Turkey allows foreigners to own 100% of a company, and registration is relatively fast. Whether you want to trade, run an online business, open a branch of your existing company or build a base for living in Turkey, the right structure matters. This guide explains how to start a company in Turkey as a foreigner in 2027.
LTD or A.Ş.: Which Should You Choose?
| Limited company (LTD) | Joint stock company (A.Ş.) | |
|---|---|---|
| Best for | Small and medium businesses | Larger businesses, investors, future share sales |
| Minimum capital | TRY 50,000 | TRY 250,000 |
| Shareholders | 1 or more | 1 or more |
| Share transfers | Notarised, more formal | More flexible |
| Management | Board of managers | Board of directors |
Capital thresholds are set by regulation and can be updated; confirm the current figures.
Step-by-Step Registration
- Choose the company type, name and business activities.
- Get Turkish tax numbers for foreign shareholders and directors.
- Prepare documents: notarised and translated passport copies (or apostilled corporate documents for company shareholders).
- Draft the articles of association and submit them through the online trade registry system.
- Deposit capital where required (for an A.Ş., part of the capital before registration).
- Register with the trade registry and chamber of commerce.
- Complete tax registration, including the tax office check of your business address.
- Notarise the company books, open a corporate bank account and appoint an accountant.
Residence and Work Permits for Owners
Owning a company does not automatically give you the right to live or work in Turkey. Foreign shareholders who actively work in the company usually need a work permit, and the company may need to meet conditions such as minimum capital or turnover and employing Turkish citizens. Read our work permit in Turkey guide. Founders of innovative projects can also look at our startup visa countries guide.
Starting a business in Turkey?
Saya Group works with licensed accountants and lawyers to set up your company, open bank accounts and plan your residence and work permits.
Ongoing Costs
- Monthly accounting and tax filings.
- Office or registered address.
- Social security contributions for employees.
- Annual fees and chamber of commerce dues.
Sectors Popular With Foreign Founders
- Import, export and international trade.
- E-commerce and software.
- Tourism, real estate services and consulting.
- Food and hospitality.
Some sectors require additional licences (for example tourism agencies, financial services or healthcare). Check licensing before you register.
Tax Basics
Turkish companies pay corporate income tax and collect VAT on most sales, and must file regular returns through an accountant. Dividends paid to shareholders are subject to withholding tax, which may be reduced under a double tax treaty with your home country.
Branch, Liaison Office or New Company?
If you already own a business abroad, setting up a new Turkish company is not your only option. The right structure depends on whether you want to earn revenue in Turkey and how much liability you want the parent company to carry.
- New subsidiary (LTD or A.Ş.): A separate Turkish legal entity that can trade freely, hire staff and invoice customers. Liability is generally limited to the company’s assets. This is the most flexible choice for most investors.
- Branch office: Registered in Turkey but not a separate legal entity, so the foreign parent company remains responsible for its obligations. It can carry out commercial activity in line with the parent’s business.
- Liaison office: Used for market research, promotion or coordination. It cannot carry out commercial, revenue-generating activity and requires permission from the relevant ministry.
Discuss these options with a Turkish lawyer and accountant, because the choice affects tax, liability and how you can obtain work permits for foreign staff.
Opening a Corporate Bank Account
For many founders, the bank account takes longer than registering the company itself. Turkish banks run detailed compliance checks on companies with foreign shareholders. Expect to provide the trade registry gazette, articles of association, signature circular, tax certificate, shareholder and director passports, and proof of address. Banks also ask who the ultimate beneficial owners are and where the capital comes from, so keep clear records of the transfer of funds into Turkey.
Requirements differ from bank to bank and can change, and some banks ask directors to attend in person. Approaching more than one bank, and going with your accountant or lawyer, can save time. Keep company and personal money strictly separate from the first day.
Common Mistakes Foreign Founders Make
- Choosing the wrong activity codes. Your registered business activities affect licences, tax and permit assessments, so define them carefully.
- Assuming the company gives residence. Owning a company in Turkey does not by itself grant a residence or work permit.
- Underestimating compliance. Monthly tax filings, social security declarations and electronic invoicing obligations require a reliable accountant.
- Using an unsuitable address. The tax office checks the registered address, and some permits look for evidence of real business activity.
- Forgetting exit costs. Closing a company involves a formal liquidation that takes time and fees, so plan your structure with the long term in mind.
Hiring Your First Employees
Once your company is registered, hiring staff brings its own obligations. Every employee must be registered with the Social Security Institution (SGK) before they start work, and you must pay at least the legal minimum wage, withhold income tax and pay social security contributions each month. Written employment contracts, clear job descriptions and proper payroll records protect both you and your team.
Hiring local staff also matters if you plan to bring in foreign employees, including yourself as an active owner. Work permit assessments commonly look at how many Turkish citizens the company employs and at its capital or turnover. Planning your first hires with these criteria in mind can make later permit applications much smoother. A good payroll provider or accountant will keep you up to date as contribution rates and the minimum wage change.
Is Starting a Company in Turkey Right for You?
A Turkish company can be a good fit if you want to trade with Turkey and nearby markets, hire local talent at competitive cost, or build a long-term base in Istanbul. It is less suitable if you only need a residence permit without running an active business, as other routes may be simpler. If residence is your main goal, compare options such as immigration through investment. Company and tax rules, as well as capital thresholds, change regularly, so confirm the current requirements with official sources or licensed professionals before you start a company in Turkey.
Frequently Asked Questions
How long does it take to open a company in Turkey?
With documents ready, registration can often be completed in a few days to a couple of weeks.
Do I need to be in Turkey to register a company?
Not always; a notarised power of attorney lets a representative complete most steps.
Can I get residency through my company?
Company ownership alone is not enough. Most owners obtain a work permit, which also serves as a residence permit.
Yes. Both LTD and A.Ş. companies can have a single shareholder, and a foreign national can own 100% of the shares and be appointed as manager or director, subject to the usual registration documents.
Can I use a virtual office as my registered address?
Many small companies use shared or virtual offices, but the tax office must be able to verify the address, and permit assessments may look for real activity. Check with your accountant before signing.
Can investing in my Turkish company lead to citizenship?
Possibly. One route to Turkish citizenship by investment involves a capital investment of at least $500,000 held for three years, approved by the relevant authority. Strict conditions apply, so take legal advice first.
