Why should I register a company in Turkey?
Company registration in Turkey offers many benefits:
- Corporate tax rate at 25%, which can be lower than personal income tax (15–40%)
- 100% foreign ownership allowed
- Fast registration process, often completed within 1–2 weeks
- Access to both EU and Middle Eastern markets
- Eligibility for residency permits and even citizenship by investment if combined with real estate or business investments
What is the most common type of company in Turkey for foreign investors?
The most common company types are:
- Limited Liability Company (LLC or Ltd. Şti.)
- Joint Stock Company (JSC or A.Ş.)
Both are capital companies, which means shareholders’ liability is limited to the capital they contribute. Each has its own advantages depending on your goals, structure and future plans.
How much capital is required to form a company?
- LLC: Minimum capital is 50,000 TL, payable within 2 years.
- JSC: Requires 250,000 TL, with 25% payable upfront and the rest within 2 years.
What are the main differences between an LLC and a JSC in Turkey?
| Feature | LLC (Limited Liability Company) | JSC (Joint Stock Company) |
| Minimum Capital | 50,000 TL | 250,000 TL |
| Advance Payment Requirement | 0% | 25% upfront |
| Share Transfer | Requires notarization and registration | Simple written agreement, tax-exempt after 2 years |
| Shareholder Anonymity | Publicly disclosed | Mostly anonymous |
| IPO Eligibility | Not possible | Eligible for IPO |
| Liability | Some state-related liability extends to shareholders | Strictly limited to company |
| Management Structure | At least one shareholder must be a director | Ownership and management can be fully separate |
📌 LLCs are good for small to medium sized companies and family businesses, JSCs are better for investors, venture capitalists or those looking for public funding.
Can a single foreigner establish a company in Turkey?
Yes. A foreign national can be the sole shareholder and director of a company in Turkey. You don’t need a Turkish partner or director unless you’re operating in a restricted sector (such as defense or national security).
What documents are required to set up a company?
For each real person shareholder/director:
- Power of Attorney (PoA)
- Passport translation (notarized)
- Headshot photo
- Proof of address
- Turkish tax number
For each legal entity shareholder:
- Certificate of good standing (notarized)
- Certificate of registration and Articles of Association
- Board resolution authorizing Turkish investment
- Signatory circular of the authorized representative
All foreign documents must be notarized and apostilled or legalized for use in Turkey.
What are the key steps in the incorporation process?
- Choose a company name and address
- Decide on business activity and share structure
- Prepare the Articles of Association (AoA) with a lawyer
- Sign a lease or virtual office agreement
- Register with the Trade Registry
- Get a tax number
- Notarize company signatures and get a signatory circular
- Open a bank account
- Hire a Certified Public Accountant (CPA)
With a Power of Attorney, your lawyer can complete almost the entire process on your behalf—even if you are abroad.
Do I need an address in Turkey?
Yes, but it doesn’t have to be a physical office. Foreigners often start with a virtual or shared office lease which is fully accepted by the Turkish Trade Registry.
Can I get a residence permit through company ownership?
Yes. Company owners and directors can apply for short-term residence permits based on business activity. Having a company in Turkey can also support future permanent residence or citizenship applications.
Is legal support necessary for setting up a company?
While not legally mandatory, it’s highly recommended—especially for foreign investors. A lawyer will:
- Ensure compliance with local laws
- Draft the Articles of Association correctly
- Advise on LLC vs JSC decisions
- Assist with translations, notarizations and filings
- Protect your interests if disputes arise
Which company type is for me?
Ask yourself:
- Do I need minimal cost and paperwork? → LLC
- Do I plan to raise capital or go public? → JSC
- Do I want to manage the company myself? → LLC
- Do I want to appoint professionals to manage it? → JSC
- Is anonymity important for my partners? → JSC
📌 If unsure, a consultation with a Turkish corporate lawyer can clarify the best option for you.
Turkey is great for foreign entrepreneurs—but making the right decisions early on is crucial. Whether you’re starting a startup, opening a branch or forming a holding structure, I can help you through company formation in Turkey.
📨 For personalized legal advice and full service company registration, get in touch or contact TEN LAW.