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How to Start a Business in Turkey as a Foreigner: A Step-by-Step Guide

How to Start a Business in Turkey as a Foreigner: A Step-by-Step Guide

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How to Start a Business in Turkey as a Foreigner: A Step-by-Step Guide
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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.

How to Start a Business in Turkey as a Foreigner: A Step-by-Step Guide

🚀 Thinking About Expanding Your Business to Turkey? Here’s What You Need to Know!

Turkey is a gateway between Europe and Asia, offering foreign investors a dynamic market, cost advantages, and government incentives. Whether you're an entrepreneur, startup founder, or an established business owner looking to expand, setting up a company in Turkey can be a game-changer.

But where do you start? What are the costs? What documents do you need? This guide breaks down everything into simple steps to help you make an informed decision.


📌 Why Should Foreigners Start a Business in Turkey?

Before diving into the details, let’s highlight why Turkey is a great place for foreign investors:

Strategic Location – Connects Europe, the Middle East, and Asia.
Large Market – 85+ million population with increasing purchasing power.
Investment Incentives – Government offers tax reductions and subsidies.
Low Operational Costs – More affordable labor and rental costs compared to Europe.
Easy Company Formation – You can set up a company within a few days.


🏢 Types of Companies Foreigners Can Establish in Turkey

There are five main types of companies you can register in Turkey:

Company TypeMinimum CapitalLiabilityBest for
Limited Company (Ltd. Şti.)50,000 TLLimited to company assetsSmall & medium-sized businesses
Joint Stock Company (A.Ş.)250,000 TLLimited to sharesLarge-scale businesses & public offerings
Branch OfficeNo capital requiredParent company liableExpanding existing foreign companies
Liaison OfficeNo capital requiredNo commercial activity allowedMarket research before launching a business
Sole ProprietorshipNo capital requiredUnlimited personal liabilityFreelancers & small businesses

🛠️ Step-by-Step Process to Register a Business in Turkey

Setting up a company in Turkey involves several key steps:

1️⃣ Choose the Right Company Type

Consider your business model, liability, and taxation preferences.

2️⃣ Prepare Required Documents

You will need:
📌 Passport (translated & notarized)
📌 Power of Attorney (if using a consultant)
📌 Company Articles of Association
📌 Tax Number for Foreigners
📌 Business Address & Lease Agreement

3️⃣ Register Your Business on MERSIS

MERSIS (Central Registration System) is where all companies are officially registered.

4️⃣ Open a Turkish Bank Account

Deposit the minimum capital required for your company type.

5️⃣ Get Tax Registration & Social Security Registration

Your company must be registered for corporate tax, VAT, and employee social security contributions.

6️⃣ Obtain Licenses & Permits

Depending on your industry, you may need specific approvals from Turkish authorities.

⏳ Time Required: Typically, company formation takes 5-10 business days.


💰 What Are the Costs of Starting a Business in Turkey?

Expense TypeEstimated Cost
Company Formation Services€3,000 – €5,000
Virtual Office€10/month
Accounting & Tax Consultancy€500/month
Bank Account Opening€500
Notary & Registration Fees€1,000+
Minimum Capital (Ltd. Şti.)50,000 TL

Need a customized cost breakdown? 💬 Contact us for a consultation!


📜 What Taxes Do Foreign-Owned Companies Pay in Turkey?

Corporate Tax: 25% on net profits
VAT: Standard rate is 20%, but varies by sector
Income Tax: 15-40% for individuals
Withholding Tax: 10-20% on dividends, rent, and salaries
Stamp Duty: Applied on contracts and payroll

Want to minimize your tax burden? 📞 Talk to our tax experts today!


Foreign entrepreneurs in Turkey must comply with local regulations:

📌 Trade Registry Registration – Official business registration is required.
📌 Notary Approval – Certain documents must be notarized.
📌 Social Security Compliance – If hiring employees, you must register with SGK.
📌 Hiring a Lawyer (for A.Ş. Companies) – Mandatory for joint stock companies.

Need help navigating Turkish business laws? 📩 Book a free consultation now!


Frequently Asked Questions (FAQs)

1️⃣ Can I own 100% of my company as a foreigner?
✅ Yes! Foreigners can fully own companies in Turkey.

2️⃣ Do I need a Turkish partner to register a business?
❌ No, you don’t need a local partner.

3️⃣ How long does it take to start a business?
⏳ On average, 5-10 business days.

4️⃣ Can I get a residence permit by opening a company?
✅ Yes, but you may need additional permits based on investment size.

5️⃣ What if I want to close my company later?
📌 Liquidation takes around 6-12 months and requires professional assistance.


🎯 Why Work With Us?

If you try to set up a business alone, you might face:

Complicated paperwork – Time-consuming and overwhelming
Hidden costs – Unexpected fees and taxes
Legal risks – Non-compliance with Turkish business laws
Language barriers – Dealing with authorities in Turkish

🚀 With our expert team, you get:

Full Legal & Tax Compliance – No costly mistakes
Fast & Hassle-Free Registration – Your company is up and running in days
Affordable Packages – No hidden costs, clear pricing
End-to-End Support – From registration to tax consulting

📞 Ready to Start? Contact Us Today!

info@ozmconsultancy.com


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Evren Özmen CPA / SMMM | Turkey Tax Advisor for Remote Workers

3499 posts

Evren Özmen is an Istanbul-based CPA / SMMM publishing practical Turkish tax and accounting guidance for remote workers, freelancers, contractors and founders in Turkey earning active income from foreign clients. Topics include Turkish tax residence, VAT on exported services, service export deductions under GVK 89/13 and KVK 10/1-g, sole proprietorship, company setup and accounting review. Contact: info@ozmconsultancy.com