This guide answers the 50 most frequently asked questions foreign investors ask about company formation in Turkey: choosing between a Ltd. Şti. and an A.Ş., capital, shareholders and management, registration documents and costs, banking, tax, residence and work permits, the link to Turkish citizenship by investment (CBI), and closing a company.
1. Company Formation in Turkey for Foreigners
1. Can a foreigner establish a company in Turkey?
Yes. Foreign investors can establish companies in Türkiye under the same general conditions that apply to domestic investors. They may establish any company form provided under the Turkish Commercial Code, including a limited liability company (Ltd. Şti.) or joint stock company (A.Ş.).
2. Can a foreigner own 100% of a company in Turkey without a Turkish partner?
Generally, yes. A foreign investor can establish a company with 100% foreign ownership, and there is no general requirement to have a Turkish shareholder or partner. Special restrictions may apply in certain regulated sectors.
3. Can a foreign company establish or own a company in Turkey?
Yes. A company established abroad can invest in and hold shares in a Turkish company. The foreign corporate shareholder must provide the required corporate documents for registration, and documents issued abroad must comply with the applicable authentication and Turkish translation requirements.
4. Do I need to live in Turkey to establish a company?
No. A foreign investor does not have to live in Türkiye simply to own or establish a Turkish company. Residence in Türkiye is a separate immigration matter. If you intend to live in Türkiye, you must separately comply with the applicable immigration and residence rules.
5. Do I need a residence permit to establish a company in Turkey?
No. A Turkish residence permit is not a general prerequisite for a foreign investor to establish or become a shareholder of a company in Türkiye. Residence permission and the right to work in Türkiye are separate matters from company ownership.
6. Can I establish a company in Turkey remotely without travelling to Türkiye?
Yes, many incorporation procedures can be handled through a representative under a notarized power of attorney. If the representative will obtain a tax identification number, the power of attorney must specifically authorize representation before the tax authority. Documents issued abroad generally need to be notarized and apostilled, or authenticated by a Turkish consulate, and officially translated and notarized in Türkiye. Additional procedures may still require specific formalities depending on the case.
7. Can a foreigner establish a sole proprietorship in Turkey?
Yes, subject to the applicable registration and professional requirements. A foreigner who intends to work in their own name and on their own account must first complete the business establishment procedures, such as the relevant registry registration and obtaining a tax number, and then obtain a work permit before starting work. Once the work permit is granted, the required workplace opening and operating licence must be obtained from the competent authority.
8. Are there restrictions on foreign ownership in certain business sectors?
Yes. Although foreign investors generally receive equal treatment and there are normally no nationality restrictions on shareholders or persons holding management rights, special restrictions apply in certain regulated sectors. Official investment guidance identifies television broadcasting, maritime and civil aviation as examples.
9. Does my business need a special licence or permit to operate in Turkey?
It depends on the business activity. Company registration does not replace any licence, permit or regulatory approval required to operate the business. A workplace opening and operating licence may also be required from the competent local authority, while regulated sectors may require additional authorization before operations begin.
2. Choosing the Right Company Structure
10. What types of companies can foreigners establish in Turkey?
Foreign investors can establish the same types of companies available to Turkish investors. Under the Turkish Commercial Code, the main corporate forms are the Joint Stock Company (A.Ş.) and the Limited Company (Ltd. Şti.). Other forms include the General Partnership, Limited Partnership and Partnership Limited by Shares. In practice, the Limited Company and Joint Stock Company are the most commonly used structures for foreign investment.
11. What is the difference between a Limited Company (Ltd. Şti.) and a Joint Stock Company (A.Ş.)?
Both are capital companies with separate legal personality. As of 2026, the minimum capital is TRY 250,000 for an A.Ş. and TRY 50,000 for a Ltd. Şti. A Ltd. Şti. can have no more than 50 shareholders and is managed by one or more managers, while an A.Ş. is managed by a board of directors. An A.Ş. must pay at least 25% of its subscribed cash capital before registration, with the remainder payable within 24 months, while a Ltd. Şti. can pay its subscribed capital within 24 months after registration.
