With its strategic location between Europe and Asia, a young population exceeding 85 million, and recent economic reforms, Turkey has become one of the most attractive destinations for foreign entrepreneurs. .

But what is the process of starting a business in Turkey for foreigners? What are the costs and what legal aspects should be considered?

According to Foreign Direct Investment Law No. 4875, foreigners They can have 100% ownership Establish a company in Turkey and enjoy the same rights as Turkish citizens . The company registration process in 2026 will be significantly digitized and, if documents are ready, within 3 to 7 business days It is feasible .

In this comprehensive guide, we'll cover all the steps for starting a business in Turkey; from choosing the company type and required documents to taxes, work permits, and crucial legal points.

🏢 Choosing the Type of Company: The First and Most Important Decision

There are two main types of companies for foreign investors in Turkey: Limited Liability Company (Ltd. Şti.) و Joint-stock company (JSC) . The choice of each has long-term consequences for taxes, management, and the ability to attract capital.

Comparison of Company Types in Turkey

Feature	Limited Liability Company (Ltd. Şti.)	Joint-stock company (JSC)
Minimum Capital (2026)	50,000 lira	250,000 lira
Number of shareholders	1 to 50 people	At least 1 person (no maximum)
Management	One or more managers	Board of Directors
Share transfer	Need for general meeting approval and notarization	Easier (with footnotes)
Suitable for	Small and medium-sized businesses, startups	Large investment, public offering
Payment of capital before registration	Not required	Minimum 25% cash blocked in the account

Important note: Companies registered before 2024 with capital less than these amounts must, by December 31, 2026 will increase their capital to a new minimum, otherwise they face the risk of dissolution .

Which type of company is most suitable for you?

• Co. Ltd. It's an ideal choice for most foreign entrepreneurs looking for a simple and cost-effective structure. This type of company is very suitable for startups and small businesses. .
• Inc. For larger projects, companies intending to raise venture capital or go public, as well as specific industries like banking, it is more ideal .

Required documents for company registration

Foreign documents must undergo the following procedures: verification in the country of origin, obtaining Upst (For Hague Convention member countries), official translation into Turkish by a sworn translator and notarization by a Turkish Notary Public .

Documents from individual shareholders

Degree	Explanation
Valid passport	Copy with official translation and apostille
Turkish tax number	From the Tax Office (obtainable online)
Biometric photo	If needed
Power of Attorney	In the absence of physical presence

Documents from Legal Entity Shareholders (Companies)

Degree	Explanation
Certificate of activity / Official gazette	Apostille and official translation
Board of directors' decision	Confirmation of participation in a Turkish company

📝 Step-by-step company registration process

The company registration process, with document preparation, usually 3 to 7 business days It takes time and its main steps are :

Step 1: Choose a company name and draft the articles of incorporation

• Company name in system MERSIS (Central Registration System) Review and reserve
• Prepare the company's articles of association (including business scope, capital, management).
• The articles of association must be in Turkish. 

Step 2: Obtain Tax Identification Number

Foreign shareholders must through Interactive Tax Office Obtain a temporary tax identification number .

Step 3: Registration in the MERSİS System and the Trade Registry Office

• The bylaws are registered through the MERSİS system.
• For a stock company: minimum 25% cash capital Before registration, a deposit will be placed on hold in the bank account. 
• Payment 0.04% capital To the Competition Authority (Rekabet Kurumu) 
• Signing documents at the Company Registration Office (or through a power of attorney)

Step 4: After Registration (Completion of Formalities)

After official registration, the company must complete the following :

• Register at the tax office And conducting an address visit (Yoklama) by the tax collector 
• Register on E-TUYS (Foreign Investor Information System) — Within one month of establishment 
• Using a Certified Public Accountant (CPA) For monthly bookkeeping, e-defter and e-fatura
• Register in VERBIS (Data Holder Registration System) In case of processing personal data and having more than 50 employees or a balance sheet exceeding 100 million lira 
• Stock printing (for A.Ş.) To start calculating tax exemption 

Step 5: Open a Corporate Bank Account

Opening a bank account The slowest step It's for foreign companies and usually 2 to 4 weeks It takes a long time .

