Turkey, bridging Europe and Asia, offers a remarkably fertile ground for global business expansion. For foreign investors, establishing a local presence is the crucial first step. Navigating the legal landscape can be complex, but with the right legal partner, your company registration in Turkey can be a streamlined, swift process.
Akkas & Associates Law Firm, based in Istanbul, has been a trusted guide in Turkish corporate law since 1992. We have successfully registered over 250 companies for foreign shareholders, offering expertise in multiple languages. We understand the specific needs and challenges faced by international businesses entering the dynamic Turkish market.
Table of Contents
- Understanding Turkish Business Structures
- The Accelerated 7-Step Company Registration Process in Turkey
- Step 1: Document Preparation and Power of Attorney
- Step 2: Obtain Tax ID Numbers and Name Reservation
- Step 3: Drafting and Notarizing the Articles of Association
- Step 4: Deposit the Capital (for JSCs)
- Step 5: Registration at the Trade Registry Office
- Step 6: Post-Registration Compliance and Tax Filings
- Step 7: Ongoing Governance and Permits
- The Strategic Benefits of a Company Registration in Turkey
- Documentation Requirements for Foreign Investors
- Tax Registration and Social Security Obligations
- Common Challenges and How to Overcome Them
- Timeline and Costs
- FAQs for Company Registration in Turkey
- Reach us for Company Registration in Turkey
Turkey’s strategic location bridging Europe and Asia, combined with its dynamic economy and investor-friendly policies, makes it an attractive destination for foreign entrepreneurs. Since 1992, our firm has guided international clients through the Turkish company registration process, and we’ve witnessed firsthand how the system has evolved to become more accessible and efficient for foreign investors.
Understanding Turkish Business Structures
Before diving into the registration process, foreign investors must choose the appropriate business structure. The most popular options include the Limited Liability Company (LLC) and the Joint Stock Company (JSC).
The LLC, known locally as “Limited Şirket,” is the preferred choice for small to medium-sized enterprises. It requires a minimum of one shareholder and offers liability protection, meaning shareholders are only liable up to their capital contributions. Recent regulatory reforms by the Turkish Ministry of Trade have streamlined the LLC formation process, making it possible to complete registration in as little as one week under optimal conditions.
Joint Stock Companies are better suited for larger operations planning to raise capital through public offerings. They require at least one shareholder but involve more complex governance structures and reporting requirements.
For those seeking professional guidance on business structuring in Turkey, our experienced legal team can help determine which entity type aligns best with your business objectives.
Choosing Your Business Structure: LLC vs. JSC
The Turkish Commercial Code (TCC) outlines several company types, but two dominate the choices for foreign investors: the Limited Liability Company (LLC) and the Joint Stock Company (JSC).
- Limited Liability Company (LLC / Limited Şirket):
- This is the most popular choice for small and medium-sized enterprises (SMEs).
- Requires a minimum capital of TRY 50,000 (as of 2025). The capital does not need to be paid up front; it can be paid within 24 months of registration.
- The shareholder’s liability is limited strictly to their subscribed capital contribution.
- It requires a minimum of one shareholder (real person or legal entity) and a maximum of fifty.
- Joint Stock Company (JSC / Anonim Şirket):
- Typically preferred for larger operations, companies planning to raise capital publicly, or those with more complex corporate governance needs.
- The minimum capital requirement is significantly higher at TRY 250,000. At least 25% of the committed capital must be deposited before registration.
- It offers easier transferability of shares, making it ideal for scalable ventures.
- Like the LLC, it requires a minimum of one shareholder.
Selecting the appropriate legal entity is paramount. Our firm provides expert consultation to match your global business objectives with the optimal Turkish structure.