12. Should I establish a Limited Company or a Joint Stock Company in Turkey?
It depends on the size, ownership structure and future plans of the business. A Ltd. Şti. is commonly used for small and medium-sized businesses and has a lower minimum capital requirement. An A.Ş. may be more suitable for larger investments, businesses expecting multiple investors or future share transfers, and activities for which the Joint Stock Company form is required or more appropriate. The choice should be made according to the proposed activity, investment structure and long-term plans.
13. What is the difference between a subsidiary and a branch in Turkey?
A subsidiary is a separate Turkish legal entity established under Turkish law and has its own shareholders and capital. A branch is not a separate legal entity from its foreign parent company and has no shareholders of its own. The parent company remains responsible for the branch’s activities and obligations. There is no statutory minimum capital requirement for establishing a branch, although capital may be allocated to its operations.
14. Can a foreign company open a liaison office in Turkey?
Yes. A foreign company may establish a liaison office in Türkiye with permission from the Ministry of Industry and Technology, provided that the office does not carry out commercial activities in Türkiye. Initial permits may be granted for up to three years. Complete applications are generally concluded within the prescribed administrative period. Extensions are assessed according to the liaison office’s activities and the applicable rules.
15. Can a foreign investor establish a company in a Turkish free zone?
Yes. Foreign individuals and companies can operate in Turkish free zones after obtaining a Free Zone Operating Licence (Faaliyet Ruhsatı) from the Ministry of Trade’s General Directorate of Free Zones. The application is made through the directorate of the free zone where the activity will take place. A business may operate as an investor, by building or taking over premises, or as a tenant. The applicable incentives and conditions depend on the activity and the particular free zone.
16. Can I buy an existing company in Turkey instead of establishing a new one?
Yes. A foreign investor can acquire shares in an existing Turkish company instead of establishing a new company, subject to the applicable share-transfer rules and any sector-specific restrictions. Before acquiring the company, legal, financial and tax due diligence is advisable because the company continues with its existing rights, obligations and liabilities. Share transfers involving foreign investors are also subject to the applicable reporting requirements, including reporting through the Ministry’s E-TUYS system where required.
3. Capital, Shareholders & Management
17. What is the minimum capital required to establish a company in Turkey?
As of 2026, the minimum capital is TRY 50,000 for a Limited Company (Ltd. Şti.) and TRY 250,000 for a Joint Stock Company (A.Ş.). For a non-public A.Ş. using the registered-capital system, the minimum initial capital is TRY 500,000. Depending on the business activity, sector-specific rules may require a higher amount.
18. What happens if an existing company misses the 31 December 2026 minimum capital deadline?
Companies below the current minimum must raise their capital by 31 December 2026, unless the Ministry of Trade extends the deadline. An A.Ş. must reach at least TRY 250,000 and a Ltd. Şti. at least TRY 50,000; companies that fail to meet the applicable minimum are deemed dissolved.
A non-public A.Ş. in the registered-capital system must reach at least TRY 500,000, or it is deemed to have left that system. Because the Ministry has statutory authority to extend the deadline, companies approaching the deadline should check whether an extension has been announced.
19. When and how must company capital be paid, and can assets be contributed instead of cash?
For an A.Ş., at least 25% of subscribed cash capital must be paid before registration, and the remainder must be paid within 24 months after registration. For a Ltd. Şti., subscribed capital may be paid within 24 months after registration.
Cash capital is deposited into a bank account, and the bank documentation is submitted as part of the registration process where required. Foreign shareholders need a potential tax identification number for the relevant banking and incorporation procedures.
Assets other than cash may also be contributed as capital if they satisfy the requirements of the Turkish Commercial Code. Qualifying assets must generally be transferable, capable of valuation in cash and free from restrictions such as liens or attachments, and valuation procedures may be required.
20. Can a foreigner be a director or manager of a Turkish company?
Yes. There is no general nationality restriction preventing a foreigner from serving as a manager or director of a Turkish company, although special rules may apply in regulated sectors such as television broadcasting, maritime and civil aviation.
In a Ltd. Şti., at least one shareholder must have management and representation authority. Foreign shareholders and board members require a Turkish tax identification number for the relevant company procedures. Being appointed as a manager or director is separate from whether the foreigner needs a work permit to work in Türkiye.
