Company Formation in Turkey for Foreign Investors (2026)

Yes, a foreign individual or foreign legal entity can generally own 100% of a Turkish company in ordinary, unregulated sectors. The Foreign Direct Investment Law applies an equal-treatment principle to international investors, so a Turkish shareholder is not normally required. Activities such as banking, insurance, energy or other regulated businesses can have separate licensing, capital or ownership conditions and should be reviewed before the structure is selected.

No, a Turkish partner is not normally required to establish an LLC or JSC in Turkey. A foreign investor can usually be the sole shareholder, and a foreign corporate parent can own the Turkish subsidiary directly. A local partner should be added only for a genuine commercial or regulatory reason, not simply to complete the registration. Regulated sectors and special licenses still need a separate ownership review.

The Trade Registry filing can move quickly once a complete and acceptable file is ready, but the total project has several separate clocks. Foreign document preparation, apostille or consular legalization, sworn translation, tax activation and bank KYC can take longer than registration itself. A realistic schedule should therefore separate the registry date from the date when the company is ready to bank, invoice, hire and meet its first compliance obligations. Expect 3 to 5 business days for registry filing and 2 to 4 weeks for the complete project.

A foreign individual typically needs a passport copy, a Turkish tax identification number, founder and manager information, and a formation power of attorney if the process will be handled by a representative. Documents issued abroad may require notarization, apostille or Turkish consular legalization, followed by sworn Turkish translation and notarization. Residence details, signature documents and additional evidence can be required depending on the person's role and the filing route.

A foreign corporate shareholder normally needs a current activity or good-standing certificate, a resolution approving the Turkish investment, evidence identifying the parent company's authorized signatories, and a corporate power of attorney where a representative will act. The documents usually require the correct apostille or consular legalization chain and Turkish translation. Banks can separately request an ownership chart, ultimate-beneficial-owner information, group activity and source-of-funds evidence.

The current statutory minimum capital is TRY 50,000 for a Turkish LLC and TRY 250,000 for a Turkish JSC. LLC capital may be paid within 24 months after registration. For a JSC, at least 25% of subscribed cash capital must be paid before registration and the balance within 24 months. Capital belongs to the company and should not be confused with registry charges or professional formation fees.

Yes, many foreign investors can complete the company registration process through a properly drafted power of attorney. The document can authorize tax-number, MERSIS, Trade Registry and selected post-registration procedures. Its authentication route depends on the country where it is issued, usually apostille or Turkish consular legalization. Remote registration does not mean every later step is remote, because a bank may still request in-person verification from the authorized signatory.

No. Company registration creates the legal entity but does not require a bank to approve its account. Each bank applies its own KYC, beneficial-ownership, source-of-funds and business-model review. Foreign-owned companies may need to provide corporate records, ownership charts, contracts, projected transactions and signatory information. Some banks may also request an in-person visit even where the company was registered remotely through a valid power of attorney.

No. Having a company in Turkey, owning shares or being appointed as a manager does not automatically authorize a foreign national to work in the country. If the shareholder or manager will actively perform duties in Turkey, a separate work-permit assessment is usually required. For companies younger than 6 months, a paid-up capital of TRY 500,000 per foreign applicant can substitute the standard 5-employee rule. Formation, payroll and work-permit planning should be coordinated before the person begins working.

The standard corporate income tax rate is 25% for 2026, with a 30% rate for specified financial and other listed entities. A separate five-point reduction can apply to qualifying export earnings. The 100% deduction under KVK Article 10/1-ğ applies only to qualifying service-export earnings and remains subject to the domestic minimum corporate tax calculation; it does not establish a universal effective rate. VAT, withholding and stamp-tax treatment depends on the transaction and taxpayer.

A subsidiary is a separate Turkish legal entity (LLC or JSC) with its own limited liability, governance, and tax obligations. A branch office is not a separate legal entity; it operates under the foreign parent company's identity, with the parent bearing unlimited liability for all branch obligations. Branch offices do not require minimum capital but cannot obtain certain licenses. Branch profits are subject to both Turkish corporate tax and a 15% branch profit remittance tax, reducible by double tax treaties.

Yes. A liaison office can be established by a foreign company with approval from the Ministry of Industry and Technology. Liaison offices are restricted to non-commercial activities such as market research, supplier identification, and coordination. They cannot generate revenue, issue invoices, or engage in commercial transactions. A liaison office is suitable for preliminary market exploration but not for active business operations.

A sole proprietorship is a business structure where the owner and the business are not legally separated, meaning the owner is personally liable for all business debts. Foreigners who already hold a valid Turkish residence permit can register one online via e-Devlet. No minimum capital is required. Profits up to TRY 330,000 per year are taxed at 15-20%. However, unlimited personal liability makes this structure generally not recommended for foreign investors seeking asset protection.

After registration, a Turkish company must register with the tax office, activate e-invoice and e-archive systems, obtain a KEP address, register with SGK if hiring employees, register with the exporters' association if exporting, file monthly VAT and withholding tax returns (even with zero revenue), maintain statutory books with a licensed CPA, and hold annual general assembly meetings.

MERSIS (Merkezi Sicil Kayit Sistemi) is Turkey's Central Registry Record System through which all company incorporation, modification, and dissolution procedures are processed electronically. A unique MERSIS number is assigned to every legal entity. Articles of association are drafted and submitted through MERSIS before physical Trade Registry filing.

Official costs include Trade Registry and Gazette fees (from TRY 10,000), Competition Authority contribution (0.04% of capital), Istanbul Chamber of Commerce fee (approx. TRY 9,000), notary fees (approx. TRY 15,000), sworn translations (approx. TRY 7,500), and commercial book certification (approx. TRY 6,000). Professional CPA formation fees vary. The TRY 50,000 LLC minimum capital is not a fee; it remains as working capital in the company's bank account.

Yes. For an LLC, share transfers require notarized transfer deeds, General Assembly approval, and Trade Registry registration. For a JSC, shares can be transferred by simple endorsement and delivery of share certificates. JSC shares held for more than 2 years are 100% tax-exempt on capital gains at the time of sale.

No. Tax activation, accounting setup, e-invoice integration, KEP address, banking, and monthly compliance start immediately after registration. A company that is registered but not connected to accounting, tax, e-invoice, and monthly reporting quickly accumulates avoidable compliance risk.