Turkey’s strategic location bridging Europe and Asia, combined with its robust economy and investor-friendly policies, makes it an attractive destination for international businesses. Establishing a company in Turkey has become increasingly streamlined in recent years, offering significant opportunities for foreign investors seeking to expand their operations into this dynamic market.
Establishing a company in Turkey in 2025 offers unique opportunities and competitive advantages. As one of Europe’s fastest-growing economies, Turkey welcomes both domestic and international investors to participate in dynamic markets across various sectors. Akkas & Associates Law Firm provides an up-to-date, easy-to-follow roadmap for starting your business successfully.
Table of Contents
- Why Choose Turkey for Your Business Venture?
- Types of Companies You Can Establish
- The Streamlined Company Establishment Process
- 1. Determining Your Company Type
- 2. Preparing Required Documents
- 3. Drafting the Articles of Association
- 4. Obtaining a Potential Tax Identification Number
- 5. Depositing Share Capital
- 6. Registering with the Trade Registry Office
- 7. Obtaining Tax Registration and Social Security Numbers
- 8. Opening a Bank Account
- 9. Licensing and Permits
- Key Considerations for Foreign Investors
- Post-Establishment Support
- FAQs on Establishing a Company in Turkey
- Q1: Can a foreigner be the sole shareholder of a Turkish company?
- Q2: What is the minimum capital required for an Ltd. Şti. in Turkey?
- Q3: How long does it typically take to establish a company in Turkey?
- Q4: Do I need a Turkish partner to establish a company?
- Q5: Are there any specific sectors restricted for foreign investment in Turkey?
- Q6: What are the main ongoing compliance requirements for a Turkish company?
- Reach us for Establishing Your Company in Turkey
Establishing a company in Turkey presents a wealth of opportunities for foreign investors. Its strategic location, burgeoning economy, and young, dynamic workforce make it an attractive destination.
At Akkas & Associates Law Firm, we’ve been guiding businesses through this process since 1992, offering unparalleled expertise and a full suite of legal services in Istanbul.
Why Choose Turkey for Your Business Venture?
Turkey stands at the crossroads of Europe and Asia, offering unique access to diverse markets. The government actively encourages foreign investment, implementing various incentives and reforms.
A rapidly growing domestic market, coupled with a skilled and competitive labor force, further enhances its appeal. The ease of doing business has steadily improved, making company registration in Turkey a more streamlined process than ever before.
Types of Companies You Can Establish
Understanding the various company types is crucial for choosing the right structure for your business.
Joint Stock Company (Anonim Şirket – A.Ş.)
This is a popular choice for larger businesses and those looking to raise capital through public offerings. An A.Ş. requires a minimum of one shareholder and a minimum capital of TRY 250,000. Liability of shareholders is limited to their capital contributions.
Limited Liability Company (Limited Şirket – Ltd. Şti.)
Most foreign investors opt for an Ltd. Şti. It’s suitable for small and medium-sized enterprises. This structure requires a minimum of one shareholder and a minimum capital of TRY 50,000. Similar to an A.Ş., shareholder liability is limited to their capital contributions.
Collective Company (Kollektif Şirket)
This type is typically for partners who want unlimited liability and direct management of the company. It has no minimum capital requirement. All partners are liable for the company’s debts and obligations.
Commandite Company (Komandit Şirket)
A Commandite Company involves two types of partners: general partners with unlimited liability and limited partners with liability restricted to their capital contribution. This structure is less common for foreign investors.
Cooperative Company (Kooperatif)
Cooperatives are formed by individuals or legal entities to fulfill specific economic, social, or cultural needs. They operate on principles of mutual aid and democratic control.
The Streamlined Company Establishment Process
While the process has become more efficient, professional guidance is invaluable. Here’s a general overview:
1. Determining Your Company Type
Our legal team will help you analyze your business goals and recommend the most suitable company type. This initial step is critical for long-term success.
2. Preparing Required Documents
A comprehensive list of documents is needed, including:
- Passport copies of shareholders and directors.
- Power of attorney for legal representatives.
- Articles of Association (Ana Sözleşme).
- Signed declaration forms.
Ensuring all documents are accurate and properly legalized is paramount to avoid delays.
3. Drafting the Articles of Association
This crucial document outlines the company’s purpose, capital, management, and other essential details. It must comply with the Turkish Commercial Code. Our lawyers meticulously draft these articles to protect your interests.
