Choosing the right legal structure for your business in Turkey is a critical decision that impacts liability, taxation, governance, and regulatory compliance. Istanbul Law Firm, a prominent Turkish Law Firm, supports international investors and entrepreneurs in selecting and establishing the optimal entity type for their operations. Our portfolio spans Limited Liability Companies (LLC), Joint Stock Companies (A.Ş.), branch offices, liaison offices, and representative offices—each with distinct strategic characteristics. Our Turkish Lawyers guide clients through formation prerequisites, capital requirements, shareholder obligations, and board structures, aligned with the Turkish Commercial Code. As the best lawyer firm in Turkey for corporate advisory and formation law, we ensure your legal setup aligns with your business goals. Our English speaking lawyer in Turkey provides bilingual documentation and counsel to simplify cross-border investment. This guide presents a full overview of each company type, their pros and cons, and practical steps to register in Turkey.
1. Limited Liability Company (LLC) – LLC (Limited Şirket)
The Limited Liability Company (LLC) is the most popular choice among foreign investors and SMEs setting up in Turkey, due to its flexible governance and modest capital requirements. Istanbul Law Firm assists in establishing an LLC with as little as TRY 50,000 as minimum paid capital, with a minimum of one shareholder and maximum fifty. Our Turkish Lawyers draft articles of association, allocate profit shares, and define board and management structure. We also guide on quorum rules, profit distribution, and decision-making rights under Articles 593–610 of the Turkish Commercial Code. As a practical Turkish Law Firm, we help start operations quickly by registering with the trade registry, tax office, and SGK simultaneously. Our English speaking lawyer in Turkey ensures your startup complies with both Turkish regulations and investor expectations.
LLCs benefit from simple accounting—balance sheet and profit-loss statement only—making them attractive to small and medium-sized businesses. Istanbul Law Firm supports clients in opening banking facilities, VAT registration, and commercial lease filings. We advise foreign-owned LLCs on nomination of legal representative resident in Turkey under Turkish regulations. Our Turkish Lawyers also include exit clauses, share transfer restrictions, and preemption rights in the articles. As the best lawyer firm in Turkey, we streamline the full setup—including notary signing, trade registry cost payments, and publication. Our English speaking lawyer in Turkey ensures transparent communication during capital transfer and opening bank account stages.
If an LLC grows or attracts multiple investors, Istanbul Law Firm advises on conversion to Joint Stock Company or restructuring for fundraising. We guide clients on capital increase, issuance of new shares, and amendment of the articles of association. Our Turkish Lawyers coordinate with embedded audit requirements and prepare general assembly controls. This ensures compliance with statutory audit triggers, tax developments, and financial thresholds. With our support, your LLC remains future-ready and adaptive.
2. Joint Stock Company (JSC) – A.Ş. (Anonim Şirket)
The Joint Stock Company (A.Ş.) is recommended for large operations, public offerings, or investment markets access. Istanbul Law Firm helps clients form an A.Ş. with capital starting from TRY 250,000—paid as cash or in-kind. We draft detailed articles of association covering share types (registered, bearer, privileged) and governance rules for general assembly and board of directors. Our Turkish Lawyers ensure compliance with mandatory corporate governance principles and, where relevant, Capital Markets Board regulations. As a leading Turkish Law Firm, we also handle compulsory independent audit and board approval deadlines. Our English speaking lawyer in Turkey facilitates IPO preparation, minority protection, and investor relations counseling.
A.Ş. structures support share issuance, convertible bonds, and employee share schemes. Istanbul Law Firm prepares share subscription agreements, capital increase requests, and public subscription documents. Our Turkish Lawyers guide corporate clients through preemptive rights, share pricing rules, and listing procedures. As the best lawyer firm in Turkey for capital markets, our advisory covers CMB applications, prospectus drafting, and collective agreement integration. Our English speaking lawyer in Turkey ensures compliance with cross-border disclosure, multinational board minutes, and IAS/IFRS reporting where needed.
Because of its formal structure, an A.Ş. requires a board of at least one director and a statutory auditor or auditor (where turnover thresholds apply). Istanbul Law Firm drafts board minutes, auditor appointment forms, and resolves director liability risks. We handle governance filings, corporate book renewals, and trade registry updates. Our Turkish Lawyers also guide on legal capital reserve and dividend distribution rules. With our continuous legal support, A.Ş. clients operate under robust governance and compliance standards.
