How to open a company in Turkey

Establishing a business in Turkey offers international entrepreneurs and investors access to a large domestic market, strategic location, and growing economy. The Turkish government has created a business-friendly environment that welcomes foreign investment, with 100% foreign ownership permitted for most company types.

For property investors, business owners, and entrepreneurs considering Turkey, understanding the company formation process is essential. This guide explains the practical steps, requirements, and considerations for setting up a business in Turkey.

Why Set Up a Business in Turkey

Turkey offers several advantages for international business formation:

• 100% Foreign Ownership: Foreign investors can own 100% of Turkish companies without requiring local partners, providing full control and flexibility.
• Large Domestic Market: With a population exceeding 85 million and a growing middle class, Turkey offers access to a substantial domestic market.
• Strategic Location: Turkey's position bridging Europe and Asia provides access to multiple regional markets.
• EU Customs Union: Since 1996, Turkey has maintained a customs union with the European Union, facilitating trade with EU markets.
• Growing Economy: Turkey's economy has demonstrated strong growth over recent decades, creating business opportunities across multiple sectors.

Types of Companies in Turkey

Foreign investors can establish several types of companies in Turkey:

Limited Liability Company (Ltd. Şti.)

The Limited Liability Company (Ltd. Şti.) is the most common choice for foreign investors. Key characteristics include:

• Minimum Capital: No minimum capital requirement (though some capital is typically required for practical operations).
• Shareholders: Requires at least one shareholder (can be an individual or legal entity).
• Liability: Shareholders' liability is limited to their capital contribution.
• Management: Managed by one or more managers appointed by shareholders.
• Registration Time: Typically completed within 2-3 weeks.

Joint Stock Company (A.Ş.)

Joint Stock Companies are suitable for larger operations:

• Minimum Capital: Requires minimum share capital (currently 50,000 TRY, though higher amounts are often required for certain activities).
• Shareholders: Requires at least one shareholder.
• Public Offering: Can issue shares to the public if requirements are met.
• Corporate Structure: Requires a board of directors and general assembly.

Branch Office

Foreign companies can establish branch offices in Turkey:

• No Separate Legal Entity: Branch offices are extensions of the parent company, not separate legal entities.
• Simplified Structure: Less formal structure than a company, but also provides less legal separation.
• Tax Treatment: Tax obligations are similar to Turkish companies.

Representative Office

Representative offices are limited to promotional and liaison activities:

• No Commercial Activity: Cannot engage in commercial activities or generate revenue in Turkey.
• Promotional Purpose: Suitable for market research, promotion, and liaison activities.
• Simplified Registration: Easier registration process than full companies.

Step-by-Step Company Formation Process

The company formation process in Turkey involves several sequential steps:

Step 1: Obtain Turkish Tax Number

All company founders and shareholders must obtain a Turkish tax number (Vergi Numarası). This is a straightforward process requiring:

• Passport copy
• Application at local tax office
• Immediate issuance (typically same day)

Step 2: Prepare Required Documents

Company formation requires several documents:

• Passport Copies: Notarized copies of passports for all shareholders and managers.
• Sworn Translations: Documents in foreign languages must be translated by sworn translators.
• Residence Certificate: Proof of address (can be from home country or Turkey).
• Company Name Reservation: Proposed company name must be checked and reserved at the Trade Registry Office.

Step 3: Draft Articles of Association

The Articles of Association (Anasözleşme) define the company's structure, purpose, and operating rules. This document must be:

• Prepared in Turkish
• Notarized by a Turkish notary
• Include company name, address, capital, share structure, and management details

Step 4: Open Corporate Bank Account

Before final registration, companies must deposit share capital into a corporate bank account:

• Bank account opened in company name (using reserved name)
• Share capital deposited
• Bank issues capital deposit certificate

Step 5: Register at Trade Registry Office

Final registration occurs at the Trade Registry Office (Ticaret Sicil Müdürlüğü):

• Submit all documents including Articles of Association, capital deposit certificate, and required forms
• Registration typically completed within 5-8 business days
• Company receives trade registry number upon approval

Step 6: Post-Registration Requirements

After registration, companies must complete several additional steps:

• Tax Office Registration: Register with local tax office for tax identification
• Social Security Registration: Register employees with Social Security Institution (SGK)
• Chamber of Commerce Membership: Join relevant chamber of commerce
• Bookkeeping Setup: Establish accounting and bookkeeping systems

Timeline and Costs

Typical company formation timeline:

• Document Preparation: 2-3 days
• Name Reservation: 1 day
• Bank Account Opening: 1-2 days
• Trade Registry Registration: 5-8 business days
• Post-Registration Setup: 3-5 days

Total Timeline: Approximately 2-3 weeks from start to fully operational company.

