Company formation in Turkey for foreigners: requirements, documents and process

Company formation in Turkey: can foreigners form a company?

Yes. Company formation in Turkey by foreigners is governed by the equal treatment principle of Law No. 4875. Foreign individuals and companies established abroad can form any company type under the Turkish Commercial Code, become shareholders of an existing Turkish company by share transfer, or open a branch in Türkiye.

• No prior permit: as a rule, foreign investment does not need ministry approval. Only companies in sectors such as banking, insurance and capital markets need permits, whatever the shareholders' nationality.
• No Turkish partner: all shares can belong to foreigners.
• No extra capital: no amount beyond the minimum capital in the Turkish Commercial Code is required for foreign-owned companies.
• No residence requirement: shareholders do not need to live in Türkiye; formation can be done through a representative.

Company types for company formation in Turkey

In practice, company formation in Turkey by foreigners means a limited company or a joint stock company. General and limited partnerships can also be formed, but partners have unlimited liability, so foreign investors rarely choose them.

• Minimum capitalLtd. / A.Ş.Limited: TRY 50,000. Joint stock: TRY 250,000; TRY 500,000 initial capital under the registered capital system.
• Number of shareholders1–50 / 1+A limited company can have up to 50 shareholders; a joint stock company has no upper limit.
• Capital payment24 monthsLimited: within 24 months of registration. Joint stock: at least 25% of cash capital before registration, the rest within 24 months.
• ManagementManager / BoardLimited: one or more managers, at least one of them a shareholder. Joint stock: a board of one or more members who need not be shareholders.
• Share transferNotarised / freerLimited: notarised transfer agreement and general assembly approval. Joint stock: freer unless the articles restrict it.
• Public debtsKey differenceLimited company shareholders can be held liable for unpaid tax and social security debts in proportion to their shares; joint stock shareholders are not, but representatives are.
• Best suited toSizeLimited: small and medium closely held businesses. Joint stock: larger investments, many shareholders, a future public offering.

Minimum capital and payment timing

Under the Presidential Decision published in the Official Gazette on 24 November 2023 (No. 32380), companies formed from 1 January 2024 need minimum capital of TRY 250,000 for joint stock companies and TRY 50,000 for limited companies. Non-public joint stock companies using the registered capital system need initial capital of at least TRY 500,000. Use the calculator at the top of this page to check your figures.

• Joint stock company: at least 25% of the cash capital is deposited in a bank account opened in the company's name before registration; the rest is paid within 24 months of registration.
• Limited company: no payment is required before registration; the capital is paid within 24 months of registration, or sooner if the articles say so.
• Capital in kind: real estate, vehicles or intellectual property can be contributed; their value is set by an expert appointed by the court.
• Capital from abroad: cash capital is paid into the company account through a bank, which matters for recording foreign capital and later profit transfers.

Company formation in Turkey without travelling

Company formation in Turkey can be completed without the shareholder coming to Türkiye. The foreigner signs a power of attorney at a local notary or a Turkish consulate, authorising a representative in Türkiye to form the company, sign the articles, obtain the tax number and open the bank account. A power of attorney from a foreign notary needs an apostille and a notarised Turkish translation in Türkiye.

Under their own compliance rules, banks may ask for the signatory to attend in person or for extra documents when opening the company account. For joint stock companies, where capital must be deposited before registration, speaking to the bank early saves time. See opening a bank account in Turkey.

Companies that need a permit

As a rule, company formation in Turkey needs no permit. The formation and amendments of the joint stock companies below, however, need Ministry of Trade approval whatever the shareholders' nationality; sector regulators such as BDDK for banks and SPK for capital market firms must also approve:

• Banks, leasing, factoring, consumer finance and card companies, asset management and insurance companies
• Holding companies formed as joint stock companies and currency exchange offices
• General warehousing, licensed agricultural warehousing and product exchange companies
• Independent audit and supervision companies
• Technology development zone and free zone operator companies
• Companies subject to Capital Markets Law No. 6362

Sole trader, branch and liaison office

• Sole trader: a foreigner can open a business in their own name but must obtain a work permit before starting work. The tax and trade registry or tradesmen's chamber registration comes first, then the work permit application, then the municipal business licence.
• Branch: a foreign company can open a branch without separate legal personality. The branch is registered with the trade registry and a fully authorised representative resident in Türkiye is appointed. The parent company is directly liable for the branch's debts.
• Liaison office: set up with Ministry of Industry and Technology approval for non-commercial activities such as market research. It cannot trade, and its expenses are covered by foreign currency from the parent company.

Obligations after company formation in Turkey

Company formation in Turkey does not end with registration; foreign-capital companies have regular reporting and compliance duties.

• E-TUYS reporting: foreign-capital companies and branches register with the Ministry of Industry and Technology's E-TUYS system, file the activity form every year by the end of May, and update shareholder and capital data within one month of any change.
• Tax: capital companies pay corporate income tax; VAT, withholding and other returns are filed through a certified accountant. Double taxation treaties should be reviewed.
• Books and general assembly: statutory books are kept and an ordinary general assembly is held every year.
• Social security and employment: the workplace is registered with SGK before hiring. Foreign staff need a work permit.
• Data protection and sector rules: KVKK, commercial electronic messages and sector-specific rules apply.

Work permit and residence for foreign shareholders

Company formation in Turkey does not by itself give the right to live or work in Türkiye. A shareholder or manager who will actually work in the company needs a work permit from the Ministry of Labour. The ministry's criteria for foreign shareholders are:

• Paid-in capital of at least TRY 500,000, a share of at least TRY 500,000 and a stake of at least 20%.
• The first permit is annotated; from the seventh month the workplace must employ at least five Turkish citizens every month.
• These capital and employment conditions do not apply to foreign shareholders whose share is USD 100,000 or more.

A valid work permit counts as a residence permit. Shareholders who will not work can apply for a short-term residence permit on business grounds.

How long company formation in Turkey takes and costs

With complete documents and signatures, trade registry registration is usually finished within a few working days. Apostille and translation of foreign documents, the bank account and sector permits are the main factors that extend the timeline. Some trade registry offices use an appointment system.

Main cost items: the Competition Authority fee of 0.04% of capital, notary and sworn translator fees, trade registry and chamber fees, book certification and accounting services. Amounts depend on the company type, capital and the chamber's tariff.

• Real estate: companies with 50% or more foreign capital need governorship approval to acquire property for their activities. See buying property in Turkey as a foreigner.
• Citizenship: a fixed capital investment of at least USD 500,000 or creating jobs for at least 50 people are among the citizenship by investment options. See Turkish citizenship by investment.