3. Branch Office (Şube) and Liaison Office (Temsilcilik)
The branch office (şube) acts as an extension of the parent company and can engage in commercial activities identical to its headquarters. Istanbul Law Firm helps international clients establish branches in Turkey by preparing documentation for parent company resolution, notarized apostille-certified signatures, and trade registry submission. Our Turkish Lawyers draft operating authorizations matching the parent’s scope and guide clients through commercial license amendment requirements. Since branches do not have separate legal personality, all liabilities rest with the parent entity. To reflect this, we assist with opening branch-level bank accounts and tax registration. As a dedicated Turkish Law Firm, we also ensure compliance with accountant appointment and SGK reporting obligations. Our English speaking lawyer in Turkey provides clear explanations of cross-border liability implications and procedural deadlines.
Liaison offices (representative offices) are non-commercial entities established to conduct market research, promotion, and coordination activities without directly executing trade. Istanbul Law Firm advises foreign companies on liaison office requirements, including minimum capital expectations and placement of local personnel. Our Turkish Lawyers draft liaison office resolutions, responsible person appointment documents, and trade registry filings. Although no commercial activity is allowed, we help clients obtain necessary work permits and VAT registration for administrative use. As the best lawyer firm in Turkey in incorporation law, we assist with bank account setup and office rental agreements. Our English speaking lawyer in Turkey ensures overseas stakeholders understand operational boundaries and legal compliance responsibilities.
Both branch and liaison office types require a Turkish legal representative resident in Turkey. Istanbul Law Firm assists in negotiating service agreements with a vetted legal representative, outlines supervisory duties, and drafts resignation or replacement protocols. Our Turkish Lawyers prepare notarized resign/resignation letters and register representative appointment changes at the trade registry. We also educate parent company teams on reporting duties, local statutory deadlines, and appropriate commercial marketing limitations. As a compliance-focused Turkish Law Firm, we provide checklists for annual filing, accounting verification, and cross-border corporate communication. Our English speaking lawyer in Turkey keeps global teams aligned with local operations schedules.
4. Limited Partnership (Kollektif ve Komandit Şirket)
Limited partnerships in Turkey include “kolektif şirket” where all partners have joint and unlimited liability, and “komandit şirket” featuring both general partners (with unlimited liability) and komandit partners (with limited liability). Istanbul Law Firm explains the choice based on business size, liability tolerance, and partnership dynamics. Our Turkish Lawyers guide clients through drafting partnership agreements reflecting capital contributions, profit-sharing, management rights, and exit terms in line with Turkish Commercial Code Articles 620–645. We also clarify liability exposure and creditor relations to ensure partners are aware of risk boundaries. As a niche-focused Turkish Law Firm, we help structure liability shields and internal management rules. Our English speaking lawyer in Turkey ensures transparency for foreign and mixed-nationality partnerships.
The kolektif şirket is generally used by professional service firms—like law offices, accounting practices, or family companies—where mutual trust and operational control are essential. Istanbul Law Firm prepares trade registry forms, partner name registrations, and partnership accounting setup. Our Turkish Lawyers assist with bank authorizations and accountant appointments, required for compliance. For komandit şirket, we differentiate liability exposure and capital rights of general and limited partners. Our firm also prepares internal disclosures, profit withdrawal schedules, and partner audit rights. With our detailed support, collective liabilities and internal operations are clearly defined. Our English speaking lawyer in Turkey helps foreign partners understand personal liability risks before capital contribution.
Both partnership forms require a minimum of two partners and specific trading names. Istanbul Law Firm ensures naming requirements are met and trade registry searches are conducted. Our Turkish Lawyers prepare partnership dissolution and exit protocols in case of dispute or partner exit. We also assist with partner admission, heir substitution, and capital increase agreements. As a risk-aware Turkish Law Firm, we also prepare pre-emptive clauses and partner buyout mechanisms. Our English speaking lawyer in Turkey supports partnership alignment plans tailored for both domestic and international business partners.
