Move to Turkey by Company Formation: 2026 Guide
Move to Turkey by company formation in 2026: setup with 50,000 lira capital, residency and work permit, documents and steps.
In recent years Turkey has become one of the main destinations for migration and investment for Iranians. One of the legal and popular ways to obtain residency in the country is company formation and investment.
Under Foreign Direct Investment Law No. 4875, foreigners can set up a company in Turkey with 100 percent ownership and enjoy privileges similar to Turkish citizens. With capital as low as 50,000 lira (about $1,500) you can own a legitimate company in Turkey and pave the way to residency and work.
In this comprehensive guide, we go through every step of moving to Turkey through company formation in 2026, from choosing the company type and the required documents to the conditions for obtaining residency and a work permit.
🏢 Company Types for Foreign Investors in Turkey
In Turkey there are four main structures for foreign investors. Each has its own advantages and uses:
| Company type | Minimum capital | Legal personality | Commercial activity | Suitable for |
|---|---|---|---|---|
| Limited liability company (Ltd. Şti.) | 50,000 lira | ✅ Yes | ✅ Allowed | Small and medium businesses |
| Joint-stock company (A.Ş.) | 250,000 lira | ✅ Yes | ✅ Allowed | Large investments |
| Branch of a foreign company | No minimum | ❌ No | ✅ Allowed | Expanding the parent company's activity |
| Liaison office | No minimum | ❌ No | ❌ Prohibited | Market research |
1. Limited Liability Company (Limited Şirket – Ltd. Şti.)
This type of company is the most common option for foreign investors and is structurally similar to a GmbH in Germany or an LLC in the UK.
Key features:
- Minimum capital: 50,000 lira (about $1,500)
- Maximum of 50 shareholders
- At least one manager (the manager does not need to be a Turkish resident or citizen)
- The capital must be paid in cash within 24 months
- Share transfers require approval by the general assembly and notarial formalities
2. Joint-Stock Company (Anonim Şirket – A.Ş.)
This type suits larger investments and businesses that plan a public offering or want to raise capital.
Key features:
- Minimum capital: 250,000 lira (about $7,500)
- 25% of the capital in cash must be deposited in a bank account before registration
- The rest of the capital is paid within 24 months
- Share transfers are usually more flexible
3. Branch of a Foreign Company
A branch is an extension of the parent company in Turkey and has no independent legal personality. The parent company is directly liable for the branch's obligations.
4. Liaison Office
A liaison office is set up only for market research, promotion and coordination and carries out no commercial activity (no income generation). All expenses must be funded from abroad, and permission is obtained from the Ministry of Industry and Technology.
📋 Documents Required for Company Formation
Foreign documents must go through the following steps:
| Step | Action |
|---|---|
| 1 | Notarization of the documents in the country of origin |
| 2 | Obtaining an apostille (in Hague Convention member countries) |
| 3 | Official translation into Turkish by a sworn translator |
| 4 | Notarization of the translation at a Turkish notary |
Main documents:
- For individual shareholders: A copy of a valid passport, apostille and official translation
- For corporate shareholders: The parent company's certificate of activity, board decision, apostille and official translation
- Power of attorney: If you cannot be present in person
- Tax number: Obtained from the Turkish tax office for each foreign shareholder
📝 Step-by-Step Company Formation
If the foreign documents are prepared correctly, registration is usually completed within 3 to 7 working days:
| Step | Description |
|---|---|
| 1 | Check and reserve the company name through the MERSİS system |
| 2 | Prepare the articles of association (name, subject of activity, capital, management) |
| 3 | Obtain a temporary tax number for foreign shareholders |
| 4 | Deposit the capital in a blocked bank account (for a joint-stock company: 25%) |
| 5 | Register in MERSİS (the central registry system) |
| 6 | Submit to the trade registry office in the relevant province |
| 7 | Publication in the Trade Registry Gazette (the company acquires legal personality after registration) |
| 8 | Register with the tax office and obtain the final tax number |
| 9 | Register with the Social Security Institution (if you hire employees) |
| 10 | Open a corporate bank account (usually 2-4 weeks) |
💰 Company Formation Costs
| Cost item | Description |
|---|---|
| Registration and chamber of commerce fees | Varies by company type and capital |
| Notary and translation fees | Depends on the number of documents |
| Competition Authority contribution | 0.04% of the company's capital |
| Legal books and articles of association | Initial costs |
| Legal consultation | Depends on the complexity of the structure |
| Sector permits | If needed in certain industries |
🏠 Residency and Work Permit Through Company Formation
🔑 Key Point: Ownership ≠ Permission to Work
Many foreign investors assume that by registering a company they automatically receive permission to work (a work permit). This assumption is wrong.
| Situation | Work permit required |
|---|---|
| Company shareholder (no executive role) | ❌ No |
| Salaried general manager | ✅ Yes |
| Company employee | ✅ Yes |
Under International Labor Force Law No. 6735, you need a work permit for executive activity in your own company.
