Cost of Setting Up a Company in Turkey in 2026: Comprehensive Guide for Foreign Investors
Originally published by Evren Özmen, CPA
Turkey has become an attractive destination for international entrepreneurs due to its strategic location, sizable domestic market, and business-friendly policies.
Foreign investors are granted the same rights as local investors under Turkish law, meaning you can establish a company in Turkey with 100% foreign ownership and no requirement for a local partner. If you’re considering company formation in Turkey in 2026, it’s crucial to understand all the business setup costs and regulatory requirements upfront.
This comprehensive guide breaks down the costs of setting up various types of companies – Limited Liability Company (Ltd. Şti.), Joint Stock Company (A.Ş.), Branch Office, Liaison Office, and Free Zone Company – and highlights recent regulatory changes (including 2024–2026 updates) that foreign investors must know. We’ll cover one-time incorporation expenses as well as ongoing yearly costs, so you can budget accurately for your Turkey business registration.
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Contact us via email at info@ozmconsultancy.com for personalized support in navigating Turkish company formation and getting your venture off to a strong start.
Why Choose Turkey for Business in 2026?
Turkey offers a dynamic economy bridging Europe and the Middle East, a young population, and government incentives for investment.
The country’s Foreign Direct Investment Law guarantees equal treatment for foreign investors, allowing full foreign ownership in most sectors.
Key advantages include: a large consumer market of ~85 million people, access to EU and regional markets, competitive labor costs, and tax incentives in certain zones and industries. As of 2026, the corporate tax rate in Turkey is 25% on profits (standard rate), and the standard VAT rate is 20% on goods and services. While taxes affect operating profitability, Turkey’s taxation is moderate by international standards, and free zones or special incentive programs can further reduce the tax burden (discussed later).
Overall, Turkey’s pro-business reforms and its commitment to integrate with global markets (e.g. EU Customs Union) make it an appealing hub for expansion. With the right guidance, business setup in Turkey can be efficient and cost-effective – often at a fraction of the cost in Western Europe.
Recent Regulatory Updates: Importantly, Turkey introduced new minimum capital requirements effective January 1, 2024 that impact company formation costs. All new limited companies and joint stock companies must meet higher capital thresholds (detailed below), and existing companies are required to increase their capital by December 31, 2026 to comply or be deemed dissolved.
We will explain these capital rules for each entity type. Keep these updates in mind, as many outdated sources still cite old figures. By understanding the current regulations and fees, foreign investors can avoid surprises and plan their Turkey venture with confidence.
Let’s now break down the cost of starting a business in Turkey in 2026 – for each company structure – including all relevant expenses: from notary and translation fees to trade registry charges, capital deposits, office rentals, professional services, and annual maintenance costs.
Overview of Company Types in Turkey
Foreigners have several options for establishing a business presence in Turkey, each with its own cost structure and regulatory requirements. The main types of companies and business entities include:
Limited Liability Company (Ltd. Şti.) – The most common form for SMEs and foreign investors. Requires at least 1 shareholder (up to 50) and offers limited liability. Minimum capital as of 2024 is 50,000 TL. Lower setup and compliance costs compared to a joint stock company.
Joint Stock Company (A.Ş.) – Suitable for larger enterprises or those needing to issue shares/public offering. At least 1 shareholder (no maximum). Minimum capital as of 2024 is 250,000 TL. More complex governance (board of directors, general assembly) and slightly higher formation costs.
Branch Office – An extension of a foreign parent company, not a separate legal entity. No share capital requirement (the parent company’s capital is used). The branch can only engage in activities of the parent’s scope. Requires a local representative and registration at the trade registry.
Liaison Office (Representative Office) – A non-commercial office for market research or representation on behalf of a foreign company. Cannot conduct revenue-generating activities in Turkey. No capital required and enjoys tax exemptions on its operations, but it must be fully funded from abroad. Requires a permit from the Ministry (typically valid up to 3 years and renewable).
Free Zone Company – A company (or branch) established in one of Turkey’s Free Trade Zones to benefit from tax and customs advantages. Often used for export-oriented businesses. Typically an LLC or branch that operates under a zone license. Requires an Operating License from the Ministry of Trade (with a significant one-time fee) and usually a physical presence in the zone.
Each structure has advantages depending on your business goals (liability, taxation, operational flexibility). However, the focus of this guide is cost – both the initial setup cost and ongoing expenses – for each type. Below, we dive into the detailed cost breakdown for each company type in Turkey, as relevant to 2026.
The Limited Liability Company (LLC) is the most popular entity for foreign businesses entering Turkey, thanks to its simplicity and relatively low cost of formation. An LLC requires only one shareholder (which can be a foreign individual or company) and one director, and offers liability limited to the capital contribution. It’s ideal for small to medium businesses and startups. Below we outline the cost components for setting up an LLC in 2026:
Minimum Capital Requirement: As of the latest regulations (effective Jan 1, 2024), an LLC in Turkey must have a minimum capital of 50,000 TL. This is a significant increase from the old 10,000 TL minimum (older sources citing 10k are outdated). At least 25% of the subscribed capital (i.e. 12,500 TL) must be deposited to a bank prior to registration, where it will be blocked until incorporation is completed. The remainder can be contributed within 24 months.
It’s important to note that this capital is not a fee – it remains company money (unblocked after formation for use as working capital) – but it does represent a funding commitment.
There is also a small mandatory Competition Authority fee of 0.04% of capital paid at registration (for 50k TL capital this is 20 TL; a negligible amount). Ensure you budget for the new capital minimum, as all new LLCs must meet the 50k TL requirement. (Existing companies founded earlier have until the end of 2026 to raise capital to this level or face dissolution.)
Notary and Translation Fees: Foreign founders will incur notary and translation costs for various documents. Key documents include the Articles of Association, which must be executed in Turkish, and signature declarations, as well as translations of foreign shareholders’ passports or parent company documents.
Each document needs to be notarized. In practice, these costs can range roughly $500 to $1,000 USD in total for a typical LLC setup. (In local currency, this might be on the order of 15,000–30,000 TL, depending on document volume and notary tariffs in 2026.) For example, notarizing and translating a passport might cost ~400–500 TL, articles of association maybe ~1,000 TL, and various forms and declarations add up. If the company has multiple foreign shareholders or a lengthy parent company certificate to translate, costs will be on the higher end.
This category covers things like sworn translator fees, notary public fees per page/signature, and statutory stamp duties for official papers.
Trade Registry and Chamber Fees: When registering the company with the local Trade Registry Office, several official fees apply. These include the registration fee (which can vary by city and company size), the fee for publishing the incorporation notice in the Turkish Commercial Registry Gazette, and initial Chamber of Commerce membership fees.