5. Sole Proprietorship (Şahıs Şirketi) and Freelance Registrations
Sole proprietorships (şahıs şirketleri) are the simplest form of business in Turkey, preferred by freelancers, consultants, and small-scale service providers. Istanbul Law Firm helps local and foreign individuals register a şahıs şirketi by filing at the local tax office and chamber of commerce, submitting ID copies, rental contract, and activity code (NACE) selection. Our Turkish Lawyers ensure that entrepreneurs understand their liability, which is unlimited under this model, and their eligibility for small business tax schemes. We also assist with opening a bank account, e-signature registration, and e-invoice system integration. As a practical Turkish Law Firm, we support low-cost, fast-track setup for self-employed professionals. Our English speaking lawyer in Turkey helps foreign freelancers register with proper activity codes and taxation structure understanding.
Although a şahıs şirketi does not require capital investment or complex articles of association, it has fewer legal protections compared to limited liability models. Istanbul Law Firm advises sole proprietors on limiting personal exposure via professional liability insurance, clear contractual terms, and separate accounting. Our Turkish Lawyers prepare templates for client agreements, termination rights, and service scope. We also ensure compliance with income tax return schedules, KDV (VAT) obligations, and SGK registration. Our English speaking lawyer in Turkey supports digital nomads and online service providers with fully remote registration support and tax structuring advice. With our help, self-employment in Turkey becomes compliant and manageable.
Freelancers in Turkey may also consider registration through “esnaf odası” or specific sectoral chambers depending on their trade. Istanbul Law Firm provides legal clarification on when chamber membership is mandatory and which licenses apply. Our Turkish Lawyers coordinate with municipal permit offices for home-based businesses, digital services, and e-commerce operations. We guide on zoning, online sales taxation, and compliance with new platform economy rules. Our English speaking lawyer in Turkey supports creative professionals, developers, and consultants across industries and languages.
6. Company Conversion, Restructuring & Corporate Migration
Businesses may start with one legal form but later decide to convert—such as from şahıs şirketi to LLC, or LLC to Joint Stock Company. Istanbul Law Firm guides clients through conversion procedures, legal notices, and trade registry filings required for transformation. Our Turkish Lawyers prepare capital increase protocols, board resolutions, and articles of association amendments for the new structure. We manage legal transitions without interrupting business continuity. As the best lawyer firm in Turkey for restructuring, we ensure that tax, SGK, and trade chamber transitions are smooth and lawful. Our English speaking lawyer in Turkey provides bilingual project plans and cross-checklists for every step of the conversion.
We also support internal restructuring—for example, converting a branch to a subsidiary, or spinning off a business line into a new entity. Istanbul Law Firm advises on capital, tax, and share transfer impacts of corporate reorganization. Our Turkish Lawyers design split-off, merger, or absorption strategies within group structures. We also advise family-owned businesses on succession planning and generational restructuring. With detailed tax planning and compliance analysis, your new structure is not only legal—it’s optimized for growth. Our English speaking lawyer in Turkey assists international boards and local management through workshops and briefings in English.
For foreign-owned entities, we also advise on migrating company type in alignment with business model—such as converting from liaison to branch, or from representative presence to fully operational LLC. Istanbul Law Firm assists with document collection from the parent company, Capital Transfer reports, and Central Bank compliance. Our Turkish Lawyers ensure that transition is approved by all regulators and licensing bodies. With us, legal form follows strategy—and the structure grows with the company.
7. Choosing the Right Company Type: Strategic Comparison
Selecting the ideal company type in Turkey depends on business scale, liability tolerance, capital access, tax planning, and investor structure. Istanbul Law Firm compares all key parameters across LLC, Joint Stock, Branch, Liaison, and Sole Proprietorship models. Our Turkish Lawyers create comparison charts on capital requirement, audit obligation, board needs, profit distribution, and international investor compatibility. For example, an LLC is suitable for agile operations and small teams, while a Joint Stock structure enables external investment, IPO preparation, or group consolidation. Our legal advice links corporate form with strategic goals. As the best lawyer firm in Turkey for entity setup, we support private clients, corporates, and investment platforms. Our English speaking lawyer in Turkey ensures decision-makers abroad understand implications fully.
