A foreign national can form a company in Turkey without holding a residence permit, and the registered company can then serve as the basis for a short-term residence permit, or for a work permit that also counts as a residence permit; the company always comes first, because the Migration Management requires the Trade Registry documents before it will process the founder's application. This article sets out the order of steps, the choice between a joint-stock company and a limited company, the formation procedure before the Trade Registry Directorate, the founder's residence and work permit options, family permits, and the compliance that keeps the permit renewable.
- Order: company registration → tax registration and bank account → residence permit or work permit application → family permits.
- Minimum capital since 1 January 2024: joint-stock company (anonim şirket, A.Ş.) TL 250,000; limited company (limited şirket, Ltd. Şti.) TL 50,000.
- A founder who manages the company while living in Turkey needs a work permit; the work permit replaces the residence permit for its duration.
- A founder who only holds shares, or who is still setting up, ordinarily uses a short-term residence permit based on the company.
Which comes first: the company, the residence permit or the work permit
The Turkish Commercial Code (Türk Ticaret Kanunu) does not require a founder or shareholder to be resident in Turkey, and the Trade Registry Directorate (Ticaret Sicil Müdürlüğü) registers companies with wholly foreign shareholders in almost every sector. The founder therefore starts on the corporate side. What the founder needs before registration is a potential tax number (potansiyel vergi numarası) from the Revenue Administration, which can be obtained online through the Interactive Tax Office with a passport, a notarised Turkish translation of the passport, and either personal attendance in Turkey or a power of attorney (vekaletname) issued abroad, apostilled and translated by a sworn translator.
The immigration side begins only after registration. The Law on Foreigners and International Protection (Yabancılar ve Uluslararası Koruma Kanunu) lists, among the grounds for a short-term residence permit, foreigners who will establish a business or commercial connection in Turkey. The Provincial Directorate of Migration Management (İl Göç İdaresi Müdürlüğü) examines that ground on the basis of the Trade Registry record, the tax registration and evidence that the company exists in practice, none of which exists before registration. The sequence is therefore fixed: register the company, obtain the tax number and open the bank account, then apply for the permit. The founder's lawful stay during this period rests on a visa or visa-free entry, so the formation is planned at the start of the stay, not at its end.
There is a third track that many founders overlook. Under the International Labour Force Law (Uluslararası İşgücü Kanunu), a foreign partner who acts as manager of a limited company, or a board member of a joint-stock company who lives in Turkey, needs a work permit. A partner who holds shares but is not a manager, and a board member who does not reside in Turkey, do not. A work permit issued to the founder through the founder's own company serves as a residence permit for as long as it is valid, so a managing founder usually ends up on the work permit track rather than on a residence permit. Which track fits depends on whether the founder will run the company from Turkey day to day, and that question is settled before the articles of association are drafted, because the answer determines who is appointed manager.
Choosing the form: joint-stock company or limited company
Both forms admit one hundred percent foreign ownership, a single shareholder, and limited liability of the shareholders to the extent of their capital commitment. The practical differences are capital, the way the capital is paid, governance and the transfer of shares. Since 1 January 2024 the minimum capital of a joint-stock company is TL 250,000, or TL 500,000 for a non-public company adopting the registered capital system, and the minimum capital of a limited company is TL 50,000. For a joint-stock company at least one quarter of the cash capital is paid into a bank account before registration and the bank's confirmation letter goes into the registry file; the balance is paid within twenty-four months. For a limited company the law no longer requires any payment before registration, and the whole cash capital may be paid within twenty-four months after registration. In our practice founders often choose to deposit part of the capital before registration anyway, because the bank needs a funded account to open the corporate relationship and the Migration Management reads an unfunded company as inactive.
A limited company is managed by one or more managers (müdür) appointed in the articles or by a partners' resolution; at least one manager must be a partner. Share transfers require a notarised transfer agreement, approval by the general assembly of partners and registration with the Trade Registry, which keeps the ownership closed. A joint-stock company is managed by a board of directors (yönetim kurulu) of one or more members, who need not be shareholders; share transfers of registered shares are in principle free unless the articles restrict them and are recorded in the share ledger rather than the Trade Registry, which suits companies that expect to bring in investors. A joint-stock company also allows non-resident investors to sit on the board without a work permit, which matters for the work permit analysis above.