In total, these charges are often a few thousand Turkish Lira. For an LLC, typical registration fees might range from $200 to $500 (e.g. ~5,000–15,000 TL) depending on the province. The Commercial Gazette announcement is usually low cost (e.g. 300–400 TL). The Chamber of Commerce fee is often based on the company’s capital; for example, in Istanbul, the one-time joining fee plus first year annual fee could be a few hundred TL.
Example: One source notes that, excluding the capital, typical company setup fees (including notary, translation, registry, etc.) for an LLC range from $900 to $2,100 (approximately 27,000–62,000 TL). These official fees are relatively modest, making Turkey’s registration costs quite low compared to many Western countries.
Legal and Consultancy Fees: While not strictly required by law, it’s highly recommended to engage a local lawyer or consultant to handle the company formation paperwork, especially for foreigners navigating a new system.
Professional service fees will vary widely depending on the service provider and the scope (full turnkey company setup, obtaining tax IDs, drafting articles, etc.).
As a ballpark, legal/consultancy fees for an LLC setup can start around $1,000–$2,000 USD for basic services and rise for more complex cases. Some firms offer packages that include everything (notary, registration, virtual office for a period, etc.) for a fixed price.
Always clarify which services are included: e.g. does it cover articles drafting, translations, tax office registration, opening bank accounts, etc. Given the relatively low government fees, often the biggest portion of your setup cost is the professional service fee, if you choose full-service assistance. You may find lower quotes from independent consultants, but ensure they are reputable. Budget accordingly for this if you prefer a hassle-free company formation experience with experts managing the process.
Virtual Office or Physical Office Address: Every company in Turkey must have a registered local address. If you don’t plan to rent a physical office immediately, a virtual office is a cost-effective solution.
Virtual office providers supply a legal address (and often mail handling and meeting room services) for a monthly fee. Prices in Turkey are quite affordable: packages can start from as low as €30 per month (around $33) for a basic address service.
Typically, in Istanbul, quality virtual offices range from roughly $50–$100 per month (for example, 1,500–3,000 TL monthly) depending on location prestige and services included. Over a year, this might be $600–$1,200. Compare this to renting a small physical office: in central Istanbul, even a small office could cost 8,000+ TL (a few hundred dollars) per month.
Many foreign-owned startups opt for virtual offices initially to minimize overhead. Note: The address must be ready by the time of the tax office inspection (shortly after registration, a tax officer visits to verify the company’s domicile), so ensure your chosen solution provides proof of address (e.g. a lease or service contract) and even a desk or signage if needed for verification.
If you do choose a physical office, factor in rent and deposit costs accordingly. In either case, having a local address is an unavoidable cost (though relatively small in the grand scheme).
Bank Account Opening and Capital Deposit: Opening a corporate bank account for the new company is a required step to deposit the initial capital (at least 25% of capital before registration). Most major Turkish banks allow foreigners to open accounts for a company, though the company must be legally registered first (except the special pre-registration capital deposit account).
The bank will issue a letter confirming the capital (25% of 50k = 12,500 TL, or more if you opt to deposit full capital) has been paid in – this letter is filed with the trade registry. Banks generally do not charge a significant fee for opening a capital deposit account or issuing this letter (it’s often free, or just a token fee). The main “cost” here is ensuring you have the funds for the deposit. After company registration, you will formalize a permanent corporate bank account.
Tip: Shop around for banks that are foreigner-friendly – some may require the signatory to visit in person. There might be a small fee for checkbooks or banking services, but no large upfront banking cost beyond the deposited capital itself.
Once the company is formed, the blocked capital becomes available for use. Aside from capital, plan for a minimum account balance or initial deposit (some banks might ask for a token deposit like 1000 TL to activate the account). Overall, bank account costs are minimal – mostly administrative.
Tax Registration and Social Security: After the trade registry registration, the new LLC is automatically tax registered (the Trade Registry notifies the Tax Office). A few days post-incorporation, you must obtain your tax certificate from the local tax office.
There is no fee for tax registration itself. However, note that a tax officer will visit the company address to issue a determination report confirming the business is operating at that address. This means your office (or virtual office) should be set up to receive them (e.g. someone present or signage). Similarly, if you plan to hire employees, you’ll register with Social Security (SGK), which is also free.
In summary, government registrations for tax/SGK have no direct cost, but they are essential steps. Make sure to budget a bit of time for these post-incorporation tasks (or have your accountant handle them). The tax officer visit typically happens within a few weeks of company registration.
Accounting and CPA Fees: In Turkey, companies are required to maintain books and engage a certified public accountant (SMMM) on an ongoing basis. This is not just an option – by law you need an accountant to submit monthly tax filings (even if zero activity) and payroll, etc.
Don’t just choose based on price – ability to communicate in English and experience with foreign businesses is important.
Yearly accounting costs will thus be in the range of $1,200–$3,000 for a standard small business. Additionally, you’ll incur small expenses for certifying statutory books each year (the company ledgers must be notarized at year-end or beginning of each year) – this might cost a few hundred TL annually for the notary stamps.
It’s also prudent to budget for annual tax return preparation and any independent audit if your company grows large (though most LLCs below certain size thresholds won’t need formal audits). Overall, accounting is a significant ongoing cost, but it ensures compliance with Turkey’s monthly tax regime (which includes filings for VAT, withholding taxes, social security, etc.).
Miscellaneous Initial Costs: There are a few other minor costs to mention. Competition Authority Fee (mentioned above) on incorporation is 0.04% of capital (20 TL on 50k). Obtaining signature circulars (imza sirküleri) for company managers from a notary – perhaps ~300–500 TL. Company seal (stamp) – while not legally required, many companies get an official rubber stamp made; cost ~100 TL. If documents are executed via Power of Attorney (POA) because you, as the foreign owner, aren’t in Turkey, the POA will need to be notarized and apostilled in your home country, which could incur some cost there. Also, if using a temporary virtual office, some providers might charge a small setup fee or deposit. A municipality workplace opening license may be required depending on your business activity and locale – fees for this vary by municipality and sector (for a simple office-based business it’s usually nominal, a few hundred TL, and often handled by your accountant post-formation). In total, these miscellaneous items are a small portion of the budget, but it’s good to remember they exist.
Summary – LLC Setup Cost Estimate: Taking all the above into account, what might it cost to launch a standard LLC in Turkey as a foreigner in 2026? Here’s a rough summary in USD (assuming $1 ≈ 30 TL for illustration):
Capital: 50,000 TL (≈ $1,700) required, with 12,500 TL (~$420) upfront (not spent, but in bank).
Notary/Translation: $1000 .
Registry/Chamber/Gazette: $400
Legal/Consultancy: $1,500
Address (1st year virtual office): $600
Bank account opening: ~$0 fee (just maintain the capital deposit).
Initial tax/SGK registration: $0 fee.
Other misc (notary for books, stamp, etc.): $200.
Always get a detailed quote from your advisor breaking down each cost. In any case, compared to many countries, starting a business in Turkey is relatively low-cost, which is part of Turkey’s appeal.
