The main steps for foreign investors who wish to register a company in Turkey include selecting the appropriate company structure (such as an LLC or JSC), completing online registration through MERSIS, obtaining a tax identification number, depositing the minimum share capital, and finalizing registration with the Trade Registry Office.
All procedures must comply with the Turkish Commercial Code.
Thanks to simplified regulations and a fully digital registration system, starting a business in Turkey is now faster, easier, and more accessible than ever for international entrepreneurs.
Looking ahead to 2026, Turkey is strategically solidifying its role as a leading hub for global entrepreneurs and international investors. While its unique position bridging Europe and Asia remains a core advantage, the country’s growth is now driven by more tangible strengths – a young, tech-savvy workforce and rapid expansion across the e-commerce, fintech, and gaming sectors.
The government is actively reinforcing this momentum, moving beyond liberal policies to implement concrete incentives such as corporate tax reductions, comprehensive R&D support programs, and special benefits within Technoparks and Organized Industrial Zones.
Furthermore, the nation’s commitment to creating a pro-investor environment has translated into deep digitalization reforms, significantly reducing bureaucratic barriers and establishing a more transparent, predictable framework for foreign direct investment (FDI).
The legal foundation supporting this investment-friendly approach is based on the Direct Foreign Investment (DFI) Law No. 4875, which upholds the principle of equal treatment — ensuring that international investors enjoy the same rights and responsibilities as local investors. The removal of previous approval obligations, such as ministerial consent, and the introduction of digital platforms like MERSIS (Central Registry System) have considerably streamlined and accelerated the company formation process in Turkey.
This forward-looking legal framework demonstrates Turkey’s long-term commitment to welcoming global investors and reinforcing its position as a competitive hub for international business. For entrepreneurs planning to invest in Turkey, the key question is no longer “Can I legally invest?” but rather “How can I strategically structure my investment for maximum efficiency?”
This comprehensive guide has been designed to outline every stage of the company formation process in Turkey — not only as a procedural roadmap but also as a strategic planning resource. Covering all critical steps, from defining your business model and choosing the right legal structure to completing digital registration through MERSIS, as well as tax and cost planning, it aims to help you build a solid foundation for a sustainable and successful entry into the Turkish market.
Every successful venture is built upon a solid business model that delivers value to the market and generates sustainable revenue. Before starting operations in Turkey, it is essential to identify which business model best aligns with your goals and the dynamics of the local market. This framework defines not only what you will sell, but also how you will sell it, how you will reach customers, and how you will generate profit.Common business models include Business-to-Business (B2B), Business-to-Consumer (B2C), and Direct-to-Consumer (DTC), as well as service-based or manufacturing structures.
Your selection should be based on an in-depth analysis of your target audience, competitive landscape, and value proposition. For example, advertising or subscription models may be more suitable for a content platform with high traffic but low direct sales potential, where as a B2B model is essential for industrial machinery sales.To structure this planning process effectively, strategic tools like the Business Model Canvas can help visualize all components of your business concept including customer segments, value propositions, distribution channels, revenue streams, and cost structure. Remember that the business model you choose will directly influence your next step: selecting the appropriate legal company type.
For a foreign investor, one of the most fundamental strategic decisions in company formation in Turkey is determining under which legal structure the business will operate. This choice is not merely procedural — it directly influences risk management, tax obligations, operational autonomy, and long-term growth objectives.
On one side, structures like a Branch Office or a Liaison Office entail complete dependency on the parent company and unlimited liability but require fewer commitments. On the other side, Limited Liability Companies (LTD) and Joint Stock Companies (JSC) – established as independent legal entities – provide a liability shield for the parent company, representing a full market commitment and a more robust legal presence in Turkey.
This decision reflects the investor’s strategic intent toward the Turkish market. Establishing a branch is often suitable for “testing the waters” or running project-based operations, though it exposes the parent company to direct liability. Forming a subsidiary (LTD or JSC), on the other hand, signals a long-term market commitment, scalability, and, most importantly, legal separation from commercial risks in Turkey.
