Start a Business in Turkey as a Foreigner: 2026 Guide
How to start a business in Turkey as a foreigner in 2026: company registration steps, costs, company types, taxes and work permit requirements.
With its strategic position between Europe and Asia, a young population of more than 85 million and recent economic reforms, Turkey has become one of the most attractive destinations for foreign entrepreneurs.
But what does the path to starting a business in Turkey look like for foreigners? What does it cost, and which legal points must be observed?
Under Foreign Direct Investment Law No. 4875, foreigners can establish a company in Turkey with 100% ownership and enjoy the same rights as Turkish citizens. In 2026, company registration has become significantly more digital and, if your documents are ready, can be completed within 3 to 7 business days.
In this comprehensive guide, we cover all the steps of starting a business in Turkey, from choosing a company type and the required documents to taxes, work permits and critical legal points.
🏢 Choosing the company type: the first and most important decision
There are two main company types for foreign investors in Turkey: the limited liability company (Ltd. Şti.) and the joint-stock company (A.Ş.). Each choice has long-term consequences for taxation, management and the ability to raise capital.
Comparing company types in Turkey
| Feature | Limited liability company (Ltd. Şti.) | Joint-stock company (A.Ş.) |
|---|---|---|
| Minimum capital (2026) | 50,000 TL | 250,000 TL |
| Number of shareholders | 1 to 50 | At least 1 (no upper limit) |
| Management | One or more managers | Board of directors |
| Share transfer | Requires general assembly approval and a notary | Easier (by endorsement) |
| Best suited for | Small and medium businesses, startups | Large investments, public offerings |
| Paying in capital before registration | Not required | At least 25% in cash, in a blocked account |
Important note: Companies registered before 2024 with capital below these amounts must raise their capital to the new minimum by December 31, 2026, or they risk dissolution.
Which company type suits you better?
- Ltd. Şti. is the ideal choice for most foreign entrepreneurs looking for a simple, low-cost structure. This type of company is very suitable for startups and small businesses.
- A.Ş. is better for larger projects, for companies planning to raise venture capital or go public, and for certain industries such as banking.
📋 Documents required for company registration
Foreign documents must go through the following steps: certification in the country of origin, an apostille (for countries party to the Hague Convention), an official translation into Turkish by a sworn translator, and approval by a Turkish notary.
Documents from individual shareholders
| Document | Details |
|---|---|
| Valid passport | Copy with official translation and apostille |
| Turkish tax number | From the tax office (can be obtained online) |
| Biometric photo | If required |
| Power of attorney | If you cannot be present in person |
Documents from corporate shareholders (companies)
| Document | Details |
|---|---|
| Certificate of activity / official gazette | Apostille and official translation |
| Board resolution | Approving participation in the Turkish company |
📝 Step-by-step company registration
With documents prepared, company registration usually takes 3 to 7 business days, and the main steps are:
Step 1: Choose a company name and prepare the articles of association
- Check and reserve the company name in the MERSİS system (the central registry system)
- Prepare the company's articles of association (including business activity, capital and management)
- The articles of association must be in Turkish
Step 2: Get a tax number
Foreign shareholders must obtain a temporary tax number through the Interactive Tax Office (İnteraktif Vergi Dairesi).
Step 3: Register in MERSİS and with the trade registry
- The articles of association are registered through the MERSİS system
- For a joint-stock company: at least 25% of the capital in cash is deposited into a blocked bank account before registration
- Pay 0.04% of the capital to the Competition Authority (Rekabet Kurumu)
- Sign the documents at the trade registry office (or through a power of attorney)
Step 4: After registration (completing the formalities)
After official registration, the company must complete the following:
- Register with the tax office and pass the address inspection (Yoklama) by a tax officer
- Register with E-TUYS (the foreign investor information system), within one month of incorporation
- Hire a certified accountant (SMMM) for monthly bookkeeping, e-defter and e-fatura
- Register with VERBIS (the data controllers registry) if you process personal data and have more than 50 employees or a balance sheet above 100 million TL
- Print the share certificates (for an A.Ş.) to start counting toward the tax exemption
Step 5: Open a corporate bank account
Opening a bank account is in practice the slowest step for foreign companies and usually takes 2 to 4 weeks.
