Quick Answer
Can foreigners open a company in Turkey?
Yes — Turkey allows up to 100% foreign ownership for most business types. The most common structure for foreign founders is a Limited Şirketi (Ltd. Şti.) which requires minimum capital of ₺10,000 (~€290), takes 2–4 weeks to form, and costs around €300–700 in professional fees. You need a Turkish tax number, notarised articles of association, and a licensed Turkish accountant for ongoing compliance.
Legal Disclaimer
This guide provides a general overview and is not legal or tax advice. Turkish company law and tax rates change frequently. Always use a qualified Turkish lawyer (avukat) and licensed accountant (mali müşavir) for company formation.
Company Types Available to Foreigners
Limited Şirketi (Ltd. Şti.)
Min. capital: ₺10,000 (~€290)Best for: Most small-to-medium foreign businesses; freelancers going formal
Most common structure; relatively fast to set up (2–4 weeks)
Anonim Şirketi (A.Ş.)
Min. capital: ₺250,000 (~€7,000)Best for: Larger companies; publicly traded ambitions; institutional clients
More compliance overhead; better for raising investment
Branch Office (Şube)
Min. capital: None (parent company backs it)Best for: Foreign companies operating in Turkey without a separate entity
Profits taxed in Turkey; full tax obligations apply
Liaison Office (İrtibat Bürosu)
Min. capital: Minimum $200,000 in funding from parentBest for: Market research, promotion — cannot generate revenue in Turkey
Cannot conduct commercial activities; requires Ministry of Economy permit
Step-by-Step Formation Process (Ltd. Şti.)
Choose company type and trade name
Day 1For most foreign founders, a Ltd. Şti. is the right choice. Your company name must be unique — search the Central Registry System (MERSİS) database. The name must include the company type (e.g. "XYZ Yazılım Ltd. Şti.").
Obtain Turkish tax numbers
Day 1–2Every foreign shareholder and director needs a Turkish tax number (vergi numarası) before proceeding. Get yours at any tax office with just your passport — takes 30 minutes and is free.
Prepare Articles of Association (Ana Sözleşme)
Days 3–7The Articles of Association must be prepared in Turkish and notarised. This document covers the company purpose, share structure, management, and capital. Use a Turkish lawyer or company formation agent — this step is not DIY-friendly.
Notarise documents
Days 5–10The Articles of Association and accompanying founder declarations must be notarised at a Turkish notary public (noter). Bring originals of all documents. If any founder is abroad, powers of attorney must be apostilled in their home country and translated by a sworn translator in Turkey.
Register with the Trade Registry (Ticaret Sicili)
Days 7–14Submit notarised documents to the local Chamber of Commerce (Ticaret Odası). Registration is processed through the MERSİS system. You will receive a Trade Registry Number (Ticaret Sicil Numarası) upon completion.
Register for corporate tax and VAT
Days 10–18After company registration, register with the local tax office (vergi dairesi) for corporate income tax (kurumlar vergisi) and VAT (KDV). You'll receive a company tax number and VAT number. Engage a licensed accountant (mali müşavir) — they manage this registration.
Open a corporate bank account
Days 14–21Open a company bank account using your trade registry certificate and company tax number. Most Turkish banks require an in-person visit. Garanti BBVA and İşbank are well-regarded for business accounts. You'll need to deposit the minimum capital (₺10,000 for Ltd. Şti.).
Hire an accountant and comply with ongoing obligations
OngoingAll Turkish companies must have a licensed accountant (mali müşavir). They handle monthly VAT returns, quarterly social security filings, annual corporate tax returns, and statutory payroll if you have employees. This is mandatory, not optional.
Formation and Ongoing Costs
Approximate costs in 2026. TRY amounts fluctuate with exchange rates.
| Cost Item | Amount | Notes |
|---|---|---|
| Notary fees (articles, declarations) | ₺2,000–5,000 (~€60–150) | Varies by notary and document complexity |
| Trade Registry (Chamber of Commerce) | ₺1,500–3,000 (~€45–90) | One-time registration fee |
| Lawyer / formation agent fee | ₺5,000–15,000 (~€150–450) | Highly recommended for foreigners |
| Sworn translator (if foreign documents) | ₺1,000–3,000 (~€30–90) | Per document; required for foreign-language docs |
| Minimum company capital (Ltd. Şti.) | ₺10,000 (~€290) | Deposited to bank account; remains company property |
| Accountant (mali müşavir) — monthly | ₺3,000–8,000/month (~€90–240) | Mandatory; varies by company size and activity |
| Annual Chamber of Commerce membership | ₺1,000–2,500/year (~€30–75) | Required for companies |
Tax Obligations for Turkish Companies
| Tax / Obligation | Rate | Frequency | Notes |
|---|---|---|---|
| Corporate Income Tax (Kurumlar Vergisi) | 25% (standard rate as of 2024) | Annual (advance payments quarterly) | Rate has changed in recent years — verify current rate |
| VAT (Katma Değer Vergisi / KDV) | 20% standard; 10% reduced; 1% low | Monthly return and payment | Most businesses register for VAT; exporters can reclaim |
| Withholding Tax (Stopaj) | 15–20% on dividends paid | At time of payment | DTA may reduce rate for foreign shareholders |
| Social Security (SGK) contributions | ~32.5% of gross salary (employer + employee) | Monthly | Mandatory for all employees including foreign staff |
| Stamp Duty (Damga Vergisi) | 0.759% on contracts | At time of execution | Applies to many Turkish contracts and agreements |
Frequently Asked Questions
Can a foreigner own 100% of a Turkish company?
Yes — Turkey allows full foreign ownership of Ltd. Şti. and A.Ş. companies. There are no mandatory Turkish co-shareholder requirements for most business sectors. Certain sectors (media, aviation, security) have restrictions. Most standard commercial activities are fully open to foreign ownership.
Do I need to be in Turkey to set up a company?
Not necessarily, but it is significantly easier in person. If you cannot be present, you can grant a power of attorney (apostilled and translated) to a Turkish lawyer or agent who acts on your behalf. Expect the process to take longer and cost more through a representative.
What is the difference between a Ltd. Şti. and freelancing in Turkey?
Freelancing (consulting for Turkish or foreign clients while living in Turkey) may work without a formal company for some situations, but in practice: (a) Turkish clients often require a registered business for invoicing purposes; (b) without a company you cannot get a work permit; (c) working informally can create tax compliance risks. A Ltd. Şti. provides legal clarity and enables full compliance.
How long does company formation take in Turkey?
For a straightforward Ltd. Şti. with all founders present in Turkey and documents prepared: 2–3 weeks is typical. With foreign shareholders needing apostilled powers of attorney or if documents need translation, allow 4–6 weeks. Using an experienced formation agent reduces delays significantly.
What ongoing costs should I budget for operating a Turkish company?
Minimum realistic ongoing costs: accountant ₺3,000–8,000/month + Chamber of Commerce annual fee + potentially an audit if your company exceeds size thresholds. Add Turkish corporate tax (25%) on profits and VAT compliance. Budget at least €150–300/month for basic compliance costs even if the company is dormant.