Company Formation in Turkey

100% Foreign Ownership is Allowed

Turkey imposes no general restrictions on foreign shareholding in companies. You can be the sole shareholder of a Turkish LLC or JSC as a foreign individual or foreign company. Likewise, all members of the board or the sole director can be foreign nationals. The only exceptions are in a few regulated industries (for instance, radio/TV broadcasting has a cap on foreign ownership percentage; civil aviation and maritime transportation require majority Turkish ownership for strategic reasons). Unless your business is in those restricted fields, you are free to own and control your Turkish company fully.

Official sources: RTÜK (Broadcasting) · DGCA (Civil Aviation) · Transport Ministry – Maritime

No Mandatory Local Partner or Director

You do not need a Turkish citizen on the board or as a “sponsor.” This is different from some countries where a local partner is required – Turkey has no such requirement in general. That said, having local advisors or staff can be very helpful in practice, especially to navigate language and bureaucracy, but legally it’s not required for most sectors.

Local Address and Registered Office

Every company in Turkey must have a registered office address in Turkey. This will be the official domicile of the company (where official notices can be served, etc.). It can be a commercial office space or even a virtual office service, as long as it’s a legitimate address. If you’re a foreigner not residing in Turkey, you might start with a virtual office or use your law firm’s address temporarily, but you should arrange for a proper local address where you can receive mail and where the tax officer can visit for the initial verification. Note that using a home address is possible if it’s your own property, but local zoning laws might restrict commercial use of residential addresses in some cases.

See also: Revenue Administration (GİB) · MERSİS – Ministry of Trade

Residency and Work Permits

Forming a company in Turkey does not automatically grant you residency or a work permit. These are separate processes. If you, as a foreign owner, want to relocate to Turkey and work for your company, you will need to obtain a work permit (and likely a residence permit as a consequence of the work permit). Turkey generally requires that a company employ 5 Turkish citizens for every 1 foreign employee for standard work permit approvals – however, for the company’s first founder/owner, there is usually an exception for the first 6 months to 1 year of operation to give you time to meet the 5 employee rule. The company’s paid-in capital being above a certain threshold (e.g. 100,000 TL or more) can also facilitate the work permit approval for a foreign owner-manager. It’s advisable to consult with an immigration lawyer or the Ministry of Labor’s guidelines when planning to move to Turkey as an investor. Alternatively, some entrepreneurs initially enter on a tourist visa or visa-exempt stay, set up the company, and then apply for a work permit once the company is operational.

Official portals: Ministry of Labour & Social Security · Presidency of Migration Management

Management from Abroad

If you do not plan to live in Turkey, you can still own and run the company from abroad. You might appoint a local manager through a power of attorney for day-to-day tasks, or handle many matters remotely. Many compliance requirements (tax filing, banking transactions) can be managed online or via your appointed CPA. But keep in mind, at least one company director or representative will need to be available to sign documents, manage the bank account, and represent the company as needed. This can be done by a trustworthy person on the ground via a power of attorney if you’re absent. All foreign shareholders and directors should obtain a Turkish tax number and will be recorded in the Trade Registry records.

Related: Tax services in Turkey · Turkish Trade Registry

Bank Account Opening

After company registration, one of the first practical steps is to ensure you have a Turkish corporate bank account. Most major banks in Turkey are accustomed to foreign-owned companies. Typically, banks will require the company registration documents (Trade Registry Gazette, tax registration certificate, signature circular, IDs of signatories, etc.). Some banks may ask for the presence of the company director during account opening, while others might allow opening via a representative with a notarized power of attorney. In recent years, due to global anti-money-laundering rules, banks perform thorough due diligence (asking for information on the company’s activities, expected transaction volumes, and the ID documents of ultimate beneficial owners). Be prepared to provide this information. Once the account is open, you can transfer your capital if it wasn’t fully paid-in before, and use the account for operations. Note that having a functioning bank account is also important for tax and social security payments, which are typically paid through the banking system.

See: BDDK (Bank Supervision) · MASAK (AML)

Legal Stay vs. Business Operations

Owning a company doesn’t by itself give you the right to reside in Turkey, but it does give you a legitimate reason to be in the country often for business. If you don’t have a residence permit, you’ll be limited to the duration of your tourist visa or visa-free period for each visit. Overstaying is not advised. If you intend to be hands-on with your business, consider applying for a Turkish residence permit. One common route is a short-term residence permit for business owners or for property owners. However, the short-term permit doesn’t allow work – it just lets you live in Turkey while managing your investment. To actively work (draw salary, hold a managerial position), a work permit tied to your company is the proper route. Investor-focused programs exist for substantial investments.

Residence & visas: Residence Permits · e-Residence Application