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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
M
I’m Evren ozmen, a CPA based in Istanbul, advising remote workers, freelancers, and international founders on Turkish tax and cross-border structuring. I focus on practical tax strategies around: 100% service export income deduction Tax residency in Turkey Company formation for foreigners Remote work and international income I break down complex tax rules into clear, actionable guidance — without losing the legal and compliance reality behind them. info@ozmconsultancy.com 🇹🇷 Türkiye genelinde; yazılım ve dijital ürün geliştiren şirketler, yurt dışına uzaktan hizmet sunan profesyoneller, Teknopark firmaları, oyun stüdyoları ve mobil uygulama şirketlerine Türkçe ve İngilizce mali ve vergisel danışmanlık hizmetleri sunuyoruz. 📘 Insights & Publications: https://medium.com/@evrenozmen 📩 For Online Tax Advisory & Accounting Services/Danışmanlık-Mali Müşavirlik Hizmetleri: info@ozmconsultancy.com

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