# 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:

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?
- 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:

**info@ozmconsultancy.com**

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