A Joint Stock Company (JSC) in Turkey, known as Anonim Şirket (A.Ş.), is another common vehicle, especially for larger ventures, tech startups eyeing future investment rounds, or any business that may want to issue shares or go public. JSCs can have one or more shareholders (no upper limit) and have more structured governance (board of directors, mandatory general meetings, etc.). From a cost perspective, setting up a JSC shares many of the same categories as an LLC, with some key differences:
Minimum Capital Requirement: The minimum paid-in capital for a JSC is 250,000 TL as of 2024 (up from the old 50,000 TL). This is a substantial capital commitment (~5x that of an LLC). If the JSC will operate under a registered capital system (often used when preparing for public offering), the initial capital must be at least 500,000 TL. But for most standard (non-public) JSCs, 250k TL is the minimum to incorporate. At least 25% of that (62,500 TL) must be deposited before registration, and the remainder within 24 months.
The Competition Authority fee at incorporation is 0.04% of capital, which for 250k is 100 TL – still very small. Keep in mind, existing JSCs formed under old rules must increase capital to the new minimum by end of 2026. For a foreign investor, the high capital is often the biggest consideration – however, you don’t necessarily need to tie up more cash than an LLC in practice: some investors start with an LLC (50k capital) unless the JSC form is absolutely needed, to avoid locking ~250k TL. If you do need a JSC, ensure you have the required funds for capital; remember these funds belong to the company and can be used for expenses after formation (especially if you pay the full 250k in upfront, it becomes working capital).
Notary and Translation Fees: Notarization and translation costs for a JSC are similar in nature to an LLC, but can be slightly higher due to additional documents.
For example, a JSC’s Articles of Association might be more detailed; you may also need notarized signature specimens for board members, and if you have multiple directors or foreign board members, their documents may need translation.
Additionally, founders’ declaration and other incorporation statements might be needed. Generally, notary/translation expenses for a JSC setup could be on the order of $500–$1,000 as well, possibly leaning to the higher side if more paperwork is involved. If the JSC has many foreign shareholders or a complex structure, budget extra for certified translations and notary copies (each notarized page has a fee). The presence of a board means you might also notarize the board resolution during formation. Overall, though, these costs are not dramatically different from an LLC – perhaps a few hundred dollars more at most, mainly driven by document count rather than company type.
Trade Registry and Related Fees: A JSC is registered at the trade registry much like an LLC, with similar types of fees: registration fee, Commercial Gazette publication, and Chamber of Commerce membership. The official fees will be a bit higher for a JSC because some fees scale with capital and the number of documents. For example, the trade registration fee may be slightly higher for a JSC (since authorized capital influences some fee calculations). Also, a JSC’s annual Chamber of Commerce fee might be higher due to its larger capital – chambers often calculate annual dues based on a percentage of capital or in brackets.
As an estimate, one source suggests company registration fees for a JSC range between $1,500 – $3,000 (this likely includes notary and some advisory costs too). Another source indicated total establishment fees for a JSC around $3,000–$5,300 (90k–160k TL) excluding capital. These numbers reflect that JSC has higher upfront costs than LLC, partly due to higher capital (itself not a fee) and possibly needing more formalities. To break it down: you might pay a few thousand TL in registry and gazette fees, plus a one-time notary fee for the articles signed before the registry officials (or notary) – which could be a fixed fee based on page count and capital clause. In sum, while government fees aren’t prohibitive, allocate maybe 30–50% more for a JSC vs an LLC in this category.
Legal and Consultancy Fees: Given the complexity of a JSC, many investors will hire legal counsel or consultants to set it up. Professional fees for a JSC may be higher than for an LLC by some degree. Lawyers might charge more because drafting a JSC’s Articles of Association is a bit more involved (e.g. defining share classes, if any, and complying with stricter provisions of the Turkish Commercial Code). There’s also more guidance needed to set up the corporate governance structure (board, auditors if any, etc.).
Expect to pay at least $2,000+ in legal/consultancy fees for a proper JSC setup, and it could go to $3,000–$5,000 if the package includes extra services or the firm is a top-tier provider. For example, Pi Legal Consultancy notes that hiring a business lawyer for compliance and documentation is highly recommended and typically starts around $2k.
This is a one-time cost for formation; however, note that running a JSC may also require legal support for things like drafting board resolutions and holding general meetings annually – so you might have slightly higher ongoing professional service costs as well (see Ongoing Costs section). If your JSC is being set up for a specific purpose (e.g. obtaining a Payment Systems Operator license, as in fintech), there will be additional legal costs related to that license application, but those are beyond basic incorporation.
Office Address (Virtual/Physical): A JSC, like any company, needs a Turkish address. The cost of a virtual office or physical office will be essentially the same as described for LLC. There’s no extra requirement that a JSC must have a physical office; virtual offices are acceptable as long as they meet legal criteria. So, you can plan on the €30+ per month range for virtual offices, or higher if you want dedicated space. If your JSC is a larger operation, you might budget for an actual office and staff from day one, in which case factor in local rental rates accordingly. The key point: having a credible registered address is important, particularly as JSCs often have a more “substantial” image. But from a cost perspective, the cheapest option (virtual address) is fine if it suits your operational mode. Ensure that if your board of directors is mostly foreign, someone is designated to liaise with any inspectors or mail that come to the address.
Bank Account & Capital Deposit: For a JSC, you will similarly need to open a bank account to deposit the initial 25% of capital (at least 62,500 TL for the minimum capital case). Turkish banks will issue a capital blockage letter for that amount for the trade registry. No extra fees beyond what was discussed for LLC – just be prepared to deposit that larger sum.
After incorporation, those funds are unblocked. Ongoing, JSCs often maintain higher bank balances due to their scale, but that’s not a mandated cost.
One thing to note: if your JSC will have multiple shareholders each contributing capital, coordinate with the bank on how the funds should be paid in (often one account is opened and one person can deposit on behalf of all, or each can wire their portion with proper reference). Banks in Turkey do not typically charge monthly fees for basic accounts as long as you maintain a balance, but they may have transaction fees or require minimum deposits for foreign currency accounts. All in all, bank-related costs are trivial; it’s the capital that’s the main financial consideration.
Notary, Certification, Misc.: There are a few formalities unique to JSCs which might incur minor costs. JSCs require a Board of Directors; if any board members will sign on behalf of the company, you might need additional signature circulars and notary-certified signature declarations for them. If your board includes foreign persons not present in Turkey, their signatures might need to be notarized abroad and apostilled.
The commercial books for a JSC (journals, ledger, share ledger, minute books) must be certified by a notary at setup just like LLC (with an inventory book and general assembly minutes book, etc.). Cost is comparable – a few hundred TL per book. One difference: a JSC must maintain a share register and issue share certificates if desired. Printing share certificates is optional for a closed company but if you do, it’s a small printing cost. Annual general meetings are a legal requirement for JSCs – while the meeting itself doesn’t cost money, you might incur costs for notarizing the minutes or publishing announcements for the meeting if needed. Also, changes in a JSC (like capital increases, share transfers) often require notary and registry fees. While these are not startup costs, they are good to keep in mind if you plan future changes.
