Turkey is one of the most dynamic emerging markets for international business, offering a favorable location, growing consumer base, and competitive operating costs. As a result, an increasing number of foreign entrepreneurs are exploring starting a business in Turkey—either to enter the local market or to serve as a base for regional expansion. Fortunately, Turkish law permits full foreign ownership in most sectors, and the legal infrastructure supports both small startups and multinational corporate structures. However, company formation in Turkey still involves specific legal procedures, government approvals, and compliance with commercial regulations that require expert legal guidance.
From choosing the right legal entity type to completing trade registry filings and tax registrations, every step must comply with the Turkish Commercial Code, the Capital Markets Law (if applicable), and sectoral regulations. Our business lawyers in Turkey help foreign clients understand their options, whether forming a limited liability company (LTD), joint stock company (AŞ), branch office, or liaison office. We manage the legal setup, draft bilingual corporate documents, and provide guidance on shareholder agreements, foreign capital declarations, and bank account openings. As the best lawyer firm in Turkey for foreign investors, Istanbul Law Firm ensures your company is established smoothly and legally from day one.
This guide covers the legal essentials for foreign investors forming a company in Turkey, including entity types, registration timelines, capital requirements, tax ID processes, and immigration integration. Whether your goal is to establish a local distribution network, a manufacturing base, or a service company, our English speaking lawyers in Turkey provide the legal roadmap for commercial success. Related: Do Foreign-Owned Companies Need Turkish Legal Counsel?, What Are the Tax Liabilities for New Business Owners?
Can Foreigners Start a Business in Turkey?
Yes. Turkish law fully permits foreigners to establish and own businesses in most commercial sectors, with the same rights and obligations as Turkish nationals. There are no restrictions on the percentage of foreign ownership in limited or joint-stock companies, and foreign individuals can act as directors, shareholders, and legal representatives. However, some industries—such as defense, aviation, or broadcasting—may require special permits or joint ventures with Turkish partners. At Istanbul Law Firm, we review the intended business activity and advise on any sector-specific regulations before formation begins.
The process of company formation begins with selecting a legal entity structure. The most common choice for small and medium investors is the Limited Liability Company (LTD), which requires a minimum capital of 10,000 TRY and can have a single foreign shareholder. For larger operations or those seeking public financing, the Joint Stock Company (AŞ) is preferred. It has more formal governance and auditing rules but allows greater scalability. We prepare and notarize all founding documents, including the articles of association (ana sözleşme), shareholder identity verifications, and legal address declarations.
Before the company is officially operational, it must be registered with the Trade Registry (Ticaret Sicili), obtain a Turkish tax number, open a company bank account, and register with the Social Security Institution if hiring staff. We guide foreign founders through each of these steps, provide bilingual instructions for bank and tax filings, and coordinate with accounting professionals. With our firm’s support, international clients can set up a compliant business structure without needing to be physically present in Turkey. Related: Can Foreign Companies Own Property in Turkey?, How Business Formation Affects Residency and Visa Status
Types of Companies Foreigners Can Establish in Turkey
Foreign investors have multiple legal entity options when setting up a business in Turkey, each with different regulatory burdens, liability structures, and tax implications. The most common choice is the Limited Liability Company (Limited Şirket - LTD), which offers a flexible corporate form with low capital requirements and streamlined governance. It requires a minimum capital of 10,000 TRY and may be formed by a single shareholder. The liability of each shareholder is limited to their capital contribution. Our business lawyers in Turkey frequently recommend the LTD format for small to medium-sized enterprises and startups looking for fast market entry.
For larger ventures, especially those seeking to raise capital or operate in regulated sectors, the Joint Stock Company (Anonim Şirket - AŞ) may be more appropriate. This structure requires a minimum capital of 50,000 TRY and is governed by stricter audit and board formalities. An AŞ may issue shares and list on stock exchanges, making it ideal for businesses planning long-term growth or international financing. At Istanbul Law Firm, we assist foreign founders in preparing the more complex documentation required for AŞ formation, including shareholder agreements, board member declarations, and compliance filings under Turkish commercial law.
Alternatively, foreign entities can also establish branch offices or liaison (representative) offices. Branches operate under the parent company’s legal identity and must be registered with the Turkish Trade Registry. They can conduct commercial activity but do not enjoy separate legal personality. Liaison offices, on the other hand, are limited to non-commercial functions such as market research or regional coordination. They must obtain a special permit from the Ministry of Trade and cannot engage in revenue-generating activities. We evaluate your goals and select the most suitable structure based on tax efficiency, legal exposure, and strategic flexibility. Related: Legal Responsibilities of Foreign-Owned Companies in Turkey, How to Choose the Tax-Optimal Corporate Form
Step-by-Step Company Formation Process for Foreign Investors in Turkey
The process of establishing a company in Turkey as a foreigner involves several clearly defined legal steps. The first step is to determine the company type and structure, followed by preparing and notarizing the Articles of Association (ana sözleşme). Foreign shareholders must also obtain a Turkish tax identification number, which is necessary for almost all legal and financial filings. If the shareholders are corporate entities, additional documentation such as a Certificate of Good Standing, apostilled commercial registry excerpts, and board resolutions are required. At Istanbul Law Firm, we prepare all documentation in both Turkish and English, ensuring consistency and legal clarity from the start of the company formation process in Turkey.
Once the documents are ready, the next step is to deposit a percentage of the capital into a temporary bank account and submit an application to the Trade Registry Office (Ticaret Sicil Müdürlüğü). The registry examines the documentation and, upon approval, formally registers the company. The firm then receives a trade registration certificate (sicil gazetesi), a tax plate from the Tax Office, and Social Security registration if it intends to hire staff. We guide our clients through each one of these stages, manage appointments with notaries, banks, and the Chamber of Commerce, and ensure that the company is fully operational within a few days to two weeks.