The table below compares the main legal structures available to foreign investors in Turkey as of 2025, based on critical decision-making factors.
| Feature | Limited Liability Company (LTD) | Joint Stock Company (JSC) | Branch Office | Liaison Office |
|---|---|---|---|---|
| Legal Status | Separate Turkish legal entity | Separate Turkish legal entity | Extension of the foreign parent company; no separate legal entity | Extension of the foreign parent company; no separate legal entity |
| Liability | Limited to the committed capital; partners may be liable for public debts | Limited to the committed capital | The parent company has unlimited liability for branch debts | The parent company has unlimited liability for the office’s obligations |
| Minimum Capital | TRY 50,000 (as of 2025) | TRY 250,000 (as of 2025) | No statutory minimum, but practical capital required | No capital; financed by the parent company |
| Capital Payment | Can be paid within 24 months after registration | At least 25% must be paid before registration | Not applicable | Not applicable |
| Number of Shareholders | Between 1 and 50 shareholders | Minimum of 1 shareholder; no upper limit | Not applicable (owned by the parent company) | Not applicable |
| Share Transfer | Requires notarized agreement and General Assembly approval | Freely transferable; no notary required | Not applicable | Not applicable |
| Management | At least one Managing Director | Board of Directors (minimum one member) | Appointed local branch manager | Appointed representative |
| Permitted Activities | All lawful commercial activities | All lawful commercial activities (mandatory for banking/insurance) | Limited to the parent company’s business scope | Strictly non-commercial (market research, representation) |
| Taxation Basis | Taxed on worldwide income (resident in Turkey) | Taxed on worldwide income (resident in Turkey) | Taxed only on income generated in Turkey | Exempt from corporate tax |
| Ideal Use Case | SMEs, startups, foreign subsidiaries, trading companies | Large enterprises, holding structures, companies planning IPOs | Project-based work (e.g., construction), service centers, initial market entry | Market research, networking, quality control, pre-investment analysis |
📘 Related Reading:
For a deeper understanding of each business structure in Turkey, explore our expert articles below:
After choosing your legal structure, there are a few essential practical steps to complete before starting the official registration process in Turkey.
These include defining your trade name, securing a registered address, and engaging professional advisors to ensure legal and financial compliance.
Your company’s trade name must be legally unique and not already in use by another business.
The name must also include a suffix that reflects your chosen legal form — for example, “Limited Company” or its Turkish abbreviation “Ltd. Şti.”
You can check the name’s availability via the official websites of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) or the Ministry of Trade.
Every company in Turkey must have a registered legal address for service of process.
This can be a physical office, a virtual office service, or, in specific cases such as small-scale or service-based businesses, a home address.
The lease agreement or title deed for this address is required in the incorporation documents.
After registration, a tax office representative will physically visit the address to verify its authenticity, which is a mandatory part of the registration process.
Given the complexity of Turkey’s commercial and tax regulations, working with certified local professionals from the start is highly recommended — and in some cases, legally required.
A CPA is an officially authorized expert responsible for maintaining your accounting records, preparing tax declarations, and handling tax office registrations.
It is practically impossible to complete the company formation process without a CPA.
Particularly for foreign-owned companies, partnering with a lawyer ensures that your articles of association comply with Turkish Commercial Law,
that procedures are followed correctly, and potential risks are mitigated.
For joint-stock companies with capital above certain thresholds, appointing a lawyer is a legal obligation.
Once you’ve made your strategic decisions and completed the preliminary preparations, you can proceed with the official company registration process in Turkey. While this process begins digitally through the MERSIS online platform (Central Registration System), it still includes traditional steps such as notary approvals and the submission of physical documents.
This hybrid structure allows entrepreneurs to start the registration quickly online, but it also requires great attention to the accuracy, completeness, and legality of all submitted documents. Even a small clerical error or missing attachment can delay approval and cause the process to be restarted.
To ensure a smooth and compliant incorporation, it’s essential to carefully follow each procedural step and rely on the expertise of your local professional advisors — especially your lawyer and certified public accountant (CPA).
