How to start a business in Turkey has become a highly searched topic among global investors, entrepreneurs, and startup owners who are looking to enter dynamic and fast-growing markets. Thanks to Turkey’s strategic location between Europe and Asia, attractive government incentives, and rapidly expanding key sectors, the country offers unique opportunities for foreign businesses.
This comprehensive guide presents a detailed, step-by-step overview of the essential processes involved in starting a business in Turkey, including company registration, legal requirements, tax obligations, and banking procedures.
Whether you plan to launch a small startup or establish a large-scale company, understanding the Turkish business environment is crucial for long-term success. Throughout this article, you will find practical tips, step-by-step instructions, and in-depth guidance specifically tailored for foreign investors.
Let’s explore the most effective ways to successfully establish your business in Turkey.
Turkey has become a key destination for foreign investors thanks to its strategic position, robust economy, and supportive business environment. Below are the primary reasons why starting a business in Turkey is a smart move for international entrepreneurs.
Turkey serves as a vital bridge between Europe, Asia, and the Middle East, offering seamless access to over 1.5 billion consumers across these regions. Major global companies have selected Turkey as their regional headquarters due to its proximity to key markets, well-developed logistics infrastructure, and international trade agreements. This geographical advantage enables businesses to expand quickly and efficiently, making Turkey a preferred hub for export-oriented companies.
Turkey’s diversified economy, with strong sectors in manufacturing, technology, tourism, and agriculture, provides a fertile ground for both large corporations and start-ups. The government actively encourages foreign investment through tax reductions, customs duty exemptions, and cash support programs. Additionally, free trade zones offer significant tax benefits that can help new businesses reduce their initial financial burden. These incentives make the Turkish market highly attractive for global entrepreneurs seeking growth.
One of Turkey’s most significant assets is its young, dynamic, and educated workforce. With a median age of around 33, the country offers a large pool of qualified professionals ready to contribute to the success of new businesses. The Turkish education system continues to produce graduates skilled in engineering, finance, information technology, and foreign languages, making it easier for foreign investors to recruit talented employees who can support international expansion.
Before embarking on the process of setting up a company in Turkey, it is crucial to understand the key factors that will directly impact the success of your business. Careful preparation and thorough research can help you save time, reduce costs, and understand Turkey’s unique market dynamics.
Understanding the Turkish market and its consumer behaviors is essential for foreign investors. Local preferences, business etiquette, and negotiation styles may significantly differ from other regions. Conducting in-depth market research will help you identify demand gaps, assess competitors, and evaluate pricing strategies. Additionally, building relationships is highly valued in Turkish business culture, so networking and personal trust play an important role in long-term success.
Selecting the appropriate company structure is a fundamental decision that will affect your legal responsibilities, tax obligations, and operational flexibility. The most common business types for foreign investors in Turkey include Limited Liability Companies (LLC), Joint Stock Companies (JSC), and Sole Proprietorships. Each structure has its own advantages and requirements in terms of capital, management, and shareholder liability. Consulting with local experts can help you choose the best model that aligns with your business goals.
Turkey has specific legal frameworks and tax policies that foreign entrepreneurs must comply with. You will need to consider the minimum capital requirements, company registration procedures, tax identification numbers, and employment regulations. It is essential to familiarize yourself with the Turkish Commercial Code and local tax laws to ensure full legal compliance. Working with professional consultants and accountants can help you manage regulatory obligations efficiently and avoid common pitfalls.
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When starting a business in Turkey, choosing the correct legal structure is a crucial step that will influence your company’s taxation, liability, and administrative requirements. Below are the most common business types available to both Turkish citizens and foreign investors.
A Joint Stock Company, known as “Anonim Şirket” in Turkish, is a preferred structure for large businesses and those planning to attract foreign investment. It requires a minimum capital of 50,000 TRY and may have one or more shareholders. A joint-stock company provides limited liability protection, meaning that shareholders are only liable for the company’s debts up to the value of their capital contributions. Additionally, shares of a joint-stock company can be publicly traded, offering flexibility for future growth and capital expansion.
A Limited Liability Company or “L.L.C.” is the most popular choice among foreign entrepreneurs and small and medium-sized businesses. It requires a minimum capital of 10,000 TRY and accepts 1 to 50 shareholders. Like a joint-stock company, the liability of shareholders is limited to their capital contributions. The establishment of an LLC is generally faster and more cost-effective, making it an ideal choice for businesses seeking a simple corporate structure with fewer formalities.
A sole proprietorship is suitable for individual entrepreneurs and freelancers. It is the simplest and most cost-effective business structure in Turkey. This type of business is directly linked to the owner, who is solely responsible for the company’s profits, losses, and liabilities. Although it offers minimal legal requirements and lower start-up costs, it is less suitable for high-risk businesses due to the lack of liability protection.
Foreign companies wishing to explore the Turkish market without establishing a new legal entity may opt to open a branch or liaison office. A branch may engage in commercial activities but operates in full connection with its parent company abroad. In contrast, a liaison office is limited to non-commercial activities such as market research or coordination and cannot generate income in Turkey. Both options require special permission and registration from Turkish authorities.