Summary – JSC Setup Cost Estimate: The initial formation of a Joint Stock Company will generally cost more than an LLC due to the higher capital and slightly higher fees. For a basic JSC (minimum capital 250k TL), here’s an approximate breakdown in USD:
Capital: 250,000 TL (~$8,500) required, with 62,500 TL (~$2,125) upfront in bank (recoverable by company).
Notary/Translation: $800 (a bit more documents than LLC).
Registry/Gazette/Chamber: $500 (could be more if high capital leads to higher chamber fee).
Legal/Consultancy: $2,500 (assuming moderate package).
Address (virtual 1 year): $600 (same as LLC).
Bank opening: ~$0 fee (just deposit capital).
Other misc (notary for signatures, books, etc.): $300.
Other estimates put it in the $3k–$5k range excluding capital, which is conceivable if you minimize advisor costs.
The capital is the big differentiator – you must be prepared to fund the company with at least 250k TL (about $8k+). The good news is that money can be used for your operations (buy equipment, pay salaries, etc.), so it’s not a sunk cost, but it’s locked into the business unless/until you potentially reduce capital or liquidate the company.
In conclusion, choose a JSC structure only if its advantages (like easier share transfer, ability to have corporate shareholders without liability for public debts, or regulatory reasons) are necessary for your venture. Otherwise, many small foreign investors stick to LLC to keep costs down. If you do go the JSC route, make sure to comply with all the extra corporate formalities to avoid penalties (e.g. hold your annual meetings and file required resolutions).
Branch Office – Setup Costs and Considerations
A Branch Office in Turkey is not a separate legal entity but rather an extension of an existing foreign company. The branch carries out business in Turkey on behalf of the parent company. Choosing a branch can make sense if you don’t want to create a new company and prefer a simpler repatriation of profits to the parent. However, branches come with the parent company’s full liability (the parent is responsible for branch debts) and some limitations (the branch’s activities must mirror those of the parent).
From a cost perspective, branches have some advantages: notably no minimum share capital is required, which can save a lot of money compared to forming a new company. Still, there are costs involved in establishing a branch:
Registration and Documentation: A branch must be registered at the local Trade Registry where the branch will be located. The official fees for registering a branch are similar to a company’s registration fees (since the branch gets listed in the trade registry and an announcement is published).
You will need to submit a set of legalized documents from the parent company, such as a board resolution to open the branch, the parent company’s Certificate of Incorporation or good standing, articles of association, and a power of attorney for the branch manager.
All documents originating abroad must be notarized and apostilled (or consularized) and then translated into Turkish and notarized locally. This implies translation and notary costs that can be significant depending on the size of the documents – for example, a parent company charter that’s 20 pages will incur translation charges per word and notary charges per page.
Rough estimate: if your parent company docs are large, translation + notarization could run $500–$1000 (similar to company formation costs) just for that paperwork. The Trade Registry will charge a branch registration fee (perhaps on the order of a few hundred dollars in TL) and there will be a Commercial Gazette fee for publishing the branch registration. Additionally, the branch manager’s signature specimens will need notarizing.
There will also be an annual Chamber of Commerce fee for the branch (since it will be a member of the local chamber). These combined official costs usually range in the low thousands of TL. In sum, while a branch avoids capital costs, you should budget maybe $1,000–$2,000 for the various documentation, notarization, and registration fees to get it established (more if extensive docs).
Legal/Consultancy Services: Many foreign firms use a local consultant or lawyer to handle branch establishment because it involves coordinating documents across borders. Professional fees for setting up a branch might be similar to an LLC setup, roughly $1,000–$2,000 depending on services provided. Some of the process includes obtaining a tax ID for the branch and registering with relevant authorities, which the consultant will handle.
Because the branch process includes getting foreign documents legalized, a consultant’s assistance is quite valuable to ensure nothing is missing.
The consultant also typically drafts the required petition and forms for the Trade Registry and liaises with notaries. So, allocate funds for professional help unless you have an in-house legal team familiar with Turkey.
No Capital Requirement (but need Operating Funds): As mentioned, branches are not required to inject any specific capital. This is a major cost saving – you don’t have to freeze, say, 50k or 250k TL as with companies. However, in practical terms, you will need to fund the branch’s operations from the parent company.
This means the parent will send money to the branch’s bank account to cover expenses (office rent, salaries, etc.). There’s no minimum amount for these transfers, but note one regulatory aspect: If you intend to employ foreign nationals at the branch (including a foreign branch manager), Turkish authorities often expect to see a significant investment. For example, it’s recommended (and for work permit purposes effectively required) that the parent company allocate at least USD $200,000 to the branch’s capital or operations as an initial funding. In fact, one guideline is that after registering a branch, you should deposit $200k into the branch’s bank account to meet employment criteria for foreigners. While this $200k is not a legal capital requirement, it is a practical consideration if you plan to have expatriate staff. If you will only hire Turkish staff or operate with minimal expenses, you can fund the branch with whatever amount is needed for running costs. Keep in mind all branch expenses must be covered by the parent (the branch cannot take local loans easily).
Office and Address: A branch must have a local address just like a company. You can use a virtual office for a branch as well, in theory, but often branches of foreign companies will take at least a small physical office if they have staff.
If the branch is just a small representation, a virtual office (shared workspace address) for, say, $50/month could suffice initially. Cost-wise, treat it the same as the options discussed earlier: virtual office starting ~€30/month or an actual office if needed. The branch’s address will appear in the trade registry records and must be kept up to date.
There might be slightly more scrutiny during the tax office verification since branches of known foreign firms might be expected to have a tangible presence, but legally a virtual address is not prohibited as long as the branch’s official mail can be received and someone can meet an inspector there. If you’re establishing a branch to carry out significant operations (warehouse, factory, etc.), then obviously include the lease of space in your cost plan.
Bank Accounts: The branch will open a bank account in Turkey to conduct its financial transactions. The process is similar to opening an account for a company – you’ll need the branch registration documents and the branch manager’s authority documents. No special fee for account opening; some banks might require an initial deposit.
The parent company will fund the branch via wire transfers to this account. Each incoming transfer from abroad might incur bank fees (e.g. $10–$30 per transfer depending on the bank and amount). These are operational costs, but mentioning because branches will typically rely on regular incoming foreign currency transfers.
Also, repatriation of profits: if the branch makes profit, it can send the surplus back to headquarters. Turkey imposes a 15% withholding tax on branch profit remittances (treating it like a dividend to the foreign company), unless reduced by a tax treaty.
