How to open a company in Turkey? Turkey’s strategic location bridging Europe and Asia makes it an attractive destination for international businesses. With its growing economy, skilled workforce, and business-friendly reforms, opening a company in Turkey has become increasingly popular among foreign investors.
Turkey continues to attract investors and entrepreneurs with its dynamic economy, strategic location, and investor-friendly climate. Establishing a company in Turkey in 2025 not only grants access to a growing local market but also creates a gateway to Europe, the Middle East, and Central Asia.
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Why Choose Turkey for Your Business Venture?
Turkey offers numerous advantages for international entrepreneurs. The country’s robust infrastructure, competitive labor costs, and access to both European and Asian markets create exceptional opportunities for business growth. Additionally, Turkey’s membership in the G20 and customs union with the European Union provides unique trade advantages.
The Turkish government has implemented significant reforms to streamline the company registration process. According to the World Bank’s Doing Business Report, Turkey has improved its ranking in ease of doing business, making it more attractive for foreign investment.
Types of Companies You Can Establish in Turkey
Limited Liability Company (LLC)
The most popular choice for foreign investors is the Limited Liability Company (LLC). This structure requires a minimum capital of 10,000 Turkish Lira and offers flexibility in management and operations. LLCs provide limited liability protection for shareholders and are suitable for small to medium-sized businesses.
Joint Stock Company (JSC)
For larger enterprises, Joint Stock Companies offer the ability to raise capital through public offerings. The minimum capital requirement is 50,000 Turkish Lira, and these companies must have at least five shareholders. JSCs are ideal for businesses planning significant expansion or seeking public investment.
Branch Office
Foreign companies can establish branch offices in Turkey to conduct business activities. While branches are not separate legal entities, they provide a cost-effective way to test the Turkish market before committing to a full subsidiary.
Step-by-Step Process to Open Your Company
Step 1: Choose Your Company Name
Select a unique company name that complies with Turkish naming conventions. The name must be checked for availability through the Turkish Trade Registry and shouldn’t conflict with existing trademarks. Consider choosing a name that reflects your business activities and is easy to pronounce in Turkish.
Step 2: Prepare Required Documents
Gather all necessary documentation, including passport copies, proof of address, and articles of association. Foreign documents must be apostilled and translated into Turkish by certified translators. The Turkish Ministry of Trade provides detailed requirements for documentation.
Step 3: Deposit Share Capital
Open a bank account and deposit the required minimum capital. Banks will provide a capital deposit certificate, which is essential for the registration process. Choose a reputable Turkish bank that offers services in English and has experience with foreign investors.
Step 4: Register with Trade Registry
Submit your application to the local Trade Registry Office. This process typically takes 2-3 business days if all documents are complete. The registry will issue your company’s registration certificate and assign a unique tax identification number.
Step 5: Obtain Tax Registration
Register your company with the local tax office within 30 days of incorporation. This step is crucial for legal operation and involves obtaining a tax plate and registering for relevant tax types based on your business activities.
Step 6: Social Security Registration
If you plan to hire employees, register with the Social Security Institution (SGK). This registration is mandatory for all companies with employees and ensures compliance with Turkish labor laws.
Step 7: Obtain Required Licenses
Depending on your business type, you may need specific licenses or permits. Research industry-specific requirements through the Turkish Patent and Trademark Office and relevant regulatory bodies.
Foreign Investment Incentives
Turkey offers attractive incentives for foreign investors, including tax reductions, customs duty exemptions, and land allocation support. The Investment Office of Turkey provides comprehensive information about available incentives and support programs.
Regional investment incentives vary by location, with eastern provinces offering more generous benefits. These incentives can significantly reduce your initial investment costs and ongoing operational expenses.
Legal Requirements and Compliance
Corporate Governance
Turkish companies must comply with specific corporate governance requirements, including board composition, shareholder rights, and reporting obligations. Regular board meetings and proper documentation are essential for legal compliance.
Accounting and Reporting
All companies must maintain proper accounting records and submit annual financial statements. Turkish accounting standards align with international practices, but local expertise is recommended for compliance.
Tax Obligations
Corporate tax rate in Turkey is 25% for most companies, with reduced rates available for certain activities. Value-added tax (VAT) registration is mandatory for most businesses, with rates varying by product or service type.
FAQs about Opening a Company in Turkey
Q1: Can a foreigner fully own a company in Turkey? A1: Yes, foreign individuals or entities can own 100% of a company in Turkey. There are no nationality-based restrictions for owning a Limited Liability Company (LLC) or a Joint Stock Company (JSC).
Q2: What is the minimum capital required to open an LLC in Turkey in 2025? A2: As of 2025, the minimum capital required for a Limited Liability Company (LLC) in Turkey is TRY 50,000. This capital does not need to be deposited upfront and can be paid in installments within 24 months.
Q3: How long does it take to register a company in Turkey? A3: Thanks to the digitalization through the MERSIS system, the registration process can typically be completed within 5-7 business days if all documents are in order and readily available. However, factors like document translation and notarization can add to this timeframe.
Q4: Do I need a physical office address to register a company in Turkey? A4: Yes, a registered office address in Turkey is required. This address must be verifiable by a lease agreement or title deed. Virtual office services are permitted, provided they are authorized for commercial use and properly documented in the registration file.
Q5: Are there any tax incentives for foreign investors in Turkey? A5: Turkey offers various investment incentives, including reduced corporate tax rates in Free Zones, VAT exemptions for certain industries, and R&D incentives. These incentives aim to attract and support foreign direct investment. You can consult the Turkish Ministry of Industry and Technology for the latest incentives.
Q6: What documents are needed from foreign individuals for company formation? A6: Typically, translated and notarized passport copies, two passport photos, and a Power of Attorney (if engaging legal representation) are required from each foreign shareholder. Proof of address (like a utility bill) may also be necessary for bank account opening.
Q7: Can Akkas & Associates Law Firm assist with all stages of company formation remotely? A7: Yes, while an in-person visit can expedite certain steps, Akkas & Associates Law Firm can largely assist with remote company formation, including obtaining tax IDs, preparing documents, and filing applications on your behalf through a Power of Attorney.
Contact us to Open a Company in Turkey
Establishing a company in Turkey requires careful navigation of legal requirements, documentation, and regulatory compliance. The process involves multiple government agencies, complex paperwork, and strict adherence to Turkish commercial law. Success depends on having experienced legal counsel who understands both Turkish regulations and international business practices.
At Akkas & Associates Law Firm, we have been guiding international clients through Turkish company formation since 1992. Our comprehensive legal services cover every aspect of business establishment, from initial consultation to ongoing compliance support. Contact Akkas & Associates Law Firm today to begin your Turkish business journey with confidence and expert legal guidance.
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