For a founder who will operate alone or with a small team and who wants the simplest structure, the limited company is the usual choice. For a founder who plans to raise capital, grant shares to partners abroad, or keep board seats for non-resident investors, the joint-stock company is the better fit. Both forms carry the same corporate tax, the same bookkeeping obligations and the same Trade Registry filing duties. Our note on the types of companies in Turkey compares the forms in more detail, and our service page on establishing a company in Turkey sets out the full document list.
Formation step by step: MERSİS, Trade Registry, tax office and bank
The procedure ordinarily runs as follows once the founder's identity documents and the potential tax number are in hand.
- Reserve the name and draft the articles in MERSİS. The Central Registry System (Merkezi Sicil Kayıt Sistemi, MERSİS) of the Ministry of Trade is the online platform where the company name is checked, the articles of association are drafted on the system's template and the founders, managers and capital are entered. The articles must state the company's field of activity, its registered seat, the capital and the managers or board members with their powers of representation.
- Pay in the capital where required. For a joint-stock company, at least one quarter of the cash capital is deposited in a bank account opened in the name of the company under formation, and the bank issues the confirmation letter addressed to the Trade Registry. For a limited company this step is optional before registration. A small amount is also paid to the Competition Authority account at the same time.
- Sign before the Trade Registry Directorate. The founders or their attorney under a power of attorney sign the articles and give their signature declarations before the Trade Registry Directorate of the Chamber of Commerce in the province of the registered seat. For a limited company the signature declaration can only be given before the Trade Registry, not before a notary. Foreign founders attending in person bring the passport and its notarised translation; attorneys bring the apostilled and translated power of attorney.
- Registration and announcement. The Trade Registry examines the file, registers the company and arranges publication in the Trade Registry Gazette (Ticaret Sicil Gazetesi). The company acquires legal personality on registration. In our files a complete application is ordinarily registered within a few working days; the longer part of the timeline is the preparation abroad of apostilled documents and translations.
- Tax registration. The tax office (Vergi Dairesi) of the registered seat opens the company's tax file, ordinarily after an address inspection at the registered seat, and the company's tax number is issued. The company must have a physical registered address; a lease in the company's name or an office service agreement is examined at this step.
- Statutory books, accountant and e-invoicing. The commercial books are certified, a certified public accountant is appointed for the monthly filings, and the company is registered for electronic invoicing and the electronic ledger where its activity requires it.
- Corporate bank account. The bank opens the operating account on the basis of the Trade Registry certificate, the Gazette announcement, the tax registration, the identity documents of the signatories and its own customer due diligence, including a declaration of the beneficial owners under the Financial Crimes Investigation Board (MASAK) rules. Banks apply their own risk policies to foreign-owned companies; in our practice the founder's attendance in person at the account opening removes most of the friction, and the choice of bank is made before the capital deposit so that one bank handles both steps.
Two documents from this sequence carry the residence permit application later: the Trade Registry certificate (sicil tasdiknamesi) or Gazette announcement showing the founder as shareholder or manager, and the tax registration certificate. The founder keeps certified copies from the outset. Our note on opening a company bank account in Turkey describes the bank step in more detail.
The founder's residence permit based on the company
The short-term residence permit (kısa dönem ikamet izni) for foreigners who establish a business or commercial connection is applied for online through the e-İkamet system of the Presidency of Migration Management (Göç İdaresi Başkanlığı), with an appointment at the Provincial Directorate for the submission of the file and the biometric data. The law allows this permit to be issued for up to two years at a time; under current practice shorter periods are common on a first application, and renewals are examined against whether the business is real. The standard document set includes the passport with the entry stamp or visa, the Trade Registry certificate and Gazette announcement, the articles of association, the tax registration certificate, the company's lease or office agreement, evidence of activity such as invoices, contracts or bank statements, the founder's health insurance valid for the whole permit period, proof of means of subsistence, proof of accommodation, and the address registration once a residence address exists.