After registration, additional legal obligations follow. These include opening a permanent bank account, registering with the local municipality, issuing company seals, and selecting an accountant for monthly tax filings. If the business involves foreign staff or needs physical premises, we also handle lease contracts, immigration filings, and workplace registration. Our English speaking lawyers in Turkey ensure that every compliance aspect is addressed, avoiding penalties and bureaucratic rejections. Related: What Happens If Company Owners Overstay Visas or Breach Work Permits?, Can Foreign Companies Buy Office or Commercial Property in Turkey?
Legal and Tax Obligations After Company Formation in Turkey
Establishing a business in Turkey is only the beginning—once operational, companies must adhere to a range of ongoing legal and tax obligations. These include monthly tax filings, bookkeeping, Social Security declarations, and compliance with labor regulations. All businesses are required to register with the local tax office and maintain a certified accountant who submits periodic VAT (KDV), income tax withholding (muhtasar), and corporate tax returns. Failure to meet these deadlines can result in administrative fines, account freezes, or audits. Our business lawyers in Turkey coordinate with tax advisors to ensure full compliance from the first fiscal month.
Legal obligations also include drafting and certifying company books (defter tasdiki), including the general ledger, inventory book, and share register. These must be approved by a public notary before the start of each fiscal year. For Joint Stock Companies and certain Limited Companies, independent audit requirements may apply under Turkish Commercial Code standards. If your business meets specific size or transaction thresholds, annual financial statements must be audited and reported. Istanbul Law Firm ensures that our foreign clients are informed of these thresholds and are prepared in advance, avoiding regulatory surprises or court-imposed sanctions.
Companies that employ staff must comply with labor law obligations, including employment contracts, SGK registration, payroll processing, and health/safety training documentation. Foreign-owned companies are also subject to annual declarations to the Ministry of Trade if they hold foreign capital, and must notify authorities of any changes in shareholding, address, or scope of activity. We offer ongoing corporate legal consultancy, manage reporting obligations, and advise on contract compliance to keep your business legally sound. Related: Ongoing Legal Representation for Foreign-Owned Turkish Companies, Corporate Tax Rates and Exemptions in Turkey
How Istanbul Law Firm Assists Foreign Investors in Turkish Company Formation
At Istanbul Law Firm, we provide full-service legal support for foreign investors establishing businesses in Turkey. From the initial consultation to operational launch, our role is to reduce risk, ensure compliance, and optimize the setup process across legal, financial, and administrative fronts. We begin by evaluating the client's goals, sectoral activity, and tax exposure to recommend the best legal entity structure—whether Limited Company, Joint Stock Company, branch, or liaison office. As the best lawyer firm in Turkey for foreign entrepreneurs, we offer strategic insights based on Turkish Commercial Code, sector regulations, and tax incentives available to international founders.
Our team prepares all corporate documentation in Turkish and English, obtains tax numbers for shareholders, and manages notarization, registry filings, and banking formalities. We work closely with Chambers of Commerce, financial institutions, and tax offices to streamline timelines and avoid bureaucratic delays. If clients are not physically present in Turkey, we act via Power of Attorney (POA), handling all steps remotely—including POA drafting, embassy coordination, and remote bank account setup. Our English speaking lawyers in Turkey ensure that every document, clause, and filing is explained and approved by the client before submission.
Beyond registration, we offer long-term legal counsel for growing businesses: preparing employment contracts, overseeing commercial lease agreements, handling intellectual property registrations, and representing clients in tax inspections or commercial disputes. Whether you are launching a small e-commerce platform or a multi-branch logistics operation, Istanbul Law Firm is your trusted legal partner for long-term success in the Turkish market. Related: Buying Office or Warehouse Property for Your Business, Why Every Foreign Business Needs a Turkish Legal Advisor
Frequently Asked Questions (FAQs)
- Can a foreigner start a company in Turkey? Yes. Foreigners can establish and fully own businesses in most sectors without restriction.
- What types of companies can foreigners set up? Most commonly Limited Companies (LTD), Joint Stock Companies (AŞ), branches, and liaison offices.
- Do I need a Turkish partner? No. Full foreign ownership is permitted in most industries.
- What is the minimum capital for company formation? 10,000 TRY for an LTD and 50,000 TRY for an AŞ.
- How long does it take to register a company? Typically 5 to 14 days, depending on documentation and registry workload.
- Can I open a company remotely? Yes. We handle the entire process under Power of Attorney for clients abroad.
- What are the tax obligations after formation? Monthly VAT, income tax, and annual corporate tax declarations are required.
- Is bookkeeping mandatory? Yes. All businesses must work with certified accountants and maintain company books.
- Can I hire foreign staff? Yes, but they will require work permits. We assist in that process as well.
- Do I need a physical office? Yes, a legal address is mandatory. Virtual offices are accepted in some cases.
- Should I work with a lawyer? Absolutely. Legal setup, contracts, and compliance must be professionally handled.
- Who is the best legal firm for company formation in Turkey? Istanbul Law Firm—with deep commercial law expertise and international client support.
Contact Our Turkish Law Firm
If you’re a foreign investor planning to start a business in Turkey, let Istanbul Law Firm handle your legal setup. We provide full company formation services—document drafting, registry filings, tax compliance, and long-term legal support. Our English speaking lawyers in Turkey make the process simple, fast, and fully compliant with Turkish law.