Turkey allows foreign nationals to own a company outright, and the registration itself is fast. What catches most foreign founders out is not the registration — it is what comes immediately after it: tax registration deadlines, mandatory accounting, social security and the work-permit rules for directors. This guide walks through the full picture so that you can plan the whole process, not just the first week.
In short: 100% foreign ownership is allowed • limited company minimum capital TRY 50,000 • registration in about a week • corporate tax 25% • a licensed accountant (SMMM) is legally mandatory from day one.
More than nine out of ten foreign-owned businesses in Turkey are set up as a limited company (Limited Şirket, "Ltd. Şti."). It is cheaper to establish, has a lower capital requirement and simpler governance. The joint-stock company (Anonim Şirket, "A.Ş.") makes sense when you plan to bring in investors, issue different share classes or sell the business later, because A.Ş. shares can be transferred without a notary and — after two years of holding — share-sale gains of individual shareholders can be exempt from income tax.
| Limited Company (Ltd. Şti.) | Joint-Stock Company (A.Ş.) | |
|---|---|---|
| Minimum capital | TRY 50,000 (payable within 24 months) | TRY 250,000 (25% paid before registration) |
| Shareholders | 1–50, individuals or companies | 1 or more, no upper limit |
| Management | One or more managing directors (at least one must be a shareholder) | Board of directors (one member is enough) |
| Share transfer | Notarised agreement + registry filing | Simple endorsement, no notary |
| Shareholder liability for tax/SGK debts | Shareholders are personally liable for unpaid public debts in proportion to their shares | Shareholders are not liable; board members are |
| Corporate tax | 25% | 25% |
The last row is the one foreign investors most often miss: in a limited company, unpaid tax or social security debts can be pursued against the shareholders personally. This is the main reason larger investors prefer the A.Ş. structure despite the higher capital. We compare the options in detail in our Ltd. vs A.Ş. guide.
For each foreign individual shareholder or director:
For a foreign corporate shareholder:
Apostille first, translate second. Documents issued abroad must carry an apostille (Hague Convention) or consular legalisation before they are translated. Documents that arrive translated but not apostilled are rejected by the trade registry, which is the single most common cause of delay we see.
From the day the documents are complete, steps 3–5 take roughly 3–5 business days for a limited company. Steps 6–9 run in the two weeks that follow, in parallel with your first commercial activity.
Costs fall into three groups. Official fees — trade registry and gazette fees, notary certification of books and signatures, and sworn translations — are fixed amounts set by the state and are mostly the same for every company. Capital is not a cost: it is your money, deposited in the company's own bank account and available for the business to spend. Professional fees for incorporation and ongoing accounting are set by each firm; the Turkish accountants' union (TÜRMOB) publishes a minimum fee tariff that serves as the floor.
We do not publish a single "all-in" price here because it varies with the company type, the number of foreign shareholders (each needs translations and a power of attorney) and whether a registered-address service is needed. After a short call we send a written, itemised quote — official fees listed separately from our fee — so that there are no surprises.
This is the part that determines whether your Turkish company runs smoothly. Every company, regardless of size or activity, has the following recurring obligations from the month it is registered:
| Obligation | Frequency | What it is |
|---|---|---|
| VAT return (KDV) | Monthly | Filed and paid by the 28th of the following month — even when there were no sales ("nil return") |
| Withholding & SGK return (Muhtasar ve PHB) | Monthly | Withholding tax on salaries, rent and certain payments, plus social security declarations; by the 26th of the following month |
| Advance corporate tax | Quarterly | 25% on the quarter's profit, credited against the annual tax |
| Corporate income tax return | Annual | Filed by the end of April for the previous calendar year; rate 25% (30% for banks and financial institutions; 12.5% on manufacturing profits for companies with an industrial registration certificate under Law 7582) |
| Dividend withholding | On distribution | 15% on dividends paid to shareholders, reduced under most double-taxation treaties (typically to 5–10% for corporate shareholders) |
| Statutory bookkeeping | Continuous | Must be kept by a licensed accountant (SMMM); e-Ledger uploads on a fixed schedule |
Nothing happens automatically. Unlike some countries, Turkey has no "dormant company" status. A company with zero activity must still file monthly nil returns and keep books. If you do not intend to trade yet, discuss timing before incorporating.
Holding shares does not require any permit. Working does. Under the International Labour Force Law (No. 6735), a foreign national who is a managing director of a limited company, or an executive board member of a joint-stock company, and who actually manages the business from Turkey must obtain a work permit. The company applies on your behalf. Under the criteria in force since 2025, a foreign partner qualifies when they hold at least 20% of the shares and at least TRY 500,000 of the paid-in capital; the company must also employ five Turkish nationals per foreign employee, unless the foreign partner has contributed USD 100,000 or more, in which case the standard criteria are waived.
A practical alternative many founders use at the start: appoint a Turkish resident as director while the foreign shareholder remains a shareholder only, then apply for the work permit once the company is operating and has the required staff. We coordinate this with an immigration consultant so that the incorporation timeline and the permit timeline fit together.
Yes. Under Turkey's Foreign Direct Investment Law (No. 4875), foreign individuals and companies may own 100% of a Turkish limited or joint-stock company. There is no requirement for a Turkish partner and no special approval for most sectors.
With complete, apostilled documents, a limited company is typically registered within 3–5 business days and a joint-stock company within 3–7 business days. Obtaining a potential tax number and preparing translations beforehand is what keeps the process short.
No. The whole process can be completed through a power of attorney issued at a Turkish consulate or apostilled abroad. A visit is only needed if you want to open the bank account in person; some banks accept account opening by proxy.
Being a shareholder alone does not require a work permit. If you are appointed as a managing director (müdür) of a limited company or an executive board member of a joint-stock company and will actively work in Turkey, a work permit is required.
TRY 50,000 for a limited company (Ltd. Şti.) and TRY 250,000 for a joint-stock company (A.Ş.). For a limited company the capital may be paid within 24 months of registration; for a joint-stock company at least 25% must be deposited before registration.
We handle incorporation, tax registration and your first month of bookkeeping — and tell you in advance exactly what it costs.
Book a Free Introductory CallIn English • Ankara office or online • info@cagrikorkmaz.com.tr • WhatsApp +90 532 462 96 65