We also review investor nationality, intended activity, sector-specific licenses, and HR strategy to propose the correct formation model. Istanbul Law Firm aligns client needs with Turkish law—whether the plan is fast market entry, multi-city expansion, or public market access. Our Turkish Lawyers help startups prepare for fundraising by selecting forms that permit convertible notes or share classes. Family businesses may prioritize control and inheritance readiness, while tech firms emphasize scalability and board flexibility. Our English speaking lawyer in Turkey conducts onboarding sessions with foreign counsel and investors to guide decision-making with precision.
In regulated industries—such as finance, energy, or broadcasting—the choice of company type affects license eligibility. Istanbul Law Firm verifies sectoral compatibility with corporate form and ensures authorities approve proposed structures. Our Turkish Lawyers work closely with BDDK, EPDK, and RTÜK for license review and company form validation. Our advice ensures you choose not just a company type, but a business vehicle that performs across legal and commercial dimensions.
8. Our Legal Services for Company Formation in Turkey
Istanbul Law Firm provides full-service company formation legal support—from entity selection to registration, tax setup, and license integration. Our Turkish Lawyers draft articles of association, board resolutions, signature circulars, and prepare notary filings. We submit all documentation to the trade registry, tax office, SGK, and other agencies. For foreign investors, we coordinate power of attorney issuance, apostilles, and document legalization. As the most efficient Turkish Law Firm for business setup, we deliver ready-to-operate legal entities within a few business days. Our English speaking lawyer in Turkey ensures every step is transparent, timely, and internationally valid.
Our team also opens company bank accounts, applies for VAT and e-invoice systems, registers social security codes, and supports initial hiring. Istanbul Law Firm builds compliance frameworks with employment law, zoning, accounting, and consumer protection rules. Our Turkish Lawyers provide legal support for business launch events, press disclosures, and website compliance. With proactive legal structuring, clients avoid pitfalls and accelerate growth. We remain involved post-setup as your corporate legal advisor—supporting contract drafting, restructuring, and litigation if needed. Our English speaking lawyer in Turkey maintains continuity and communication across global time zones.
Whether you're a startup, family office, global group, or investor fund, Istanbul Law Firm offers legal clarity and formation speed. We transform regulatory burden into legal leverage and turn paperwork into progress. With us, forming a company in Turkey is no longer a risk—it’s a strategic legal launch.
Frequently Asked Questions (FAQ)
- What is the most common company type in Turkey? – The Limited Liability Company (LLC) is the most widely used due to its flexibility and low capital threshold.
- How much capital is required to open a company in Turkey? – TRY 50,000 for an LLC and TRY 250,000 for a Joint Stock Company (JSC). Sector-specific capital may vary.
- Can foreigners own 100% of a Turkish company? – Yes. There are no general restrictions; full foreign ownership is allowed in most sectors.
- What’s the difference between a branch and a liaison office? – Branches can conduct commercial activity; liaison offices are limited to non-trading functions like research or coordination.
- Which company type allows public offering? – Only Joint Stock Companies (A.Ş.) can offer shares to the public or be listed on the stock exchange.
- Do I need to be in Turkey to set up a company? – No. Istanbul Law Firm can complete the process via power of attorney, including bank and tax registrations.
- What are the annual compliance requirements? – Tax returns, financial statements, general assembly meetings, and in some cases, statutory audits.
- Can I convert my company to another type? – Yes. Turkish law permits conversion between company types under regulated restructuring procedures.
- How long does it take to open a company? – Typically 3–7 business days from document submission, depending on structure and foreign documentation.
- What’s the best structure for e-commerce? – LLCs are optimal for fast-growing online businesses, especially for foreign shareholders.
- Do you offer post-formation legal services? – Absolutely. We support contracts, HR, restructuring, disputes, and ongoing compliance.
- Who is the best lawyer in Turkey for company formation? – Istanbul Law Firm—trusted as the best lawyer firm in Turkey for foreign investors, startups, and corporate structuring.
Contact Our Company Formation Lawyers in Turkey
Ready to start your business in Turkey? Istanbul Law Firm delivers expert legal setup for LLCs, JSCs, branches, liaison offices, and more. Our experienced Turkish Lawyers and English speaking lawyer in Turkey support you every step—from incorporation to compliance. Work with the best lawyer firm in Turkey to launch your company securely and strategically.