Company Registration
Establish a Business in Turkey
We offer business registration services for our clients with experienced lawyers and accountants.
Steps of Registering a Business
1. Company Headquarters
According to the Turkish Law, your company must have an address before establishment.
- The first option is to rent a physical location for your company. Rent contracts in Istanbul for offices and shops start from 1,500-2,000 Turkish Liras.
- The second option is to rent a virtual office. With this option you will have a legal address, but not a physical location.
2. Equity and Capital of the Company
According to the Turkish Commercial Law, the minimum capital amount is 10,000TL. However, we advise our clients to deosit 100,000TL capital to facilitate the following procedures:
- Work Permit Application
- Being a part of trade organizations such as TUSIAD; MUSIAD, etc.
- Import and Export Activities
It is not compulsory to deposit the capital in the bank during the establishment process, the amount has to be deposited before applying to the work permit or within 24 months from the date of establishment.
Types of Companies
The Joint Liability Company
It is a company established to operate a business under a specific trade name, The liability of any of the shareholders is limited only to the capital subscribed and paid by the shareholders. There is no minimum capital requirement. All contributors need to be real people. Shareholders’ equity and obligations are determined through the Statutes.
This type of company has to be established by at least one real person or a legal entity and fifty people at the most, and the liability of shareholders is limited to the capital subscribed and paid by the shareholders. The capital of such company shall be not less than 10,000TL minimum for the establishment of the company per person, and 12.500 for two persons.
The Limited Liability Company
This company has to be established by at least one real person or a legal entity and fifty people at the most, and the liability of shareholders is limited to the capital subscribed and paid by the shareholders. The capital of such company shall be not less than 10,000TL minimum for the establishment of the company per person, and 12,500TL for two people.
The Joint Stock Company
At least five shareholders are needed to incorporate this company type (Real persons or legal entities), and the requirements for the minimum share capital is 50,000TL The management of the company is also foreseen by a board of directors, together with a supervisory board.
Tax Incentives
Tax incentives include customs, VAT and corporate income tax exemptions that depend on the sector and region of the company. Non-tax incentives include allocation of free land, assistance for R&D and market research, and up to 80% grant on social security payments of the employees. Other business initiatives are “Organized Industrial Zones” and “Free Trade Zones” that incentivizes export-oriented industries.
Investor Friendly
- Tax and non-tax incentives
- Most competitive 20% corporate income tax rate in the OECD
- Double taxation treaties with more than 70 countries
- Generally applied 18% VAT rate with some products/services falling under 1% and 8% rates
- Customs Union with the EU and Free Trade Agreements with 16 countries
- Bilateral investment treaties with 82 countries, including Russia, Ukraine, Uzbekistan, Kazakhstan etc.
Frequently Asked Questions
1. What are the main types of companies that foreigners can establish in Turkey?
Foreign investors can establish several types of companies in Turkey, but the most common and straightforward options are the Limited Liability Company (LTD) and the Joint Stock Company (AS). The LTD is often preferred for small to medium-sized businesses due to its simpler structure and lower capital requirements, while the AS is typically chosen for larger-scale operations or ventures requiring public offerings.
2. Can a foreigner fully own a company in Turkey?
Yes, foreign nationals can 100% own a company in Turkey without the need for a local partner. Turkey offers a welcoming environment for foreign investment, and there are no restrictions on foreign ownership in most sectors. Foreigners can also serve as the director or manager of their own company.
3. What are the steps to register a company in Turkey?
The company registration process involves several key steps:
Choosing a company name and structure
Preparing and notarizing the Articles of Association
Obtaining a tax number and registering with the local tax office
Depositing the minimum required capital (partial deposit is allowed during setup)
Submitting the application to the Trade Registry
Publishing the company details in the Turkish Trade Registry Gazette
Once completed, the company can legally operate and open a corporate bank account.
4. How long does it take to register a company in Turkey?
The company formation process in Turkey is relatively fast. With all required documents in order, it typically takes 5 to 10 working days to complete the registration. Delays may occur if there are issues with documentation or if translations and notarizations take longer than expected.
5. What documents are required to establish a company in Turkey?
The main documents include valid passports of the shareholders, power of attorney (if using a legal representative), a notarized address proof, and the Articles of Association. Foreign individuals may also need a potential tax number from the Turkish tax office. All documents not in Turkish must be translated and notarized.
6. Is a physical office address required to register a company in Turkey?
Yes, every company in Turkey must have a registered office address. This address must be a physical location and is used for official communication and inspections. Many startups and foreign-owned businesses use virtual office services to fulfill this requirement legally and cost-effectively.
7. Are there any ongoing compliance or reporting requirements after company formation?
Yes, Turkish companies must comply with several ongoing obligations, including monthly tax filings, annual financial statements, social security contributions for employees, and compliance with labor laws. Hiring a qualified accountant or financial advisor is strongly recommended to manage these responsibilities efficiently and avoid penalties.
Contact Us
Contact our immigration and investment advisors before investing in Turkey!