# 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.

**Semantic keywords:** Turkey subsidiary setup 2026, Turkey LLC for foreign investors, UAE RAK company in Turkey, foreign investment Turkey, Istanbul company formation.

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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 |

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### **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.

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## **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.

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## **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.)*

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## **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.
    

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## **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.

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## **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**](mailto:info@ozmconsultancy.com)  
🌐 [**www.ozmconsultancy.com**](https://www.ozmconsultancy.com/)  
📍 **Istanbul – Serving Global Investors Since 2010**

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