The first step is to choose the company structure that best suits your business goals. Your choice between a Limited Liability Company (LLC), Joint Stock Company (JSC), or Sole Proprietorship will determine your company's operational flexibility, tax obligations, and shareholder responsibilities. Most foreign entrepreneurs prefer LLCs due to their simplicity and cost-effectiveness.
All companies in Turkey must register their business names through MERSIS (Central Registry System), an online platform that simplifies the company formation process. The system ensures that the company name you choose is unique and legally acceptable. Once approved, this name becomes the official trade name of your business in Turkey.
You will need to prepare several important documents for your company's address, including the company's articles of association, identity documents, and lease agreements. These documents must be certified by a Turkish notary. Certification verifies the authenticity of your company's records and guarantees their compliance with the requirements of the Turkish Commercial Code.
Depending on the type of company you choose, you must deposit the required minimum capital into a temporary bank account opened in the company's name. The minimum amount for an LLC is 50,000 TRY, and for a JSC, it is at least 250,000 TRY. The capital contribution certificate is required for the completion of the registration process.
Every company must obtain a Tax Identification Number (TIN) from the local tax office. This number is required for all financial and legal transactions, including opening a permanent bank account and issuing invoices. You will also be officially registered for corporate income tax and value added tax (VAT).
Once your documents have been notarized and your capital has been deposited, you must submit all the necessary files to the Trade Registry Office. Once approved, your company will be officially established and you will receive a Trade Registry Certificate and an Official Gazette announcement confirming your company's legal existence.
Finally, you will need to open a permanent company bank account for daily transactions. Most Turkish banks require company registration documents, a tax number, and identity verification to open an account. It is recommended that you choose a bank that offers English-language services and international transaction support for easier financial management.
Understand the essential costs and the timeline involved in setting up your business in Turkey.
When setting up a company in Turkey, one of the most frequently asked questions by foreign investors is whether they need a work permit to manage or work for their own company. Understanding work permit regulations is crucial to fully comply with Turkish labor laws.
In general, foreigners who plan to work actively in Turkey as a company manager, director, or employee must obtain a work permit. The application process is usually initiated by the employer (in this case, your own company) through the Turkish Ministry of Labor and Social Security. If you are applying from outside Turkey, you must also submit the documents to the Turkish consulate in your country.
The required documents usually include:
Work permits are generally issued for an initial period of one year and can be extended thereafter. During this process, foreign shareholders may encounter certain capital requirements, such as minimum foreign investment thresholds and employment quotas for Turkish citizens within the company.
In some cases, company founders or shareholders may be exempt from standard work permit requirements, particularly if they do not plan to work in Turkey on a daily basis. For example:
In addition, the Turkish government has introduced fast-track work permit procedures for qualified foreign investors who meet certain criteria, such as creating employment for Turkish citizens or operating in priority sectors.
It is strongly recommended that you consult immigration and legal experts to fully understand your obligations and determine whether you are eligible for any exemptions based on the structure of your business and the size of your investment.
Turkey has modernized the process of setting up a company through MERSIS (Central Registry System), a fully digital platform that simplifies and speeds up the registration process for new businesses. This system is particularly beneficial for foreign investors who find Turkey's traditional bureaucracy challenging.
MERSIS is an integrated online portal operated by the Turkish Ministry of Trade. It allows users to:
The platform is available in Turkish, and foreign investors are advised to work with local consultants or lawyers who are familiar with the system to ensure that applications are made correctly and on time.
Through MERSIS, the entire company establishment process, from the preparation of the company's articles of association to its registration with the Trade Registry, has been simplified, significantly reducing paperwork and waiting times.
The shift to digital registration through MERSIS offers several key advantages:
For foreign investors aiming for a fast, smooth, and transparent company formation process, MERSIS is an important asset that makes Turkey a more accessible business center.
When establishing a company in Turkey, opening a corporate bank account is a crucial step. This account will be used for company transactions, tax payments, capital investments, and employee salaries. The process is generally straightforward, but foreign investors should be aware of specific requirements and best practices.
Some banks may also request a residence permit, but it is not always mandatory.
Tip: Have your documents translated into Turkish by a certified translator to avoid delays.
These banks typically offer:
Tip: Compare fees, international transfer limits, and customer service quality when selecting your bank.
Opening a bank account can usually be completed within a few working days if all documents are correctly submitted. Working with a local consultant or choosing banks experienced with foreign clients can significantly speed up the process and prevent common administrative hurdles.
While Turkey offers attractive opportunities for foreign investors, establishing a business as an outsider can present unique challenges. Understanding these potential obstacles and preparing strategies to overcome them will greatly enhance your chances of long-term success.
One of the most frequently cited challenges by foreign entrepreneurs in Turkey is navigating the complex bureaucracy. Despite the improvements brought by the MERSIS online registration system, some government procedures still require physical documentation and personal visits to offices, which can cause delays.