Costs vary depending on company type, capital amount, and professional services used, but typically range from 2,000-5,000 USD including all fees, notary costs, and professional assistance.

Capital Requirements and Considerations

While Limited Liability Companies have no legal minimum capital requirement, practical considerations apply:

• Operational Capital: Sufficient capital to cover initial operations and expenses
• Bank Requirements: Banks may require minimum deposits for corporate accounts
• Business Activity: Certain regulated activities may require specific minimum capital
• Credibility: Adequate capital demonstrates seriousness to partners and authorities

Corporate Bank Account Requirements

Opening a corporate bank account in Turkey requires:

• Company registration documents
• Articles of Association
• Manager identification documents
• Proof of company address
• Initial deposit (amount varies by bank)

For property investors, corporate bank accounts are often useful for managing multiple properties, rental income, and business expenses. Our bank account opening service assists with both personal and corporate account setup.

Tax Obligations for Turkish Companies

Turkish companies are subject to several taxes:

• Corporate Income Tax: Currently 25% on taxable profits
• Value Added Tax (VAT): Applied to most goods and services (rates vary)
• Withholding Tax: Applied to certain payments
• Social Security Contributions: Required for employees

Companies must maintain proper accounting records and file regular tax returns. Professional accounting services are essential for compliance.

Business Activities and Licensing

Certain business activities require specific licenses or permits:

• Real Estate Activities: Real estate brokerage requires specific licensing
• Construction: Construction companies need appropriate licenses
• Tourism: Tourism-related businesses require tourism licenses
• Financial Services: Financial activities are heavily regulated

Before starting operations, verify whether your business activity requires specific licenses or permits.

Property Investment Through Companies

Many international investors establish Turkish companies to hold property investments:

• Asset Protection: Company structure can provide asset protection benefits
• Tax Planning: Corporate structures may offer tax planning opportunities
• Multiple Properties: Companies can hold multiple properties efficiently
• Business Operations: Companies can engage in property development, rental, or management activities

For investors considering property acquisition, our Buying Property Assistance in Turkey service can coordinate both property purchase and company setup if needed.

Ongoing Compliance and Reporting

Turkish companies must maintain ongoing compliance:

• Annual Financial Statements: Companies must prepare and file annual financial statements
• Tax Returns: Regular tax return filings are required
• Social Security Reporting: Employee-related reporting to Social Security Institution
• Trade Registry Updates: Changes to company structure must be registered

Professional accounting and legal services help ensure ongoing compliance and avoid penalties.

Professional Support and Assistance

Company formation in Turkey involves multiple steps, legal requirements, and documentation. Professional support can:

• Ensure all requirements are met correctly
• Accelerate the registration process
• Provide ongoing compliance support
• Assist with bank account opening and initial setup

For investors combining business setup with property investment, coordinated professional support streamlines both processes and ensures proper structure from the beginning.

Key Considerations for Foreign Investors

Before establishing a business in Turkey, consider:

• Business Purpose: Clearly define your business activities and objectives
• Company Structure: Choose the appropriate company type for your needs
• Capital Requirements: Plan adequate capital for operations
• Tax Planning: Understand tax obligations and planning opportunities
• Compliance Requirements: Plan for ongoing compliance and reporting
• Professional Support: Engage qualified professionals for setup and ongoing support

Establishing a business in Turkey opens opportunities for property investment, commercial operations, and market access. With proper planning and professional support, the process is straightforward and typically completed within 2-3 weeks.

For comprehensive information about property investment in Turkey, see our Buying Property in Turkey guide, which covers the complete investment process including legal requirements and market fundamentals.

Once properties are acquired, companies often require ongoing property management services to handle maintenance, rentals, and asset oversight. Professional management ensures properties remain valuable assets supporting business objectives.