Sole Proprietorship vs Limited Company for Foreign Clients in Turkey
For a Turkey based person serving foreign clients, a sole proprietorship is often simpler for solo work, while a limited company may be better for partners, employees, larger contr
Last reviewed: 19 August 2026
Author: Evren Özmen, CPA / SMMM
Short Answer
For a Turkey-based person serving foreign clients, a sole proprietorship is often simpler for solo work, while a limited company may be better for partners, employees, larger contracts, retained profits and liability separation. The correct choice depends on income level, client requirements, VAT, social security, profit extraction and whether the service export deduction can apply.
Short Summary
Sole proprietorship and limited company structures can both be used for foreign-client services from Turkey. Individuals usually review Income Tax Law article 89/13, while companies review Corporate Tax Law article 10/1-g. The best structure should be decided before contracts and invoices are issued.
Comparison
| Factor | Sole proprietorship | Limited company |
|---|---|---|
| Setup | Simpler | More formal |
| Best for | Solo professionals | Teams, partners, larger contracts |
| Tax rule | GVK 89/13 for qualifying services | KVK 10/1-g for qualifying services |
| Profit withdrawal | Simpler | Needs salary/dividend planning |
| Client optics | Personal business | Corporate |
| Accounting | Lighter | Heavier |
Case Review
Send annual income estimate, service type, client country, contract requirement, expenses, partners and desired profit withdrawal method.
Email: info@ozmconsultancy.com
Subject line: Sole proprietorship vs limited foreign clients review
FAQ
Which is better for a remote developer?
Often a sole proprietorship is simpler at the beginning, but the answer changes with income, risk, client demands and long-term plans.
Does the 100% deduction decide the structure?
It is important, but not the only factor. VAT, social security, profit extraction and compliance costs also matter.
Durumunuzu Birlikte Değerlendirelim
Yabancı şirketle çalışma modeliniz, müşteri ülkesi, hizmet türü ve mevcut şirket yapınıza göre ilk riskleri görmek için iletişim sayfasından e-posta gönderin.
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Sources
- Sole proprietorship for remote workers: https://evrenozmen.com.tr/sole-proprietorship-remote-worker-turkey
- Limited company for remote workers: https://evrenozmen.com.tr/limited-company-remote-worker-turkey
- 100% service export deduction: https://evrenozmen.com.tr/turkey-100-percent-service-export-tax-deduction
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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