4. Obtaining a Potential Tax Identification Number
Foreign individuals and entities need a potential tax identification number (potential vergi numarası) before company registration. This can be obtained from the tax offices.
5. Depositing Share Capital
The required minimum share capital for A.Ş. and Ltd. Şti. must be deposited into a blocked bank account. Proof of deposit is necessary for registration.
6. Registering with the Trade Registry Office
Once all documents are prepared and the capital deposited, the application is submitted to the relevant Trade Registry Office (Ticaret Sicil Müdürlüğü). This involves online submission followed by physical submission of signed documents.
7. Obtaining Tax Registration and Social Security Numbers
After successful registration, your company will receive its tax registration number (vergi numarası) and social security numbers (SGK sicil numarası) for employees.
8. Opening a Bank Account
A corporate bank account is essential for business operations. This typically requires the company’s tax identification number and other registration documents.
9. Licensing and Permits
Depending on your industry, additional licenses and permits may be required. Our team can assist you in identifying and securing these necessary approvals.
Key Considerations for Foreign Investors
Legal Compliance
Navigating Turkish corporate law, tax regulations, and labor laws requires specialized knowledge. Non-compliance can lead to significant penalties. Our firm provides ongoing legal support to ensure your business operates within legal frameworks.
Tax System
Turkey has a relatively straightforward tax system. Corporate income tax is currently 25%. Various tax incentives are available for specific investments and regions. For further insights into the Turkish tax landscape, refer to the official website of the Republic of Turkey Ministry of Treasury and Finance.
Labor Laws
Turkish labor law is comprehensive and protects employee rights. Understanding regulations concerning employment contracts, working hours, minimum wage, and termination is vital. We can provide guidance on employment law matters to ensure full compliance. You may also want to explore our services related to Turkish Employment and Labor Law.
Intellectual Property Protection
Protecting your intellectual property, including trademarks, patents, and copyrights, is crucial in Turkey. Registration with the Turkish Patent and Trademark Office (Türk Patent ve Marka Kurumu) is recommended.
Business Culture
Understanding local business culture can greatly facilitate your operations. Building strong relationships and showing respect are highly valued.
Post-Establishment Support
Our services extend beyond company registration. We offer ongoing legal advice on:
- Corporate governance
- Contract drafting and negotiation
- Mergers and acquisitions
- Dispute resolution
- Real estate transactions in Turkey, which can be particularly relevant for businesses setting up physical premises. For more on this, please see our dedicated page on Turkish Real Estate Law.
FAQs on Establishing a Company in Turkey
Q1: Can a foreigner be the sole shareholder of a Turkish company?
A1: Yes, both Joint Stock Companies (A.Ş.) and Limited Liability Companies (Ltd. Şti.) can be established with a single shareholder, whether Turkish or foreign.
Q2: What is the minimum capital required for an Ltd. Şti. in Turkey?
A2: The minimum capital required for an Ltd. Şti. is currently TRY 50,000.
Q3: How long does it typically take to establish a company in Turkey?
A3: The registration process itself can be completed relatively quickly, often within 3-7 business days, once all necessary documents are prepared and approved. The overall timeline can vary depending on document preparation, legalization, and specific industry requirements.
Q4: Do I need a Turkish partner to establish a company?
A4: No, it is not mandatory to have a Turkish partner to establish a company in Turkey. Foreigners can own 100% of the shares in most company types.
Q5: Are there any specific sectors restricted for foreign investment in Turkey?
A5: Generally, Turkey encourages foreign investment across most sectors. However, there are some restrictions or specific regulations in certain areas, such as broadcasting, aviation, and some segments of the maritime industry, where foreign ownership might be limited or require special permits.
Q6: What are the main ongoing compliance requirements for a Turkish company?
A6: Ongoing compliance includes submitting regular tax declarations (monthly, quarterly, annually), maintaining statutory books, holding annual general assembly meetings, and complying with labor laws for employees, among other obligations.
Reach us for Establishing Your Company in Turkey
Establishing a company in Turkey offers immense potential for growth and expansion. By partnering with a seasoned legal team, you can navigate the complexities with ease and ensure a robust foundation for your business.
To successfully establish your business in Turkey, it is crucial to work with experienced legal professionals. For comprehensive assistance with company formation, legal compliance, and ongoing corporate services in Turkey, do not hesitate to contact Akkas & Associates Law Firm.
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