Setting Up a Company in Turkey: A Complete Guide for Foreign Investors

Turkey has become an attractive destination for entrepreneurs and foreign investors due to its strategic location between Europe and Asia, large domestic market, and business-friendly regulations. With 100% foreign ownership permitted in most sectors, setting up a company in Turkey is a straightforward process when handled correctly.
Setting up a company in Turkey is a cost-effective and efficient process for foreign investors when properly planned. Choosing the right company structure, understanding tax and work permit requirements, and working with qualified local professionals are key to long-term success. With the right approach, Turkey can serve as a strong base for regional and international business operations.
Why Choose Turkey for Business?
Turkey offers several advantages to investors:
• Strategic access to Europe, the Middle East, and Central Asia
• A young and skilled workforce
• Competitive operating costs
• Strong infrastructure and logistics network
• Government incentives for exports, manufacturing, and technology
These factors make Turkey a popular choice for startups, trading companies, and international businesses expanding into the region.
Types of Companies in Turkey
The most common business structures are:
Limited Liability Company (Ltd. Şti.)
This is the preferred option for most foreign investors.
• One or more shareholders
• Minimum capital requirement of TRY 10,000
• Liability limited to the capital invested
• Simple management and reporting structure
Joint Stock Company (A.Ş.)
More suitable for large-scale investments.
• Minimum capital of TRY 250,000
• Required for certain regulated industries
• More complex governance structure
Required Documents
Foreign individuals need:
• Passport (notarized and translated into Turkish)
• Turkish tax identification number
• Signature declaration
• Address declaration
If a foreign company is a shareholder, additional apostilled corporate documents are required.
Company Registration Process
The standard registration process includes:
1. Preparing the Articles of Association through the MERSİS system
2. Notarizing company documents
3. Depositing the share capital into a bank account
4. Registering with the Trade Registry Office
5. Completing tax office registration
6. Registering with Social Security (if employees are hired)
7. Appointing a licensed accountant (mandatory)
The process typically takes 3 to 7 business days, provided all documents are ready.
Taxes and Ongoing Obligations
• Corporate income tax: 25%
• VAT rates: 1%, 10%, or 20% depending on the activity
• Dividend withholding tax: 10%
• Employers’ social security contribution: approximately 22.5%
Companies must file monthly and annual tax declarations through a certified accountant.
Work Permit and Residency
Foreign shareholders or directors who actively manage the company must obtain a work permit, which also serves as a residence permit. In most cases, the company must employ at least five Turkish citizens per foreign employee.
Banking and Capital
Companies can open corporate bank accounts in Turkish Lira, USD, or EUR. International transfers are permitted, though most banks require the company director to be physically present for account opening.
Incentives and Free Zones
Turkey offers incentives for businesses operating in:
• Export-oriented sectors
• Technology and R&D
• Manufacturing and industrial production
Free zones provide additional benefits such as VAT exemptions and customs duty advantages.