How Foreigners Can Start a Business in Turkey?
Are Foreigners Allowed to Start Companies in Turkey?
Can a Foreign National Establish a Company in Turkey?
Turkey has become an increasingly attractive destination for foreign investors due to its strategic location, growing economy, and favorable business environment. If you're a foreign national looking to set up a company in Turkey, the process may seem complex, but with the right information, it can be streamlined and straightforward. This blog will walk you through the steps and answer the key question: Can a foreign national establish a company in Turkey?
🌍 Yes, Foreign Nationals Can Establish a Company in Turkey!
The Turkish government welcomes foreign entrepreneurs and investors, allowing them to establish and operate companies in the country. There are no special restrictions or requirements that make it more difficult for foreigners to set up a business compared to Turkish citizens. Whether you are an individual investor or representing a foreign company, Turkey offers a flexible and straightforward process.
Let's break down the steps for establishing a company in Turkey as a foreign national.
📌 1. Decide on the Type of Company
In Turkey, there are several types of companies that you can establish. The most common ones are:
Limited Liability Company (LLC) – Best suited for small to medium-sized businesses with a simple structure.
Joint Stock Company (JSC) – Typically used by larger enterprises with multiple shareholders or those planning to go public.
Sole Proprietorship – Ideal for freelancers or small businesses with only one owner.
Each company type has its own legal structure, tax obligations, and capital requirements. For example:
LLCs require a minimum capital of 50,000 TRY.
JSCs require a minimum capital of 250,000 TRY.
📌 2. Prepare the Necessary Documents
Once you’ve decided on the type of company you wish to establish, the next step is gathering the necessary documentation. As a foreign national, you'll need:
Notarized passport copies of all shareholders.
Proof of address for all shareholders (utility bills or similar documents).
Tax Identification Number (TIN) – Foreign investors must obtain a Turkish TIN. This can be done at a local tax office or via authorized consultants.
Power of attorney (if someone else is handling the process on your behalf).
Most of these documents will need to be translated into Turkish and notarized before submission.
📌 3. Draft and Submit the Articles of Association
Your company’s Articles of Association (AoA) outline the rules and regulations for operating the business. It covers important details such as:
Company name and address.
Company objectives and activities.
Shareholder information and share capital.
Company management structure.
Once the AoA is drafted, it must be submitted to the MERSIS system (the Turkish Central Trade Registry System) for approval. This step is critical and needs to be completed carefully.
📌 4. Register with the Trade Registry
The next step is to officially register your company with the Trade Registry. This process includes submitting the approved AoA and other relevant documents. As of 2025, the entire registration process can be done online through the MERSIS portal, making it faster and more efficient than before.
Required Documents for Trade Registry Registration:
Approved AoA.
Proof of capital contribution (bank receipt showing that the initial capital has been deposited).
Tax Identification Number.
Registration forms from MERSIS.
📌 5. Open a Bank Account and Deposit Capital
Before the registration is finalized, you’ll need to open a corporate bank account in Turkey. This account will be used to deposit your initial capital contribution as outlined in your Articles of Association. The bank will issue a receipt confirming the deposit, which must be included in your application to the Trade Registry.
Opening a bank account is a straightforward process, but it’s important to have all necessary documents on hand, including your tax identification number and AoA.
📌 6. Obtain a Tax Registration
After completing the Trade Registry process, the next step is to register with the local tax office. This step is crucial to ensure compliance with Turkish tax laws. Your company will be assigned a unique tax number, and you will need to file regular tax returns, including corporate income tax, VAT, and withholding taxes (depending on the nature of your business).
📌 7. Register with the Social Security Institution (SGK)
If your company plans to hire employees, it must also register with the Social Security Institution (SGK). The SGK registration ensures that you comply with Turkish labor laws and contribute to social security for your employees. This step is also handled digitally through the government’s e-government system, making it a quick process.
📌 8. Obtain the Required Permits and Licenses
Depending on the nature of your business, you may need additional permits or licenses. For example:
Food and beverage companies may need health and safety permits.
Construction businesses might require zoning or environmental permits.
Check with local authorities or consult a legal expert to ensure all necessary permits are in place before starting operations.
📌 9. Secure a Work Permit or Residence Permit (if required)
As a foreign national, you may also need to secure a work permit or residence permit if you plan to live in Turkey while managing your business. However, Turkey offers special Turquoise Card programs for high-profile investors, which provide additional benefits, including long-term residency.
💡 Key Benefits for Foreign Investors in Turkey
Full Ownership: Foreigners can fully own their business without needing a local partner.
Low Corporate Tax Rate: Turkey offers a corporate tax rate of 25%, with potential reductions through various investment incentives.
Access to Emerging Markets: Turkey’s strategic location provides access to both European and Asian markets.
Diverse Incentives: Investors can benefit from government incentives, especially in free zones, organized industrial zones, and technoparks.
🚀 Conclusion: Starting a Business in Turkey is Easier Than Ever!
Turkey's pro-business policies, strategic location, and growing economy make it an ideal place for foreign entrepreneurs to establish their businesses. With a streamlined registration process, foreign nationals can enjoy the same benefits as local entrepreneurs.
If you're ready to start your entrepreneurial journey in Turkey and want to ensure a smooth process, contact us today for professional guidance. We can help you navigate the paperwork, obtain permits, and ensure that your business is set up for success in 2025 and beyond!
