Turkish Company Formation in 2025: A Comprehensive Guide to Start Fast

Navigating the complexities of Turkish company formation requires specialized knowledge of local regulations, tax implications, and compliance requirements that can significantly impact your business success.

Turkey’s strategic position bridging Europe and Asia, combined with its robust economy and favorable investment climate, makes it an increasingly attractive destination for international businesses. As a leading law firm in Istanbul with over three decades of experience since 1992, Akkas & Associates has guided countless foreign investors through the complexities of Turkish company formation.

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Why Choose Turkey for Your Business Expansion?

Turkey offers compelling advantages for international investors seeking to establish a foothold in both European and Middle Eastern markets. The country’s gross domestic product exceeded $800 billion in 2024, positioning it as the world’s 19th largest economy. With a population of over 84 million and a young, educated workforce, Turkey presents significant opportunities for businesses across various sectors.

The Turkish government has implemented numerous reforms to attract foreign investment, including simplified bureaucratic procedures, competitive tax incentives, and enhanced legal protections for investors. The country’s membership in the G20 and customs union with the European Union further enhances its appeal as a business destination.

Turkish Company Formation is Easy

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.

Why Form a Company in Turkey?

Turkey’s unique geographic position, robust economic growth, and business-friendly environment make it an attractive destination for entrepreneurs and investors worldwide. Key advantages include:

• Strategic location connecting Europe, Asia, and the Middle East, facilitating access to diverse markets.
• Growing economy with strong sectors like manufacturing, tourism, and technology.
• Government incentives such as tax benefits and reduced bureaucracy to encourage foreign investment.
• Competitive costs for company registration and operations compared to many Western countries.
• Skilled workforce from reputable universities with competitive labor costs.

Types of Companies in Turkey

Understanding the right company structure is crucial. The Turkish Commercial Code recognizes five main types of companies:

Company Type	Description	Minimum Capital Requirement	Liability of Partners
Limited Liability Company (LLC)	Most common for SMEs; requires at least one shareholder; capital responsibility limited to shares.	50,000 TRY	Limited to capital shares
Joint Stock Company (JSC)	Suitable for larger businesses; allows public share trading; more complex governance.	250,000 TRY	Limited to capital shares
Collective Company	Partners have unlimited liability; based on trust; usually natural persons only.	No minimum	Unlimited, personal liability
Limited Partnership	Combination of limited and unlimited partners; capital divided into shares.	No minimum	Limited partners limited; general partners unlimited
Cooperative	Formed to serve mutual interests of members; regulated differently.	No minimum	Limited to capital shares

Capital companies (LLC, JSC, Limited Partnership) focus on capital investment, whereas sole proprietorship companies (Collective Company, Ordinary Partnerships) rely on personal trust and unlimited liability.

Step-by-Step Guide to Forming a Company in Turkey

1. Choose Your Company Type and Name

• Decide on the appropriate company structure based on your business goals.
• Select a unique company name and reserve it through the Turkish Trade Registry to avoid duplication.

2. Prepare the Articles of Association

• Draft the Articles of Association, which define the company’s purpose, structure, and operational rules.
• This document must be notarized in Turkey or at a Turkish consulate abroad.

3. Obtain Tax Identification Numbers

• Each shareholder and the company itself must obtain tax ID numbers from the local tax office.
• This is essential for tax compliance and opening bank accounts.

4. Register with the Trade Registry Office

• Submit notarized Articles of Association, proof of capital deposit, identification documents, and other required paperwork.
• Pay registration fees and complete the registration form.
• Upon approval, your company will be officially registered, and details published in the Turkish Trade Registry Gazette.

5. Open a Company Bank Account and Deposit Capital

• Open a local bank account in the company’s name.
• Deposit at least 25% of the company’s capital (for JSCs) as required by law.

The bank will provide a receipt necessary for registration completion.

6. Register for Social Security and Tax

• Register the company with the Social Security Institution to comply with labor laws.
• Register for VAT and other relevant taxes at the local tax office.

7. Obtain Necessary Licenses and Permits

• Depending on your business activity, additional licenses or permits may be required from relevant authorities.

8. Finalize Documentation

• Get the company’s signature circular notarized.
• Grant power of attorney to your accountant or legal representative for ongoing compliance.

Key Considerations for Foreign Investors

• Ownership Rights: Foreigners can own 100% of a Turkish company without restrictions in most sectors.
• Documentation: All foreign shareholders must provide notarized and translated passports and other identification.
• Power of Attorney: Often required for company formation procedures if shareholders are not present in Turkey.
• Accounting and Compliance: Hiring a local authorized accountant is mandatory to ensure compliance with Turkish fiscal laws.
• Business Address: A registered office address in Turkey is required, typically proven by a lease contract.

