, and operational costs are deductible, meaning corporate tax only applies to net profit after all deductions. Additionally, newly established companies may benefit from tax incentives and VAT exemptions under specific investment legislation. Navigating these incentives effectively requires a lawyer with hands-on experience in foreign investment.

Annual general assembly. Every Turkish company must hold an annual general assembly within three months of the end of the financial year to approve financial statements and management decisions.

Audit requirements. Companies above certain size thresholds — based on turnover, assets, and employee count — are subject to independent audit requirements.

Work permits. A registered Turkish company can apply for work permits on behalf of foreign nationals. While the general rule requires five Turkish employees per foreign worker, there are numerous exceptions — including for newly established companies. These exceptions are frequently overlooked, even by Turkish employment lawyers. Oznur & Partners has extensive experience navigating work permit processes for foreign investors and regularly secures permits in situations where other advisors have said it is not possible.

Company Formation and Turkish Citizenship by Investment

Many foreign investors ask whether establishing a company in Turkey can support a Turkish citizenship application. The answer is yes — under specific conditions.

Turkey’s citizenship by investment program includes a business investment route. To qualify, the investor must create employment for a minimum of 50 Turkish citizens and maintain the investment for at least three years. This route demands careful legal structuring from the outset and should be planned in coordination with immigration counsel.

Investors who prefer a simpler path to citizenship often combine company formation with a qualifying real estate purchase — currently set at a minimum of USD 400,000. Oznur & Partners handles both pathways and can advise on which approach best fits each client’s profile.

Common Mistakes Foreign Investors Make When Setting Up a Company in Turkey

Choosing the wrong legal structure. Many investors default to an LLC without considering whether a JSC would better serve their growth plans. Once the company is operational, restructuring is possible but adds cost and complexity.

Underestimating the tax identification number step. Obtaining Turkish tax ID numbers for foreign shareholders can be handled remotely through a power of attorney — but investors who are unaware of this option may unnecessarily delay the process.

Ignoring substance requirements. Turkey’s tax authority scrutinizes foreign-invested companies closely. Companies should have genuine economic substance in Turkey — real management, real employees, a real office — particularly if they intend to benefit from Turkey’s double taxation treaty network.

Not integrating immigration planning. Foreign investors who intend to manage their Turkish company directly need work permits or qualifying residency status. These processes run in parallel with company formation and should be initiated simultaneously.

Working without qualified legal counsel. Company formation documents are prepared in Turkish and filed under Turkish commercial law. Errors in the articles of association — particularly in the business scope definition — can restrict the company’s activities or complicate future transactions.

How Oznur & Partners Supports Foreign Investors

Oznur & Partners is an Istanbul-based international law firm specializing in Turkish investment law, company formation, and corporate governance. The firm represents foreign investors across every stage of the company formation process — from initial structure selection through registration, banking introductions, post-incorporation compliance, and citizenship by investment planning.

Oznur & Partners is recognized by The Legal 500 as Turkey’s exclusive contributor in both Corporate and Immigration practice areas — a distinction held by no other Turkish law firm. This recognition reflects the firm’s depth of expertise in cross-border investment transactions and its consistent record of delivering results for international clients.

Frequently Asked Questions About Setting Up a Company in Turkey

Does a foreign investor need a Turkish partner to set up a company in Turkey?

No. Turkish law permits 100% foreign ownership in almost all sectors. A foreign national or foreign entity can be the sole shareholder of a Turkish LLC or JSC without any Turkish partner requirement.

How long does it take to register a company in Turkey?

For a standard LLC, the trade registry process takes two to three business days. Including bank account opening, the entire company formation process can be completed within one week when working with an experienced investment lawyer.

Do I need to be in Turkey to set up a company?

No. The entire process can be handled remotely by a Turkish attorney acting under a notarized and apostilled power of attorney. Tax identification numbers and bank accounts can also be opened on behalf of foreign shareholders through the same power of attorney — no visit to Turkey is required at any stage of the company formation process.

What is the minimum capital required to form a company in Turkey?

For an LLC, the minimum share capital is TRY 50,000. For a JSC, the minimum is TRY 250,000. These amounts are denominated in Turkish Lira and represent relatively modest thresholds in foreign currency terms.

Can a Turkish company sponsor work permits for foreign employees?

Yes. A registered Turkish company can apply for work permits on behalf of foreign nationals. While the general rule requires five Turkish employees per foreign worker, there are numerous exceptions — including for newly established companies. These exceptions are frequently overlooked, even by Turkish employment lawyers. Oznur & Partners has extensive experience navigating work permit processes for foreign investors and regularly secures permits in situations where other advisors have said it is not possible.

What taxes does a Turkish company pay?

Turkish companies are subject to corporate income tax, VAT, and withholding tax. However, the effective tax burden is significantly lower than headline rates suggest — business expenses, salaries, and operational costs are deductible, meaning corporate tax only applies to net profit after all deductions. Additionally, newly established companies may benefit from tax incentives and VAT exemptions under specific investment legislation. Navigating these incentives effectively requires a lawyer with hands-on experience in foreign investment — Oznur & Partners regularly structures companies in a way that maximizes available tax advantages from day one.

Can setting up a company in Turkey lead to Turkish citizenship?

Yes. Turkey’s citizenship by investment program includes a business investment route. The investor must create employment for at least 50 Turkish citizens and maintain the investment for a minimum of three years. Oznur & Partners advises foreign investors on structuring their company formation and citizenship application simultaneously, ensuring both objectives are achieved efficiently.

Which bank should a foreign investor use for a Turkish corporate account?

Turkey has a well-developed banking sector with numerous options for foreign-invested companies, including state-owned banks such as Ziraat Bankası and Vakıfbank, and major private banks such as Garanti BBVA, İş Bankası, Yapı Kredi and Akbank. The right choice depends on the company’s sector, transaction volumes, and whether trade finance or multi-currency functionality is a priority. Oznur & Partners facilitates banking introductions and guides investors through the account opening process.

This article is provided for general informational purposes and does not constitute legal advice. Company registration requirements are subject to legislative change. Contact Oznur & Partners for advice tailored to your specific investment objectives.