Setting up a company in Turkey has become increasingly attractive for foreign investors seeking to tap into the country’s strategic location bridging Europe and Asia. As Turkey continues to strengthen its position as a regional business hub, understanding the company formation process is crucial for entrepreneurs looking to establish a successful presence in this dynamic market.
If you are a foreign investor ready to establish a Limited Liability Company or a Joint Stock Company in Istanbul or anywhere in Turkey, our dedicated, multilingual team is ready to assist.
Table of Contents
- Why Choose Turkey for Company Formation?
- Types of Companies Foreign Investors Can Establish
- Step-by-Step Company Setup Process in 2025
- Required Documents for Company Formation
- Timeline and Costs for Setting Up a Company
- Post-Formation Compliance Requirements
- Common Challenges and How to Overcome Them
- Crucial Compliance and Taxation in 2025
- Why Choose Professional Legal Assistance?
- Frequently Asked Questions
- Reach us for a Company Setup in Turkey
Why Choose Turkey for Company Formation?
Turkey offers compelling advantages for international businesses. The country’s strategic geographic position provides access to markets spanning three continents, with over 1.5 billion consumers within a four-hour flight radius. Additionally, Turkey maintains customs union agreements with the European Union and has signed numerous free trade agreements, facilitating international commerce.
The Turkish government has implemented significant reforms to simplify the business registration process, reducing bureaucratic hurdles and attracting foreign direct investment. With a young, skilled workforce and competitive operational costs, Turkey presents an attractive destination for companies across various sectors including manufacturing, technology, logistics, and services.
Types of Companies Foreign Investors Can Establish
Foreign investors have several options when establishing a business entity in Turkey. The most common structures include:
Limited Liability Company (LLC): The most popular choice among foreign investors, requiring a minimum of one shareholder and offering liability protection. This structure is ideal for small to medium-sized businesses and allows 100% foreign ownership.
Joint Stock Company (JSC): Suitable for larger enterprises planning to go public or seeking substantial capital investment. A JSC requires a minimum of one shareholder and can issue shares to raise capital.
Branch Office: Foreign companies can establish branch offices to conduct business activities in Turkey. The parent company assumes full liability for the branch’s operations.
Liaison Office: This representative office cannot engage in commercial activities but serves as a coordination point for market research and communication.
Understanding which structure aligns with your business objectives is essential. Our corporate law services can help you navigate these options effectively.
Step-by-Step Company Setup Process in 2025
1. Obtain a Tax Identification Number
Foreign investors must first secure a tax identification number from the Turkish Tax Office. This process typically takes one business day and requires a valid passport and proof of address.
2. Reserve Your Company Name
Submit your proposed company name to the Trade Registry Office for approval. The name must be unique, not infringe on existing trademarks, and comply with Turkish naming conventions. According to the Turkish Trade Registry Gazette, name reservation is valid for 30 days.
3. Prepare Articles of Association
Draft comprehensive articles of association outlining your company’s purpose, capital structure, shareholder rights, and governance framework. These documents must comply with Turkish Commercial Code requirements and be notarized.
4. Deposit Share Capital
Open a corporate bank account and deposit the minimum required capital. The minimum required capital for a Limited Company is 50,000 Turkish Liras (TRY) as of 2025. Importantly, this capital does not need to be deposited before registration. The law allows for the total capital to be paid within 24 months following the company’s registration.
5. Complete Trade Registry Registration
Submit all required documents to the Trade Registry Office, including notarized articles of association, capital deposit certificate, and identification documents. The Ministry of Trade oversees this process through the Central Registration System (MERSIS).
6. Obtain Necessary Permits and Licenses
Depending on your business sector, you may need additional permits, licenses, or certifications. Common requirements include operating licenses, environmental permits, and sector-specific authorizations.
7. Register with Tax Office and Social Security
Complete your tax registration and obtain official tax plates for your business premises. If hiring employees, register with the Social Security Institution (SGK) within 30 days of your first employment.
Required Documents for Company Formation
Foreign investors must prepare comprehensive documentation for successful company registration. Essential documents include:
- Valid passport copies and notarized translations
- Proof of residential address (utility bill or rental agreement)
- Tax identification number certificate
- Articles of association
- Bank capital deposit certificate
- Board of directors appointment declaration
- Signature declarations authenticated by notary
- Chamber of Commerce registration documents
All foreign-language documents must be translated by sworn translators and apostilled or legalized according to Hague Convention requirements.
Timeline and Costs for Setting Up a Company
The company formation process in Turkey typically takes between 2-4 weeks from start to finish, depending on documentation completeness and government processing times. Breaking down the timeline:
- Tax ID and preliminary procedures: 2-3 days
- Articles of association preparation: 3-5 days
- Trade Registry registration: 3-7 days
- Tax registration and finalization: 3-5 days
Cost considerations include notary fees, trade registry fees, capital requirements, translation services, and professional consulting fees. Total setup costs for a basic LLC typically range from $3,000 to $4,000, excluding share capital.
Post-Formation Compliance Requirements
After successfully establishing your company, maintaining compliance with Turkish regulations is crucial. Annual obligations include:
Financial Reporting: Companies must maintain proper accounting records according to Turkish Accounting Standards and submit annual financial statements to the Trade Registry.
Tax Obligations: File corporate tax returns, VAT returns (if applicable), and withholding tax declarations according to prescribed deadlines. Corporate tax rate in Turkey is currently 25% for most businesses.
