Turkey has emerged as a strategic hub for entrepreneurs and foreign investors looking to establish a strong foothold between Europe and Asia. Its growing economy, skilled labor force, and favorable tax regime make it a preferred destination for international business expansion. But before opening a company in Turkey, it’s crucial to understand the legal procedures, associated costs, and compliance requirements.
Whether you’re a local entrepreneur or an international investor, this guide offers a complete overview of what it takes to register a company in Turkey—covering everything from choosing the right legal structure to understanding ongoing obligations.
Why Register a Company in Turkey?
Turkey offers a unique position both geographically and economically. It serves as a gateway to major markets across Europe, the Middle East, and Central Asia. Key reasons investors choose company registration in Turkey include:
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100% foreign ownership allowed
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Access to European and Asian markets
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Low operational costs and competitive labor
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Modern infrastructure and logistics
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Government incentives for foreign direct investment
Turkey is also a member of the Customs Union with the EU and has Free Trade Agreements with numerous countries, offering additional commercial advantages.
Legal Structures Available for Company Registration
When you register a company in Turkey, you need to choose the appropriate legal entity. The most common options are:
1. Limited Liability Company (LLC – “Limited Şirket”)
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Can be formed by one or more individuals or legal entities
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Most popular structure for SMEs and foreign-owned companies
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Minimum capital requirement: 10,000 TRY
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Liability is limited to the amount of capital contributed
2. Joint Stock Company (JSC – “Anonim Şirket”)
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Suitable for larger businesses and those planning to go public
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Minimum capital: 50,000 TRY
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Requires at least one shareholder
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Shareholders’ liability limited to their capital contribution
3. Branch Office
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Not a separate legal entity from the parent company
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Must operate under the name and scope of the foreign entity
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Requires approval from the Ministry of Trade
4. Liaison Office
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Cannot carry out commercial activities
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Used for market research, promotional work, or coordination
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Approval required from the Ministry of Industry and Technology
For most foreign investors, opening a Limited Liability Company is the preferred route due to its simple structure and lower capital requirement.
Step-by-Step Process for Company Registration in Turkey
Here is a clear overview of the company formation process:
Step 1: Decide on the Legal Structure and Company Name
Select the appropriate entity type and choose a unique company name. The name must not be identical or too similar to existing companies registered in Turkey.
Step 2: Draft and Notarize the Articles of Association
The company’s Articles of Association (AoA) must be prepared in accordance with Turkish Commercial Code and notarized before submission to the Trade Registry Office.
Step 3: Open a Temporary Bank Account and Deposit Capital
A temporary bank account is opened in the name of the company. For JSCs, 25% of the capital must be deposited before registration. LLCs are allowed to deposit capital within 24 months after registration.
Step 4: Register with the Trade Registry Office
Submit the application to the relevant provincial Trade Registry Office, including:
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AoA
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Proof of capital deposit
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Identification documents of shareholders and directors
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Office lease agreement
Once approved, the company receives a registration certificate and tax number.
Step 5: Obtain Tax Registration and Social Security Registration
After incorporation:
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Register the company with the local tax office
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Obtain potential VAT and corporate tax obligations
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Register employees with the Social Security Institution (SGK)
Step 6: Legal Books and Company Seal
Mandatory legal books must be certified by a notary, and a company seal must be produced. These are required for all legal and tax documentation.
Step 7: Commence Business Operations
After completing these steps, the company is fully operational and can engage in commercial activities.
Also Read: What Documents Are Needed to Register a Company in St. Kitts and Nevis?
Required Documents for Company Formation
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Passports of foreign shareholders and directors
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Tax ID numbers for Turkish residents
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Articles of Association
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Office lease contract
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Notarized signatures of authorized company representatives
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Founders’ declaration form
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Power of attorney (if using a local agent)
Note: All foreign documents must be translated into Turkish and notarized or apostilled for use.
Costs Involved in Registering a Company in Turkey
The total cost of company formation depends on various factors such as legal structure, services used, and whether you are a resident or non-resident. Below is an estimated breakdown for a standard LLC:
Estimated Costs (for LLC):
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Notary and translation fees: $300–$500
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Trade Registry registration fee: $400–$700
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Legal and consultancy services: $1,000–$2,000 (if using a service provider)
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Stamp duty and official charges: $200–$400
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Virtual office (optional): $500/year
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Total estimated setup cost: $2,000–$3,500
Ongoing annual costs may include accounting services, tax declarations, and employee-related payments.
Taxation and Compliance
After opening a company in Turkey, business owners are required to comply with local tax laws and financial reporting regulations. The key taxes include:
Corporate Tax:
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Standard rate: 20% (subject to changes depending on fiscal policy)
VAT (Value Added Tax):
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Standard VAT: 20%
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Reduced rates: 10% and 1% (for specific goods and services)
Withholding Tax:
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Applied to dividends, interest, and royalty payments to non-residents (subject to double tax treaties)
Other Obligations:
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Monthly payroll and social security declarations
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Quarterly and annual tax filings
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Keeping statutory books and financial records
Professional accounting services are highly recommended to stay compliant.
Also Read: Company Registration in Germany: Everything You Need to Know
Foreign Ownership and Residency
Foreigners are allowed to own 100% of a Turkish company in most sectors. There are no restrictions on foreign shareholding unless the business operates in specific regulated industries such as media or defense.
Directors and shareholders do not need to be residents of Turkey. However, if the director resides outside of Turkey, it is often practical to appoint a local manager or representative to handle legal and tax affairs.
Foreign investors may also apply for a Turkish residence permit based on their company ownership, which offers added convenience for managing the business locally.
Opening a Corporate Bank Account
After the company is registered, you can open a corporate bank account in Turkey. Requirements include:
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Company registration certificate
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Tax ID number
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Proof of address
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Authorized signatory documentation
Most major Turkish banks support foreign-owned companies and offer accounts in TRY, USD, and EUR.
Incentives for Foreign Investors
Turkey provides various investment incentives for foreign businesses, including:
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Tax reductions and exemptions
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Free zones offering zero customs duties and VAT
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Employment incentives
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Support for R&D and innovation-based projects
Depending on the industry and location, businesses may qualify for regional development incentives as well.
Final Thoughts
Registering a company in Turkey offers a wealth of opportunities for entrepreneurs and investors looking to access the Eurasian market. With clear legal frameworks, relatively low formation costs, and full foreign ownership rights, the country continues to attract international businesses.
Understanding the legal requirements, choosing the right structure, and ensuring compliance with tax and regulatory obligations are critical to successful company formation in Turkey.
To navigate the process more efficiently, many investors choose to work with local legal and consultancy firms who are experienced in helping foreigners open businesses in Turkey.
Frequently Asked Questions
1. How long does it take to register a company in Turkey?
The process typically takes 5 to 10 working days, depending on document readiness and the Trade Registry’s workload.
2. Can a foreigner open a company in Turkey without a local partner?
Yes, foreign nationals can own 100% of a company in Turkey without needing a local partner, except in restricted sectors.
3. Is it mandatory to rent office space to register a company?
Yes, a physical address is required for company registration. However, virtual office services are allowed in many cases for registration purposes.