In Turkey, all company registration procedures are carried out through the online platform MERSIS (Central Registry System), operated by the Ministry of Trade. This digital system aims to simplify company formation, increase transparency, and reduce bureaucracy by standardizing the entire incorporation process. Below are the key steps to complete company registration through MERSIS:
⚖️ Tip: Even minor document inconsistencies or data errors may delay approval. Always double-check your entries and consult your CPA or legal advisor before final submission.
To obtain full legal validity, the main contract (Articles of Association) prepared through MERSIS and assigned a request number must be certified by a notary. This step marks the official legal acknowledgment of your company’s establishment documents in Turkey.
The founding partners, or their authorized representatives, must sign the Articles of Association and present the MERSIS request number to a notary public for certification. Alternatively, this signing and certification procedure can also be performed directly at the Trade Registry Office, depending on regional implementation.
Every individual authorized to represent the company — such as directors, managers, or board members – is required to submit an official signature declaration. This document contains their handwritten signatures, which will be legally binding on behalf of the company in all official and financial transactions.
Signature declarations can be issued at any notary office or obtained directly from the Trade Registry Directorate. Once approved, the signatures are officially registered, ensuring they are legally recognized in all future corporate procedures.
⚖️ Practical Tip: Before proceeding to the notary, make sure that the details in the Articles of Association match exactly with your MERSIS data. Even minor discrepancies (e.g., in names or capital amounts) can cause the certification to be rejected.
Before submitting your final application to the Trade Registry Office, two essential financial steps must be completed. These include paying the Competition Authority fee and, in some cases, depositing part of the company’s capital into a dedicated bank account.
Under Turkish law, every company must pay an amount equal to 0.04% (four in ten thousand) of its total registered capital to the Turkish Competition Authority (Rekabet Kurumu). This payment can typically be made directly at the Trade Registry Office’s payment desk or via bank transfer to the Authority’s designated account.
This stage introduces a significant procedural difference between a Joint Stock Company (A.Ş.) and a Limited Liability Company (LTD) in Turkey:
At least 25% of the committed share capital must be deposited into a temporary bank account opened in the name of the company before registration. The corresponding bank receipt showing the blocked amount must then be submitted along with the incorporation documents to the Trade Registry Office.
Following the 2018 amendment to the Turkish Commercial Code, LTDs are no longer required to deposit any portion of their capital before registration. The entire committed capital may be paid within 24 months after the company’s registration. This flexibility makes LTDs particularly attractive for startups and small investors seeking a lower initial financial commitment.
⚖️ Expert Tip: Keep all payment receipts and bank documents carefully organized. They will be required not only for the registration process but also for accounting and tax compliance audits later on.
Once all documents are prepared and financial obligations are fulfilled, the final stage of company registration in Turkey takes place — the official registration with the Trade Registry Office and the public announcement in the Turkish Trade Registry Gazette.
All required documents — including the notarized Articles of Association, signature declarations, bank receipts, Competition Authority payment slip, and the Chamber of Commerce registration statement — must be submitted to the competent Trade Registry Office in the city where the company’s headquarters are located. This application must be made within 15 days of the notarization date.
Once the Trade Registry Directorate reviews and approves the application, the company is officially registered and acquires legal personality. From this moment, the company becomes a legally recognized entity capable of entering into contracts, owning assets, and conducting business in its own name.
Following registration, the establishment of the company is officially announced in the Turkish Trade Registry Gazette (Türkiye Ticaret Sicili Gazetesi). This publication serves as the public disclosure of the company’s incorporation and is a legal requirement for recognition by third parties. The announcement typically includes details such as the company’s name, address, capital, and authorized representatives.
⚖️ Tip: Keep a digital and printed copy of the Gazette announcement. It will be required for many follow-up steps such as opening a company bank account, obtaining operating licenses, or registering with tax authorities.
Understanding the financial aspects of company formation in Turkey is a critical part of any investment decision. This section outlines the complete financial framework for new businesses — from one-time incorporation costs and ongoing tax obligations to government incentives that can significantly enhance profitability.
