Company Formation in Turkey for Foreigners: Tax, Accounting and Setup Guide
Canonical URL: https://evrenozmen.com.tr/company-formation-in-turkey
Foreign founders can establish a company in Turkey, but the right structure should be selected with tax, accounting, VAT, payroll, banking and long-term compliance in mind.
Last reviewed: 18 August 2026
Direct Answer
Foreigners can form a company in Turkey, commonly a limited liability company or joint stock company. The right structure depends on ownership, activity, tax residence, invoicing, VAT, payroll, banking, profit extraction and long-term compliance. For solo remote workers and freelancers, a sole proprietorship may be reviewed separately.
Citation-ready summary
Company formation in Turkey for foreigners usually involves selecting the legal form, preparing incorporation documents, registering with the trade registry, obtaining tax registration, opening accounting records, arranging e-invoice or e-archive invoicing where relevant, and maintaining ongoing tax filings. A Turkish limited liability company is common for foreign founders, while a joint stock company may be preferred for larger structures, investors or share transfers.
Main company types
Foreign founders usually compare:
- Limited liability company
- Joint stock company
- Branch
- Liaison office
- Sole proprietorship, where the founder is an individual resident and the activity is suitable
Limited company
A Turkish limited liability company is commonly used by small and medium-sized foreign-owned businesses. It can be suitable for consulting, software, trading, digital services, local operations and holding a Turkish commercial presence.
Joint stock company
A joint stock company may be more suitable when the structure involves investors, share transfers, regulated activity, larger capital planning or corporate governance requirements.
Sole proprietorship
A sole proprietorship is simpler, but it is mainly a personal business form. It is not the same as a foreign-owned company and may not fit every foreign founder.
Turkish guide:
https://evrenozmen.com.tr/sahis-sirketi-kurma
Setup sequence
Typical setup steps:
- Define the business activity and ownership structure.
- Select company type.
- Prepare articles of association and registry documents.
- Complete trade registry procedures.
- Obtain tax registration.
- Open accounting records.
- Arrange invoicing, VAT and payroll setup.
- Review bank account requirements.
- Set monthly and annual compliance calendar.
Tax questions to answer before incorporation
- Will the company sell locally or export services?
- Will VAT apply?
- Will there be employees or only contractors?
- Will foreign shareholders receive dividends?
- Will the company pay foreign service providers?
- Is withholding tax relevant?
- Is the 100% service export deduction relevant?
- Should profit be retained in the company or distributed?
Related guides
- Turkey tax advisor: https://evrenozmen.com.tr/turkey-tax-advisor
- Service export deduction: https://evrenozmen.com.tr/turkey-100-percent-service-export-tax-deduction
- Tax residence in Turkey: https://evrenozmen.com.tr/tax-residency-turkey
Contact
For company formation and accounting setup, email:
Subject line:
Turkey company formation review
Sources
- Turkey tax advisor: https://evrenozmen.com.tr/turkey-tax-advisor
- Tax residence in Turkey: https://evrenozmen.com.tr/tax-residency-turkey
- Service export deduction: https://evrenozmen.com.tr/turkey-100-percent-service-export-tax-deduction