The tension between the law and the counter is here. The statute asks for a business or commercial connection; the Provincial Directorate asks for a business that operates. A newly registered company with no employees, no office beyond a virtual address and no transactions is read as a company formed to obtain a permit, and the application is refused or granted for a short period with a warning. In our filings before the Istanbul Provincial Directorate, the file that passes without correspondence contains a funded bank account, a physical office lease, the accountant's engagement, the first tax filings and, where the company has started trading, the first invoices. Where the founder is applying within the first weeks after registration, the application explains the stage of the business in a cover letter rather than leaving the directorate to infer it. Our service page on residence permits in Turkey covers the categories and conditions.
Once the permit is issued, the founder receives a foreigner identity number (yabancı kimlik numarası), an eleven-digit number beginning with 99 that replaces the passport number in dealings with the tax office, the Social Security Institution, the Land Registry, banks and notaries. Until then the potential tax number serves for tax matters and the passport for identification. The residence address is registered with the Population Directorate (Nüfus Müdürlüğü), and any change of address is notified to the Migration Management within twenty working days. A refused application is challenged before the Administrative Court within sixty days of notification; the procedure is explained in our note on residence permit rejection appeals in Turkey. Practice may vary by authority and year.
Work permit: when a founder needs one and how it replaces the residence permit
A founder who is appointed manager of a limited company, or who sits on the board of a joint-stock company and lives in Turkey, falls within the work permit requirement of the International Labour Force Law, and the permit is applied for by the company itself through the online system of the Ministry of Labour and Social Security. The Ministry evaluates the application against its published criteria, which look at the company's paid-in capital or turnover, the foreign partner's shareholding, and the number of Turkish citizens the company employs for each foreign worker; under current practice a newly formed company whose foreign partner is the manager is given a period after the first permit to reach the employment ratio. A founder who is a shareholder without a management role needs no work permit and stays on the residence permit track.
The practical consequences follow from one rule: a valid work permit serves as a residence permit for its duration. A founder who obtains the work permit through the company does not apply separately for a residence permit, receives the foreigner identity number on the basis of the work permit, and is registered with the Social Security Institution as an employee of the company, with the company paying contributions on a salary that may not be lower than the thresholds the Ministry sets for the position. Where the founder is applying from abroad, the work permit application is filed through a Turkish consulate and the company completes it in Turkey; where the founder already holds a residence permit of sufficient length, the application is made domestically. Our service page on the work permit in Turkey sets out the criteria and documents, and our note on appointing a foreign director in Turkey addresses the board and manager appointments.
The independent work permit (bağımsız çalışma izni), which the law provides for foreigners working on their own account, is issued at the Ministry's discretion on the basis of the applicant's education, professional experience and the contribution of the planned activity, and in our practice it is granted rarely and only to applicants with a strong professional record. For an ordinary founder, the work permit sponsored by the founder's own company is the realistic route, and the independent permit is pursued only where the founder's profile supports it.
Family members, renewals and ongoing compliance
The founder's spouse and minor or dependent children apply for family residence permits (aile ikamet izni) with the founder as sponsor once the founder holds a residence or work permit. The sponsor must show income regarded as sufficient for the household, health insurance covering each family member, accommodation suited to the family and a record free of convictions for offences against the family; with statutory exceptions, the law also asks the sponsor to show a minimum period of prior lawful residence in Turkey. Family permits are issued for up to three years at a time and cannot outlast the sponsor's own permit. Children attend school on the family permit; a spouse who wishes to work applies for a work permit separately. Our note on the family residence permit in Turkey sets out the conditions.
Renewal of the founder's residence permit is applied for within the sixty days before expiry and in any event before the permit expires; applications after expiry are treated as new applications and expose the founder to overstay fines. The renewal file repeats the original documents with the company's current records, and the Provincial Directorate reads the company's tax filings, employment records and bank activity for signs that the business has continued. Work permits are renewed through the Ministry of Labour and Social Security on the company's application before expiry, on the same criteria as the first permit.
