Many foreign entrepreneurs and investors believe that establishing a company in Turkey automatically grants them the right to live and work in the country. However, this is a widespread misunderstanding. In reality, foreign shareholders, directors, and legal representatives of Turkish companies must obtain proper work permits and, where applicable, residence permits to operate legally under Turkish immigration and labor laws. Failing to comply with these requirements can result in administrative fines, tax audits, entry bans, and even corporate blacklisting.
At our Turkish Law Firm, we advise international clients on how to legally manage their roles as company owners while complying with Turkish labor, social security, and immigration regulations. Our English speaking Turkish lawyers assist foreign founders from initial company formation through work permit applications, SGK registration, and residency compliance. As a best lawyer firm in Turkey for cross-border business law, we proactively prevent legal risks that often go unnoticed by unlicensed consultants and real estate agents promising “automatic residency with company setup.”
Do Foreign Company Owners Need Work Permits in Turkey?
Yes. According to Article 6 of the Turkish International Labor Law No. 6735, foreign nationals who serve as shareholders, board members, or managers in Turkish companies must obtain a work permit unless they qualify for an exemption. Being listed in the Trade Registry or holding a corporate tax ID is not sufficient. If the foreign individual actively participates in management, signs contracts, or hires staff, they are considered an employee under Turkish law and must be authorized to work.
Our Istanbul Law Firm prepares detailed work permit applications through the Ministry of Labor’s online system, manages biometric data appointments, and drafts supporting corporate documentation. We advise on eligibility criteria, such as minimum capital thresholds and employment quotas. Our English speaking Turkish lawyers ensure that company owners avoid rejection by submitting applications aligned with ministry guidelines. As a reliable Turkish Law Firm in immigration and investment law, we help businesspeople maintain legal continuity for both themselves and their companies.
Do Foreign Company Owners Need a Residence Permit in Turkey?
Yes. In addition to the work permit requirement, foreign company owners must also maintain a valid residence permit if they intend to stay in Turkey beyond 90 days. Holding shares or serving as a manager does not exempt a foreigner from general immigration requirements. In fact, attempting to live in Turkey as a business owner without residence registration is considered an immigration violation and may lead to deportation orders or entry bans.
Our Turkish Law Firm assists foreign company owners in preparing residence permit applications based on business ownership, work authorization, or real estate investment. We prepare notarized lease agreements, valid address registrations, and biometric appointment coordination. As a best lawyer firm in Turkey for investor immigration law, we help clients avoid the common mistake of thinking that a company tax number replaces residency requirements. Our English speaking Turkish lawyers also ensure that clients remain compliant during renewals and relocation notifications.
SGK Registration and Social Security Obligations
Foreign nationals who are actively involved in running a Turkish company are required to be registered with the Social Security Institution (SGK), just like any local employee. Many foreigners wrongly assume that being a shareholder means they are not required to pay social contributions. However, if the individual signs documents, manages daily operations, or represents the company in any formal capacity, SGK registration is mandatory—either as an insured employee or as a self-employed business owner (Bağ-Kur status).
Our Istanbul Law Firm registers foreign directors and owners with the appropriate SGK status, manages e-declaration filings, and coordinates with accountants to ensure payroll compliance. As a full-service Turkish Law Firm, we help companies avoid retroactive penalties, interest charges, and surprise labor audits. Our English speaking Turkish lawyers also resolve compliance issues caused by prior consultants or agents who misled the client regarding SGK obligations.
Common Mistakes Made by Foreign Business Owners in Turkey
Foreign investors frequently make legal errors that compromise their immigration status and expose their businesses to regulatory sanctions. Some of the most common mistakes include:
- Assuming that company ownership replaces the need for a work permit or residence permit
- Failing to register with SGK and withholding employee insurance premiums
- Incorrectly classifying themselves as passive shareholders while performing active managerial functions
- Submitting incomplete or inconsistent documentation during permit applications
- Using agents who offer unlicensed “company setup + visa” packages without legal backing
Our English speaking Turkish lawyers correct these errors and bring companies back into compliance. As a best lawyer firm in Turkey for foreign business owners, we audit client files, interact with ministries, and implement corrective strategies with minimal disruption to operations. Working with a qualified Turkish Law Firm ensures that your company stays legal—and your immigration status secure.
Also read: how to properly form and manage a Turkish company as a foreigner
Judicial and Administrative Enforcement of Work and Residence Permit Laws
The Turkish Court of Cassation (Yargıtay) has confirmed in multiple rulings that foreigners who manage or represent a company in Turkey without a valid work permit are in direct violation of immigration and labor laws. In addition to monetary fines, the Ministry of Interior may initiate deportation procedures or cancel ongoing residence permits. SGK has also penalized companies for not registering their foreign directors or for misreporting payroll data, particularly when those individuals are active in decision-making.
At our Turkish Law Firm, we proactively help clients prevent enforcement action by conducting internal audits, correcting reporting errors, and preparing legal defenses when inspections or investigations arise. Our English speaking Turkish lawyers represent clients in administrative court proceedings, objection petitions to Göç İdaresi, and defense briefs before the Ministry of Labor. As a best lawyer firm in Turkey for corporate compliance, we provide both preventive and corrective legal support for foreign company owners across sectors.
Frequently Asked Questions (FAQs)
- Do I need a work permit to manage my company in Turkey? Yes. If you are a foreign national actively managing a Turkish company, a work permit is required.
- Can I live in Turkey without a residence permit if I have a company? No. Owning a company does not replace the requirement for legal residency.
- Is SGK registration required for company shareholders? Yes, if they are functionally working within the company.
- Can I be fined for not registering properly? Yes. Fines may be issued by SGK, Ministry of Labor, or immigration authorities.
- What happens if my work permit is rejected? You may need to restructure your role or appeal through legal channels.
- Can I apply remotely? Certain steps can be completed by power of attorney, but personal attendance is required for biometric appointments.
- Do I need a lawyer? Yes. A Turkish Law Firm ensures legal accuracy and long-term compliance for foreign entrepreneurs.
Protect Your Business and Immigration Status with Full Legal Compliance
Managing a business in Turkey as a foreign national offers tremendous opportunity—but also legal complexity. Failing to meet work and residence permit obligations can jeopardize not only your immigration status, but also the operational integrity of your company.
At our Istanbul Law Firm, our team of English speaking Turkish lawyers provides structured legal support to foreign company owners. As a best lawyer firm in Turkey for immigration, labor, and business law, we ensure you operate legally, sustainably, and with full regulatory confidence.