21. Can shareholders be added or removed after the company is established?
Yes. A company’s ownership structure can change after incorporation through procedures such as issuing or transferring shares, subject to the Turkish Commercial Code, the company’s articles of association and the rules applicable to the particular company type. The required corporate approvals, registration and reporting procedures depend on how the ownership change is carried out.
22. Can a foreign shareholder sell or transfer their shares in a Turkish company?
Yes. Foreign investors can transfer shares under the same general rules as domestic investors, subject to any sector-specific restrictions.
In a Ltd. Şti., the share-transfer agreement must be in writing and the parties’ signatures must be notarized. The transfer generally requires approval of the general assembly unless the articles of association provide otherwise, and the articles may also restrict or prohibit transfers. The transfer is then reflected in the company’s records and handled through the applicable Trade Registry procedures.
Share transfers in an A.Ş. generally involve fewer formalities, although restrictions may arise from the law or the company’s articles of association.
4. Registration Process, Documents & Costs
23. What are the steps to establish a company in Turkey?
The process generally starts by preparing the company information and articles of association through MERSİS (Central Registry Record System). Foreign shareholders and foreign board members obtain potential tax identification numbers where required, the incorporation documents are prepared and authenticated, the applicable capital and Competition Authority payments are made, and the application is submitted to the relevant Trade Registry Directorate. After registration, the company’s tax and other post-registration procedures are completed. For companies registered from 1 January 2026, the share ledger and the general assembly meeting and discussion book are kept electronically through the Ministry of Trade’s Electronic Commercial Book System (ETDS), and they open automatically on registration.
24. What documents does a foreign individual need to establish a company in Turkey?
A foreign individual shareholder generally needs a notarized Turkish translation of their passport and a Turkish tax identification number. If the shareholder resides in Türkiye, a notarized copy of the residence permit is also listed in the official incorporation guidance. The registration file includes the articles of association and other corporate documents required for the company’s particular structure. Additional documents may be needed if the shareholder will also act as a manager or director.
25. What documents does a foreign company need to establish a company in Turkey?
A foreign company acting as a shareholder generally needs documents establishing its registration, current status and authorized representatives, together with the required corporate decision authorizing the investment. If a foreign legal entity is appointed as a board member, the individual who will act on its behalf must also be designated. If a representative handles the incorporation, an appropriately authorized power of attorney is required.
26. Do foreign documents need to be apostilled, legalized or translated into Turkish?
Generally, yes. Documents issued abroad for company registration must meet the applicable authentication requirements. Depending on the issuing country, this may involve an apostille or authentication through the relevant Turkish consulate. The authenticated documents must also satisfy the applicable Turkish translation and notarization requirements.
27. Does a foreign shareholder need a Turkish tax identification number?
Yes. A potential tax identification number must be obtained for foreign shareholders and foreign board members where applicable. It is also required to open the bank account used for depositing company capital. If a representative obtains the number, the power of attorney must specifically authorize representation before the tax authority for that purpose.
28. What is MERSİS and how is it used when establishing a company in Turkey?
MERSİS (Central Registry Record System) is the electronic system used for commercial registry transactions in Türkiye. Company information and the articles of association are prepared through MERSİS as part of the incorporation process. Registered legal entities receive a unique MERSİS number used in the commercial registry system.
29. Does a company need a registered address in Turkey?
Yes. A company established in Türkiye must have a registered headquarters address. The address forms part of the company’s registration and tax records, and a tenancy contract showing the registered address is required in the tax-registration process. The tax authority may also visit the company’s headquarters after incorporation to prepare a determination report.
30. Can I use a virtual office as my company’s registered address in Turkey?
The rules require a registered address supported by a tenancy contract, and a tax officer may visit the headquarters after incorporation to prepare a determination report. A virtual or serviced office should therefore only be used if its contract and address meet the applicable registration and tax requirements. Confirm the particular arrangement before using it for company registration.
31. How do I choose and register a company name in Turkey?
The company’s trade name is selected during incorporation and entered into MERSİS as part of the articles of association and Trade Registry application. The name must comply with the Turkish Commercial Code and the applicable trade-name rules, including requirements intended to distinguish registered trade names and prevent misleading use. Availability and compliance should therefore be checked before the incorporation documents are finalized.
