Forming a Limited Liability Company (LLC / Ltd. Sti.) in Turkey as a foreign national or foreign-owned entity is a well-established process supported by Turkey's Foreign Direct Investment Law. This guide covers every step that is specific to non-Turkish investors: remote formation through power of attorney, apostille and legalization requirements, foreign shareholder documentation, obtaining a foreign tax ID, bank account procedures for non-residents, and work permit considerations for foreign LLC owners. Whether you plan to relocate to Turkey or manage your company remotely, this page provides the practical framework you need.
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Yes. Turkey's Foreign Direct Investment Law (Law No. 4875) [1] grants foreign investors the same rights as Turkish citizens when establishing and operating a company. There is no restriction on foreign ownership percentage, and no requirement to include a local Turkish partner.
A foreign individual or foreign corporation may hold 100% of the shares in a Turkish LLC. There is no minimum or maximum threshold for foreign participation. A single foreign shareholder can form an LLC without any Turkish co-owner, which makes Turkey one of the more accessible jurisdictions for foreign entrepreneurs.
Under Law No. 4875, foreign-owned companies receive equal treatment with domestically owned entities in all commercial matters. This covers tax obligations, access to government incentives, participation in public tenders, property ownership rights (within legal limits), and eligibility for investment support programs administered by the Ministry of Industry and Technology [5].
Unlike some neighboring jurisdictions, Turkey does not require foreign investors to partner with a local national. The foreign investor retains full control over the company's management, profit distribution, and strategic direction. This applies to both individual and corporate foreign shareholders.
Foreign shareholders may freely transfer dividends and profits abroad after fulfilling applicable tax obligations. Turkey does not impose capital controls on legitimate profit repatriation by foreign-owned companies. Withholding tax on dividend distributions is typically 10%, though this rate may be reduced under applicable Double Tax Treaties [4].
A limited number of sectors have restrictions or additional licensing requirements for foreign investors, including broadcasting, aviation, maritime transport, and private security services. For standard commercial activities such as consulting, technology, trade, and manufacturing, there are no sector-specific barriers to foreign ownership.
For a general overview of the LLC entity structure and legal framework, see our guide on setting up an LLC in Turkey. This page focuses specifically on the requirements, documents, and procedures that apply to foreign nationals and foreign-owned entities.
The LLC formation process for foreign investors follows the same legal framework as for Turkish nationals, with additional steps related to document authentication, foreign tax identification, and power of attorney arrangements. Below is a detailed timeline of each stage.
The proposed company name is checked for availability through the MERSIS (Central Registration System) [7] platform. The name must be unique within the Turkish Trade Registry and should not conflict with existing registered trade names. Your CPA or legal representative can perform this search on your behalf and reserve the name through the system. Name reservation is typically completed within 1 business day.
The Articles of Association (Ana Sozlesme) define the company's name, registered address, business purpose, capital structure, share distribution among shareholders, and management provisions. For foreign investors, the articles must be prepared in Turkish and filed through MERSIS. If the foreign shareholder is forming the company remotely, the authorized representative prepares and submits this document on their behalf.
Every foreign shareholder must obtain a Turkish tax identification number (Vergi Kimlik Numarasi) from the local tax office before the company can be registered. This can be done by the foreign investor in person at any tax office or by an authorized representative holding a valid power of attorney. The tax ID application requires a passport copy and is typically processed within 1 to 2 business days.
All documents originating from outside Turkey must be notarized and authenticated. For countries that are party to the Hague Apostille Convention, an apostille stamp is sufficient. For non-Hague countries, consular legalization through the Turkish Embassy or Consulate is required. Documents typically requiring authentication include the power of attorney, passport copies, corporate resolutions (for corporate shareholders), and certificates of incorporation. All authenticated documents must then be sworn-translated into Turkish by a certified translator.
As of 2026, the minimum capital for a Turkish LLC is 50,000 TRY (approximately USD 1,400). Unlike a JSC, an LLC does not require a bank blockage certificate at the time of registration. Shareholders have up to 24 months after the date of registration to pay in the committed capital. However, if the foreign investor wishes to apply for a work permit, a higher capital amount (currently 500,000 TRY) may be required.
The complete application package, including the notarized Articles of Association, shareholder identification documents, tax ID confirmations, and power of attorney (if applicable), is submitted to the Trade Registry Office through MERSIS [7]. The Trade Registry reviews the application and, upon approval, assigns a trade registry number. The company's establishment is announced in the Turkish Trade Registry Gazette. This step typically takes 3 to 5 business days.
After the Trade Registry records the company, several additional registrations follow: tax office registration and address verification visit (Yoklama), Social Security Institution (SGK) [6] employer enrollment, e-signature certificate issuance, e-Invoice and e-Ledger setup, and corporate bank account opening. These post-formation steps generally take 2 to 3 business days to complete. For foreign-owned companies, the bank account opening can take longer due to enhanced due diligence procedures.
