10 Questions Foreign Companies Ask Before Setting Up in Turkey (2026)

Yes. A foreigner can own 100% of a Turkish company. Under Foreign Direct Investment Law No. 4875, foreign investors have the same rights as Turkish nationals, so no local shareholder and no Turkish director are required. Full foreign ownership is permitted for both the limited company (Limited Şirket) and the joint stock company (Anonim Şirket).

A small number of regulated sectors — for example broadcasting, aviation and maritime transport — apply ownership caps, but ordinary trading, services, technology and manufacturing companies can be wholly foreign-owned. A foreign shareholder only needs a work permit if they will also be employed in Turkey. See our guide on setting up a company in Turkey as a foreigner.

For most foreign-owned businesses the limited liability company (Limited Şirket) is the simplest choice, while the joint stock company (Anonim Şirket) suits larger operations, investor structures and future share sales. The minimum capital is 50,000 TRY for a Limited Şirket and 250,000 TRY for an Anonim Şirket.

The most important practical difference is liability for public debts: in a Limited Şirket, shareholders can be pursued for unpaid taxes and social security in proportion to their shareholding, whereas in an Anonim Şirket shareholders are generally protected, though board members can carry responsibility.

Setting up usually takes about one to two weeks once documents are ready. Minimum capital is 50,000 TRY (Limited Şirket) or 250,000 TRY (Anonim Şirket). For a Limited Şirket the cash capital can be paid within 24 months of registration, so you do not have to deposit the full amount up front.

An Anonim Şirket must pay 25% of its cash capital before registration and the balance within 24 months. Beyond capital, budget for notary and sworn-translation fees, trade-registry costs and a Competition Authority contribution of 0.04% of capital. The main documents are an apostilled passport copy and a notarized, apostilled power of attorney if you are not attending in person.

No. You do not need to live in Turkey or be physically present to set up or own a Turkish company. Formation can be completed through a notarized and apostilled power of attorney, and both shareholders and directors may be non-residents. A licensed local accountant then handles the ongoing filings.

Two points are worth separating. First, the company itself is a full Turkish taxpayer regardless of where its owners live. Second, your personal tax residency is a different question — it depends on where you actually live and manage, not on owning a Turkish company. A work or residence permit is only needed if you will personally work in Turkey.

A Turkish company pays corporate income tax at 25% on its profits (30% for banks and financial institutions), charges and collects value added tax at a standard rate of 20%, and applies withholding and stamp taxes on certain payments. Distributing profit to shareholders triggers a further 15% dividend withholding tax.

VAT has reduced rates of 10% and 1% for specific goods and services. Withholding tax applies to payments such as rent and certain professional fees, and stamp tax applies to many contracts. A domestic minimum corporate tax can also apply. Treaties may reduce the dividend rate. See our 2026 corporate tax guide and VAT registration guide.

Yes. Profits and dividends can be transferred abroad freely. Foreign Direct Investment Law No. 4875 guarantees foreign investors the right to transfer profits, dividends and sale proceeds through banks. A dividend distribution is subject to 15% withholding tax, which the applicable double taxation treaty often reduces.

There is no exchange-control block on repatriation, but the distribution must be supported by a proper shareholder resolution and financial statements. To apply a reduced treaty rate you generally need a residence certificate from the shareholder’s home country. See dividend distribution and taxation for foreign shareholders.

Yes, in practice a licensed local accountant is mandatory. Turkish companies must keep statutory books in Turkish under Tax Procedure Law No. 213, and most fall inside the e-Ledger (e-Defter) and e-Invoice (e-Fatura) system. Bookkeeping and tax filings must be handled by a licensed accountant (SMMM) registered with TÜRMOB.

Filings run on a fixed calendar: monthly VAT and withholding returns, provisional corporate tax during the year, and the annual corporate tax return. You cannot self-file statutory Turkish books. See our accounting and bookkeeping and tax compliance pages.

Yes. Once the company is registered and has its tax number, it can open a Turkish corporate bank account. In practice, banks apply strict identity and anti-money-laundering checks on foreign-owned companies, and some require a signatory to attend in person or hold a Turkish tax number, so it is worth planning the account opening early.

Expect due-diligence questions on the ultimate beneficial owners and the source of funds, and allow time — approval speed varies significantly between banks. A local business address and a clear description of the company’s activity help the process.

Yes. A Turkish company can employ staff after registering with the Social Security Institution (SGK). The real cost of an employee is higher than the gross salary, because the employer pays its own social security and unemployment contributions on top of gross. Employment is governed by Labour Law No. 4857, including notice and severance rules.

The practical takeaway: budget the fully loaded cost — gross plus employer contributions — before you make an offer, not just the gross figure. Payroll and the combined monthly declaration must be run correctly from the first hire. See our payroll services page.

A subsidiary is a separate Turkish company (Limited or Anonim Şirket) that can trade and limits the parent’s liability. A branch is an extension of the foreign company that can trade but is not a separate legal entity. A liaison (representative) office cannot carry out commercial, revenue-generating activity and is limited to representation and market research.

A liaison office needs a permit from the Ministry of Industry and Technology and is funded from abroad; where wages are paid in foreign currency from abroad, employees may benefit from an income-tax exemption. If you intend to sell or invoice in Turkey, a subsidiary or a branch is required — not a liaison office.