Conditions for a Work Permit:
- 1:5 ratio: Usually, for every foreign employee, 5 Turkish employees must be hired
- Minimum paid-in capital of the company for obtaining a work permit is set at 500,000 lira
- Minimum salary in line with the minimum wage set by the government
Does Being a Shareholder Give a Right to Residency?
Being a shareholder in a company does not by itself create automatic residency. But after registering the company and obtaining a work permit, you can get a work residence permit. You can also get a tourist residence permit by proving financial means. However, the best and most reliable route is obtaining a work permit and then a work residence permit.
💡 Special Opportunities for Investors in 2026
1. Digital Company
In 2026 the Turkish government officially announced the "Digital Company" program. Under this plan:
- Foreign investors can register a company entirely remotely, without needing to be physically in Turkey
- Identity verification is done through a passport and a KYC process
- Virtual offices and automated accounting infrastructure can be used
- Membership in Terminal İstanbul with special privileges
The Minister of Industry and Technology has stated: "Foreign investors can establish a company entirely remotely through passport-based identity verification and have no obligation to be physically present in Turkey."
2. Technology Zones (Technoparks)
Setting up a company in technology development zones has notable advantages:
- Income tax exemption on income from software and research and development until 2028
- Value added tax exemption on the sale of software produced in these zones
- Salary support covering up to 95% of employees' income tax
3. Investment Exemptions and Incentives
Turkey offers a range of incentives to foreign investors:
- Value added tax (VAT) exemption
- Customs duty exemption
- Reduced corporate income tax
- Support for employer insurance premiums
- Land allocation and energy support
⚠️ Important Legal Points for Foreign Investors
The Principle of Equal Treatment
Under FDI Law No. 4875, foreign investors have the same rights as Turkish citizens and do not need a Turkish partner.
Currency Restrictions
Under Decree No. 32 (Protection of the Value of the Turkish Lira), certain contracts (including leases and service contracts) between persons resident in Turkey cannot be drawn up in foreign currency.
Sector Permits
Some industries need special permits, including: energy, education, health, tourism, mining and food.
Post-Registration Obligations
After the company is established, there are ongoing obligations, including:
- Registration in the E-TUYS system (the Foreign Investor Information System), within one month of establishment
- Compliance with tax law and filing monthly and annual returns
- Accounting under Turkish standards and presenting financial statements
- VERBIS registration if you process personal data and have more than 50 employees
❓ Frequently Asked Questions (FAQ)
1. Can a foreigner own 100% of a company in Turkey?
Yes. Under Foreign Direct Investment Law No. 4875, foreigners can establish a company in Turkey with 100% ownership and do not need a Turkish partner.
2. What is the minimum capital for registering a company in Turkey?
For a limited liability company (Ltd.): 50,000 lira (about $1,500). For a joint-stock company (A.Ş.): 250,000 lira (about $7,500).
3. Does registering a company automatically give me residency or a work permit?
No. Being a shareholder in a company does not by itself create automatic residency or a work permit. For executive activity (working in your own company) you need a work permit, which has its own conditions (the 1:5 ratio of Turkish hires and minimum capital of 500,000 lira).
4. How long does the company registration process take?
With fully prepared documents, the main registration is usually completed in 3 to 7 working days. Opening a bank account may take 2 to 4 weeks more.
5. Do I have to be in Turkey to register a company?
No. With the new "Digital Company" program in 2026, registering a company entirely remotely without being physically present has become possible. You can also act through a lawyer with an official power of attorney.
6. Must my company have a physical office in Turkey?
Yes. Every Turkish company must have a registered address. But for service and technology businesses, the use of virtual offices is accepted.
🎯 Conclusion and Final Recommendation
Moving to Turkey through company formation is one of the legal and relatively fast ways to enter the country's market. With the positive changes in the law and the "Digital Company" program, this route has become more attractive in 2026.
| Step | Estimated time |
|---|---|
| Preparing foreign documents | 1-2 weeks |
| Company registration in MERSİS and the trade registry | 3-7 days |
| Opening a bank account | 2-4 weeks |
| Tax and social security registration | 1-2 weeks |
| Work permit application (if needed) | 1-3 months |
⚠️ Final warning: Before any step, be sure to consult a qualified lawyer or a reputable legal advisor in company formation and immigration. Laws change quickly, and choosing the wrong structure can be very costly.
📞 Free Consultation
If you plan to register a company in Turkey and need expert advice on choosing the company type, documents and process, our team is ready to help.
📱 WhatsApp: https://wa.me/905395005000
🌐 Website: https://aloturkey.org