This isn’t an upfront cost to set up, but a cost to consider in operations (a tax cost on moving profits out). So from a broader perspective, a branch might incur tax costs on profit transfer that a subsidiary might avoid if profits are not repatriated.
Liaising with Parent HQ: While not a direct monetary cost, consider the internal cost of coordinating between the branch and home office. For example, having documents issued by the parent for branch needs (notarized board resolutions, etc.) will be an occasional cost (notary, courier). If the parent’s home country is part of Apostille convention, it simplifies legalizations.
But if not, consular legalization costs can be steep. So, if your parent company is in a country with difficult document processes, factor in a bit of extra buffer for getting any parent documents for branch needs in the future (like renewing the branch manager’s power of attorney, etc.).
Summary – Branch vs Company Cost: Setting up a branch in Turkey can be cheaper initially than setting up a new company because you don’t have to inject share capital. The trade-off is the branch doesn’t limit liability – the parent is on the hook for branch obligations.
This is just an illustration; it could be less if you handle some tasks, or more if your documents are extensive. The key cost advantages of a branch: no capital tied up, and potentially simpler closure (if you decide to terminate the branch, you just deregister it, whereas closing a company involves a liquidation process).
However, note that for employing foreigners, branches face the unofficial $200k funding expectation and must have a foreign branch manager appointed (who can then get a work permit, usually the person from HQ or someone assigned). In your budget, consider that if you are that foreign branch manager, you might need to show the $200k brought in to satisfy work permit rules.
If the branch will be run by a Turkish manager, this is not an issue.
In conclusion, branch offices in Turkey are a cost-effective way to expand a foreign company’s operations when the foreign company wants to retain direct control and branding.
Ensure you allocate funds for the professional translation and notarization of parent company documents – that’s often the largest part of the initial expenses aside from any advisory fees. Once operational, a branch’s costs align with normal business expenses (rent, salaries, taxes, accounting).
Liaison Office – Low-Cost Market Entry (Representative Office)
A Liaison Office (also known as a Representative Office) is the simplest and most cost-effective entity to establish in Turkey, but with a crucial limitation: it cannot engage in any commercial or revenue-generating activities.
Liaison offices are intended solely for activities like market research, promotion, liaison with Turkish customers or suppliers, and gathering information on behalf of the parent company.
They are essentially cost centers – all expenses must be funded from abroad, and they cannot issue invoices or earn income in Turkey. Because of this non-commercial status, liaison offices benefit from various tax exemptions: they are exempt from corporate income tax (since they have no taxable income by definition), exempt from VAT, and even the salaries of liaison office employees are exempt from income tax withholding (making employment costs lower).
This structure is popular for foreign companies that want a foot on the ground in Turkey to explore opportunities without fully committing to a company setup.
Here’s a breakdown of costs and requirements for a liaison office:
Government Permit: To open a liaison office, you must apply for and obtain an operating permit from the Ministry of Industry and Technology (specifically, the General Directorate of Incentive Implementation and Foreign Investment, GDIIFI). The good news is that there is no government application fee for the liaison office permit.
You will, however, need to provide documentation such as: a letter outlining the intended activities of the liaison office, an undertaking not to engage in commercial activities, the parent company’s certificate of existence, financial statements, and a power of attorney for the person who will act as the liaison office representative.
These documents from the parent must be apostilled/consularized and translated into Turkish. So the main cost in obtaining the permit is notary and translation of documents (similar to branch setup in that regard). Once you submit the application, the Ministry typically decides within 15 working days if everything is in order. Initial permits are granted for up to 3 years (often 3 years straight away). Thereafter, you can apply to extend the permit before expiry, usually in increments of 2 or 3 years at a time.
Note: There is no official fee for extensions either, but you need to show that the liaison office activity remains non-commercial and provide updated info (past year expenditures, etc.) for renewal.
Notary and Translation Costs: Similar to other setups, you will incur costs to prepare the application dossier. The parent company’s documents (registration certificate, board resolution to open the liaison office, last financial report, etc.) must be notarized and apostilled in the home country, then translated into Turkish by a sworn translator and notarized in Turkey.
The liaison office representative’s passport needs translation and notarization if they are foreign. These costs can range a few hundred dollars depending on the length of the documents. For example, if the parent company registration certificate is short, translation is cheap; if you need to translate a whole annual report, that could be more.
Typically, though, since many liaison offices are opened by companies just exploring, the documentation is not too voluminous. Budget perhaps $300–$600 for this paperwork step (could be more if complex).
Legal/Consultancy Fees: While the liaison permit application process is straightforward in theory, many foreign companies hire a local consulting firm or legal firm to handle it, just to ensure all is done correctly and communication with the Ministry is smooth. Professional fees for setting up a liaison office are often lower than for a full company, reflecting the simpler process.
You might find service fees around $1800–$2500 for a liaison office setup service, which would include preparing the application forms, advising on required docs, submitting to the Ministry, and doing follow-up. Some firms may also bundle things like providing a virtual office address for the liaison (since you still need a local address to register the office) as part of their service. It’s quite possible to apply on your own if you have the documents, but if you’re not familiar with Turkish bureaucracy, a consultant’s help can save time.
In short, consider whether you want to DIY (to save cost) or use a service – in either case, compare that to the significant savings you get by choosing a liaison office structure (no need for capital, taxes, etc.).
No Capital & Funding of Expenses: A liaison office cannot generate revenue, so it must be funded entirely by the foreign parent.
There’s no capital requirement or minimum funding mandated, except that you should have enough funds to cover the planned expenses in Turkey. All operational expenses (rent, salaries, utilities, etc.) must be paid using funds transferred in from abroad (usually in foreign currency). The parent company will send money to the liaison office’s Turkish bank account periodically to pay the bills.
There’s no tax on bringing in these funds since they are not income but rather funding. One special rule: if the foreign parent wants to assign a foreign employee to work in the liaison office (including the representative), Turkish regulations require that the parent company has brought in at least USD $200,000 per year to Turkey via the liaison office’s bank account in the previous year. This effectively means to get a work permit for a non-Turkish staff member (often the chief representative), the liaison office should be spending at least $200k a year. This is aimed at ensuring liaison offices are substantive if they employ foreigners (since liaison offices pay no income tax on salaries, the government wants to see a benefit in foreign currency inflow).
If your plan is to staff the liaison office with only Turkish personnel, or to keep it very small (e.g. one local assistant), then you don’t need to worry about that threshold – you could run a liaison office on far less annually.
But if you, as a foreign investor, intend to move to Turkey under the liaison office, be prepared for that $200k/year spending commitment as a cost of operation (it can include office rent, any local hires, and your own salary, etc.). Many companies opening liaison offices use them as a temporary measure (2-3 years) to test the waters, so they often don’t assign expats unless they’re very serious and ready to spend.
Office Space (Virtual or Physical): That’s about $600–$900 per year, which is very affordable. If you do need an actual small office (say you hire a couple of employees or need meeting space regularly), you might look at co-working spaces or serviced small offices – those could cost more like $200–$500/month depending on size and location.