Solution: Working with a local consultant, accountant, or law firm who is familiar with Turkish regulations can help you complete required paperwork efficiently and minimize the risk of errors. These professionals can also act as authorized representatives when you are not physically present in Turkey.
Although Turkey’s business environment is becoming more international, most legal documents and official procedures are still conducted in Turkish. Foreign investors often face challenges in understanding technical terms, tax obligations, and contract clauses.
Solution: Hiring a qualified translator or bilingual legal advisor is strongly recommended. Additionally, selecting banks and service providers that offer English-language support can significantly ease daily operations and communications.
Many foreign investors underestimate the value of local expertise and attempt to manage the entire process remotely. This can lead to procedural mistakes, missed deadlines, and non-compliance with local regulations.
Solution: Establish long-term partnerships with reputable local consultants who can assist not only during the formation phase but also in post-establishment activities such as tax filings, social security registrations, and annual reporting.
Turkey’s Free Zones are special economic areas designed to promote export-oriented investment by offering attractive fiscal and operational advantages. For foreign investors looking to minimize tax burdens and streamline international trade, these zones provide unique opportunities.
Companies engaged in manufacturing within Free Zones are generally exempt from:
Companies in Free Zones benefit from simplified customs procedures that allow faster movement of goods with minimal documentation and delays. This is ideal for businesses with global supply chains.
Popular Free Zones include Istanbul Leather and Industrial Free Zone, Mersin Free Zone, and Aegean Free Zone in Izmir.
A French textile manufacturer entered the Turkish market in 2018 by establishing a Limited Liability Company (LLC) in Istanbul’s Free Zone. Initially, the company aimed to source raw materials locally, but they quickly realized the cost benefits of setting up a full-scale production facility in Turkey.
Key success factors:
Today, the company exports high-quality textiles to Europe and North Africa, with Turkey serving as its primary production hub.
An American entrepreneur launched a technology start-up in Izmir, focusing on software development and digital solutions for the logistics industry. Initially, the founder was concerned about potential language barriers and bureaucratic hurdles.
How they succeeded:
The start-up has now expanded to international clients and is considered one of the fastest-growing tech firms in the Aegean region.
These stories demonstrate that with proper planning, strong local partnerships, and a willingness to adapt, foreign entrepreneurs can thrive in Turkey’s competitive business landscape. The right combination of local expertise, strategic location, and government support can significantly enhance business growth and long-term success.
Setting up a business in Turkey offers a world of opportunities for foreign investors, entrepreneurs, and start-up owners ready to explore a dynamic and growing market. Thanks to its strategic location, favorable tax incentives, and skilled workforce, Turkey provides a competitive advantage for businesses aiming for regional and global growth. By following the step-by-step company formation process, selecting the appropriate business structure, and collaborating closely with local consultants, you can establish your company efficiently and securely. By leveraging the advantages of Free Zones, MERSIS online registration, and Turkey’s international trade networks, you can accelerate your success even further. Whether you’re planning to start a small startup or a large multinational business, Turkey provides the flexibility and support you need to succeed. If you’re ready to begin your journey, now is the perfect time to seize the opportunities awaiting you in the Turkish market.
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Invest in Türkiye. (2024). Establishing a Business in Turkey. Retrieved from
Turkish Revenue Administration. (2024). Corporate Taxation System in Turkey. Retrieved from
Ministry of Trade. (2024). MERSIS Central Registry System User Guide. Retrieved from
Turkish Labor Law No. 4857. (2024). Employment Regulations in Turkey. Retrieved from
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Foreigners can follow these steps to establish a company in Turkey: obtain a potential tax number, prepare the company’s articles of association, register the company with the Trade Registry Office, open a bank account, and deposit the required capital. The entire process can generally be completed without Turkish citizenship.
Among the most profitable business sectors in Turkey for foreign investors are real estate, tourism, e-commerce, technology services, and food franchises. These sectors offer high growth potential, particularly in major cities such as Istanbul, Ankara, and Izmir.
Yes, Turkey is an attractive destination for entrepreneurs due to its strategic location, young population, developing technology ecosystem, and increasing government support for entrepreneurs. Many sectors such as fintech, logistics, and SaaS are growing rapidly.
As of 2025, the corporate tax rate in Turkey is 25%. This rate may vary depending on certain incentives and the type of business. Some investment zones and private sectors may benefit from tax reductions or exemptions.
The company registration process in Turkey generally takes 3 to 7 business days, provided that all documents are prepared and submitted correctly. Opening a bank account and completing tax registration may add a few more days to the process.
As of 2025, the gross minimum wage in Turkey is approximately 26,005.50 TL. This amount is periodically updated by the Turkish government based on inflation and economic conditions.
Yes, Turkey offers lucrative opportunities for foreign entrepreneurs, particularly in export-oriented sectors, tourism, real estate, and technology services. With the right market research and local partnerships, it is possible to achieve sustainable profits in Turkey.
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