The documentation requirements differ depending on whether the foreign shareholder is an individual or a corporate entity. All foreign-sourced documents must be authenticated through apostille (for Hague Convention countries) or consular legalization (for non-Hague countries) and sworn-translated into Turkish.
If the foreign shareholder's country of origin is a signatory to the Hague Apostille Convention, documents are authenticated with an apostille stamp issued by a designated authority (typically the Ministry of Foreign Affairs or a court). If the country is not a Hague signatory, documents must undergo consular legalization at the Turkish Embassy or Consulate in that country. The consular legalization process generally takes longer and may involve additional fees. In both cases, the authenticated documents must be sworn-translated into Turkish before submission to Turkish authorities.
One of the most practical advantages for foreign investors is the ability to form a Turkish LLC without traveling to Turkey. This is accomplished through a notarized and apostilled Power of Attorney (PoA) that authorizes a representative in Turkey to carry out all formation steps on the investor's behalf.
The foreign investor visits the nearest Turkish Consulate or Embassy and executes the Power of Attorney before a consular officer. This method does not require a separate apostille, as the consular notarization is recognized directly by Turkish authorities. The PoA is prepared in Turkish (or bilingual format) and can be used immediately upon receipt in Turkey after sworn translation, if needed. This is often the faster route when a Turkish Consulate is accessible.
The foreign investor visits a notary public in their home country, signs the Power of Attorney, and then obtains an apostille stamp from the designated authority. The apostilled PoA is then couriered to Turkey, where it is sworn-translated into Turkish by a certified translator (yeminli tercuman). This route is common for investors in countries where the Turkish Consulate is not easily accessible or where scheduling a consular appointment takes time.
A comprehensive PoA for LLC formation should authorize the representative to perform the following actions on behalf of the foreign investor:
A comprehensive (general) PoA covers all formation and post-formation steps in a single document, reducing the need for multiple PoA filings. A limited (specific) PoA restricts the representative's authority to particular actions. For most foreign investors forming an LLC for the first time, a comprehensive PoA is recommended, as it allows the representative to handle unexpected procedural requirements without requiring a new PoA. Celikel CPA provides detailed PoA templates tailored to each client's formation scenario.
The cost of forming an LLC in Turkey as a foreign investor includes several additional items compared to a domestic formation, primarily related to document authentication, sworn translation, and remote coordination. Below is a breakdown of typical cost categories. All figures are approximate and reflect ranges as of 2026.
| Cost Category | Typical Range (TRY) | Approx. USD |
|---|---|---|
| Trade Registry and Chamber Fees | 4,000 - 7,000 TRY | ~USD 110 - 195 |
| Competition Authority Fee (0.04% of capital) | 20 TRY (at minimum capital) | ~USD 1 |
| Trade Registry Gazette Publication | 2,000 - 4,000 TRY | ~USD 55 - 110 |
| Notary Fees (Articles of Association) | 3,000 - 6,000 TRY | ~USD 85 - 170 |
| Sworn Translation (per document) | 1,500 - 4,000 TRY | ~USD 42 - 110 |
| Apostille / Consular Legalization (per doc, abroad) | Varies by country | ~USD 20 - 100 |
| Power of Attorney (notarization + apostille abroad) | Varies by country | ~USD 100 - 500 |
| Professional Service Fees (CPA / Legal) | 15,000 - 40,000 TRY | ~USD 420 - 1,110 |
| Estimated Total (Excluding Capital) | 28,000 - 65,000 TRY | ~USD 780 - 1,810 |
For a comprehensive cost guide that compares LLC and JSC expenses side by side, see our company formation cost in Turkey page. Celikel CPA provides transparent, itemized fee proposals before engagement, with no undisclosed charges.
The total timeline for forming an LLC in Turkey as a foreign investor is typically longer than a domestic formation due to the additional document authentication and international coordination steps. Below is an indicative timeline for a standard single-shareholder foreign LLC.
| Phase | Activities | Estimated Duration |
|---|---|---|
| Document Preparation | PoA notarization, apostille, courier to Turkey, sworn translation | 1 - 3 weeks |
| Foreign Tax ID | Application at local tax office via representative | 1 - 2 business days |
| Trade Registry Filing | MERSIS application, notarization of Articles of Association, Trade Registry submission and approval | 3 - 5 business days |
| Post-Registration | Tax office registration, SGK enrollment, e-signature, bank account | 2 - 3 business days |
| Total Estimated Timeline | From initial document preparation to operational readiness | 2 - 4 weeks |
Several factors can add time to the process: delays in obtaining an apostille in the investor's home country, slow courier delivery of original documents, incomplete or incorrectly drafted PoA requiring re-execution, enhanced due diligence at the bank during corporate account opening, and public holidays in either Turkey or the investor's country. Working with an experienced CPA firm that anticipates these variables can help keep the timeline on track.
Once your LLC is registered, it becomes subject to Turkish tax obligations regardless of the nationality of its shareholders. Understanding these obligations early helps foreign investors plan cash flow and maintain compliance from day one.
