Setting up a company in Türkiye as a foreigner: step-by-step guide (2026)

Key points

• Foreigners can own 100% of a Turkish company; one-shareholder limited and joint-stock companies are allowed.
• Minimum capital since 1 January 2024: 50,000 lira for a limited company (Ltd. Şti.) and 250,000 lira for a joint-stock company (A.Ş.); 500,000 lira initial capital for a non-public A.Ş. using the registered capital system.
• Older companies below these amounts now have until 31 December 2027 to top up, after the Trade Ministry extended the original end-2026 deadline.
• Registration runs through MERSİS and the trade registry office, which sits inside the local chamber of commerce.
• A Competition Authority fee of 0.04% of capital is paid at registration.
• Standard corporate tax is 25% (30% for financial-sector companies); standard VAT is 20%.
• Owning shares does not give you the right to work or live in Türkiye: managers usually need a work permit, with capital and hiring conditions attached.

Foreigners can set up and fully own a company in Türkiye on the same terms as Turkish citizens, and for most small businesses the process is a matter of weeks rather than months. This guide walks through the main company types, the current minimum capital, the registration steps and the tax and permit questions owners most often get wrong, as of November 2026.

This is general information, not legal or tax advice.

Step 1: Choose the right structure

Most foreign entrepreneurs choose between two capital companies under the Turkish Commercial Code.

Limited company (limited şirket, Ltd. Şti.). The usual choice for small and medium businesses. Partners’ liability is limited to their capital, and the company can have a single shareholder. Share transfers require a notarised agreement and registry approval, so it suits closely held businesses.

Joint-stock company (anonim şirket, A.Ş.). Better for larger ventures, outside investors or a future listing. It is managed by a board of directors and shares transfer more freely.

Sole proprietorship (şahıs şirketi). Registering yourself as a trader is technically possible, but tax and registry steps are separate from the right to work. A foreigner still needs a work permit, typically an independent work permit assessed case by case by the Labour Ministry, before actually working. In practice many foreigners find a one-person Ltd. Şti. more predictable.

Branch (şube). A foreign company can register a branch at the trade registry. It is not a separate legal entity, has no minimum capital (though an allocated amount must be stated), and can only do what the parent company does. Profits can be sent home subject to 15% dividend withholding tax, which tax treaties may reduce.

Liaison office (irtibat bürosu). Licensed by the Ministry of Industry and Technology, not the trade registry. It may not carry out commercial activity; it is limited to things like market research, promotion, supplier quality control and regional management. Initial licences run up to three years, and the parent company must cover all costs.

Step 2: Check the minimum capital

The minimums were raised by Presidential Decree No. 7887, effective 1 January 2024: 50,000 lira for a Ltd. Şti., 250,000 lira for an A.Ş. and 500,000 lira initial capital for a non-public A.Ş. in the registered capital system. For an A.Ş., at least 25% of subscribed capital must be paid in before registration and the rest within 24 months. A Ltd. Şti. may pay its capital within 24 months of registration.

Companies founded before 2024 with lower capital were originally given until 31 December 2026 to comply, failing which they are deemed dissolved. In October 2026 the Trade Ministry extended that to 31 December 2027; see our report on how Türkiye extended the minimum capital deadline. If you are buying into an existing small company, check whether it still needs a capital increase.

Note that the legal minimum is not the same as the capital needed for a partner’s work permit (see Step 9).

Step 3: Pick a trade name and a registered address

The trade name must be in Turkish characters, must not mislead third parties, and must end with the company type (for example "… Limited Şirketi"). Name availability can be checked through MERSİS. You also need a registered address backed by a lease or title deed; the tax office checks it and may inspect the premises. Virtual offices are accepted if the contract clearly allows the company to use the address as its headquarters.

Step 4: Get tax numbers for foreign founders

Every foreign shareholder and board member needs a Turkish potential tax number from the tax office before the bank and registry steps. Our guide explains how foreigners get a Turkish tax number online or in person.

Step 5: Prepare articles of association and notarised documents

The articles of association (esas sözleşme) are drafted in Turkish and submitted online through MERSİS, then signed by all founders before trade registry staff or a notary. Typical supporting documents are passport copies for individual foreign shareholders, notarised signature declarations, and IDs of managers. Corporate shareholders add a certificate of good standing and a board resolution.

Documents signed abroad must be apostilled or legalised by a Turkish consulate, then translated and notarised in Türkiye. Our explainer on sworn translators and notaries covers how this works. If you cannot attend in person, a founder can act through a power of attorney.

Regulated activities such as finance, insurance, energy, education, health or tourism may require approval from the relevant authority before registration is finalised.

Step 6: Open a bank account and deposit capital

For an A.Ş., at least 25% of capital is deposited in a bank before registration, and the bank’s certificate goes into the registration file. Banks run anti-money-laundering checks and usually ask for the tax number, registry documents, signature circular and notarised translations of passports. Our guide to opening a bank account in Türkiye as a foreigner explains what to expect.