Key points for opening an account:

• Banks are looking for The true nature of business و Origin of capital are
• Creating a business summary page in Turkish speeds up the process.
• Capital must be mentioned with the phrase “capital” (Capital) To be deposited in the description of the transfer 

🏛️ Company Registration and Work Permits: Two Separate Issues

One of the most common mistakes is the assumption that Automatic company registration for work permits. It gives. But this is a misconception. .

Status	Work permit required
Shareholder (no executive position)	❌ No
CEO receiving salary in Ltd. Şti.	Yes
Board member of A.Ş. (non-resident in Turkey)	❌ Usually no

Under International Labor Law No. 6735, for Executive activity In your company, you need a work permit. The main conditions include a hiring ratio of 5 Turkish employees for every 1 foreigner and a minimum capital of 500,000 lira. .

Foreign Company Taxes in Turkey

Companies registered in Turkey are subject to the following taxes :

Tax type	Rate (2026)	Explanation
Corporate income tax	25%	Company profits
Value Added Tax (VAT)	20% (reduced rates 1% and 10%)	On the sale of goods and services
withholding tax	Variable (10-15%)	Dividends, interest, and royalties abroad
Social insurance rights	~22.5% employer + ~15% employee	Based on gross rights

Special tax incentives

• Technoparks (Technology Parks): Corporate income tax exemption on software and R&D until 2028, VAT exemption on software sales, and up to 95% exemption on employee income tax 
• Istanbul Finance Center (IFC): Special incentives for multinational corporations

🆕 New transformation: Possibility of registering a company entirely remotely (digital company)

In 2026, the Turkish government plans to «Digital Company» has officially announced that based on it :

• Foreign investors can Completely remote And register a company in Turkey without the need to be physically present in Turkey
• Identity verification through Passport and KYC Process It will be done
• Possibility of using Virtual notebooks And automated accounting infrastructure
• membership Terminal Istanbul With special privileges
• Tax exemptions and incentives up to a specified limit

According to the Ministry of Industry and Technology, «Foreign investors can establish companies entirely remotely through passport-based identity verification and have no obligation to be physically present in Turkey.» .

❓ Frequently Asked Questions (FAQ)

Can a foreigner own 100% of a company in Turkey?

Yes. According to Foreign Direct Investment Law No. 4875, foreigners can establish companies in Turkey with 100% ownership and do not require a Turkish partner. .

What is the minimum capital required to register a company in Turkey?

For a Limited Liability Company (Ltd.): 50,000 lira (Approximately $1,500). For Joint Stock Company (A.Ş.): 250,000 lira (Approximately $7,500) .

How long does company registration take?

With complete preparation of documents, the original registration is usually 3 to 7 business days It will be done. Opening a bank account is possible. 2 to 4 weeks Take longer .

4. Do I have to be present in Turkey to register a company?

No. With the new program «Digital Company» In 2026, company registration will be fully remote and possible without physical presence. . Additionally, you can proceed through a lawyer with a formal power of attorney. .

Does registering a company automatically grant a work permit?

No. Being a shareholder of a company does not automatically grant you residency or a work permit. You need a work permit to engage in executive activities (working in your own company). .

6. Does my company need to have a physical office in Turkey?

Yes. Every Turkish company must Registered address have it. But for service and technology businesses, using Virtual notebooks It is widely accepted in many cases .

🎯 Summary and Final Recommendation

Starting a Business in Turkey for Foreigners In 2026, with new facilities and digital infrastructure, the process is transparent and relatively fast. Key points:

Stage	Estimated time
Preparation of foreign documents (apostille, translation)	1-2 weeks
Registering a company in MERSİS and the Turkish Trade Registry	3-7 days
Opening a bank account	2-4 weeks
Tax Registration and E-TUYS	1-2 weeks
Work permit application (if required)	1-3 months

⚠️ Final warning: Before taking any action, be sure to consult with a qualified lawyer or reputable legal advisor specializing in company registration and immigration. Laws change rapidly, and choosing the wrong structure can have significant costs.

Free consultation

If you intend to register a company in Turkey or start a business in this country and need expert consultation, our team is ready to assist you.

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🌐 Website: https://aloturkey.org