General Assembly Meetings: Hold annual shareholder meetings within the first three months following the financial year-end.
Social Security Compliance: Submit monthly employee declarations and premium payments to SGK.
Staying current with these obligations prevents penalties and ensures smooth business operations. According to the Turkish Revenue Administration, timely compliance is essential for maintaining good standing.
Common Challenges and How to Overcome Them
Foreign investors often encounter specific challenges during company formation. Language barriers can complicate document preparation and government interactions. Engaging bilingual legal counsel ensures accurate communication and proper documentation.
Navigating bureaucratic procedures requires familiarity with local processes and connections with relevant authorities. Experienced professionals can significantly expedite the registration process and prevent costly mistakes.
Understanding Turkish corporate culture and business practices is equally important. Building relationships with local partners, suppliers, and customers requires cultural sensitivity and patience.
Crucial Compliance and Taxation in 2025
Understanding the tax landscape is key to optimizing your Turkish investment.
Corporate Tax Rate
As of 2025, the standard Turkish Corporate Income Tax (CIT) rate is 25% on net profits. Companies benefit from an extensive network of Double Taxation Treaties (DTTs), which can prevent you from being taxed twice on the same income in Turkey and your home country.
Investment Incentives
Turkey offers powerful incentives, especially in designated areas like Free Zones and Technology Development Zones (Technoparks). These can include:
- Exemption from Corporate Tax (for manufacturing/export-oriented activities).
- Exemption from Customs Duties and VAT on imports.
- Significant social security contribution support for R&D personnel.
Akkas & Associates can guide you through the latest Turkish Investment Incentive Programs to ensure your company maximizes all available benefits.
Why Choose Professional Legal Assistance?
While entrepreneurs can technically handle company formation independently, professional legal guidance offers significant advantages. Experienced attorneys ensure compliance with all regulatory requirements, minimize setup time, provide strategic advice on optimal corporate structure, handle complex documentation accurately, and offer ongoing support for corporate governance matters.
At Akkas & Associates Law Firm, we have successfully assisted over 250 foreign-owned companies with their Turkey setup since 1992, providing comprehensive support throughout the entire formation process and beyond.
Frequently Asked Questions
Q1: Can a foreigner own 100% of a Turkish company?
Yes, Turkish law permits 100% foreign ownership in most business sectors. However, certain strategic sectors such as aviation, broadcasting, and maritime transport may have foreign ownership restrictions. It’s advisable to verify sector-specific regulations before proceeding with company formation.
Q2: Do I need to reside in Turkey to establish a company?
No, physical residency in Turkey is not required to establish or own a Turkish company. However, you must appoint at least one legal representative who can be either a Turkish citizen or a foreigner with a valid residence permit in Turkey. This representative will handle official correspondence and legal matters on behalf of the company.
Q3: What is the minimum capital requirement for a Turkish LLC?
The minimum required capital for a Limited Company is 50,000 Turkish Liras (TRY) as of 2024 (and expected to continue into 2025). Importantly, this capital does not need to be deposited before registration. The law allows for the total capital to be paid within 24 months following the company’s registration. The paid portion must be deposited in a corporate bank account before registration.
Q4: How long does it take to open a corporate bank account in Turkey?
Opening a corporate bank account in Turkey typically takes 5-10 business days after company registration is complete. Banks require notarized company documents, articles of association, trade registry gazette publication, tax identification number, and identification documents of authorized signatories. Some banks may have additional due diligence requirements for foreign-owned companies.
Q5: Are there any tax incentives for foreign investors in Turkey?
Yes, Turkey offers various tax incentives depending on the investment type, location, and sector. These may include corporate tax reductions, VAT exemptions on machinery imports, customs duty exemptions, social security premium support, and land allocation at discounted rates. Investment incentives are particularly generous in designated priority development regions and for strategic sectors like technology, manufacturing, and renewable energy.
Q6: What is the corporate tax rate in Turkey?
The standard corporate tax rate in Turkey is 25% as of 2025. However, certain qualifying companies may benefit from reduced rates or tax incentives. Additionally, dividends distributed to foreign shareholders are subject to 15% withholding tax, though this rate may be reduced under applicable double taxation treaties.
Q7: Can I operate my Turkish company remotely from abroad?
Yes, you can operate your Turkish company remotely as a foreign shareholder. However, you must appoint a legal representative in Turkey to handle official matters, maintain compliance with local regulations including tax filings and social security obligations, ensure proper bookkeeping through a local accountant or accounting firm, and maintain adequate corporate governance through regular board meetings and general assemblies.
Reach us for a Company Setup in Turkey
Establishing a company in Turkey opens doors to tremendous growth opportunities in one of the world’s most dynamic emerging markets. With the right guidance and proper planning, foreign investors can successfully navigate the company formation process and build thriving businesses that leverage Turkey’s strategic advantages.
Whether you’re looking to set up a limited liability company, establish a branch office, or explore other corporate structures, professional legal support ensures your business starts on solid foundations. Understanding Turkish company registration requirements, compliance obligations, and business regulations is essential for long-term success in this vibrant market.
Contact Akkas & Associates Law Firm today for expert guidance on your Turkey company setup. With over three decades of experience since 1992 and more than 250 successfully registered companies with foreign shareholders, our multilingual legal team provides comprehensive company formation and corporate governance services tailored to your specific needs. Let us help you transform your business vision into reality in Turkey’s growing economy.
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