Step 7: Register at the trade registry and chamber of commerce

With the MERSİS application approved, the file goes to the trade registry directorate, which is located within the local chamber of commerce and works as a one-stop shop. The file includes the petition, articles, Competition Authority fee receipt (0.04% of capital), founders’ declaration, chamber registration forms and the bank certificate. Chamber membership is opened at the same time.

The invest.gov.tr investment office says registration can be completed the same day, with the Trade Registry Gazette announcement about 10 days later. Law-firm and consultancy estimates for the whole process range from five to ten business days to three to four weeks, depending on how quickly documents are ready. There is no single fixed fee: expect notary, translation, registry, chamber and adviser costs on top of capital.

Step 8: Tax office, books and SGK

After registration the trade registry notifies the tax office and the Social Security Institution (SGK) automatically. A tax officer visits the address to confirm the business exists, and you collect the tax registration certificate. The company’s legal books must be certified.

Hiring staff requires SGK registration of each employee and payment of social security contributions. Most companies appoint a certified accountant (mali müşavir) from day one to handle e-filing, payroll and bookkeeping.

Step 9: Sort out work and residence permits

Owning shares is not a work permit. Under the Labour Ministry’s evaluation criteria, a foreign company partner applying for a work permit generally needs:

• company paid-in capital of at least 500,000 lira;
• a personal capital stake of at least 500,000 lira and at least 20% of shares;
• from the seventh month of the first permit, at least five Turkish citizens employed every month.

Partners with a capital share of $100,000 or more are exempt from those capital, share and hiring criteria. Some foreigners, including long-term residence permit holders and spouses of Turkish citizens of at least three years, are exempt from certain criteria. Shareholders who do not manage the company may not need a permit at all, but a limited company manager typically does.

Your right to live in Türkiye is a separate question; if you are on a residence permit, see our guide to renewing a residence permit in 2026.

Step 10: Keep up with tax and ongoing obligations

• Corporate tax: 25% standard, 30% for financial-sector companies. Since 2025 a domestic minimum tax of 10% on a defined base also applies. Export income gets a 5-point reduction.
• Advance tax: profits are declared quarterly, with tax due on the 17th day of the second month after each quarter.
• Annual return: due by 30 April for calendar-year companies.
• VAT: standard rate 20%, with reduced rates of 1% and 10%.
• Withholding: dividends to foreign shareholders typically carry 15% withholding, subject to treaties.
• Corporate housekeeping: hold an annual general assembly, keep legal books, report changes in managers, shareholders and address to the registry, and renew sector licences.
• Foreign investment reporting: activity and capital information forms go to the ministry electronically through the E-TUYS system.

FAQ

Q: Can a foreigner own 100% of a Turkish company? A: Yes. Foreign investors are treated like Turkish citizens and can be the sole shareholder of a Ltd. Şti. or A.Ş. A few sectors, such as broadcasting, maritime and civil aviation, have nationality limits.

Q: Do I need to live in Türkiye to set up a company? A: No. Founders abroad can sign documents at a Turkish consulate or before a local notary with an apostille, and appoint a representative by power of attorney. Working in the company in Türkiye is a separate matter that usually needs a work permit.

Q: How much capital do I really need? A: The legal minimum is 50,000 lira for a Ltd. Şti. and 250,000 lira for an A.Ş. If you want a work permit as a partner, the Labour Ministry criteria look for 500,000 lira of paid-in capital and a 500,000-lira stake, unless your share is worth at least $100,000.

Q: Does a company give me a residence permit? A: Not automatically. Shareholding alone does not grant residence or the right to work; permits are applied for separately.

Q: Is an accountant mandatory? A: Companies must keep legal books and file tax, VAT and social security returns electronically, so in practice almost every company works with a mali müşavir.

Q: What is the deadline for older companies to raise capital? A: 31 December 2027, after the Trade Ministry’s October 2026 extension. Companies that miss it are deemed dissolved.

Planning to buy a home in Türkiye? Download our free property guide for a step-by-step checklist.

Sources

• Establishing a Business (Invest in Türkiye, Presidency Investment Office)
• Çalışma İzni Değerlendirme Kriterleri (Çalışma ve Sosyal Güvenlik Bakanlığı)
• Anonim ve limited şirketlerde asgari sermaye tutarına uyum süresi 31 Aralık 2026’da sona eriyor (KPMG Vergi)
• Şirketlerin asgari sermaye uyum süresi uzatıldı (Ekonomi Gazetesi)
• How To Set Up A Business In Turkey (2026 Guide For Foreigners) (Paldimoglu Law Firm, Mondaq)
• Branches and Liaison Offices of Foreign Companies in Türkiye (Erdem & Erdem)
• Türkiye – Corporate – Taxes on corporate income (PwC Worldwide Tax Summaries)
• Türkiye – Corporate – Tax administration (PwC Worldwide Tax Summaries)
• Entity setup in Turkey (Deel)
• Bağımsız Çalışma İzni Nedir? 2026 Güncel Rehber (FFK Partner Hukuk)

Photo: User:Ggia / CC BY-SA 3.0, via Wikimedia Commons