Turkey’s strategic location bridging Europe and Asia, combined with its dynamic economy and business-friendly reforms, makes it an attractive destination for international entrepreneurs and investors. Company establishment in Turkey has become increasingly streamlined, offering numerous opportunities for foreign businesses seeking to expand their operations in this thriving market.
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Turkey’s dynamic economy and strategic location present unparalleled opportunities for investors in 2025. Establishing a company here, however, requires a precise understanding of legal frameworks and administrative procedures.
Akkas & Associates Law Firm, a leading full-service law firm in Istanbul since 1992, offers comprehensive legal guidance to ensure a seamless company formation process.
We have established more than 260 companies for our foreign clients including Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.
Navigating the Turkish Commercial Code: Company Types
The Turkish Commercial Code (TCC) outlines various company types, each with distinct legal and operational implications. Understanding these is crucial for making an informed decision that aligns with your business objectives. The most common structures preferred by foreign investors are:
- Limited Liability Company (Limited Şirket – Ltd. Şti.): This is the most prevalent company type in Turkey, particularly suitable for small and medium-sized enterprises. It can be established with a single shareholder (real or legal person) and offers limited liability, meaning shareholders are only liable up to their committed capital. The minimum capital requirement for an Ltd. Şti. is currently 50,000 Turkish Lira. All capital can be paid within 24 months of registration.
- Joint Stock Company (Anonim Şirket – A.Ş.): Often chosen for larger ventures, public offerings, or companies seeking significant capital, the A.Ş. also provides limited liability to its shareholders. The minimum capital requirement for an A.Ş. is 250,000 Turkish Lira, with at least 25% paid before registration and the remainder within 24 months. A.Ş. structures offer greater flexibility in share transfers and can issue various types of shares.
Other company types include Collective Companies, Limited Partnerships, and Cooperatives, though these are less frequently chosen by foreign investors.
Essential Steps for Company Establishment in Turkey
The process of establishing a company in Turkey involves several key stages, each requiring meticulous attention to detail.
- Company Name Selection and Reservation: The initial step involves choosing a unique company name and verifying its availability with the Turkish Trade Registry. This reservation is crucial to avoid duplication and secure your chosen identity.
- Preparation of Articles of Association: This foundational document outlines the company’s purpose, structure, share capital, management, and operational rules. It must be meticulously drafted and notarized in Turkey or at a Turkish consulate abroad. Our experienced lawyers can assist in preparing robust Articles of Association tailored to your specific business needs.
- Obtaining Tax Identification Numbers: Every shareholder, whether a real or legal person, and the company itself, must obtain a Turkish tax identification number (TIN) from the local tax office. This is a fundamental requirement for all financial operations.
- Capital Deposit and Bank Account Opening: Depending on the company type, a portion or all of the committed capital must be deposited into a company bank account in Turkey. For Joint Stock Companies, at least 25% of the capital must be deposited before registration. While not mandatory for Limited Liability Companies to deposit capital before registration, it can be paid within 24 months. Opening a corporate bank account is a prerequisite for formal registration and ongoing business activities.
- Trade Registry Office Registration: This is the pivotal step where the company gains legal personality. All prepared documents, including the notarized Articles of Association, proof of capital deposit, and identification documents, are submitted to the relevant Trade Registry Office. Upon approval, the company is officially registered and its details are published in the Turkish Trade Registry Gazette.
- Tax and Social Security Registration: Following trade registry registration, the company must be registered with the local tax office for VAT and other relevant taxes, and with the Social Security Institution (SGK) for compliance with labor laws if you plan to hire employees.
- Obtaining Necessary Licenses and Permits: Depending on your specific business activities (e.g., finance, healthcare, tourism), additional licenses or permits may be required from various governmental authorities. Navigating these sector-specific regulations can be complex, and our firm provides expert guidance in securing all necessary approvals.
- Signature Circular Issuance: The company’s authorized signatories must obtain a signature circular from a notary public, which serves as official proof of their authority to represent the company.
Benefits of Establishing a Company in Turkey for Foreign Investors
Turkey offers a compelling environment for foreign investment, backed by various incentives and a supportive regulatory framework.
- Strategic Location: Bridging Europe and Asia, Turkey provides unparalleled access to diverse markets.
- Growing Economy: A robust and expanding economy offers significant opportunities for business growth.
- Investment Incentives: The Turkish government offers various investment incentives, including tax reductions, customs duty exemptions, and social security premium support, particularly for strategic and high-tech investments. For detailed information, you can explore the official investment guide by the Presidency of the Republic of Turkey Investment Office.
- Favorable Business Environment: Turkey actively works to improve its ease of doing business, attracting foreign capital and talent.
Considerations and Legal Compliance in 2025
Staying compliant with Turkish law is paramount for long-term success. The Turkish Commercial Code is continuously updated, and adherence to regulations regarding corporate governance, financial reporting, and labor laws is essential.
For instance, annual general assembly meetings are mandatory, and certain companies may be subject to independent audits. Companies must also adhere to ongoing tax obligations and social security contributions. Staying abreast of these requirements can be challenging without expert legal assistance.
FAQs on Company Establishment in Turkey
Q1: What are the minimum capital requirements for company establishment in Turkey in 2025? A1: As of 2025, the minimum capital for a Limited Liability Company (Ltd. Şti.) is 50,000 Turkish Lira. For a Joint Stock Company (A.Ş.), the minimum capital is 250,000 Turkish Lira.
Q2: Can a foreigner be the sole shareholder and director of a company in Turkey? A2: Yes, Turkish law allows for the establishment of single-shareholder Limited Liability Companies and Joint Stock Companies. Foreigners can indeed be the sole shareholder and director of a company.
Q3: Is it mandatory to have a physical office address in Turkey to establish a company? A3: Yes, a registered office address in Turkey is required. This can be a rented office space or a virtual office solution.
Q4: How long does the company establishment process typically take? A4: While the official registration process can be relatively quick (sometimes within a few days once all documents are ready), the overall timeline depends on the completeness of documents, the complexity of the company structure, and the need for specific licenses. With professional legal assistance, the process can be significantly streamlined.
Q5: Are there any specific tax incentives for foreign investors in Turkey? A5: Yes, Turkey offers various investment incentive schemes, including customs duty exemptions, VAT exemptions, tax reductions, and social security premium support, particularly for investments in strategic sectors, R&D, and certain regions. These incentives are designed to attract both domestic and foreign direct investment. For more information, you can refer to the Turkish Ministry of Industry and Technology’s official website or the Investment Office of the Presidency of the Republic of Turkey.
Q6: What documents do I need as a foreign individual to establish a company in Turkey? A6: Generally, you will need notarized and apostilled (or Turkish Consulate-approved) copies of your passport, a Turkish tax identification number, and if applicable, a power of attorney for your legal representative. Additional documents may be required depending on the company type and your country of origin.
Reach us for a Company Establishment in Turkey
Establishing a successful company in Turkey requires careful planning, thorough understanding of local regulations, and professional guidance throughout the process. The complexity of Turkish commercial law, combined with evolving regulatory requirements, makes expert legal assistance essential for ensuring compliance and maximizing business opportunities.
For comprehensive support with company establishment in Turkey, including legal structuring, regulatory compliance, and ongoing corporate services, contact Akkas & Associates Law Firm. Our experienced team has been providing exceptional legal services since 1992, helping international businesses successfully establish and operate in Turkey’s dynamic market.
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