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Company Formation in Turkey for Foreigners: 2026 Complete Guide

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.

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Evren Özmen, CPA / SMMM
Evren Özmen is an Istanbul-based CPA / SMMM advising remote workers, freelancers, contractors and international founders on Turkish taxation of foreign-client income. Founder, OZM Consultancy. Core topics: Turkish tax residence, foreign-client invoicing, VAT on exported services, service export deductions under GVK 89/13 and KVK 10/1-g, sole proprietorship, limited company setup and accounting review. Primary contact: info@ozmconsultancy.com Business website: https://ozmconsultancy.com This profile and Evrenozmen.com.tr provide general information. Case-specific review is required before applying any tax position.

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: 27 August 2026

Short 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, SGK/payroll incentives, possible R&D or AI support, capital-loss monitoring and long-term compliance. For solo remote workers and freelancers, a sole proprietorship may be reviewed separately.

Get a Company Formation Cost Review

Before choosing the cheapest package, send the structure so setup cost, tax registration, VAT, banking and accounting obligations can be priced together:

Include shareholder country, individual or corporate ownership, planned activity, number of shareholders/managers, expected revenue, employee plan, office need and whether remote incorporation is required.

Short 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.

Practical Answer

For foreigners, company formation in Turkey is not only a trade registry filing. The right answer should cover legal form, tax registration, VAT, payroll, banking, foreign shareholder structure, ongoing accounting, possible service export tax treatment, SGK incentives, investment incentive certificate review and capital-loss monitoring under TTK 376.

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:

  1. Define the business activity and ownership structure.
  2. Select company type.
  3. Prepare articles of association and registry documents.
  4. Complete trade registry procedures.
  5. Obtain tax registration.
  6. Open accounting records.
  7. Arrange invoicing, VAT and payroll setup.
  8. Review bank account requirements.
  9. 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?
  • Is the activity regulated in Turkey, requiring a separate license, permit, workplace approval, chamber record or sector authorization?
  • For game studios, are App Store, Google Play, AdMob, Steam or Roblox platform reports available?
  • Will the company need SGK incentives, AI/R&D support or Teknopark planning after setup?
  • Is a Turkish investment incentive certificate relevant for machinery, data center, AI or technology infrastructure spending?
  • Could losses, FX debt or a planned capital increase trigger a TTK 376 capital-loss review?
  • Should profit be retained in the company or distributed?

After Incorporation Checks

The company should be reviewed again after setup if it hires employees, applies for AI/R&D support, receives foreign-client software revenue, uses foreign SaaS tools or has early losses. These issues affect monthly payroll, VAT, withholding, service export documentation and TTK 376 capital-loss monitoring.

For regulated activities such as foreign exchange offices, second-hand vehicle trade, rent a car, private healthcare, health tourism, beauty and aesthetic services, Web3/crypto asset services or platform trade, company formation should be reviewed together with license, permit, workplace, chamber and tax documentation:

https://evrenozmen.com.tr/regule-faaliyetlerde-sirket-kurulusu-ruhsat-vergi-on-kontrol

Related Turkish guides:

Start With a Case Review

For company formation and accounting setup, email:

info@ozmconsultancy.com

Subject line:

Turkey company formation review

Company Formation Review Checklist

For a faster quotation, send these facts in one note: shareholder country, individual or corporate ownership, proposed activity, city, number of shareholders and managers, expected annual turnover, payroll plan, office preference, remote incorporation need, bank account priority and monthly accounting requirements.

Start here: info@ozmconsultancy.com

Sources

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