When properly structured, Turkey’s investment incentive system can dramatically improve your financial model by reducing tax burdens, cutting operational expenses, and accelerating the return on investment (ROI). A well-planned incentive strategy not only minimizes initial costs but also ensures long-term financial sustainability for foreign investors.
| Cost Item | Estimated Amount (TRY) – 2025 | Notes |
|---|---|---|
| Notary Fees | ||
| Articles of Association Certification | 1,500 – 2,500 | Varies depending on document length. |
| Signature Declaration (per authorized person) | 600 – 800 | Required for each director or representative. |
| Power of Attorney for Consultant | 1,100 – 1,500 | Mandatory for remote or proxy incorporations. |
| Trade Registry Fees | ||
| Registration Fee | 5,000 – 15,000 | Depends on company type and share capital (higher for JSCs). |
| Certification of Statutory Books | 1,500 – 2,500 | Varies depending on the number and type of books. |
| Other Official Charges | ||
| Competition Authority Fee | 0.04% of share capital | e.g., 20 TRY for a 50,000 TRY capital. |
| Trade Registry Gazette Publication | 700 – 1,500 | Calculated based on word count. |
| Professional Service Fees | ||
| CPA and Legal Consultancy Fees | 7,500 – 20,000+ | Varies depending on advisor expertise and scope of services. |
| Total Estimated Range (Excl. Capital) | 18,000 – 45,000+ | Indicative range only; actual costs vary by company type and structure. |
Note: This table represents initial setup costs excluding paid-in capital.
Professional service fees may vary significantly depending on the complexity of the incorporation process for example, if foreign corporate shareholders are involved, additional notarization and translation costs may apply.
Once your company becomes operational, it will be subject to a number of regular tax obligations in Turkey.
The Turkish tax system aims to provide a transparent, predictable, and investor-friendly framework for both domestic and foreign businesses. The main taxes applicable to companies are summarized below.
Corporate tax in Turkey applies to the net profits of capital companies (LTD and JSC).
For 2025, the general corporate income tax rate is 25%.Companies operating in banking, finance, and insurance sectors are subject to a higher rate of 30%. Starting from 2025, a new minimum corporate tax rule will apply, requiring taxpayers to pay at least10%of pre-deduction income, even if exemptions or deductions apply.
VAT is a consumption-based indirect tax applied to the supply of goods and services.The standard VAT rate is 20%, with reduced rates of 10% and 1%for certain essential goods and services such as food, healthcare, and education. Companies can offset input VAT (paid on purchases) against output VAT (collected on sales),remitting only the difference to the tax office.
Withholding tax is collected at source on specific payments.
The main categories include:
Employers are required to make monthly social security contributions for all employees, covering both employer and employee portions. These contributions represent a significant part of total employment costs and must be paid to the Social Security Institution (SGK).
💡 For a detailed examination of Turkey’s taxation framework and specific considerations for foreign investors,
read our comprehensive article: Corporate Taxation Guide for Foreign Investors in Turkey (2025).
Turkey offers one of the most comprehensive and generous investment incentive systems in its region. These incentives are not merely a list of tax advantages, but a key policy tool that shapes the country’s industrial and regional development strategy. Through this framework, the government aims to direct private sector investments toward specific geographic regions (particularly Eastern and Southeastern Anatolia) and strategic high-technology sectors.
Investors who align their business plans with these national priorities can significantly reduce financial risk and improve return on investment (ROI). Therefore, the selection of an investment location and business activity is not only an operational decision, but also a strategic financial choice. Conducting an “incentive feasibility analysis” during the early stages of planning helps investors identify the most profitable scenarios and maximize government support.
Applicable nationwide without regional or sectoral distinction, these incentives are granted to all investments meeting a minimum fixed investment threshold. Common supports include VAT exemption and customs duty exemption.
Turkey is divided into six development regions according to socio-economic indicators. Investments made in less developed regions (Zones 5 and 6) benefit from stronger and longer-term supports, such as:
Designed for large-scale, high-tech, and import-substitution projects that strengthen Turkey’s technological independence. These projects enjoy the highest level of support available under the regional scheme, including corporate tax reduction, customs exemptions, and in some cases VAT refund benefits.