Common Challenges and How to Overcome Them

• Language Barrier: All official documents must be in Turkish; professional legal translation and consultancy are recommended.
• Regulatory Complexity: Navigating licenses, permits, and tax registrations can be complex; expert legal guidance simplifies this process.
• Capital Requirements: Ensure timely capital deposit to avoid delays in registration.

How Many Days Are Needed for a Turkish Company Formation?

We can complete your Turkish company formation and open bank accounts and get online banking in 1-2 days if partners are in Turkey, and the company formation process will be faster and cost less.

We can finish your Turkish company formation remotely if you are not in Turkey; however, the setup process will be longer and cost more.

What are the Most Critical Legal Steps For Establishing a Turkish Company in 2025?

The most critical legal steps for establishing a Turkish company in 2025 are as follows:

1. Preliminary Planning and Company Type Selection: Begin by choosing the appropriate company structure (e.g., Limited Liability Company (LLC), Joint Stock Company (JSC)) based on your business goals and capital availability. This decision affects capital requirements, liability, and governance.
2. Company Name Reservation: Select a unique company name and reserve it through the Turkish Trade Registry to ensure it is not already in use. This step is essential for brand identity and legal protection.
3. Preparation and Notarization of Articles of Association (AoA): Draft the Articles of Association, which outline the company’s purpose, shareholder details, management structure, and operational rules. This document must comply with the Turkish Commercial Code and be notarized. For foreign investors, documents must be translated into Turkish and apostilled or legalized before notarization.
4. Obtaining Tax Identification Numbers (TINs): All shareholders, whether local or foreign, must obtain Turkish tax ID numbers from the local tax office. The company itself also requires registration for corporate tax purposes. The TIN is necessary for tax filings, invoicing, and opening bank accounts.
5. Opening a Bank Account and Capital Deposit: Open a temporary corporate bank account in Turkey and deposit the required minimum capital (e.g., 250,000 TRY for JSCs). The bank will issue a capital deposit receipt, which is mandatory for company registration with the Trade Registry.
6. Trade Registry Registration: Submit all required documents—including notarized AoA, capital deposit receipt, shareholder identification, and proof of registered office address—to the Turkish Trade Registry Office. Upon approval, the company acquires legal personality and is officially registered. This registration is published in the Trade Registry Gazette.
7. Registration with the Chamber of Commerce and Tax Authorities: Following Trade Registry approval, register the company with the local Chamber of Commerce. Then, complete tax registrations, including VAT registration if applicable. Notarize the company’s legal and accounting books as required by law.
8. Social Security Registration and Employment Setup: Register the company with the Social Security Institution to comply with labor laws, especially if you plan to hire employees. This is mandatory for social security contributions and employee benefits.
9. Obtaining Licenses and Permits: Depending on your business activity, you may need to secure additional licenses or permits from relevant ministries or local authorities before commencing operations.
10. Ongoing Compliance: Accounting and Reporting: Engage a local authorized accountant to maintain proper bookkeeping, file tax returns, and ensure compliance with Turkish Commercial Code and tax regulations. Continuous compliance is essential to avoid penalties.

Are There Specific Legal Requirements for Foreign Founders to Start a Company in Turkey?

Foreign founders establishing a company in Turkey in 2025 must comply with specific legal requirements designed to ensure smooth incorporation and regulatory compliance. Key legal requirements include:

