Company formation in Turkey for foreigners follows the same rules as for Turkish citizens: a foreign individual or company can own 100% of a Turkish company, with no local partner required. In practice, most foreigners set up a limited company or a joint-stock company, and the process can be completed in a short time once the documents are ready.
This guide walks through the main company types, the documents you need and each step from tax number to bank account.
Can a foreigner own a company in Turkey?
Yes. Under Turkey's Foreign Direct Investment Law, foreign investors are treated equally with domestic investors. You can be the sole shareholder and the sole director, and you do not need to live in Turkey to own a company. Certain regulated sectors, such as banking, insurance, media or aviation, have extra licensing rules, but ordinary trading, services, e-commerce, tourism and consulting companies can be formed without special approval.
Owning a company does not by itself give you the right to work or reside in Turkey. Those are separate permits, explained below.
Which company type should you choose?
Limited company (Limited Şirket)
The limited company is the most common choice for small and medium businesses. It can be formed with a single shareholder, the shareholders' liability is generally limited to the capital they commit, and the management structure is simple. At the time of writing, the minimum capital is TRY 50,000.
Joint-stock company (Anonim Şirket)
The joint-stock company suits larger projects, companies planning to bring in investors and certain regulated activities. It can also be formed with one shareholder, shares are easier to transfer, and it has a board of directors. At the time of writing, the minimum capital is TRY 250,000.
Branch or liaison office
An existing foreign company can open a branch in Turkey instead of a new company. A branch is not a separate legal entity, so the parent company is directly responsible for its obligations. A liaison office is another option, but it cannot carry out commercial activity.
Minimum capital amounts have been raised in the past, so confirm the current figures before you start.
What documents do you need?
For a foreign individual shareholder, the usual documents are:
- Passport, with a sworn Turkish translation certified by a notary
- A Turkish tax number
- Photographs
- Proof of address may be requested in some cases
For a foreign corporate shareholder:
- Certificate of incorporation or good standing from the home country
- A board resolution approving the investment in Turkey
- A power of attorney for the person signing on its behalf
- All documents apostilled or legalised by a Turkish consulate, then translated into Turkish
If you cannot be in Turkey, most steps can be completed through a notarised power of attorney.
How do you set up a company in Turkey, step by step?
- Choose the company type, name and activities. Check that the trade name is available and define the business activities clearly.
- Obtain tax numbers for every foreign shareholder and director.
- Prepare the articles of association, setting out the capital, shares, management and activities.
- Register through the central registration system and submit the founding documents to the Trade Registry Office.
- Deposit or commit the capital according to the rules for your company type.
- Sign the founding documents before the trade registry or a notary.
- Registration and publication in the Trade Registry Gazette, after which the company has legal personality.
- Tax office opening: the tax office confirms the business address, and the company receives its tax registration.
- Open a corporate bank account and arrange an electronic signature and e-invoicing where required.
A licensed financial adviser (mali müşavir) is needed for bookkeeping and tax filings from the first month, so appoint one early.
What happens after the company is registered?
- Accounting and tax: monthly and annual filings for VAT, corporate tax and payroll taxes.
- Registered office: the company must have a real address; virtual offices are possible for some activities.
- Licences: some activities need municipal or sector licences before trading.
- Employees: hiring staff requires social security registration.
Can you get a residence or work permit through your company?
A company can support a work permit for a foreign shareholder or employee, but the Ministry assesses criteria such as the company's capital, turnover, exports or the number of Turkish employees. See our Turkey work permit guide for details.
A business-based short-term residence permit may also be available in some cases. For an overview of the options, read Turkey residence permit types.
Common mistakes to avoid
- Choosing business activities that are too narrow for future plans.
- Using untranslated or unapostilled foreign documents.
- Assuming the company gives an automatic right to live and work in Turkey.
- Leaving accounting until later and missing the first tax deadlines.
- Signing a lease that does not allow commercial use of the address.
Planning to start a business in Turkey?
The right structure depends on your activity, your partners and your residence plans. Our licensed lawyers handle company formation for foreigners from the first documents to the bank account. Book a free first consultation or see our services.
Frequently asked questions
Yes. Foreign investors can own all the shares of a Turkish company without a local partner. Only certain regulated sectors have extra requirements.
At the time of writing, the minimum capital is TRY 50,000 for a limited company and TRY 250,000 for a joint-stock company. These amounts have changed before, so confirm the current figures before you start.
Not necessarily. Most steps can be done through a lawyer using a notarised power of attorney. You may still need to visit Turkey for some later steps, such as opening a bank account.
Not automatically. Owning a company is separate from the right to live and work in Turkey. You will need to apply for a residence permit or a work permit, each with its own conditions.
A limited company is usually simpler and cheaper for small and medium businesses. A joint-stock company is better for larger projects, outside investors or easier share transfers.