The Accelerated 7-Step Company Registration Process in Turkey
With the implementation of the Central Registration System (MERSİS), the process for Turkish company formation has become significantly more efficient. Here is the step-by-step roadmap Akkas & Associates executes for our clients:
Step 1: Document Preparation and Power of Attorney
The foundational step involves gathering and legalizing necessary documents. For foreign partners, this includes notarized and translated copies of passports and an address-proving document (like a utility bill). Crucially, a Power of Attorney must be granted to our lawyers. This legal tool enables us to manage the entire process remotely on your behalf, often allowing for company setup in as fast as 1-2 days if you are present in Turkey.
Step 2: Obtain Tax ID Numbers and Name Reservation
Each foreign shareholder must obtain a potential Turkish Tax Identification Number (TIN) from the local tax office. Simultaneously, the company’s proposed name is reserved through the MERSİS system to ensure its uniqueness and compliance with trade name regulations.
Step 3: Drafting and Notarizing the Articles of Association
The Articles of Association (AoA) is the company’s legal constitution. Our experts draft this document in Turkish, specifying the capital, shareholders, directors, and scope of business. Once approved on MERSİS, the AoA and the authorized signatures of the company directors are officially notarized by a Turkish Public Notary.
Step 4: Deposit the Capital (for JSCs)
For Joint Stock Companies, at least 25% of the minimum capital must be deposited into a restricted corporate bank account. For LLCs, this deposit is not mandatory before registration. We assist in swiftly opening this bank account.
Step 5: Registration at the Trade Registry Office
The complete application package, including the notarized documents, bank deposit receipt (if applicable), and MERSİS application, is submitted to the relevant Trade Registry Office (e.g., the Istanbul Chamber of Commerce). Upon approval, the company is officially registered, and its establishment is published in the Turkish Trade Registry Gazette.
Step 6: Post-Registration Compliance and Tax Filings
Following official registration, the company must be registered for VAT and other relevant taxes at the local tax office. Essential documents like the Signature Circular (a notarized document verifying the manager’s authorized signature) and the company seal are procured.
Step 7: Ongoing Governance and Permits
Depending on your industry, additional operational licenses and permits may be required from relevant ministries. This is also the stage for registering employees with the Social Security Institution (SGK) and setting up mandatory accounting books. Akkas & Associates provides comprehensive Turkish Company Governance and Management Services to ensure seamless, long-term legal compliance.
The Strategic Benefits of a Company Registration in Turkey
Turkey’s strategic location and dynamic economy make company registration a compelling venture for global entrepreneurs.
- Access to Vast Markets: Registration grants direct access to a large domestic market and is a strategic hub for operations targeting Europe, the Middle East, and Central Asia. The country’s Customs Union with the EU further simplifies trade.
- 100% Foreign Ownership: The Turkish legal framework is highly liberal, allowing foreign investors to own 100% of their company in most sectors, offering complete control over their Turkish operations.
- Favorable Tax Environment: Turkey offers competitive corporate tax rates and significant incentives, especially within Organized Industrial Zones and Free Trade Zones. We guide you in leveraging these advantages to maximize your profitability.
- Repatriation of Profits: Foreign investors can transfer their profits, dividends, and proceeds from the sale of shares out of Turkey without restrictions, provided all local tax obligations are met.
For a deeper dive into the legal requirements for foreign personnel, you may be interested in our guide on Work Permit and Residence Visa Applications in Turkey.
Documentation Requirements for Foreign Investors
Foreign shareholders must provide apostilled or legalized documents from their home countries. Essential documents include passports, proof of address, and articles of association if the shareholder is a corporate entity.
All foreign-language documents must be officially translated into Turkish by sworn translators. Our multilingual legal team handles documentation preparation in English, German, Russian, French, and other languages, ensuring accuracy and compliance with Turkish legal standards.
Tax Registration and Social Security Obligations
Following trade registry registration, companies must register with the tax office within 10 days. You’ll receive a tax registration certificate and invoice authorization.
If you plan to hire employees, social security registration with SGK (Social Security Institution) is mandatory. Employers must register within one month of starting operations and register each employee before they begin work.
