How to Establish a Company in Turkey: Your Complete 2025 Guide

Turkey has rapidly become one of the most attractive destinations for entrepreneurs and investors. With its strategic geographical location, young and dynamic workforce, and numerous government incentives, Turkey is an ideal place for those looking to expand their business ventures. In this comprehensive guide, we will walk you through the process to establish a company in Turkey and explain the benefits of doing so.

This guide is designed to provide step-by-step information while ensuring that it is optimized for the keyword establish company in Turkey. It will help entrepreneurs and businesses understand the legal requirements, procedures, and benefits of setting up a company in Turkey.

Why Establish a Company in Turkey?

Before diving into the process of setting up a business, let’s explore why Turkey is an excellent choice for your new venture.

• Strategic Location: Turkey serves as a bridge between Europe, Asia, and the Middle East. This geographical advantage allows companies to easily access diverse markets.

• Growing Economy: Turkey has a resilient and growing economy, especially in industries like technology, textiles, tourism, and manufacturing.

• Government Incentives: Turkey offers significant incentives such as tax exemptions, grants, and investment support, which make it easier for businesses to thrive.

• Young and Skilled Workforce: With a population of over 85 million, Turkey has a large pool of skilled and educated workers, particularly in technology, engineering, and business.

Now, let’s explore how you can establish a company in Turkey step by step.

Types of Companies You Can Establish in Turkey

Depending on your business goals, there are several types of companies you can establish in Turkey. Below are the most common ones:

1. Limited Liability Company (LLC)

A Limited Liability Company (LLC) is the most common type of company in Turkey, especially for small and medium-sized businesses. It requires at least one shareholder, and the liability of shareholders is limited to their capital contribution. The minimum capital requirement for an LLC is 50,000 Turkish Lira (TRY).

2. Joint Stock Company (JSC)

A Joint Stock Company (JSC) is suitable for larger enterprises that require a more complex structure. JSCs can issue shares and must have at least one shareholder. The minimum capital requirement for a JSC is 250,000 TRY.

3. Branch Office

If you already own a company abroad and want to expand to Turkey, you can open a branch office. The branch operates under the legal authority of the parent company, and while it can conduct business, it is not considered a separate legal entity.

4. Liaison Office

A Liaison Office is established for non-commercial purposes such as market research or promoting the parent company. This entity cannot generate income but allows foreign companies to explore opportunities in Turkey.

Step-by-Step Process to Establish a Company in Turkey

Now that you’ve chosen the type of company you want to establish, let’s walk through the steps involved in the registration process:

1. Choose the Right Company Structure

The first step is determining the type of company that aligns with your business goals. Most foreign entrepreneurs opt for an LLC due to its simplicity and lower capital requirement.

2. Prepare the Required Documents

Once you decide on the company structure, gather the necessary documentation:

• Articles of Association: A detailed document outlining the company’s structure, shareholders, and activities.

• Shareholders’ Information: Copies of passports for foreign investors.

• Turkish Tax ID Numbers: Both foreign and local shareholders need a Turkish tax identification number.

• Notarized Signatures: The signatures of all shareholders must be notarized.

• Proof of Address: You must provide documentation for the registered office address in Turkey.

3. Open a Bank Account

Before officially establishing the company, you must open a bank account in Turkey and deposit the required share capital. You will need:

• Articles of Association

• Turkish tax ID numbers

• Identity verification documents for shareholders

After depositing the capital, the bank will issue a capital deposit receipt, which will be required for company registration.

4. Submit Documents to the Trade Registry

Once your bank account is set up and the capital is deposited, submit the required documents to the Trade Registry Office. This includes:

• The Articles of Association

• Capital deposit receipt

• Notarized signatures of the founders

• Proof of the company’s registered address

The Trade Registry will review the documents and officially register the company once everything is in order.

5. Register for Tax and Social Security

Once your company is registered, you need to apply for tax registration at the local tax office. During this process, you will register for:

• Corporate Tax: For income generated by the company.

• Value Added Tax (VAT): Applicable if your company provides goods or services.

• Income Tax: For individual shareholders (if applicable).

You will also need to register with Turkey’s Social Security Institution (SGK) to ensure that your employees receive the necessary benefits.

6. Obtain Necessary Licenses

Certain industries may require specific licenses or permits to operate legally in Turkey. For example, if your business involves food production, real estate, or healthcare, you will need additional approvals from relevant authorities.

7. Start Operations

Once your company is officially registered, and all necessary licenses are obtained, you are ready to start operating in Turkey. You can begin hiring employees, signing contracts, and engaging in commercial activities.

Costs to Establish a Company in Turkey

The costs associated with establishing a company in Turkey can vary depending on the type of company, the required capital, and any additional services you may require (e.g., legal or consulting services).

• Trade Registry Fees: Typically, these fees range from 1,000 to 2,000 TRY.

• Notary Fees: Notarization costs generally fall between 500 and 1,000 TRY.

• Capital Deposit: The amount varies based on the type of company (10,000 TRY for LLCs and 50,000 TRY for JSCs).

• Bank Fees: For opening a business account and depositing capital.

In total, the cost to establish an LLC in Turkey typically ranges from 10,000 to 15,000 TRY, excluding the required capital.

Benefits of Establishing a Company in Turkey

Establishing a company in Turkey comes with several significant benefits:

• Access to Major Markets: Turkey’s strategic location provides access to European, Middle Eastern, and Asian markets, making it an ideal location for international trade.

• Tax Incentives and Free Zones: Turkey offers tax incentives, particularly in technology development zones (Teknoparks) and free trade zones, where businesses can benefit from reduced tax rates and fewer regulations.

• Young Workforce: Turkey has a large, young, and skilled workforce, with many professionals specializing in technology, manufacturing, and engineering.

Challenges to Keep in Mind

While Turkey offers many opportunities for entrepreneurs, there are some challenges to be aware of when establishing a company:

• Bureaucratic Procedures: Despite improvements, navigating through legal and bureaucratic procedures can still be complex for foreign investors. It’s advisable to work with a local consultant or lawyer.

• Language Barrier: Most official documentation and procedures are conducted in Turkish, so foreign entrepreneurs may need assistance with translation or interpretation.

• Industry-Specific Regulations: Some sectors, such as finance, telecommunications, and healthcare, are heavily regulated, which may complicate the establishment process.

Conclusion

Establishing a company in Turkey presents numerous opportunities for both foreign investors and local entrepreneurs. With its strategic location, growing economy, and government incentives, Turkey is an attractive destination for businesses looking to expand.

By following the steps outlined in this guide, you can successfully establish a company in Turkey and take advantage of the benefits offered by the country’s pro-business environment. Whether you’re opening a new venture or expanding an existing business, Turkey provides the right mix of opportunities and support to help your company grow.

If you're ready to establish your company in Turkey, our team of experts is here to help. Contact us today for personalized advice and assistance throughout the process.

Özmen CPA

info@ozmconsultancy.com