Initially, many choose the virtual route and can always upgrade later.
Since a liaison office doesn’t meet clients for sales (they can’t engage in sales), a modest setup is usually fine. Just ensure that whatever address you use, you can receive mail and any inspection (though liaison offices rarely have inspections like tax audits since they don’t pay tax; however, the Ministry might occasionally check that they are not doing business beyond their allowed scope).
Bank Account: The liaison office will open a Turkish bank account to receive funds from the parent and pay local expenses. Opening the account is similar to other entities – you will use your liaison office permit letter from the Ministry and tax identification (the liaison office will obtain a tax number even though it doesn’t pay corporate tax, it needs a tax ID for things like renting office space, paying withholding on any Turkish staff salaries’ social security, etc.). Banks don’t charge for opening accounts, maybe a small fee for checkbooks or something if needed.
The main costs here are any bank transfer fees for incoming wires from abroad (depending on your bank and the amounts). As mentioned, these are operational fees (e.g. $20 per incoming wire, which for $200k/year would add up but not hugely).
It’s good practice to bring in money in foreign currency and then exchange to TL as needed for expenses, since you cannot earn TL and you might want to hedge exchange rate. The liaison office itself won’t have to worry about taxes on money in the bank, but it should report (to the Ministry annually) how much funds came in and how it was spent.
Tax and Accounting: Liaison offices enjoy tax exemptions: they don’t pay corporate tax, they typically are not VAT-registered (since they shouldn’t issue invoices), and they benefit from income tax exemption on salaries (Article 23/14 of Income Tax Law allows salaries of employees of liaison offices to be exempt from income tax, as long as their expenses are paid from foreign funds). However, social security (SGK) contributions must still be paid for any Turkish employees.
The employer (the liaison office) will pay the normal social security premiums on salaries (around 20%+ of salary) and the employee will be enrolled like any other. Those are costs of employment but not taxes per se (they are social insurance).
Also, if the liaison office rents an office, the rent is typically subject to 20% withholding tax if paid to a Turkish landlord – although many liaison offices structure as serviced offices where this might not apply directly.
In any case, a liaison office still needs accounting services to handle things like: monthly social security declarations if staff are employed, any required payroll withholding (technically the salary tax is exempt but you still file a zero tax declaration), and to maintain expense records. The liaison office is often required to submit an annual report to the Ministry detailing its expenditures and activities. An accountant or financial advisor usually prepares this.
Accounting fees for a liaison office are generally low since there’s no sales or VAT to deal with – maybe on the order of $50–$100 a month if just one or two employees and a few payments, just to do payroll and compliance. Some companies manage with quarterly filings if zero staff. But realistically, budget a minimum of maybe $1,000 per year for accounting and admin for a liaison, more if you have employees (since each payroll entry and social security filing adds work).
Ongoing Permit Renewal: Before the initial permit expires (e.g. after 3 years), you must apply to extend the liaison office’s permission if you wish to continue. This involves submitting updated documentation: an activity report of what the liaison office did, proof that it still refrained from commercial activities, and often the previous year’s expense/funding details, plus plans for the next period.
There remains no fee for renewal, but you might incur some translation/notary costs again if you need an updated parent company certificate or a new board resolution to continue operations. Also factor in your consultant’s fee if you use one for handling the renewal application. Many firms charge a smaller fee for renewals (since it’s less work than the initial setup). If at any point you decide to close the liaison office, you need to notify the authorities and provide a closure statement from the tax office.
Closing a liaison office is simpler than liquidating a company – essentially you pay off any obligations, terminate leases, and inform the Ministry and tax office with a letter. There is no formal liquidation cost; maybe just your accountant’s fee for preparing the termination notice and closing accounts.
Summary – Liaison Office Costs: The liaison office is undeniably the cheapest way to establish a presence in Turkey from a pure cost standpoint. To recap, initial costs include translation/notary of documents and possibly a consultant’s fee, and operational costs are just rent (which can be tiny if virtual), salaries (if any), and an accountant. A realistic scenario:
Permit application prep (notary, etc.): $900.
Professional service (optional): $2,000.
Virtual office 1 year: $500.
Total first-year cost: ~$3,400 (excluding any salaries or travel).
The Turkish government encourages this by not charging permit fees and giving tax breaks, on the understanding that if the market looks good, you might eventually convert to a full company and invest more.
One must remember not to abuse the liaison office by accidentally or intentionally doing business (like signing contracts or selling). If a liaison office is found to be engaging in profit-making activities, its status can be canceled and taxes levied.
So, use it only within its allowed scope (e.g. marketing, sourcing, QA, liaison).
Many foreign companies operate in Turkey for years with just liaison offices, incurring only the cost of a small staff and office, until they’re ready to fully launch. This option therefore represents the lowest entry cost path.
Free Zone Company – Costs and Benefits in 2026
Turkey has Free Trade Zones (FTZs) – special areas that offer tax and customs advantages to businesses, especially those focused on export. There are over a dozen free zones across Turkey (such as in Istanbul, Izmir, Mersin, Bursa, Antalya, etc.).
Companies operating in these zones can benefit from incentives like corporate tax exemptions on qualifying export income, no VAT or customs duties on goods moving in/out of the zone, and other regulatory ease. A Free Zone Company can either be a branch of a foreign company or a Turkish company (LLC or JSC) that is licensed to operate within the zone.
The costs to set up in a free zone include both the normal company or branch setup costs (as previously discussed) plus zone-specific fees.
Key cost components for establishing in a free zone:
Free Zone Operating License Fee: To operate in a free zone, you must obtain an Operating License from the Ministry of Trade’s Free Zones General Directorate. This is separate from (and in addition to) registering the entity with the trade registry. The Operating License allows you to conduct a defined business activity in that zone for a specified duration. According to official regulations (Circular No. 2009/3), the standard license application fee is $5,000 USD (or equivalent in TL).
This fee applies to “tenant” companies (those renting space in the zone) and grants typically a 15-year operating period (20 years if you’ll be manufacturing in the zone). For “investor” status (if you buy property in the zone or build facilities), longer durations like 30-45 years are given, and the fee might differ. But generally, $5,000 is the common license fee. Important: This $5k is a one-time fee paid upon application. If your application is not approved, the fee can be refunded (some sources note it’s returned if the license is denied).
Once you have the license, you don’t pay corporate taxes on zone operations (if export criteria are met), which can save a lot of money over time. But up front, you need to budget this $5,000 license cost in addition to normal formation costs. This is a significant cost, effectively making free zone setup one of the more expensive initial options (though potentially worth it for the tax savings later).
Company/Branch Setup Costs: Apart from the zone license, you must establish either a branch or a new company that will operate in the zone. The process: you apply for the license with a business plan and some parent company info; once you get preliminary approval, you then register the entity with the trade registry in the zone’s locale and finalize the license. So all the earlier-discussed costs for forming an LLC or branch apply here as well.