Turkey’s most generous incentives are concentrated in technology and innovation fields:
Companies operating in Technoparks (software, R&D, and design firms) benefit from a full corporate tax exemption on income derived from these activities, income tax withholding support on staff salaries, and employer’s social security premium support.
Companies that establish R&D or Design Centers approved by the Ministry of Industry and Technology can deduct all R&D and design expenditures from their taxable income and benefit from personnel-related tax and insurance supports similar to those in Technoparks.
💡 For a detailed overview of investment programs, application procedures, and sector-based opportunities, explore our in-depth analysis: “Maximize Your ROI: A Deep Dive into Turkey’s 2025 Investment Incentive Programs”.
This section brings together the legal framework, practical requirements, and cultural dynamics that are particularly important for foreign entrepreneurs and corporations planning to establish a company in Turkey. Understanding these key elements is crucial for ensuring a smooth incorporation process and long-term operational success.
Turkey offers strong legal protections and attractive incentives for foreign investors. When these opportunities are correctly interpreted and strategically leveraged, they can provide a significant competitive advantage in entering and expanding within the Turkish market.
In the following subsections, we explore the most relevant considerations for foreign investors — including ownership rights, capital transfer rules, residence permits, and cultural negotiation practices that can directly influence business outcomes in Turkey.
The foundation of Turkey’s modern approach to foreign investment lies in Law No. 4875 on Direct Foreign Investments (DFI). This law aims to create a transparent, predictable, and investor-friendly environment for international entrepreneurs and corporations. Its main principles are summarized below.
The law clearly stipulates that foreign investors have the same rights and obligations as domestic investors. This guarantees non-discriminatory treatment throughout all procedures including company formation, share transfers, and access to incentive programs.
Previously, foreign investors were required to obtain ministerial approval before establishing a company in Turkey. Under Law No. 4875, this pre-approval requirement has been eliminated. Now, foreign investors can incorporate directly by applying to the Trade Registry Office, just like Turkish nationals.
A company established in Turkey can be fully (100%) owned by foreign individuals or entities. There is no local partner requirement or ownership restriction. This flexibility allows global investors to maintain full control over their operations and strategy.
Foreign nationals do not need to reside in Turkey to establish or hold shares in a company. This makes it possible for non-resident investors to set up or partner in a Turkish company remotely, without physical presence.
✅ These legal guarantees significantly reduce perceived risks for foreign investors and enhance Turkey’s position as a stable, business-friendly destination for international capital.
While it is not legally required to obtain a residence or work permit to become a shareholder or partner of a company in Turkey, any foreign national actively working in the company (e.g., as a director, manager, engineer, or specialist) must obtain a valid work permit from the Ministry of Labor and Social Security.
One of the key criteria in work permit applications is the “five Turkish employees per one foreign employee” rule. This means that for each foreign employee for whom a work permit is requested,
the company must employ at least five Turkish citizens under social security coverage. However, for newly established foreign-invested companies, this requirement may be waived during the first application for a foreign partner acting as a manager, giving the company additional time to meet the ratio.
For foreign partners or executives requesting a work permit, the following financial and ownership thresholds generally apply:
✅ Proper planning of staffing structure and early coordination with legal and HR advisors can help streamline the work permit process and avoid costly delays.
Building a successful business in Turkey requires more than fulfilling legal and financial procedures — it also involves adapting to the local business culture and understanding practical challenges. Recognizing these dynamics will help foreign investors establish stronger partnerships and operate effectively in the Turkish market.
Despite ongoing digitalization efforts, bureaucratic procedures in Turkey can still be complex and occasionally slow. Frequent changes in tax and trade legislation may make compliance challenging. Solution: Engage a qualified local accountant (CPA) and an experienced corporate lawyer from the very beginning to manage paperwork and ensure compliance efficiently.
All official documents and transactions in Turkey must be in Turkish. While English is commonly used in the business world, communication with public institutions can present challenges. Solution: Work with professional translation services and rely on your local advisors for communication with authorities.
