Introduction
Turkey has long been a strategic hub bridging Europe, Asia, and the Middle East. With its young population, competitive labor market, and government-backed incentives for technology, manufacturing, and export-driven businesses, the country continues to attract foreign investors.
In 2026, company formation in Turkey remains a highly accessible process compared to many European jurisdictions. However, the legal, financial, and tax compliance obligations have evolved — particularly around corporate governance, anti–money laundering (AML) checks, and physical address requirements.
For a foreign investor, the key questions are often the same:
What is the full cost breakdown of forming and maintaining a company in Turkey?
Which documents and approvals are required from the investor’s side?
Is a physical office address mandatory, or can a virtual office suffice?
What does the end-to-end process look like, from first planning to being operational?
This blog provides an authoritative, step-by-step guide that answers these questions in detail, complete with tables, FAQs, and practical insights.
The cost of establishing a company in Turkey can be divided into one-time formation costs and ongoing annual costs. Foreign investors should budget carefully for both categories, as underestimating the “maintenance” expenses often leads to compliance gaps.
| Expense Item | Approximate Cost (TRY) | Notes |
| Trade Registry Registration | 7,000 – 10,000 | Includes registration fees and gazette publication |
| Notary Fees (translations, approvals) | 4,000 – 6,000 | Varies depending on number of documents and shareholders |
| Legal Advisory | 20,000 – 35,000 | Drafting Articles of Association, structuring advice |
| CPA Advisory for Tax Setup | 15,000 – 25,000 | Mandatory for foreign-owned companies |
| Bank Account Opening & Capital Blockage | Deposit min. 50,000 TRY | Minimum share capital for LLC (Limited Şirket) |
| Miscellaneous (apostille, courier, sworn translations) | 5,000 – 10,000 | For passports, powers of attorney |
Total Estimated One-Time Costs: 50,000 – 80,000 TRY (approx. €1,400 – €2,250 at 2026 FX rates).
Ongoing Annual Costs
| Expense Item | Approximate Annual Cost (TRY) | Notes |
| Accounting & Bookkeeping | 60,000 – 120,000 | Depending on company size and number of transactions |
| Corporate Tax Filing & CPA Certification | 25,000 – 40,000 | Required for corporate returns |
| Payroll & Social Security (if employees hired) | 15,000 per employee (monthly) | Includes gross salary + employer contributions |
| Office Rental or Virtual Office | 25,000 – 100,000 | Location-based; Istanbul premium vs. Anatolia lower |
| Chamber of Commerce Membership | 3,000 – 5,000 | Mandatory |
| Independent Audit (if thresholds exceeded) | 150,000+ | Applies if revenue/assets exceed thresholds |
Total Estimated Annual Costs: 120,000 – 250,000 TRY (approx. €3,300 – €7,000).
2. Required Documents for Foreign Investors
Foreign shareholders and directors are required to provide specific documents during the incorporation process. These must generally be notarized and apostilled, and then translated into Turkish by a sworn translator.
Mandatory Documents:
Passport copies of all shareholders and directors (apostilled + notarized)
Proof of residence (utility bill, bank statement, or government-issued certificate)
Tax Identification Number (issued in Turkey for each foreign shareholder/director)
Articles of Association (prepared by lawyer/CPA, signed before notary)
Bank capital deposit certificate (showing minimum share capital blocked)
Power of Attorney (if incorporation is delegated to a local representative)
Additional Requirements (depending on case):
Parent company documents (if a corporate shareholder is involved): certificate of incorporation, board resolution to establish Turkish entity, apostilled and translated
Signature declarations of directors
Lease contract or virtual office agreement for registered address
3. Is a Physical Office Address Required?
Yes — under Turkish Commercial Code and tax legislation, every company must have a registered office address in Turkey.
Physical Office: Strongly recommended for companies with operational staff, particularly in regulated sectors (finance, health, energy).
Virtual Office: Acceptable for holding companies, consulting businesses, and startups. However, authorities are increasingly scrutinizing “ghost offices.” Tax officers often perform physical inspections, and if no operational activity is visible, fines or rejections can occur.
Hybrid Model: Some foreign investors opt for a virtual office at incorporation stage, then transition to a physical office once operations begin.
Practical Insight: In 2026, Istanbul tax offices are particularly strict in requiring evidence of actual business presence. For exporters and IT service providers, however, virtual offices remain a compliant option when properly documented.
The process typically takes 2–4 weeks if documentation is complete. Below is the end-to-end roadmap:
Pre-Incorporation Planning
Decide company type (Limited, Joint Stock, Branch, Liaison Office).
Define shareholding structure and capital allocation.
Preparation of Documents
Submission to Trade Registry
Tax Registration
Social Security (SGK) Registration
- Required if employees are hired.
Opening Bank Account
Capital deposited before incorporation completion.
Post-registration, convert blocked funds into working capital.
Operational Kickoff
Begin invoicing, payroll, and compliance reporting.
Monthly bookkeeping obligations start immediately.
5. Common Pitfalls and Risk Areas
Foreign investors often underestimate:
Ongoing accounting costs: Many assume only formation is costly, but annual compliance often exceeds initial setup.
Address requirements: Using non-compliant addresses may result in tax registration denial.
Choosing wrong entity type: A startup might benefit from Limited (LTD), while a larger investor may need a Joint Stock (A.Ş.) for easier capital raising.
Double Taxation Treaties (DTTs): Not utilizing treaty benefits often leads to higher withholding taxes on dividends and royalties.
Q1: How much capital is required to form a company in Turkey in 2026?
A minimum of 50,000 TRY is required for an LLC. Joint Stock Companies require 250,000 TRY.
Q2: How long does it take to form a company in Turkey?
Typically 2–4 weeks, depending on document readiness and registry workload.
Q3: Can I use a virtual office address?
Yes, but with increased scrutiny. Authorities require evidence of real activity.
Q4: Do I need a Turkish partner?
No. 100% foreign ownership is permitted in almost all sectors.
Q5: What are the annual accounting costs?
Approximately 120,000 – 250,000 TRY per year, depending on company size.
7. Strategic Advantages of Incorporating in Turkey in 2026
Market Access: Customs Union with EU and free trade agreements with 20+ countries.
Tax Incentives: Technology development zones, R&D deductions, export exemptions.
Labor Market: Competitive wage levels compared to Europe.
Location Advantage: Time-zone overlap with Europe, Middle East, and Asia.
8. Reach us
Forming a company in Turkey is not simply about completing paperwork — it is about structuring your business correctly from day one to ensure tax efficiency, compliance, and long-term growth.
At Özmen CPA Consultancy, we provide end-to-end guidance for foreign investors, including:
Strategic entity selection (LLC, JSC, branch)
Preparation and translation of all documents
Trade registry and tax registration support
Ongoing premium accounting and compliance advisory
Take the next step confidently — contact us today to discuss your Turkey market entry.
info@ozmconsultancy.com