1. Equal Rights and Ownership: Turkish law grants foreigners the same rights as Turkish nationals to establish and own companies in most commercial sectors without restrictions on foreign ownership percentage. Foreign individuals can act as shareholders, directors, and legal representatives of the company.
2. Company Type Selection and Articles of Association: Foreign founders must select an appropriate company type (commonly Limited Liability Company or Joint Stock Company) and prepare the Articles of Association (Ana Sözleşme), which must be notarized. The Articles are drafted in Turkish and must comply with the Turkish Commercial Code.
3. Obtaining a Turkish Tax Identification Number (TIN): Every foreign shareholder and board member must obtain a Turkish tax identification number from the tax office before company registration. This TIN is essential for tax filings, opening a corporate bank account, and other legal and financial processes.
4. Document Translation and Legalization: Foreign documents such as passports and powers of attorney must be notarized, translated into Turkish, and apostilled or legalized according to Turkish requirements before submission to authorities.
5. Trade Registry Registration via MERSIS: The company must be registered electronically through the Central Registry System (MERSIS). Foreigners register using their passport numbers and tax IDs. Founders or their authorized representatives must verify signatures in person at the Trade Registry or a notary public.
6. Capital Deposit and Bank Account: Foreign founders must open a local bank account and deposit the required minimum capital (e.g., 50,000 TRY for LLCs). The bank issues a receipt necessary for the Trade Registry registration process.
7. Sector-Specific Approvals: Certain industries (e.g., defense, aviation, banking, insurance) require prior approval from relevant ministries before company formation. Foreign investors should verify if their business activity falls under these regulated sectors.
8. Work and Residence Permits: While not mandatory for company formation, foreign founders planning to reside and manage the company in Turkey need to obtain appropriate residence and work permits under Law No. 4817.
9. Registered Office Address: A valid business address in Turkey is required, typically proven by a lease agreement or ownership document, to complete registration.
10. Local Representation and Legal Counsel: Employing a local representative or legal counsel is highly recommended to facilitate interactions with Turkish authorities, ensure compliance with ongoing legal obligations, and assist with permits and licenses.

In summary, foreign founders must secure a Turkish tax ID, notarize and translate documents, register electronically via MERSIS, deposit capital in a Turkish bank, and comply with sector-specific regulations.

Tax Implications and Incentives

Corporate Income Tax

Turkish companies are subject to corporate income tax at a rate of 25% on worldwide income. However, various incentives and deductions can significantly reduce effective tax rates for qualifying investments.

Investment Incentives

The Turkish government offers substantial investment incentives including:

• Regional investment incentives with reduced corporate tax rates
• R&D and innovation support programs
• Strategic investment incentives for large-scale projects
• Export-oriented investment support

Transfer Pricing Regulations

Companies with international related-party transactions must comply with Turkish transfer pricing regulations, which align with OECD guidelines. Proper documentation and economic analysis are essential to avoid potential disputes with tax authorities.

Banking and Financial Considerations

Establishing banking relationships is crucial for successful business operations in Turkey. Foreign companies should consider:

• Selecting banks with international experience and English-language support
• Understanding documentary requirements for account opening
• Evaluating foreign exchange risk management options
• Assessing credit facilities and financing options

Turkish banks offer sophisticated financial services comparable to international standards, with many providing specialized support for foreign investors.

Employment Law and Human Resources

Turkey’s labor laws provide comprehensive protections for employees while offering flexibility for employers. Key considerations include:

• Minimum wage requirements (updated annually)
• Mandatory social security contributions
• Annual leave and holiday entitlements
• Termination procedures and severance obligations

Companies must maintain detailed employment records and comply with workplace safety regulations enforced by the Ministry of Labor and Social Security.

Ongoing Compliance and Reporting Requirements

Turkish companies must fulfill various ongoing obligations including:

• Annual general assembly meetings
• Financial statement preparation and audit (for qualifying companies)
• Tax return filing and payment obligations
• Trade registry update notifications
• Social security contribution payments

Failure to meet these requirements can result in significant penalties and potential legal complications.

How Does the Turkish Legal System Treat Foreign Ownership in Different Company Types?

The Turkish legal system treats foreign ownership in different company types with a principle of equality, generally allowing full foreign ownership and equal rights as Turkish nationals, but with some sector-specific exceptions and structural nuances:

1. Capital Companies: Limited Liability Company (LLC) and Joint Stock Company (JSC)

• Full Foreign Ownership Allowed: Foreign investors can own 100% of shares in both LLCs and JSCs without restrictions in most sectors.
• Limited Liability: Shareholders’ liability is limited to their capital contributions, which protects personal assets from company debts.
• Common Structures for Foreign Investors: LLCs are preferred by small and medium investors due to simpler governance and lower capital requirements (minimum 50,000 TRY), while JSCs suit larger operations, offering scalability and the possibility of public financing.
• Foreigners as Directors and Representatives: Foreign individuals can serve as company directors, shareholders, and legal representatives with the same rights as locals.

2. Sole Proprietorships and Personal Companies (Collective Company, Ordinary Limited Partnership)

• Equal Treatment but Personal Liability: Foreigners may participate in sole proprietorships and partnerships, but these types involve unlimited or mixed liability for partners.
• Transfer Restrictions: Transfer of partnership shares requires unanimous consent of all partners, which can affect foreign investors’ flexibility.
• Less Common for Foreign Investors: Due to personal liability and operational risks, these are less frequently used by foreign investors.

