Turkey sits at the crossroads of Europe and Asia, with a GDP exceeding $1.1 trillion, a population of over 86 million, and a regulatory framework designed to welcome foreign direct investment. From full foreign ownership rights under FDI Law No. 4875 to sector-specific incentive programs across free zones, technoparks, and organized industrial zones, Turkey offers a practical and accessible environment for international investors. Celikel CPA provides end-to-end advisory services to guide you through every stage of your investment journey, from entity selection and registration to ongoing tax compliance and financial reporting.
✓ 100% Foreign Ownership Permitted
✓ Multilingual Support: English, Turkish, Arabic, Russian, Chinese
✓ KVKK and GDPR Compliant
Turkey combines a large domestic market, a young workforce, and a strategic geographic location that provides direct access to Europe, the Middle East, Central Asia, and North Africa. For international investors evaluating market entry, the following indicators offer a snapshot of the operating environment.
| Indicator | Detail |
|---|---|
| GDP (Nominal) | Over $1.1 trillion (G20 economy) |
| Population | Approximately 86 million |
| Median Age | Approximately 33 years |
| Corporate Income Tax | As of 2026, the standard rate is 25% |
| VAT Tiers | 1%, 10%, and 20% (standard rate) |
| Double Taxation Agreements | Signed with over 80 countries |
| Free Trade Zones | 18 active zones with corporate tax and customs duty exemptions |
| EU Customs Union | In effect since 1996, covering manufactured goods and processed agricultural products |
| Foreign Ownership | 100% foreign ownership permitted under FDI Law No. 4875 |
Turkey's customs union with the EU allows manufactured goods to cross EU borders without additional tariffs, making it an effective base for companies seeking duty-free access to European markets while maintaining lower operational costs.
Celikel CPA offers a comprehensive service portfolio designed to help international investors establish and operate businesses in Turkey. Each service area is structured to address the specific regulatory and practical requirements that foreign nationals encounter when entering the Turkish market.
End-to-end company registration support including entity type selection (LLC, JSC, branch, or liaison office), MERSIS application, articles of association drafting, notary coordination, trade registry filing, and post-registration setup. Remote formation is available through power of attorney arrangements, so physical presence in Turkey is not required.
Tax identification number acquisition, tax office registration, e-signature certificate procurement, and strategic tax planning. We help structure your Turkish operations to optimize the corporate tax position, leverage applicable double taxation treaties, and apply for available investment incentive programs.
Work permit applications through the Ministry of Labour and Social Security for foreign shareholders and employees. We manage documentation, application filing, and follow-up with relevant authorities. Residence permit guidance for foreign nationals and their dependents is also included in the scope of our advisory.
Monthly accounting and bookkeeping, VAT return preparation, corporate income tax filings, withholding tax declarations, and financial reporting in compliance with Turkish Accounting Standards. We also provide bookkeeping services aligned with international reporting requirements for your home-country operations.
Regulatory compliance monitoring, annual general assembly coordination, trade registry updates, KVKK (data protection) compliance, and anti-money laundering documentation. We work in coordination with legal counsel to address corporate governance matters, shareholder agreements, and any sector-specific licensing requirements.
Evaluation of eligibility for Turkey's investment incentive programs, including free trade zone benefits, technopark R&D incentives, organized industrial zone advantages, and regional investment certificates. We assist with application preparation and ongoing compliance reporting to maintain incentive benefits.
Unlike standalone formation agents, Celikel CPA serves as your ongoing financial partner in Turkey. Our advisory covers everything from initial market entry through day-to-day payroll management, tax compliance, and strategic financial planning for the lifecycle of your business.
The entity type you select determines your liability structure, tax treatment, governance complexity, and capital requirements. The Turkish Commercial Code (Law No. 6102) provides several structures suitable for foreign investors. The comparison below covers the options most commonly considered by international businesses entering the Turkish market.
