Setting Up a Subsidiary in Turkey: Full 2026 Guide for Foreign Investors
Setting Up a Subsidiary in Turkey: Full 2026 Guide for Foreign Investors
Setting Up a Subsidiary in Turkey: Full 2026 Guide for Foreign Investors
Why Turkey Remains a Strategic Hub in 2026
Turkey continues to position itself as the gateway between Europe, the Middle East, and Asia.
With a young workforce, competitive costs, and more than 80 double-taxation treaties, the country is expected to attract record levels of FDI through 2026 — especially from UAE (RAK and Dubai entities), UK, EU, and Singapore.
A subsidiary in Turkey allows foreign groups to maintain local operations under an independent legal entity while benefiting from tax optimization and full ownership rights.
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Understanding the Legal Framework
1. Subsidiary vs Branch
A subsidiary (bağlı ortaklık) is a separate legal entity — usually a Limited Liability Company (Ltd. Şti.) — wholly or majority-owned by the parent.
A branch (şube) is not a separate entity; it operates under the parent company’s name and is taxed on its Turkish income.
| Feature | Subsidiary | Branch |
| Legal status | Independent entity | Extension of parent |
| Ownership | 100 % foreign possible | Parent company |
| Tax ID | Separate TIN | Parent’s TIN extension |
| Liability | Limited to subsidiary capital | Parent fully liable |
2. Common Legal Structures
| Entity Type | Minimum Capital | Ideal For |
| Limited Liability Company (Ltd. Şti.) | ₺50,000 | Consulting, Tech, Real Estate Projects |
| Joint Stock Company (A.Ş.) | ₺250,000 | Large investments, multiple shareholders |
| Branch Office | — | Short-term market presence |
In 2026, the Turkish Trade Registry and MERSIS system continue to enable remote incorporation via digital signatures, allowing foreign shareholders to complete registration without travel.
Step-by-Step Process for Establishing a Subsidiary
Step 1 – Document Preparation
Parent company’s certificate of incorporation (apostilled)
Board resolution authorizing investment in Turkey
Power of attorney for local representative
Shareholder and director IDs and address proofs
Step 2 – Company Registration
Filed through the MERSIS Portal and completed before the Istanbul Trade Registry.
Average timeline: 10–15 business days once documents are complete.
Step 3 – Tax and VAT Registration
Every subsidiary must obtain a Tax Identification Number (TIN) and VAT number.
Corporate income tax rate in 2026 is expected to remain at 25 %, with further deductions for:
R&D and Technopark activities (up to 80 % tax reduction)
Export income incentives and VAT refunds
Investment incentive certificates for strategic sectors
Step 4 – Bank Account Opening
Banks in Turkey perform enhanced KYC checks for foreign-owned entities.
Required documents include company registration, tax certificate, and a CPA-verified signature circular.
Step 5 – Accounting & CPA Appointment
Appointing a Certified Public Accountant (CPA) is mandatory under Turkish Tax Procedure Law.
The CPA is responsible for monthly bookkeeping, VAT filing, and corporate reporting.
Expected Timelines and Costs (2026 Projection)
| Stage | Average Duration | Indicative Professional Fee Range (USD) |
| Incorporation Process | 10–15 business days | 1,500 – 2,000 |
| Tax and VAT Registration | 3–5 business days | 400 – 600 |
| Registered Office Address | Annual service | 600 – 900 |
| Corporate Bank Account Support | 2–3 weeks | 300 – 500 |
| Accounting & CPA Representation | Monthly | 250 – 400 |
(Fees may vary depending on structure and banking requirements.)
Tax and Regulatory Forecast for 2026
Corporate Tax: expected to stabilize at 25 % with targeted deductions for green and digital investments.
Digital Tax Reform: Turkey plans alignment with the OECD Pillar Two rules, impacting multinational subsidiaries.
E-Accounting Transition: Full e-invoice and e-ledger compliance mandatory for all foreign-owned entities.
Real Estate Sector Note: RAK and UAE groups engaged in real estate development must register project contracts locally for VAT refund eligibility.
Why Work with OZM Consultancy – Your CPA Partner in Turkey
Deep expertise in foreign subsidiary formation since 2010
Certified Public Accountants specialized in cross-border tax and corporate structuring
Proven track record with RAK, DMCC, DIFC, UK, EU, and Singapore entities
Comprehensive service from company formation to tax compliance
Bilingual (Turkish–English) support and real-time client communication
At OZM Consultancy, we build long-term partnerships — ensuring that your subsidiary not only complies with Turkish law but also operates efficiently and profitably.
Reach us
If you plan to set up a subsidiary, branch, or holding company in Turkey in 2026,
reach out for a personalized consultation and step-by-step cost estimate.
📧 info@ozmconsultancy.com
🌐 www.ozmconsultancy.com
📍 Istanbul – Serving Global Investors Since 2010
About the author
- Evren Özmen is an Istanbul-based CPA / SMMM specializing in tax and accounting for remote workers, freelancers and professionals earning income from foreign clients. His practice has supported more than 1,000 remote-working taxpayers. Core topics include employee versus contractor classification, foreign-client invoicing, VAT exemption for exported services, service export deductions, sole proprietorship and limited company compliance. General information only; case-specific review is required before applying any tax position.
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