Quick Answer
Can foreigners open, start, register, or incorporate a company in Turkey?
Yes — Turkey allows up to 100% foreign ownership for most business types, and "opening," "starting," "registering," and "incorporating" all describe the same underlying process. The most common structure for foreign founders is a Limited Şirketi (Ltd. Şti.), which requires minimum capital of ₺50,000 (~€930, raised from ₺10,000 in 2024), takes 2–4 weeks to form, and costs roughly €400–850 in one-off professional and registration fees. You need a Turkish tax number, notarised articles of association filed with the Trade Registry, and a licensed Turkish accountant for ongoing compliance. Note that owning a company does not by itself grant you a work or residence permit — that requires a separate application.
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 When Starting a Business in Turkey
Limited Şirketi (Ltd. Şti.)
Min. capital: ₺50,000 (~€930)Best for: Most small-to-medium foreign businesses; freelancers going formal
Most common structure for opening, registering, or incorporating a business in Turkey; relatively fast to set up (2–4 weeks). Minimum capital was raised from ₺10,000 to ₺50,000 for companies formed from 1 January 2024 onward.
Anonim Şirketi (A.Ş.)
Min. capital: ₺250,000 (~€4,650)Best for: Larger companies; publicly traded ambitions; institutional clients
More compliance overhead; better for raising investment. Minimum capital was raised from ₺50,000 to ₺250,000 in 2024; non-public companies using the registered-capital system need an initial capital of at least ₺500,000.
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: No fixed statutory minimum — parent funds running costsBest for: Market research, promotion — cannot generate revenue in Turkey
Cannot conduct commercial or revenue-generating activities; requires Ministry of Trade permit, and all operating costs (rent, salaries) must be funded by inbound transfers from the parent company. Verify current documentary requirements with a lawyer, as these are assessed case-by-case.
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Step-by-Step Company Registration 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 the company with the Trade Registry (Ticaret Sicili)
Days 7–14Submit notarised documents to the local Chamber of Commerce (Ticaret Odası). This is the step that formally incorporates and registers your company — it is processed through the MERSİS system. You will receive a Trade Registry Number (Ticaret Sicil Numarası) upon completion, and your company legally exists from this point.
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 (₺50,000 for a Ltd. Şti., raised from ₺10,000 for companies formed from 2024 onward).
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.
Company Registration and Ongoing Costs
Approximate costs in 2026. TRY amounts fluctuate with exchange rates and with Turkey's inflation rate — EUR figures here are converted at roughly ₺54 per euro (mid-2026); always get a current quote before budgeting.
| Cost Item | Amount | Notes |
|---|---|---|
| Notary fees (articles, signature circular) | ₺10,000–16,000 (~€185–300) | Notarising the Articles of Association and signature circular; risen sharply with recent inflation — get a current quote |
| Trade Registry (Chamber of Commerce) | ₺1,500–3,000 (~€30–55) | One-time registration fee |
| Lawyer / formation agent fee | ₺10,000–30,000 (~€185–555) | Not legally required but strongly recommended for foreign founders — prevents costly filing errors |
| Sworn translator (if foreign documents) | ₺1,000–3,000 (~€20–55) | Per document; required for foreign-language docs |
| Minimum company capital (Ltd. Şti.) | ₺50,000 (~€930) | Raised from ₺10,000 in Jan 2024; deposited to bank account and remains company property |
| Electronic seal (mali mühür) | ~₺2,500 one-time | Required for mandatory e-invoicing and digital tax filings |
| Accountant (mali müşavir) — monthly | ₺5,000–15,000/month (~€90–280) | Mandatory; fees start around ₺5,000 for small companies and scale with invoice volume and employees |
| Annual Chamber of Commerce membership + ledger certification | ₺1,000–2,500 + ~₺3,000/year (~€75–100) | Chamber membership plus annual notarised ledger (defter) certification, required every January |
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Tax Obligations After Incorporating a Company in Turkey
| Tax / Obligation | Rate | Frequency | Notes |
|---|---|---|---|
| Corporate Income Tax (Kurumlar Vergisi) | 25% standard; 10% domestic minimum floor | Annual (advance payments quarterly) | Since 1 Jan 2025, tax is computed under both the standard 25% regime and a parallel minimum-tax regime, and the higher amount is payable — rates have changed repeatedly in recent years, so verify current figures |
| 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
What's the difference between opening, starting, registering, and incorporating a company in Turkey?
In everyday use these mean the same thing — 'opening' or 'starting' a company describes founding a business in general terms, while 'registering' and 'incorporating' refer to the specific legal act of filing your Articles of Association with the Trade Registry (Ticaret Sicili) through MERSİS. In practice, the moment your documents are accepted by the Trade Registry, your company is simultaneously incorporated and registered — there is only one process, not several competing ones, regardless of which term you search for.
How do I register a company in Turkey as a foreigner?
Company registration in Turkey runs through the Central Registry System (MERSİS): you reserve a company name, get a Turkish tax number, have a Turkish notary prepare and notarise your Articles of Association, then file those documents with the local Trade Registry (Ticaret Sicili) / Chamber of Commerce. Once accepted, you receive a Trade Registry Number and your company is legally registered. See the step-by-step process below — most foreign founders use a Turkish lawyer or formation agent to handle the notarisation and filing steps.
Can a foreigner own 100% of a Turkish company?
Yes — Turkey allows full foreign ownership of Ltd. Şti. and A.Ş. companies for most commercial activities, with no mandatory Turkish co-shareholder requirement. A handful of regulated sectors carry specific limits: media broadcasting caps direct foreign capital at 50% of paid-in capital, civil aviation generally requires majority Turkish ownership and a majority-Turkish board, and defense, energy, telecommunications, and maritime carry their own sector-specific approvals or caps. Outside these regulated sectors, 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 fees from around ₺5,000–15,000/month + annual Chamber of Commerce membership and ledger certification + potentially an audit if your company exceeds size thresholds. Add Turkish corporate tax (25%, with a 10% minimum-tax floor from 2025) on profits and VAT compliance. Budget at least €100–300/month for basic compliance costs even if the company is dormant, and confirm current accountant rates locally since they scale with invoice volume and headcount.
Does opening a company in Turkey give me a work permit or residence permit?
Not automatically — incorporating a company does not by itself grant you the right to live or work in Turkey. Founders typically pursue one of two routes: (1) an employer-sponsored work permit, where your own company sponsors you as an employee, though this is subject to Turkey's rule capping foreign hires relative to Turkish headcount, meaning a brand-new company with no Turkish staff usually cannot sponsor you yet; or (2) an Independent (self-employment) work permit designed for foreigners running their own Turkish business, which has its own evidentiary requirements and is generally harder to obtain than an employer-sponsored permit. A work permit, once granted, also functions as your residence permit. See our full Work Permit in Turkey guide for the sponsorship rules and requirements in detail.