32. Does registering a company name also protect it as a trademark in Turkey?
No. Registering a company’s trade name does not replace trademark registration. A trade name identifies the business, while a trademark protects a sign used to distinguish goods or services. If the company wants trademark protection for its brand, logo or product or service name, a separate trademark application to the Turkish Patent and Trademark Office (TÜRKPATENT) should be considered.
33. How long does it take to establish a company in Turkey?
Once the required documents and formalities are complete, the Trade Registry registration process can be completed on the same day. The overall process may take longer for a foreign investor because foreign documents may first require authentication and translation, and foreign shareholders may need tax identification numbers and other preliminary formalities.
34. How much does it cost to establish a company in Turkey?
There is no single fixed incorporation cost. The total depends on the company type and capital, Trade Registry and chamber charges, authentication and translation of foreign documents, notarization and any professional services used. In addition, 0.04% of the company’s capital is paid to the Competition Authority through the Trade Registry process. Current registry and chamber tariffs should be checked when preparing the incorporation budget.
35. Do I need a lawyer to establish a company in Turkey?
A lawyer is not mandatory under the ordinary company-registration procedure. The founders may complete the incorporation procedures themselves or act through an authorized representative. Legal assistance can nevertheless be useful for structuring ownership and management, preparing corporate documents and shareholder arrangements, handling foreign documents and identifying sector-specific requirements.
36. Can a lawyer or representative establish the company for me under a power of attorney?
Yes. Company-establishment procedures can be handled through an authorized representative under an appropriately drafted power of attorney. The power of attorney must cover the procedures the representative will perform before the Trade Registry and other authorities. If the representative will obtain a tax identification number, specific authority to act before the tax authority is required. A power of attorney issued abroad must also meet the applicable authentication and Turkish translation requirements.
37. What must I do after the company is registered?
After registration, complete the company’s tax and, where applicable, Social Security procedures and make sure its accounting and reporting obligations are set up. For companies registered from 1 January 2026, the share ledger and general assembly meeting and discussion book are kept electronically through ETDS and are opened automatically upon registration. Foreign-invested companies must also comply with applicable foreign-investment reporting obligations through E-TUYS. Additional licences, workplace permits or employee registrations may be required depending on the company’s activities.
5. Banking, Tax, Accounting & Property
38. Can a foreign-owned company open a corporate bank account in Turkey?
Yes. A company established in Türkiye can open a corporate bank account, and foreign ownership does not by itself prevent it from doing so. The bank will carry out its own account-opening and compliance checks, and its requirements may vary depending on the company’s ownership and management structure.
39. What documents and compliance checks are required to open a company bank account in Turkey?
Requirements vary by bank and company structure. Banks generally identify the company, its authorized representatives and relevant owners and may request Trade Registry documents, tax information, signature or representation documents and identification documents. They may also request information about the company’s activities, expected transactions and source of funds as part of their compliance checks. Confirm the bank’s current document list before applying.
40. Does a Turkish company need an accountant?
Every Turkish company must keep proper accounting records and statutory books and comply with its tax-filing obligations. A company may handle its accounting through its own qualified accounting function or work with a licensed accountant, such as a Serbest Muhasebeci Mali Müşavir (SMMM, Certified Public Accountant), depending on the applicable requirements and how its accounting and tax filings are organized.
41. What taxes does a company in Turkey have to pay?
The main tax is corporate income tax, at a general rate of 25% for the 2026 accounting period. Reduced corporate tax rates apply to certain qualifying income, including export and qualifying production income. A domestic minimum corporate tax may also apply under the statutory rules, although newly commencing companies are exempt from this minimum-tax regime for their first three accounting periods. Companies may also owe Value Added Tax (VAT), withholding taxes, payroll-related taxes and other taxes depending on their activities, employees and transactions.
42. Can a Turkish company invoice foreign clients and receive payments from abroad?
Yes. A Turkish company can invoice foreign customers and receive payments from abroad. However, dealing with a foreign customer does not automatically make the transaction tax-free. For a service to qualify for the service-export VAT exemption, it must be provided to a customer abroad and the service must be used or enjoyed abroad. The tax treatment therefore depends on the nature of the transaction and where the goods or services are supplied or used.