Understanding Turkish tax obligations is crucial. The standard corporate tax rate is 25%, and companies must file annual tax returns. For comprehensive information about Turkish taxation, the Turkish Revenue Administration provides detailed resources.
Common Challenges and How to Overcome Them
Language barriers remain one of the primary challenges foreign investors face. All official documents and communications with government agencies must be in Turkish. Working with experienced legal counsel who understands both Turkish regulations and international business practices significantly streamlines the process.
Another common issue involves understanding local business culture and regulatory expectations. Turkey’s bureaucratic procedures can seem complex to foreigners unfamiliar with the system. Having local legal representation ensures compliance and helps avoid costly mistakes or delays.
Timeline and Costs
Under ideal circumstances, company registration in Turkey can be completed within 2-5 business days. However, realistic timelines typically range from 3-4 weeks when accounting for document preparation, translations, apostille processes, and potential administrative delays.
Costs vary depending on the company type, capital amount, and whether you engage professional services. Typical expenses include notary fees, trade registry fees, translation costs, and legal fees. Budget-conscious investors should expect to invest between $2,500-$3,000 for a straightforward LLC registration with professional assistance.
Company Registration Roadmap in Turkey
- Translate and notarize partners’ passports
- Obtain tax identification numbers for all partners
- Secure a notarized Power of Attorney from partners for company formation
- Select and reserve the company name
- Execute a lease agreement for business premises
- Complete online company establishment procedures
- Submit company information to the Istanbul Chamber of Commerce online portal
- File Articles of Incorporation online and obtain approval
- Submit all required documentation to the Istanbul Chamber of Commerce and pay official registration fees
- Receive the company registration certificate from the Istanbul Chamber of Commerce
- Notarize signature circular
- Grant a Power of Attorney to the accountant on behalf of the company
- Establish a corporate bank account
Following Documents Needed for Company Registration in Turkey
From Real Persons;
- 2 Translated and notarized passport copies
- 2 Passport photos
- Power of Attorney to us for incorporating the company from each shareholder
FAQs for Company Registration in Turkey
Q1: How long does the entire company registration process typically take?
A: If all required documents are ready and legalized, and a Power of Attorney is granted to Akkas & Associates, the process for establishing an LLC or JSC can be completed in as little as 1 to 3 business days. Factors like document apostille/notarization for overseas entities can extend the initial preparation time.
Q2: Is a Turkish partner required to register a company?
A: No. The Turkish Commercial Code permits 100% foreign ownership of both Limited Liability Companies and Joint Stock Companies. A local partner is not a legal requirement.
Q3: What is the minimum capital requirement for an LLC in 2025?
A: As per recent regulations, the minimum required share capital for a Limited Liability Company (Limited Şirket) is TRY 50,000. The great advantage is that this entire amount can be paid within 24 months after the company is registered.
Q4: Do the shareholders or directors need to be physically present in Turkey for the registration?
A: No. By utilizing a Power of Attorney executed at a Turkish Consulate abroad (or via notarization/Apostille), Akkas & Associates Law Firm can handle the entire registration and bank account opening process on your behalf, allowing for a fully remote setup.
Q5: Are there any specific industry restrictions for foreign investors?
A: Generally, no. Foreign investors enjoy equal rights with Turkish citizens. However, some highly regulated sectors, such as media, aviation, and some financial services, may require specific government permits or clearances before commencing operations. We always advise a thorough due diligence check.
Reach us for Company Registration in Turkey
Our Turkish lawyers are prepared to assist with your company registration in Turkey. Our company formation lawyers are experienced in limited companies, joint stock companies, branch offices, liaison offices, and free trade zone company formation, management, and governance in Istanbul.
Akkas & Associates Law Firm is one of the leading law firms providing company registration services in Istanbul, Turkey. You may reach us for your company registration in Turkey through our Contact page.
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