| Feature | LLC (Ltd. Sti.) | JSC (A.S.) | Branch Office | Liaison Office |
|---|---|---|---|---|
| Separate Legal Entity | Yes | Yes | No (extension of parent) | No |
| Minimum Capital | 50,000 TL | 250,000 TL (25% pre-deposit) | No statutory minimum | None |
| Shareholders | 1 to 50 | 1 or more (no upper limit) | Parent company only | Parent company only |
| Liability | Limited to capital | Limited to capital | Unlimited (parent liable) | N/A (no commercial activity) |
| Management | Manager(s), no board required | Board of Directors required | Appointed representative | Appointed representative |
| Share Transfer | Notarized agreement required | Freely transferable | N/A | N/A |
| Commercial Activity | Full commercial rights | Full commercial rights | Full commercial rights | Not permitted |
| Suitable For | SMEs, startups, subsidiaries | Large ventures, IPO candidates | Project-based operations | Market research only |
The LLC structure is the most frequently selected entity among foreign investors entering Turkey due to its lower capital requirement, simpler governance, and streamlined registration process. For a step-by-step walkthrough of LLC registration, refer to our guide on setting up an LLC in Turkey. A detailed cost breakdown is available on our company formation cost page.
Entering the Turkish market involves a defined sequence of regulatory, legal, and operational steps. The timeline below outlines the typical investment process when working with Celikel CPA, from first contact through operational readiness.
We assess your business objectives, target sector, and investment scope to recommend the most suitable entity type, location, and incentive opportunities. This stage also includes a preliminary review of applicable double taxation treaties and potential tax optimization structures.
Duration: 2 to 5 business days. Passport copies are notarized and apostilled, power of attorney documents are prepared for remote formation, and articles of association are drafted in compliance with the Turkish Commercial Code. If applicable, your Turkish tax identification number is obtained during this phase.
Duration: 3 to 7 business days. The company is registered through the MERSIS electronic system, articles of association are notarized, and the application is filed with the relevant Trade Registry Office. Upon approval, the Trade Registry Gazette publishes the registration and the company receives its official tax identification number.
Duration: 1 to 3 business days. Tax office registration is finalized, e-signature certificates are procured, and SGK (Social Security) enrollment is completed if the company will have employees. E-invoice and e-ledger systems are activated as required by Revenue Administration mandates.
Duration: 4 to 8 weeks (application processing). If foreign shareholders or employees intend to work within the company, work permit applications are submitted to the Ministry of Labour and Social Security. Celikel CPA manages the entire application process, document preparation, and authority correspondence.
Once operational, Celikel CPA continues as your accounting, tax, and payroll partner. Monthly financial reporting, VAT and withholding tax filings, annual corporate tax returns, SGK declarations, and regulatory compliance monitoring are all handled on your behalf.
Turkey's incentive framework applies equally to domestic and foreign-owned companies. Depending on the sector, location, and scale of your investment, several incentive programs may be available. Below is an overview of the primary categories.
Companies operating within designated Technology Development Zones benefit from corporate tax exemptions on income derived from R&D and software activities. Additional incentives include income tax withholding exemptions for R&D personnel and SGK premium support. These zones are designed to attract technology startups, software development firms, and research-intensive operations.
Turkey's 18 active free trade zones offer corporate tax exemptions for qualifying manufacturing and export activities, customs duty waivers on goods entering and leaving the zone, and VAT exemptions. These zones are particularly suitable for import-export companies, logistics firms, and manufacturers serving international markets.
OIZs provide ready-to-use industrial infrastructure including roads, utilities, and waste management facilities. Companies operating within OIZs may benefit from land allocation at reduced rates, construction permit streamlining, and access to shared services. Certain OIZs also qualify for enhanced regional investment incentives.
Under Law No. 5746, companies that maintain recognized R&D centres may deduct R&D expenditures at an enhanced rate from their corporate tax base. Income tax withholding exemptions and SGK premium support are also available for qualified R&D personnel. The minimum staffing threshold for R&D centre recognition is 15 full-time equivalent researchers.
Turkey divides its provinces into six investment incentive regions, with regions 5 and 6 (eastern and southeastern provinces) receiving the highest level of support. Benefits in these regions may include reduced corporate tax rates, employer SGK premium coverage for up to 10 years, interest rate subsidies on investment loans, and land allocation. Celikel CPA evaluates your investment plan against applicable regional criteria to identify the available incentive package.
Celikel CPA is a licensed CPA firm authorized by the Turkish Ministry of Finance, providing integrated financial and advisory services to international investors establishing and operating businesses in Turkey.
Celikel CPA & Accounting Firm, led by CPA Yigit Celikel, provides end-to-end foreign investment advisory and financial services for international clients. Our role extends beyond formation: we handle tax planning, ongoing accounting, payroll management, and regulatory compliance so that your Turkish operation is built on a sound financial and legal foundation.
The information presented on this page is grounded in the following official Turkish legislation and institutional resources: