For foreigners, establishing a company in Turkey is a process that is fast and advantageous when planned correctly, but costly and exhausting when set up incorrectly. This guide has been prepared from a tax advisor's perspective, taking into account current legislation, tax practices and financial risks for foreign investors who want to establish a company in Turkey.
Key Focus: Company formation in Turkey, foreign investor, limited company, corporation, tax obligations, work permit, bank account
Can Foreigners Establish Companies in Turkey? (Legislation)
Yes. Foreign individuals and foreign-capital companies in Turkey have equal rights with Turkish citizens. Under Law No. 4875 on Foreign Direct Investment, companies can be established without prior permission.
- ✅ All partners can be foreign
- ✅ No Turkish partner requirement
- ✅ Capital can be brought in foreign currency
- ✅ All company types can be established
In this respect, Turkey is a legally open and flexible country for foreign investors.
Most Suitable Company Types for Foreigners (Limited vs Corporation)
The most frequently preferred company types by foreigners in Turkey are Limited Company and Corporation.
- Number of partners: 1–50 partners
- Minimum capital: 50,000 TL (as of 2024)
- Capital increase period: 24 months (⚠️ deadline 31.12.2026)
- Blockage: None
- Establishment process: Fast (2-7 days)
- Tax and administrative burdens: Manageable level
Most preferred structure for small and medium-scale investments. 88% of companies established in Turkey are Limited Companies.
- Number of partners: At least 1 partner
- Minimum capital: 250,000 TL
- Blockage: 25% of cash capital (minimum 62,500 TL)
- Establishment period: 3-10 days
- Share transfer: Easy
- Investor entry: Much easier than Limited
Most suitable: Long-term growth, investor entry or holding structures
Note: While individual company is theoretically possible for foreigners, it is not recommended in practice due to residence and tax risks.
Company Formation Costs in Turkey (2026 Current)
Limited Company Formation Cost
| Cost Item | Amount (TL) | Note |
|---|---|---|
| Notary fees (signature circular) | 1.050 - 1.150 | |
| Chamber of Commerce registration fee | 1.300 | |
| Competition Authority share (0.04% of capital) | 20 | |
| Official books (included in Chamber) | - | |
| Tax advisor service fee | 5.480 - 10.000 | |
| Power of Attorney (if required) | 2.000 | |
| TOTAL | ~24.000 - 44.000 TL |
⚠️ If there is a foreign partner, additional costs:
- Apostille document translation: 1,500 - 3,000 TL
- Sworn translator: 500 - 1,000 TL/document
- International courier (for documents): 500 - 2,000 TL
Foreign partner total cost: ~27,000 - 50,000 TL
Corporation Formation Cost
- Total formation cost: ~33,000 - 42,000 TL
- Blockage (must be deposited in bank before registration): 25% of capital (min. 62,500 TL)
- With foreign partner: ~35,000 - 48,000 TL
💡 Important Note: These costs are valid for Istanbul, Ankara, Izmir. They may vary in other provinces.
Important Changes in 2026
⏰⏰ Capital Increase Deadline
December 31, 2026: Limited companies must complete their capital to 50,000 TL. Otherwise, there is a risk of dissolution (company termination)!
📧📧 E-Invoice Obligation
ALL invoices must be e-invoice/e-archive regardless of amount. Paper invoice has been completely abolished.
💰 New Tax Rates
- Corporate Tax: 25% (fixed)
- Minimum Corporate Tax: 10% of profit (exempt for first 3 years)
- Income Tax Brackets: 15% - 40%
📋 Declaration Stamp Taxes (YDO 25.49%)
- Corporate Tax declaration: 1,605.80 TL
- VAT declaration: 791 TL
- Withholding declaration: 939.70 TL
Required Documents and Apostille Process for Foreign Partners
For Foreign Individual Partners
- ✅ Passport (notarized Turkish translation)
- ✅ Foreign tax identification number
- ✅ Signature declaration
- ✅ Company articles of association
- ✅ Power of Attorney (if you will not come to Turkey)
Additional Documents for Foreign Corporate Partners
- ✅ Activity certificate (with apostille)
- ✅ Partnership and capital structure document (with apostille)
- ✅ Company representation authority document (with apostille)
- ✅ Tax registration (with apostille)
- ✅ Signature declarations
⚠️ Warning: Deficiencies in documents can extend the company formation process by weeks.
What is Apostille and How to Obtain It?
Apostille: The international approval seal required for foreign documents to be valid in Turkey.
Documents Required for Apostille:
- Passport photocopy
- Activity certificate (for corporate entity)
- Partnership structure document
- Authority document
Process:
- ✅ Have the document notarized in your country
- ✅ Obtain apostille seal (Ministry of Foreign Affairs or authorized authority)
- ✅ Have it translated by a sworn translator in Turkey
- ✅ Have it approved at a Turkish notary
Duration: 2-4 weeks (varies by country)
Cost: 500-1,000 TL per document
💡 Tip: In EU countries, apostille is usually obtained within 1 week. In some countries, it may take 1 month.
Step-by-Step Company Formation Process (From MERSİS to Tax Office)
Stage 1: Preparation (1-2 weeks)
- ☐ Obtain e-signature (via e-Government)
- ☐ Apply for foreign tax number
- ☐ Prepare your apostille documents
- ☐ Determine workplace address (office/virtual office/home office)
- ☐ Select tax advisor
- ☐ Determine company name and business activities
Stage 2: MERSİS Application (1 day)
- ☐ Log in to MERSİS system with e-signature
- ☐ Create company articles of association
- ☐ Enter company name, capital, partners information
- ☐ Select business activities with NACE codes
- ☐ Make Director/Board of Directors appointments
- ☐ Complete the application
Stage 3: Notary and Registration (2-3 days)
- ☐ Approve signature circulars at notary
- ☐ Get Chamber of Commerce appointment
- ☐ Deposit Competition Authority share (0.04%) to bank
- ☐ Submit required documents to Chamber of Commerce
- ☐ Complete registration process
- ☐ Announcement in Trade Registry Gazette
Stage 4: Tax Office (1 day)
- ☐ Activate potential tax number
- ☐ Tax office inspection process
- ☐ Obtain tax plate
- ☐ Apply for e-invoice and e-ledger
- ☐ Apply for fiscal seal
Stage 5: Bank Account (1-2 weeks) ⏰
- ☐ Select bank (bank open to foreign capital)
- ☐ Prepare required documents
- ☐ Bank meeting (with your tax advisor)
- ☐ Complete compliance process
- ☐ Account opening
Stage 6: SSI and Other Procedures (1 day)
- ☐ SSI workplace notification
- ☐ Withholding declaration preparation
- ☐ VAT taxpayer application
- ☐ KVKK and VERBİS registration
⏱️ TOTAL DURATION: 2-7 business days (excluding bank account process)
⏱️ With bank: 2-4 weeks
Bank Account Opening: The Most Difficult Stage and Solutions
Establishing a company in Turkey is often easier than opening a bank account.
Why Difficult?
- ✓ Banks apply comprehensive compliance processes
- ✓ MASAK (Financial Crimes Investigation) checks are mandatory
- ✓ Each bank's approach to foreign capital is different
- ✓ Wrong bank selection leads to serious time loss
Banks Open to Foreign Capital (2026)
✅ Recommended Banks:
- Türkiye İş Bankası
- Garanti BBVA
- Akbank
- QNB Finansbank
- HSBC Turkey
- Yapı Kredi Bankası
❌ Banks You May Struggle With:
- Some public banks (depending on customer profile preference)
- Small private banks
Documents Required for Bank
- Company signature circular (notarized)
- Tax plate
- Trade Registry Gazette
- Activity certificate (Chamber of Commerce)
- Rental contract or deed
- Tax advisor contract
- Partners' identity/passports
- Business plan (some banks require)
- Fund source declaration
What is the Compliance Process?
Compliance: The process by which the bank examines the financial history of the company and partners.
- Determination of company's actual activity
- MASAK (Financial Crimes Investigation) checks
- "Know Your Customer" (KYC) procedure
- Fund source inquiry
- International sanction lists check
Duration: 1-2 weeks (1 month in some banks)
💡 Critical Tip: Go to the bank meeting with your tax advisor. Don't go alone, the compliance process takes longer and the risk of missing documents increases.
Work Permit Requirements and Employment Obligations
⚠️ Important: Being a company partner does not automatically grant a work permit.
Work Permit Requirements for Company Partner
Capital Requirements (One Must Be Met):
- Paid capital: Min. 100,000 TL OR
- Annual gross sales: Min. 800,000 TL OR
- Last year export amount: Min. 250,000 USD
Employment Obligation:
- 5 Turkish citizens must be employed for each foreign partner
- Employment requirement is not sought for the first 6 months
- Must definitely be met after the 6th month
- +5 more people for the 2nd foreigner in the same company (total 10 Turkish employees)
Work Permit Types:
- Term Work Permit: Maximum 1 year on first application
- Indefinite Work Permit: After 8 years of continuous work
- Independent Work Permit: For professional occupational groups
Application Process:
- Domestic application: Those with 6+ months residence permit in Turkey
- Overseas application: Through Turkish consulate/embassy
Duration: 4-8 weeks
⚠️ Critical Note: Work permit is NOT MANDATORY in company formation. Application is made AFTER the company is established.
Tax Aspect of Establishing a Company in Turkey
Once the company is established, it is considered a full taxpayer in Turkey and is taxed on Turkey-sourced earnings.
Basic Taxes (2026)
- Corporate Tax: 25% (fixed rate)
- Minimum Corporate Tax: 10% of profit (exempt for first 3 years)
- Value Added Tax (VAT):
- Basic rate: 20%
- Reduced rate: 10%
- Super reduced: 1%
- Withholding and Stamp Tax: Varies according to activity and contract
⚠️ Warning: If tax planning is not done at the establishment stage, unnecessary tax burdens arise in the following years.
Double Taxation Prevention Agreements
Turkey has double taxation prevention agreements with more than 95 countries. If these agreements are applied correctly:
- ✅ Dividend tax decreases (5-10% instead of 15%)
- ✅ Withholding on service and consulting fees decreases
- ✅ Tax risk in international transfers is minimized
- ✅ Tax advantage on interest and royalty payments
Example Agreement Rates:
- Germany: Dividend 15% → 5% (under certain conditions)
- UK: Dividend 15% → 10%
- Netherlands: Dividend 15% → 5-10%
- France: Dividend 15% → 5-15%
💡 Critical: This topic is one of the most critical but most neglected topics for foreign investors.
Real Life Scenarios
📦 Scenario 1: E-commerce Company (Germany → Turkey)
Profile: German citizen, will sell on Amazon/Trendyol in Turkey
Selected: Limited Company, 50,000 TL capital
Estimated Cost: ~27,000 TL (including apostille) | Duration: 3-4 weeks
🏗️ Scenario 2: Construction Company (Saudi Arabia → Turkey)
Profile: Saudi company, construction contracting projects
Selected: Corporation, 500,000 TL capital + 125,000 TL blockage
Estimated Cost: ~45,000-55,000 TL | Duration: 4-6 weeks
💻 Scenario 3: Software Company (France + Turkey Partnership)
Profile: French and Turkish partners, software development
Selected: Limited Company, 50% French + 50% Turkish
Estimated Cost: ~25,000-30,000 TL | Duration: 2 weeks
7 Critical Errors Foreigners Make When Establishing Companies in Turkey
1. Choosing Company Type Only by Low Cost
❌ Wrong: "Limited is the cheapest" | ✅ Correct: Corporation if investor entry is planned
2. Not Taking Tax Agreements into Account
❌ Wrong: Distributing profit without knowing tax agreements | ✅ Correct: Benefiting from double taxation agreement
3. Underestimating the Bank Process
❌ Wrong: "I'll go to the bank after establishing the company" | ✅ Correct: Planning the bank process in advance
4. Thinking the System in One's Own Country is Identical to Turkey
❌ Wrong: "I did it this way in Germany" | ✅ Correct: Learning Turkey's unique accounting system
5. Seeing Accounting Only as Bookkeeping
❌ Wrong: "Accountant just records invoices" | ✅ Correct: Tax advisor does tax planning
6. Ignoring Work Permit
❌ Wrong: Working without permit | ✅ Correct: Work permit application within first 6 months
7. Underestimating First Year Costs
❌ Wrong: "Only formation cost is enough" | ✅ Correct: Taking all expenses into account in the first year
⚠️ Warning: The effects of these errors usually appear not in the first year, but in the second and third year.
Frequently Asked Questions (FAQ)
1. Can I establish a company without coming to Turkey?
✅ Yes. Your tax advisor can do all transactions with a notarized and apostilled power of attorney.
2. Is work permit required in company formation?
❌ No. Work permit is obtained AFTER the company is established.
3. What is the minimum capital required?
Limited: 50,000 TL | Corporation: 250,000 TL + 25% blockage (min. 62,500 TL)
4. How long does it take to open a bank account?
1-2 weeks depending on company documents. It may take 1 month in some banks.
5. What are the monthly costs after establishing the company?
Accounting: 3,000-8,000 TL/month | SSI: ~10,000 TL/month (if there are employees) | Chamber of Commerce: ~2,000 TL/year
Evaluation from a Tax Advisor's Perspective
Establishing a company in Turkey is easy. The real issue is establishing the company with the right financial structure.
Errors made at the establishment stage cause unnecessary tax burdens, bank and money transfer problems, work permit and residence problems, and company structures that cannot be sold or grown. A solid financial foundation is the invisible but strongest element of a company.
Get Professional Support:
- ✅ 15+ years of experience in foreign-capital company formations
- ✅ English service support
- ✅ Guidance in apostille, translation, notary processes
- ✅ Accompanying bank meetings (compliance process support)
- ✅ First year tax planning included
- ✅ Work permit application support
- ✅ Strategies for benefiting from double taxation agreements
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The information in this article is for general informational purposes only. For your specific situation, please contact us or another expert.