If you opt for a branch in the free zone (common for manufacturing companies expanding operations), you have no capital requirement, but will still incur translation/notary costs and registry fees as per the branch section. If you form a new LLC or JSC for the zone, you must meet the 50k or 250k TL capital minimums respectively (no exception for being in a free zone; Turkish company law still applies). So, weigh whether you want a branch of your foreign company or a subsidiary – cost-wise, branch avoids capital but might complicate profit repatriation (branch profits sent to HQ still face 15% withholding tax).
Some foreign investors set up a Turkish LLC and then get it licensed in the free zone; in that case, ensure it has 50k TL capital. The standard formation expenses (notary, legal, etc.) will be similar or slightly more, because free zone paperwork can add a layer.
For example, after trade registry, you also register the company with the Free Zone Directorate on site. Often, investors hire specialized consulting firms (or the zone operator’s guidance) to navigate these steps, so professional fees might be higher than a normal company setup due to the added complexity. Still, the incremental cost is mostly the license fee itself; other costs mirror what we have detailed for LLC/JSC or branch.
Zone Rent and Infrastructure: To maintain your free zone license, you typically must rent a space within the free zone (or purchase land/unit if building your own facility). The free zone rent or land lease is a significant cost to consider. Prices vary greatly by zone and the type of space (e.g. open land vs. warehouse vs. office unit).
Many zones charge rent in foreign currency terms (USD or EUR) per square meter. For example, you might see rates like $100 per m² per year for warehouse space in a prime zone (just an illustrative figure).
Some zones offer small ready offices or shared spaces for service companies at lower rates. Since 2024, zones often require at least a small physical presence (they don’t usually allow a pure virtual presence; one of the free zone obligations is actually using the zone for your operations). Budget: This can range from as low as a few thousand dollars per year for a small office up to hundreds of thousands if you are leasing a big warehouse or factory.
For a modest operation, say you take a small office just to satisfy the requirement, maybe $5,000/year in rent. But if you’re opening a manufacturing plant, rent becomes a core business expense. Note that some zones might ask for advance rent payment for a year or a deposit.
Also, if you go for investor status (longer license) by leasing a large plot or building your own, you might have to pay a lump sum or commit to a certain investment amount. In this context, the free zone license fee ($5k) is just the beginning; the real cost is securing and paying for space.
Operating Costs and Tax Advantages: While not “setup costs,” it’s worth highlighting how operating in a free zone changes some cost factors: If you qualify, profits from your free zone operations that are export-related can be 100% exempt from corporate tax. This means if you’re manufacturing or trading and sending goods abroad (outside Turkey), you won’t pay the 20-25% corporate tax on those profits – a huge savings that can quickly offset the license fee.
However, a regulation change effective 1 January 2025 removed the tax exemption on revenues from sales into the Turkish domestic market. So if a free zone company sells goods into Turkey, that portion of profit is taxable (previously, some domestic sales could be exempt if under certain conditions, but now they closed that loophole).
Also, if you manufacture in the zone and export at least 85% of your output, employee salaries in the zone are exempt from income tax (the company gets a withholding tax rebate on them), which lowers your labor cost. There’s no VAT on transactions between the zone and abroad or between Turkish mainland and zone (treated as export/import).
And there’s no customs duty for bringing foreign raw materials into the zone. All these incentives mean your ongoing operational costs (tax-wise) can be significantly lower, which is the whole point of bearing the upfront higher setup cost.
Accounting and Compliance: A free zone company or branch still needs accounting and compliance similar to any Turkish entity, plus some zone-specific procedures. You must file regular Free Zone Activity reports (SBIF – Free Zone Transaction Forms) for your shipments. You’ll maintain separate books for the zone operations. Your accountant should be familiar with free zone regulations (some accounting firms specialize in zones).
Accounting fees might be slightly higher if the zone reporting adds complexity, but not drastically – just ensure you engage an accountant who knows how to handle zone paperwork and coordinate with zone authorities.
The zone operator often requires an annual report of your performance (like investment amounts, employee count). There may also be user fees in some zones (e.g. a small fee per transaction or per ton of goods handled), though many incentives eliminate most fees beyond the license and rent. Another cost: If your business imports goods into Turkey from the zone, you’ll have to do import customs clearance and pay duties at that point – but that’s part of trade costs, not establishment.
Summary – Free Zone Setup Cost: Setting up in a free zone is best for companies that plan to do substantial export business and can justify the $5,000 license fee with future tax savings. The initial costs will include that fee, plus the normal company setup costs (or branch setup costs), plus any deposit/rent for space. Let’s illustrate with a scenario of forming an LLC in a free zone:
Free zone license: $5,000.
LLC setup costs (50k capital, notary, etc.): $4,000 (from earlier LLC estimate).
Professional assistance (often necessary for zone paperwork): maybe $2,000 (they might charge more since zone process is extra).
First year rent: $5,000 (for a small unit).
Total ~ $16,000 plus you also park 50k TL (~$1.7k) as capital.
This is clearly higher than a normal LLC outside (which was maybe $4-5k all-in). But if your company will make, say, $100k profit from exports annually, you’d save $25k per year in taxes – well worth it. Conversely, if you’re a services firm with no exports, a free zone wouldn’t benefit you (and you likely wouldn’t be approved for a license anyway, as they expect export contribution).
One hack some use: if you only need a sales office for exports (like trading), you could set up in a zone to avoid taxes on export profits. But note, free zones increasingly want actual operations (manufacturing or real trading volume), not just a shell to avoid tax. They evaluate your business plan and you have to report activities; in theory, they could cancel a license if you aren’t doing what you proposed.
In conclusion, Free Zone companies involve a premium upfront cost (the license and mandatory presence in the zone), but offer significant ongoing cost reductions through tax incentives.
In 2026, with Turkey’s corporate tax at 25%, companies planning large export revenue should definitely consider this route. Ensure you factor the $5k license and the potentially higher overhead of zone operations into your budget. And always verify the current zone regulations – while the 2009/3 circular’s $5,000 fee is still in effect, zone policies can evolve. Consulting with the specific zone’s administration is wise to get exact figures on rent and any service fees.
Ongoing Maintenance Costs for Companies in Turkey
After the initial setup, it’s important to budget for recurring annual costs to maintain your company (or branch/liaison) in Turkey. These operational costs can include:
Accounting and Bookkeeping: As noted, all companies (and branches, and even liaison offices with staff) will need to maintain proper books and file taxes monthly and annually. Accounting fees are typically paid monthly. For a small business, expect perhaps 2,000–5,000 TL per month for a professional accountant, which is around $800–$1000 monthly in 2026 terms.
If your business grows with volume of transactions, the fees might increase. Additionally, you may hire a Sworn Financial Advisor (YMM) for annual tax certification if required (companies over a certain size must have a YMM certify their corporate tax return; even if not required, some do it for smooth tax rebate processes).