Key tips for opening an account:
- Banks look for the real nature of the business and the source of the capital
- Preparing a one-page business summary in Turkish speeds up the process
- The capital must be transferred with the word "sermaye" (capital) in the transfer description
🏛️ Company registration and work permits: two separate matters
One of the most common mistakes is to assume that registering a company automatically gives you a work permit. This is incorrect.
| Situation | Work permit needed |
|---|---|
| Company shareholder (no executive role) | ❌ No |
| Salaried general manager of an Ltd. Şti. | ✅ Yes |
| A.Ş. board member (resident outside Turkey) | ❌ Usually no |
Under International Labor Force Law No. 6735, you need a work permit for an executive role in your own company. The main conditions include a ratio of 5 Turkish employees for each foreigner and a minimum capital of 500,000 TL.
💰 Taxes for foreign-owned companies in Turkey
Companies registered in Turkey are subject to the following taxes:
| Tax type | Rate (2026) | Details |
|---|---|---|
| Corporate income tax | 25% | On company profit |
| Value added tax (KDV) | 20% (reduced rates of 1% and 10%) | On sales of goods and services |
| Withholding tax | Varies (10-15%) | On dividends, interest and royalties paid abroad |
| Social security contributions | ~22.5% employer + ~15% employee | Based on gross salary |
Special tax incentives
- Technology development zones (Technoparks): Corporate tax exemption on software and R&D income until 2028, VAT exemption on software sales, and up to 95% income tax exemption for employees
- Istanbul Finance Center (IFC): Special incentives for multinational companies
🆕 New development: fully remote company formation (Digital Company)
In 2026, the Turkish government officially announced the "Digital Company" program, under which:
- Foreign investors can register a company entirely remotely, with no need to be physically in Turkey
- Identity verification is done through the passport and a KYC process
- Virtual offices and automated accounting infrastructure can be used
- Membership in Terminal İstanbul comes with special privileges
- Tax exemptions and incentives apply up to a set limit
According to the Ministry of Industry and Technology, "foreign investors can establish a company entirely remotely through passport-based identity verification and have no obligation to be physically present in Turkey."
❓ 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 to register a company in Turkey?
For a limited liability company (Ltd.): 50,000 TL (about $1,500). For a joint-stock company (A.Ş.): 250,000 TL (about $7,500).
3. How long does company registration take?
With fully prepared documents, the main registration usually takes 3 to 7 business days. Opening a bank account may take 2 to 4 weeks more.
4. Do I have to be in Turkey to register a company?
No. With the new "Digital Company" program in 2026, company registration is possible entirely remotely, with no physical presence needed. You can also act through a lawyer with an official power of attorney.
5. Does registering a company automatically give me a work permit?
No. Being a shareholder in a company does not by itself create an automatic residence or work permit. For an executive role (working in your own company), you need a work permit.
6. Does my company need a physical office in Turkey?
Yes. Every Turkish company must have a registered address. However, for service and technology businesses, virtual offices are accepted in many cases.
🎯 Conclusion and final recommendation
Starting a business in Turkey as a foreigner in 2026, with the new facilities and digital infrastructure, is a clear and relatively fast path. The most important points:
| Step | Estimated time |
|---|---|
| Preparing foreign documents (apostille, translation) | 1-2 weeks |
| Company registration in MERSİS and the trade registry | 3-7 days |
| Opening a bank account | 2-4 weeks |
| Tax registration and E-TUYS | 1-2 weeks |
| Work permit application (if needed) | 1-3 months |
⚠️ Final warning: Before taking any step, be sure to consult a specialist 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 or start a business here and need expert advice, our team is ready to help.
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