Establishing a Company in Turkey
Planning to establish a company in Turkey? ER&GUN&ER Law Firm offers expert legal support for foreign investors seeking seamless business setup services in Turkey. Our corporate lawyers provide comprehensive guidance on company formation, regulatory compliance, and structuring your investment legally and efficiently.
Why Establish a Company in Turkey?
Turkey’s strategic location between Europe, Asia, and the Middle East makes it a highly attractive destination for international businesses. With access to major markets, a young workforce, and government incentives for foreign direct investment, Turkey presents significant business opportunities. Setting up a company also enables you to apply for residence permits and to benefit from favorable taxation structures, free trade agreements, and participation in public tenders.
Types of Companies in Turkey
Limited Liability Company (LLC - Limited Şirket)
The most common form preferred by foreign investors. Requires a minimum capital of 50,000 TRY. Liability of shareholders is limited to their capital contribution. Suitable for SMEs and family-owned businesses.
Joint Stock Company (JSC - Anonim Şirket)
Ideal for larger enterprises. Requires a minimum capital of 250,000 TRY. Allows share transfers and is appropriate for businesses planning public offerings or seeking investor participation.
Branch Office
A branch office enables a foreign company to operate in Turkey without creating a separate legal entity. It is fully dependent on the parent company and must register with the Trade Registry.
Liaison Office
A liaison (representative) office cannot engage in commercial activities but can perform market research and promote the foreign company's interests in Turkey. Requires approval from the Ministry of Industry and Technology.
Step-by-Step Company Formation Process
- Choosing Company Type and Structure: Based on business goals, investment size, and operation model.
- Preparation of Articles of Association: Drafting legal documents defining the company’s activities, capital, shareholders, and management structure.
- Obtaining a Tax Identification Number: Both for the company and foreign shareholders.
- Opening a Bank Account: Depositing required capital into a Turkish bank account before registration.
- Trade Registry Application: Filing documents with the relevant Trade Registry Office and completing official registration.
- Publication in the Turkish Trade Registry Gazette: Making the company’s incorporation public.
- Obtaining a Potential Tax Number: Registration with the Tax Office for VAT and corporate income tax obligations.
- Registration with Social Security Institution (if hiring employees): Ensuring compliance with labor laws and employee insurance regulations.
Key Requirements for Company Establishment
- At least one shareholder (individual or legal entity)
- Registered office address in Turkey
- Minimum capital requirement depending on company type
- Identification documents for shareholders and directors
- Notarized documents and translations where necessary
Challenges in Company Formation and How We Help
Setting up a company in Turkey without professional legal guidance can lead to serious issues such as registration delays, compliance failures, incorrect corporate structuring, and future tax penalties. ER&GUN&ER Law Firm ensures:
- Accurate document preparation and submission
- Compliance with Turkish Commercial Code and Tax Code
- Assistance in corporate bank account opening
- Preparation of employment contracts and regulatory filings
- Ongoing corporate governance support after establishment
Supporting Legal Services
- Turkey Work Permit Applications for Company Employees
- Residence Permits for Shareholders and Directors
- Turkish Citizenship by Investment Options
Frequently Asked Questions (FAQ)
Can a foreigner fully own a company in Turkey?
Yes. Foreign nationals can own 100% of a Turkish company without the need for a local partner.
What is the minimum capital required for company formation?
For an LLC, the minimum capital is 50,000 TRY. For a JSC, the minimum capital is 250,000 TRY.
How long does it take to establish a company in Turkey?
Typically 5 to 10 working days after all necessary documents are prepared and submitted properly.
Can I obtain a residence permit through company ownership?
Yes. Shareholders and directors of Turkish companies can apply for residence permits based on their role and business activities.
Is it mandatory to rent a physical office space for company registration?
Yes. A registered office address is legally required for company incorporation.
Can a foreign company open a branch in Turkey?
Yes. Foreign companies can open branches but must comply with Turkish regulations and appoint a local representative.
What taxes are applicable to companies in Turkey?
Companies are subject to Corporate Income Tax (20% as of 2025) and VAT (generally 18%). Other taxes may apply depending on business activities.
Can I later change the type of company after establishment?
Yes, but it involves a legal transformation process subject to regulatory approvals and shareholder agreements.
Start Your Business in Turkey with ER&GUN&ER Law Firm