YMM services might add another few thousand TL as a one-time yearly cost if needed.
Tax Payments: Corporate income tax is 25% of profits as of 2026. This isn’t a maintenance “fee” but a part of doing business – you need to allocate funds to pay taxes quarterly (advance payments) and annually. If your company makes profit, you’ll pay this.
Also, withholding taxes may apply (e.g. 15% on dividends distributed to foreign shareholders, unless reduced by treaty). Payroll taxes and Social Security:
If you have employees, you must budget for the employer’s share of social security, which is roughly 22.5% of gross wages (with variations based on risk sector, etc.), plus minor unemployment fund contributions. Workon’s guide noted employers contribute 10–30% depending on salary and scheme.
Turkey also has a minimum wage that is adjusted regularly (for reference, net minimum wage was around 11,400 TL/month in 2024 after a mid-year raise, gross ~$400; likely higher in 2026). Ensure you keep up with these because labor costs can increase with minimum wage hikes.
Annual Chamber of Commerce Fee: Companies and branches registered to a Chamber must pay annual membership dues. These dues are often a fraction of the capital or a fixed slab. For example, an LLC with 50k TL capital might pay just a few hundred TL per year. It’s not substantial (maybe $50 or so), but it’s officially required to keep membership in good standing.
Notary and Compliance Annual Costs: Each calendar year, you’ll need to renew your statutory books by having new blank ledgers notarized (or closing the previous year’s books). Notary charges for certifying journals and ledgers depend on page counts; small companies often pay a few hundred TL for this at year-end.
Also, if there are any changes during the year (e.g. address change, director change, capital increase, etc.), those will incur notary and trade registry fees to update official records. It’s wise to set aside some budget for unexpected filings – perhaps $200–$300 a year for minor changes.
Administrative Upkeep: Plan for incidental expenses like office utilities, phone, internet if you have a physical office. Even with a virtual office, if you upgrade to using meeting rooms or other services beyond the basic address, there could be fees.
If you have a physical presence, you may need a municipal operating permit which might have a small annual fee or renewal (varies by municipality and business type; often one-time unless activity changes, but check local rules).
Reporting and Audit (if applicable): Medium and large companies in Turkey may trigger independent audit requirements if they meet two of three criteria (like $4M+ assets, $8M+ revenue, 50+ employees, as per past thresholds – these numbers can change). If your company becomes subject to audit, you’ll have to engage a certified auditor and that could cost several thousand dollars per year. Small businesses are usually exempt.
Free zone companies have to file some additional reports (like operations report to zone authority); liaison offices must file an annual activity report to the Ministry. These usually don’t have fees but do require your accountant’s time.
Renewals and Extensions: If you have entities that require renewal (e.g. liaison office permit extension every few years, free zone license perhaps extension after 15+ years, etc.), calendar those and anticipate advisory costs at those junctures. For a liaison office extension, you might incur a few hundred dollars in costs for documentation updates. For a branch or rep office, if the parent company details change (name, address, etc.), you must update the Turkish records via notary filings.
Virtual Office Renewal: If you use a virtual office, remember to renew the service annually. Providers might offer discounts for annual prepayment. It’s a small cost (maybe $500/year as mentioned), but don’t forget it as your address is critical for legal notices.
Insurance: Not mandatory in most cases, but you might consider insuring your office or factory (property insurance) or getting liability insurance depending on your business. Also, by law, if you have employees, you need to register them for occupational accident insurance and such through the social security system (part of employer contributions cover it), but some sectors might require extra private coverage. While not a direct state fee, insurance premiums are part of overhead.
Optional – Outsourcing and Advisory: Foreign investors often keep a small budget for legal or consulting advice annually, in case they need contract drafting, HR advice, or tax consulting. This isn’t a fixed cost, but it’s wise to allocate something for professional services beyond the routine accounting. Especially in Turkey, laws (tax, labor) can change frequently; having a consultant do an annual review of compliance can save penalties.
In summary, after the initial setup, running a Turkish company involves the normal costs of doing business (salaries, rent, etc.) plus these compliance costs. Many of these scale with your business size (e.g. accounting, audit) – a small dormant company with no employees might spend very little yearly (just an accountant to file nil returns and chamber fee), whereas an active trading company will have more substantial ongoing costs (taxes, payroll contributions, etc.).
For a larger operation with an office and employees, the sky’s the limit depending on scale, but those costs are business-specific. Turkey’s operational costs (salaries, rents) are generally lower than Western Europe, but high inflation in recent years means costs can increase year to year – so keep an eye on things like minimum wage adjustments which happen at least annually and drive up payroll costs.
Pro tip: Always stay compliant with filings and payments. Turkey has penalties for late tax filings (even if zero tax due) and for not maintaining proper books. These fines aren’t huge individually, but can add up (a late VAT return might be a few hundred TL penalty). Having a reliable accountant largely avoids these. The compliance burden in Turkey is quite manageable as long as you are organized – many foreign SMEs find it convenient to outsource all bookkeeping and just focus on business.
Conclusion – Invest in Turkey with Clarity on Costs
Setting up a company in Turkey in 2026 is an attractive proposition for many foreign investors, thanks to Turkey’s welcoming policies and relatively low entry costs compared to other major markets. Whether you choose a Limited Company for its simplicity, a Joint Stock Company for scalability, a Branch Office for extension of your existing business, a Liaison Office for initial exploration, or a Free Zone Company to leverage tax incentives, understanding the full cost breakdown is essential for proper planning.
In summary, company formation in Turkey involves a mix of one-time costs (notary, translation, registration fees, initial advisory fees) and ongoing costs (accounting, taxes, office expenses). For a standard LLC or branch, initial setup costs are often only a few thousand dollars – a very reasonable price for establishing a foothold in a G20 economy. Turkey’s recent regulatory changes, especially the increase in minimum capital requirements to 50,000 TL for LLCs and 250,000 TL for JSCs, aim to ensure companies are adequately capitalized, and foreign investors should budget for these requirements accordingly. If you had seen outdated references to 10,000 TL or 50,000 TL capital, know that these are no longer valid as of 2024. By 2026, all companies must comply with the new capital rules or risk dissolution. On the positive side, Turkey’s commitment to equal treatment of foreign investors and numerous investment incentives (like free zones and R&D subsidies) create a fertile environment for international businesses.
As you plan your Turkish expansion, remember that saving on costs is important but so is compliance and local expertise. Engage professionals for critical steps, use virtual offices or other smart solutions to reduce overhead, and keep an eye on regulatory updates (tax rates, labor laws) that could affect your operating costs.
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© 2026 Evren Özmen, CPA.
Originally published by Evren Özmen, CPA – Founder of OZM Consultancy.
This article reflects practical experience from advising foreign-owned companies on company formation and tax compliance in Turkey.
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