3. Sector-Specific Restrictions

• Certain Sectors Require Special Permits or Joint Ventures: Industries such as defense, aviation, broadcasting, media, and education may impose restrictions on foreign ownership or require partnerships with Turkish nationals or government approval.
• Foreign Direct Investment Law Protections: The 2003 FDI Law guarantees equal treatment and protection against expropriation, providing legal security for foreign-owned companies.

4. Legal Safeguards and Dispute Resolution

• Foreign companies enjoy protection under the Turkish Civil Code and Commercial Code, with access to specialized commercial courts and arbitration mechanisms.
• Proper preparation of Articles of Association and trademark registration are critical to safeguard foreign investors’ rights

Summary Table

Company Type	Foreign Ownership Allowed	Liability	Common Use by Foreigners	Restrictions
Limited Liability Company (LLC)	100% foreign ownership permitted	Limited to capital	Most common for SMEs	Few sector-specific exceptions
Joint Stock Company (JSC)	100% foreign ownership permitted	Limited to capital	Larger enterprises, scalable	Some regulated sectors

In conclusion, Turkish law broadly supports full foreign ownership in capital companies with limited liability, offering foreigners equal rights in company formation and management. However, personal companies entail more liability and operational constraints. Sector-specific regulations may impose additional requirements or restrictions, making legal consultation essential.

Turkish Company Formation Roadmap

• Partners’ passport translation and notarization
• Obtaining tax ID numbers for the partners
• Getting Power of Attorney from the partners for company formation before the Notary Public
• Determining and reserving the company title
• Signing a lease contract for the company’s address
• Preparing online company establishment procedures
• Filing company details at the Istanbul Chamber of Commerce online
• Filing the company’s Articles of Incorporation online and getting it approved
• Filing all the documents at the Istanbul Chamber of Commerce and paying the official company registration fees
• Obtaining a company registration certificate from the Istanbul Chamber of Commerce
• Getting a signature circular notarized at a Notary Public
• Giving Power of Attorney to an accountant on behalf of the company
• Opening a company bank account

Bank Account Opening for Your Company

We open bank accounts for companies established in Turkey. Nowadays, there is a huge demand for bank account opening by foreign companies in Turkey. We assist you in opening company bank accounts.

We need the following documents for the company bank account:

• Company articles of incorporation.
• Shareholders’ and directors’ passport copies and their addresses prove documents such as a utility bill.
• Turkish tax ID number for each shareholder (we will get it).
• Signature circular for the company.
• Company stamp.

Conclusion & Suggestions for Establishing a Company in Turkey

Turkish company formation offers significant opportunities for international businesses seeking to expand into dynamic emerging markets. While the process involves multiple steps and regulatory requirements, proper planning and professional guidance ensure successful establishment and compliance.

At Akkas & Associates, our three decades of experience in Turkish corporate law enables us to provide comprehensive support throughout the entire company formation process. From initial planning and structure selection to ongoing compliance and business development, we offer the expertise and local knowledge essential for your success in Turkey.

The key to successful Turkish company formation lies in understanding local requirements, maintaining regulatory compliance, and building strong relationships with local partners and stakeholders. With proper preparation and professional support, your Turkish business venture can contribute to both your global expansion objectives and Turkey’s continued economic development.

For personalized guidance on your Turkish company formation requirements, contact Akkas & Associates to schedule a consultation with our experienced corporate law team. Our comprehensive approach ensures your business establishment proceeds smoothly while positioning your company for long-term success in Turkey’s dynamic market.

Reach us for a Turkish Company Formation

Turkish company formation has emerged as a pivotal strategy for international businesses seeking to capitalize on Turkey’s unique position as a transcontinental hub connecting European and Asian markets.

Whether you’re establishing a limited liability company, joint stock company, or exploring branch office options, the intricacies of Turkish commercial law demand expert legal guidance to ensure seamless incorporation and optimal business structure selection.

From initial company name reservation and capital deposit procedures to ongoing regulatory compliance and tax optimization strategies, each phase of the Turkish company formation process presents unique challenges that require professional expertise.

Don’t let bureaucratic hurdles or regulatory uncertainties delay your market entry into Turkey’s thriving economy. Contact Akkas & Associates Law Firm today to schedule your comprehensive consultation with our experienced Turkish corporate law specialists.

Our dedicated team will guide you through every aspect of your company formation journey, ensuring full compliance with Turkish regulations while maximizing your business opportunities in this strategic market. Let our three decades of proven expertise in Turkish company formation transform your business expansion plans into a successful reality.

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