43. Can foreign shareholders transfer company profits or dividends abroad?
Yes. Turkish law allows foreign investors to transfer abroad through banks or special financial institutions net profits, dividends, proceeds from the sale or liquidation of an investment, compensation payments and certain other investment-related amounts. Applicable Turkish taxes must still be taken into account, and dividend taxation may vary depending on the recipient and any applicable double-tax treaty.
44. Can a foreign-owned Turkish company buy real estate in Turkey?
Yes. A company established under Turkish law can acquire real estate in Türkiye, but special rules apply to certain foreign-capital companies. If foreign investors hold 50% or more of the shares, or have the power to appoint or dismiss the majority of those with management rights, the company falls within Article 36 of the Land Registry Law and may acquire property for activities stated in its articles of association, subject to the applicable procedures and restrictions. Foreign-capital companies outside Article 36 generally acquire property under the rules applicable to domestically owned companies.
6. Residence Permits, Work Permits & Citizenship
45. Does establishing or owning a company in Turkey automatically give me a residence permit?
No. Establishing or owning a company does not automatically grant a residence permit. Foreigners who intend to establish a business or make business connections in Türkiye may apply for a short-term residence permit, but they must make a separate application and meet the applicable residence-permit requirements. The required documents depend on the basis of the application.
46. Does establishing or owning a company in Turkey automatically give me the right to work?
No. Company ownership and the right to work are separate matters. Establishing a company or becoming a shareholder does not by itself authorize a foreigner to work in Türkiye. A foreigner who will work in or manage the business must obtain a work permit before starting, unless a work-permit exemption applies.
47. Can a foreign-owned Turkish company hire foreign employees?
Yes. A foreign-owned Turkish company can employ foreign workers, but each foreign employee must obtain a work permit unless an exemption applies. Under the general evaluation criteria, a workplace subject to balance-sheet accounting must generally employ at least five Turkish citizens for each foreign employee. For a newly established workplace subject to balance-sheet accounting, the general financial criterion is at least TRY 500,000 in paid-in capital. Exceptions apply to certain applicants, workplaces, sectors and circumstances, so the applicable criteria should be checked before filing.
48. What are the requirements for a foreign company owner or shareholder to obtain a work permit?
For a foreign shareholder who will work in a company subject to balance-sheet accounting, the general criteria require the company to have at least TRY 500,000 in paid-in capital, the foreign shareholder to have a capital contribution of at least TRY 500,000 and a shareholding of at least 20%.
For the first work permit, the employment condition applies from the beginning of the seventh month, when the company must employ at least five Turkish citizens each month. These shareholder criteria do not apply where the foreign shareholder’s capital contribution is at least USD 100,000.
Separate exemptions from the general work-permit evaluation criteria may apply depending on the applicant’s circumstances. Because the applicable criteria depend on the applicant, company and type of application, eligibility should be checked before filing.
49. Can investing in a Turkish company lead to Turkish citizenship by investment (CBI)?
Yes, but establishing or owning an ordinary company does not automatically lead to Turkish citizenship. A foreign investor who makes a qualifying fixed-capital investment of at least USD 500,000 or its equivalent in foreign currency, as confirmed by the Ministry of Industry and Technology, may qualify to apply for exceptional Turkish citizenship by investment (CBI). Other qualifying investment routes also exist. Citizenship is not automatic and remains subject to the applicable citizenship procedure and final decision.
7. Closing a Company
50. How can I close or liquidate a company in Turkey?
A company is not closed simply by stopping its business activities. For a voluntary liquidation, the competent corporate body adopts a termination decision, liquidators are appointed, and the liquidation is registered and announced. Creditors are called through three announcements made one week apart. The remaining assets generally cannot be distributed to shareholders until three months have passed from the third call to creditors. A court may permit earlier distribution if there is no risk to creditors. After the liquidation is completed and the final accounts are approved, the company is deleted from the Trade Registry. The same liquidation framework applies to Limited Companies (Ltd. Şti.) through the relevant provisions of the Turkish Commercial Code.
Last updated: October 2026
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Important: This guide provides general information and is not legal advice on any specific case. Turkish law, thresholds and administrative practice may change, so current requirements should be confirmed at the time of registration or application.