In Turkey, personal relationships and trust are often as important as formal business terms. Decision-making processes may take longer compared to Western cultures, and face-to-face meetings are highly valued. Solution: Be patient, attend networking events, and invest in building strong personal connections with local partners to ensure long-term success.
Global marketing strategies cannot always be directly applied in Turkey. Products, services, and marketing materials should be adapted to local cultural preferences and consumer expectations. Solution: Develop a localized marketing strategy and collaborate with Turkish marketing experts who understand domestic trends and audience sensitivities.
✅ By combining regulatory compliance with cultural awareness, foreign investors can significantly increase their chances of long-term success in Turkey’s dynamic and relationship-driven market.
Once your company is officially registered with the Trade Registry,
it legally comes into existence.
However, before you can begin full commercial operations, several administrative and regulatory
steps must be completed.
This section outlines the key actions to take after incorporation and
the ongoing compliance obligations every business in Turkey must follow.
Immediately after registration, your company must complete the following steps
to become fully operational:
The Trade Registry Office automatically notifies the relevant Tax Office
of your company’s incorporation.
However, for your tax record to be activated, a tax officer will visit your registered address
to verify its authenticity.
Once this inspection is complete, your accountant (SMMM) can download
your company’s digital tax certificate (Vergi Levhası) from the system.
A dedicated commercial bank account must be opened in the company’s name.
This account will be used for all financial operations, including capital payments,
client transactions, and salary disbursements.
Under the Turkish Commercial Code (TCC), companies are required to maintain
official accounting books such as the Journal Book, Ledger, and Inventory Book.
These must be notarized before first use to be legally valid.
If your company will employ staff, you must apply to the
Social Security Institution (SGK) for workplace registration
before the first employee begins work.
This ensures that employee insurance contributions are paid regularly and legally.
Depending on your industry and location, you may need to obtain a
Workplace Opening and Operating License (İşyeri Açma ve Çalışma Ruhsatı)
from the local municipality.
This license certifies that your premises and business activities comply
with safety and zoning regulations.
✅ Completing these early administrative steps promptly ensures that your company
can begin operations smoothly and remain in full compliance with Turkish regulations.
Once your company becomes operational, there are several ongoing accounting, tax, and reporting obligations that must be monitored regularly by your certified public accountant (CPA). Timely and accurate fulfillment of these obligations is crucial to avoid penalties and maintain your company’s legal compliance in Turkey.
All accounting books and supporting documents — such as invoices, receipts, contracts, and bank records — must be kept for at least 10 years under the Turkish Commercial Code and tax legislation. These records must be available for inspection in case of a tax audit or legal inquiry.
✅ In most cases, these recurring obligations are managed through an ongoing engagement with your CPA (Mali Müşavir), allowing you to focus on core business operations while remaining fully compliant with Turkish regulations.
This section provides concise and clear answers to the most common questions asked by foreign investors considering establishing a company in Turkey.
Establishing a company in Turkey in 2025 offers global entrepreneurs tremendous opportunities, thanks to the country’s strategic location, dynamic economy, and investor-friendly legal framework.
As this guide demonstrates, while the process has been modernized through digital platforms such as MERSIS, successful incorporation requires careful strategic planning, the right legal structure, and expert navigation of local regulations.
The Foreign Direct Investment Law No. 4875, which guarantees the principle of equal treatment, has significantly removed barriers for foreign investors. However, the multi-step procedures — from preparing apostilled documents to tax office inspections, SGK registration, and municipal licensing — demand a meticulous and well-coordinated approach.
In particular, tax planning and maximizing available government incentives are crucial factors that directly influence the financial success of your investment.
At this stage, working with experienced local professionals is not merely a convenience — it’s a risk management strategy. A qualified consultancy partner can guide you through every stage, help you avoid potential pitfalls, and ensure your structure aligns perfectly with your business goals.
By doing so, you save valuable time and resources, accelerating your company’s successful entry into the Turkish market.
To move confidently through Turkey’s business landscape, complete your legal and financial processes seamlessly, and focus on your operations from day one — consider partnering with professional advisors.
A strong beginning lays the foundation for long-term growth.