The permit therefore depends on the company staying in good standing. That means the annual general assembly of a joint-stock company and the annual partners' meeting of a limited company, the approval of the financial statements, the registration of any change of manager, address or capital with the Trade Registry, the monthly and quarterly tax filings, the social security filings for employees, and the renewal of the office lease. Corporate tax is currently charged at a general rate of twenty-five percent on the company's profit, value added tax is filed monthly, and withholding taxes apply to salaries and to certain payments abroad; the detail belongs to the accountant's calendar, but a founder who lets filings lapse will meet the consequence at the next permit renewal. Practice may vary by authority and year.
From company to citizenship: the investment routes
Forming a company does not by itself lead to citizenship. The Turkish Citizenship Law (Türk Vatandaşlığı Kanunu) and its implementing regulation allow citizenship to be granted exceptionally to investors who meet one of the thresholds set by regulation, which at the time of writing include a fixed capital investment of USD 500,000 certified by the Ministry of Industry and Technology, the employment of at least fifty Turkish citizens confirmed by the Ministry of Labour and Social Security, a real estate purchase of USD 400,000 held for three years, and bank deposit, government bond and fund share routes at USD 500,000. A founder's company can be the vehicle for the fixed capital or employment route, and a residence permit is a condition of the application, for which the investor category of short-term permit is issued as part of the process. The thresholds and the certification procedure are set by regulation and have been changed several times; our page on Turkish citizenship by investment describes the current conditions and the application before the Provincial Directorate of Population and Citizenship Affairs.
Separately from the investment route, a founder who lives in Turkey continuously for five years on residence or work permits may apply for citizenship on the general ground, subject to the other statutory conditions, and a founder who lives in Turkey for eight years without interruption may apply for a long-term residence permit. For most founders the realistic planning horizon is the first permit, the first renewal and the point at which the company employs staff; the citizenship question is examined once the business has a record.
Frequently asked questions
- Do I need a residence permit to set up a company in Turkey? No. A foreign national can form a company with a potential tax number and a passport, in person or through a power of attorney, without holding a residence permit. The permit is applied for after registration on the basis of the company.
- How much capital do I need? Since 1 January 2024 the minimum is TL 250,000 for a joint-stock company and TL 50,000 for a limited company. A joint-stock company pays at least a quarter before registration; a limited company may pay the whole amount within twenty-four months after registration.
- Does owning a company give me a residence permit automatically? No. The company is a ground for a short-term residence permit, and the Provincial Directorate of Migration Management examines whether the business is real: funded account, office, accountant, tax filings and activity.
- Do I need a work permit if I own the company? Only if you manage it while living in Turkey: a resident manager of a limited company or a resident board member of a joint-stock company needs a work permit, which the company applies for. A shareholder without a management role does not.
- Does the work permit replace the residence permit? Yes. A valid work permit serves as a residence permit for its duration, so a founder on a work permit does not apply for a separate residence permit.
- Can my family come with me? Yes. Your spouse and minor or dependent children apply for family residence permits with you as sponsor once your own permit is issued, subject to income, insurance and accommodation conditions.
- How long does formation take? Once the documents are complete, registration before the Trade Registry ordinarily takes a few working days. Apostilled documents and translations prepared abroad, the bank's due diligence and the tax office's address inspection usually take longer than the registration itself.
- Does forming a company lead to citizenship? Not by itself. Citizenship by investment requires one of the thresholds set by regulation, such as a certified fixed capital investment or the employment of fifty Turkish citizens; the general route requires five years of continuous residence.
Author: Av. Mirkan Günay Topcu, Managing Partner, ER&GUN&ER Law Firm, Istanbul Bar No. 67874. He advises foreign founders and investors on company formation before the Trade Registry, on the residence and work permits that follow it, and on the family and citizenship applications that build on them. Education: Istanbul University Faculty of Law (2018); Galatasaray University, LL.M. (2022).
Profile: Av. Mirkan Günay Topcu. LinkedIn: Profile. Istanbul Bar Association: Official website. Related practice page: citizenship and immigration law in Turkey.