How to Establish a Company and Start a Business in Turkey
Foreign investors may establish companies and conduct commercial activities in Türkiye subject to the applicable corporate and investment rules. The exact incorporation process depends on the type of company, ownership structure and business activity.
Establishing a company is separate from purchasing real estate. Investors planning to operate a business in Türkiye should consider taxation, accounting, work permits, licensing and sector-specific requirements in addition to company registration.
Can Foreigners Establish a Company in Turkey?
Yes. As a general rule, foreign natural and legal persons can become shareholders in Turkish companies. Additional permissions or restrictions may apply in regulated sectors such as finance, broadcasting, aviation, maritime activities and other specifically regulated industries.
The proposed activity should therefore be checked for licensing or regulatory approval requirements before incorporation.
Main Company Types in Turkey
Turkish Commercial Code provides several company forms. The most commonly used capital-company structures include:
- Limited Liability Company (Ltd.)
- Joint Stock Company (A.Ş.)
These structures differ in capital, governance, share transfers, liability, decision-making and suitability for certain regulated activities.
The statutory minimum capital and payment requirements applicable on the incorporation date should be confirmed, as these thresholds can be changed by legislation.
1. Choose the Company Type and Business Activity
The first step is to determine the activity to be carried out and select an appropriate legal form.
At this stage, investors should also determine whether the activity requires a special licence, ministry approval or authorization from another regulatory body.
2. Prepare the Articles and Use MERSIS
Commercial registration procedures in Türkiye use MERSIS, the Central Registry Record System. Company information and incorporation documents are prepared within the applicable MERSIS and trade-registry procedures.
Where founders are foreign individuals or legal entities, additional documents, certified translations, apostilles or other authentication may be required.
3. Registration with the Trade Registry
Once the required incorporation documents have been prepared, registration is completed with the relevant Trade Registry Directorate.
The required documents can vary according to the company type, shareholders, capital structure and business activity. The current document list of the relevant Trade Registry should therefore be followed at the time of incorporation.
4. Tax Registration and Accounting
Company incorporation creates tax-registration and ongoing reporting obligations. The taxes applicable to a business depend on its activities and transactions.
Corporate tax, value added tax, withholding obligations and other taxes may become relevant depending on the business model.
Working with an authorized accountant or tax professional from the beginning can help ensure that bookkeeping and filing obligations are handled correctly.
5. Bank Account and Share Capital
The timing and method of paying share capital depend on the company form. The rules are not identical for joint stock and limited liability companies.
When opening a corporate bank account, banks may request incorporation documents, identification for authorized persons and additional documents under customer due-diligence procedures.
6. Social Security and Employees
A company employing personnel must comply with Social Security Institution and employment-law obligations.
Being a foreign shareholder or manager is not necessarily the same as having authorization to work in Türkiye. Foreign nationals who will perform work in Türkiye should separately consider applicable work-permit requirements.
7. Workplace Licences and Sector-Specific Permissions
Company registration does not automatically authorize every business activity. Depending on the activity and premises, a municipal workplace licence, professional authorization or approval from another public authority may be required.
Restaurants, tourism businesses, healthcare, education, finance and other regulated sectors may be subject to additional rules.
Can a Foreign Company Open a Branch in Turkey?
A foreign company may establish a branch in Türkiye subject to the relevant requirements. A branch is not a separate legal entity from its parent company and operates in connection with the parent company's legal structure.
Corporate resolutions and documents from the parent company may need to be prepared and authenticated for use in Türkiye.
Foreign Documents Used for Incorporation
Documents issued abroad may require an apostille, consular authentication and Turkish translation depending on the country of issue and document type.
Current acceptance requirements should be confirmed with the relevant Trade Registry before the documents are prepared.
What Should Foreign Investors Check Before Incorporation?
- Select a company form suitable for the business activity.
- Confirm current minimum-capital and payment requirements.
- Determine whether the activity requires licensing or special authorization.
- Check apostille and translation requirements for foreign documents.
- Plan accounting and tax compliance before commencing operations.
- Consider work-permit requirements for foreign personnel or managers.
- Confirm that the proposed business address is suitable for the activity.
Property Investment and Companies in Turkey
A foreign buyer does not necessarily need to establish a Turkish company merely to purchase real estate. Foreign natural persons may acquire property in their own name where the applicable acquisition conditions are satisfied.
If real estate will instead be acquired or operated through a company, the corporate structure, tax treatment and business purpose should be assessed separately.
Professional Support
Company incorporation involves trade-registry, taxation, accounting and potentially work-permit or licensing procedures. Assistance from an authorized accountant and, where appropriate, an independent legal professional can therefore be useful.
Alanya Home can assist with property selection and coordination of the real estate investment process, while corporate, legal and tax procedures should be handled by appropriately qualified professionals.
This page is provided for general information only and does not constitute legal, tax or accounting advice. Capital requirements, incorporation documents, taxes, work-permit rules and licensing requirements can change, so current legislation and official requirements should be verified before establishing a business.