As of 2026, the corporate income tax rate in Turkey is 25% on net taxable profit [4]. Turkish LLCs are taxed on their worldwide income. Provisional corporate tax returns are filed quarterly, with the annual return due in April of the following year. Turkey has Double Tax Treaties with over 80 countries, which may provide relief for foreign shareholders on cross-border income.
As of 2026, the standard VAT rate is 20%, with reduced rates of 10% and 1% applying to certain goods and services. Monthly VAT returns must be filed, and the tax is collected on sales and offset against VAT paid on purchases. Companies engaged in export activities may benefit from VAT exemptions or refund mechanisms.
Turkey applies withholding tax on certain payments including dividends (10%), rent to individual landlords (20%), and professional service fees (20%). Double Tax Treaties may reduce these rates for cross-border payments to foreign shareholders. Proper treaty application requires advance documentation and notification to the tax office.
If the LLC has employees, the employer is responsible for SGK (Social Security) contributions at approximately 22.5% of gross salary [6]. The employee contribution is approximately 15% of gross salary, withheld from pay. Foreign LLC owners who obtain a work permit are also enrolled in the SGK system and subject to these contributions.
For detailed guidance on Turkish tax compliance, return preparation, and tax planning for foreign-owned LLCs, visit our tax services in Turkey page.
Forming an LLC in Turkey does not automatically grant the foreign shareholder the right to work in the country. If you intend to be actively involved in the day-to-day management of your Turkish LLC, you will need to obtain a work permit from the Ministry of Labour and Social Security.
Foreign shareholders holding at least 20% of the company's shares are generally eligible to apply for a work permit as a company partner. If the shareholder holds less than 20%, the application is evaluated under the standard foreign employee criteria, which involves additional requirements including the 5:1 Turkish-to-foreign employee ratio.
As of 2026, the Ministry of Labour typically expects the company to have a paid-in capital of at least 500,000 TRY for the work permit application of a foreign shareholder to be considered favorably. This is separate from the LLC's legal minimum capital of 50,000 TRY and reflects the Ministry's criteria for demonstrating genuine business activity.
For each foreign employee (including foreign shareholders who work), the company is generally expected to employ at least 5 Turkish citizens. This 5:1 ratio is a guideline applied by the Ministry of Labour during the evaluation process. Newly established companies may receive an initial exemption or reduced requirement during the first year of operation, subject to Ministry discretion.
Work permit applications are submitted online through the Ministry of Labour's e-Government portal. The standard processing time is approximately 30 to 45 business days. The initial work permit is typically issued for one year and can be renewed. During the evaluation period, the Ministry may request additional documentation or clarification regarding the company's business activities and financial standing.
For comprehensive guidance on work permit applications, residency permits, and employment law for foreign investors, see our work permits in Turkey page.
Based on our experience assisting foreign investors from over 40 countries, the following are the most common mistakes that can delay the LLC formation process or create complications after registration.
While the legal minimum capital for an LLC is 50,000 TRY, foreign investors who plan to apply for a work permit should be aware that the Ministry of Labour typically expects a higher paid-in capital (currently around 500,000 TRY). Setting the capital at the legal minimum may satisfy the Trade Registry but create difficulties at the work permit stage. Planning capital levels in advance helps avoid the need for a costly capital increase later.
A document with a missing apostille, an apostille on a photocopy rather than the original, or an apostille from the wrong issuing authority will be rejected by the Turkish notary or Trade Registry. Each country has specific designated authorities for apostille issuance. Verifying the correct procedure before execution saves significant time and avoids re-processing.
A PoA that only authorizes company formation but does not cover bank account opening, tax office registration, or SGK enrollment will require the foreign investor to execute and send a new PoA for each missing authorization. Using a comprehensive PoA from the outset that covers all formation and post-formation steps prevents these delays.
Some foreign investors are advised to form a Joint Stock Company (JSC) when an LLC would be more appropriate for their business. A JSC requires five times the minimum capital, involves more complex governance requirements, and carries higher ongoing compliance costs. For most foreign investors establishing standard commercial operations, the LLC provides a simpler and more cost-effective structure. See our company formation in Turkey guide for a detailed comparison.
Foreign investors who intend to reside and work in Turkey sometimes form the LLC first and think about the work permit later. This can lead to problems if the company's capital, employee count, or registration details do not meet Ministry of Labour criteria. Integrating work permit planning into the formation process from the beginning helps establish the right foundation for a successful application.
Celikel CPA provides end-to-end LLC formation services specifically designed for foreign investors who need a reliable, bilingual partner on the ground in Turkey.
Celikel CPA & Accounting Firm, led by CPA Yigit Celikel, specializes in company formation, tax advisory, and ongoing compliance for international clients. Our scope covers the entire lifecycle of a foreign-owned Turkish LLC, from initial formation through monthly accounting, payroll, and annual tax filings.
The legal requirements, procedural steps, and cost figures described on this page are based on the following official Turkish legislation and institutional resources: