How to Set Up a Company in Turkey as a Foreigner
Turkey allows 100% foreign ownership of companies, and foreign investors are treated the same as local investors under the Foreign Direct Investment Law. You do not need a local partner, and you do not need to be physically present for the whole process if you appoint a representative through a power of attorney. This guide explains, step by step, how a foreign individual or company can establish a business in Turkey, how long it takes, what it costs, and which obligations follow incorporation.
Can Foreigners Own a Company in Turkey?
Yes. Foreign nationals and foreign companies can own a Turkish company outright. The most common structure for foreign investors is the Limited Liability Company (LLC), known locally as a Limited Şirket. A Joint Stock Company (Anonim Şirket) is preferred for larger operations or where share transfers and future investment are expected. Both structures give shareholders limited liability up to their capital contribution.
Choosing the Right Company Type
| Feature | Limited Liability Company (LLC) | Joint Stock Company (JSC) |
|---|---|---|
| Minimum capital | TRY 50,000 | TRY 250,000 |
| Minimum shareholders | 1 | 1 |
| Liability | Limited to capital | Limited to capital |
| Best for | SMEs, service businesses | Larger firms, future investment |
| Share transfer | Notary required | Easier, less formality |
Most foreign-owned small and medium businesses choose the LLC for its lower capital requirement and simpler management. We help you select the structure that fits your business plan and tax position.
Step-by-Step Process
- Prepare documents and get a tax number. Each foreign shareholder and director obtains a Turkish potential tax number, and foreign documents are notarised and apostilled where required.
- Draft the articles of association. The company purpose, capital, shareholders and managers are defined and registered on the MERSIS system.
- Notarise signatures and grant power of attorney. If you cannot attend in person, a power of attorney lets your representative complete the process on your behalf.
- Register with the Trade Registry. The company is registered at the relevant Chamber of Commerce and announced in the Trade Registry Gazette.
- Open a corporate bank account. Capital is deposited and the bank issues confirmation for the records.
- Complete tax and social security registration. The company is registered with the tax office and, once it has employees, with the Social Security Institution (SGK).
How Long Does It Take and What Does It Cost?
For a standard LLC with complete documentation, incorporation typically takes one to two weeks. Total set-up costs vary depending on capital, translation and notary fees, and whether you need a registered address and accounting support. We provide a clear, itemised quote before starting so there are no surprises.
Obligations After Incorporation
Once your company is active, it must keep statutory books, file periodic tax returns (corporate tax, VAT, withholding and provisional tax) and submit annual financial statements. If you employ staff, monthly payroll and SGK filings are also required. Many foreign owners outsource these functions so they can focus on running the business. Explore our accounting services in Turkey, tax compliance and tax services, and payroll services for ongoing support.
Do You Need a Local Entity at All?
Not always. If your company only has limited tax obligations in Turkey, such as VAT, you may be able to meet them through fiscal representation instead of forming a company. We can review your situation and recommend the most efficient route.
Frequently Asked Questions
Do I need to be in Turkey to set up a company?
No. With a notarised power of attorney, your representative can complete incorporation while you are abroad.
Do I need a Turkish partner?
No. Foreign investors can own 100% of a Turkish company.
Can a foreign company be the shareholder?
Yes. A foreign company can be a shareholder, with its documents notarised and apostilled.
Does setting up a company give me residence rights?
Company ownership can support a work or residence permit application, but it is a separate process with its own requirements.
Talk to Our Team
We guide foreign investors through every stage of setting up and running a company in Turkey, in English. Contact our team to discuss your plans and request a tailored quote.