Av. Serkan Kara, Istanbul Bar No. 53770
Last updated: June 14, 2026
Forming a company in Turkey gives foreign investors a fully owned operating vehicle governed by the Turkish Commercial Code No. 6102. We structure the entity, prepare and legalize the corporate file, run the registry and tax onboarding, and align the setup with any residence, work-permit, or investment-immigration objective the shareholders carry. This page sets out the law, the process, the realistic timeline and cost range, and the decisions that determine whether a company is built to operate or merely registered.
What does establishing a company in Turkey involve?
Establishing a company in Turkey means incorporating a legal entity under the Turkish Commercial Code No. 6102 and registering it with the Trade Registry through the central MERSIS system. The core sequence covers entity selection, drafting and notarizing the articles of association, depositing capital, registering with the trade registry and tax office, and obtaining signature circulars. Foreign shareholders complete the same procedure as Turkish nationals because the Foreign Direct Investment Law No. 4875 grants equal treatment and permits 100 percent foreign ownership.
Which company type should a foreign investor choose?
Most foreign investors choose a limited liability company (limited şirket) for a closely held operating business or a joint stock company (anonim şirket) for capital-led or investment-driven structures. Both confer limited liability and both are governed by the Turkish Commercial Code No. 6102. The choice turns on governance, share-transfer mechanics, capital plans, and exit strategy rather than on which form is more common.
| Entity | Best suited to | Key legal feature |
|---|---|---|
| Limited liability company (LLC) | Founder-led and closely held operating businesses | Share transfers require a notarized deed and trade registry filing, which limits liquidity but tightens control |
| Joint stock company (JSC) | Larger capital structures, investor entry, and future public or private placement | Shares transfer more freely; board governance and capital formalities are stricter |
| Branch office | A foreign parent operating directly without a new local shareholder base | No separate legal personality; the parent bears liability and files parent-company documentation |
| Liaison (representative) office | Market presence without commercial activity | Permitted activity is limited to non-trading functions such as research and promotion |
A share transfer in a limited liability company must be executed before a Turkish notary and registered with the trade registry, while joint stock company shares move with greater freedom. This single difference drives most entity decisions for investors who plan to bring in partners or sell later.
What is the company formation process step by step?
The formation process runs through a fixed administrative sequence, and the order matters because each step depends on documents produced in the one before it. A clean file moves continuously; a file with missing foreign documents stalls at the first dependency.
- Name reservation and entity decision. Confirm name availability through the MERSIS central registry system and fix the entity type, scope, and shareholding map.
- Articles of association. Draft the articles to match the shareholder plan and have them notarized in line with the Turkish Commercial Code No. 6102.
- Capital and banking. Open a corporate bank account and arrange the capital position the chosen entity requires.
- Trade registry filing. Register with the provincial trade registry office, which gives the company its legal existence and entry in the Trade Registry Gazette.
- Tax and social security onboarding. Obtain the tax identification number, register with the tax office, and enroll with social security before hiring.
- Signature circular and licenses. Issue the signature circular and secure any activity-specific licenses before the company signs contracts or receives funds.
How long does it take to form a company in Turkey?
A complete and correctly prepared file can move from the entity decision to trade registry completion within a short operational window, often a small number of business days once every document is in hand. Delays come from foreign-source documents that still need translation, notarization, or apostille legalization, from unresolved registered-address arrangements, and from power-of-attorney flow when shareholders sign from abroad. The legal work that prevents delay happens before filing, not after.
What does it cost to set up a company in Turkey?
Total setup cost combines official charges with professional fees, and it varies with entity type, capital level, and document complexity. Official and third-party charges typically include notary fees for the articles and signature circular, trade registry and gazette publication fees, certified translation and apostille legalization of foreign documents, and accounting setup. Cross-border files cost more than domestic ones because of legalization and translation requirements, so we provide a written, all-inclusive fee for each matter rather than a single advertised figure that rarely survives contact with the actual document set.
What documents are required to register a company?
Company registration requires identity, structure, and capital documentation, with additional legalization where foreign shareholders or corporate parents are involved. The standard file includes:
- Passports or identity records for every shareholder and director.
- Company name, business scope, registered address, and the full shareholding structure.
- Articles of association, tax details, and banking or capital records.
- Notarized, translated, and apostille-legalized corporate documents where a foreign company or foreign individual is a shareholder.
- A registered-address lease or equivalent proof of the company’s physical seat.
What taxes and ongoing obligations apply after formation?
A Turkish company carries corporate income tax, value-added tax, social security, and statutory reporting obligations from the moment it is active. Corporate income tax applies to company profits, value-added tax applies to most goods and services at the applicable rate, and employers make social security contributions for staff. Companies must keep statutory books, file periodic and annual returns, renew activity licenses on schedule, and observe employment obligations under the Labour Law No. 4857. Treating these obligations as routine compliance from day one is cheaper than correcting omissions during an audit.
Can company formation lead to Turkish residence or citizenship?
Yes. Establishing and operating a Turkish company can support a work or residence permit for foreign managers and shareholders under the Law on Foreigners and International Protection No. 6458, and qualifying business or capital investment can form part of a citizenship-by-investment route. The company structure, the role of each foreign individual, and the investment-immigration objective should be designed together at the outset, because retrofitting an immigration strategy onto a company built without it usually forces a restructuring. We coordinate the corporate and immigration files in parallel where a client has both goals.
What are the main risks and rejection points?
Most failed or stalled formations trace back to a small set of avoidable errors. The recurring ones are:
- Choosing an entity because it is common rather than because it fits the shareholder and exit plan.
- Underestimating how registry, tax, banking, and immigration steps depend on each other.
- Starting the process before foreign documents are properly translated, notarized, and legalized.
- Treating registration as completion before tax, banking, and operational onboarding are actually usable.
An asset-based market entry that acquires an existing business rather than incorporating fresh carries a separate exposure: under the Turkish Code of Obligations No. 6098, a buyer of a going concern can remain jointly liable for the seller’s debts for a defined period after the transfer is announced, and employment contracts can transfer to the buyer under the Labour Law No. 4857. Choosing between a fresh incorporation and an acquisition is a legal decision, not only a commercial one.
When should legal review begin?
Legal review should begin before the articles of association, powers of attorney, or banking steps are locked in. That is the only point at which the entity choice, ownership map, and compliance path can still be optimized rather than corrected after filing. Early review converts a registration into a company that can sign, hire, bank, and, where relevant, support a residence or citizenship objective from the day it exists.
Do I need a lawyer to establish a company in Turkey?
A lawyer is not legally mandatory to register a company, but cross-border formation rarely succeeds cleanly without one because the failure points are legal rather than clerical. Entity selection, share-transfer formalities, foreign-document legalization, capital structuring, and the interaction between corporate setup and immigration are decisions that determine cost and risk for years. We handle the full file so the structure is correct at formation rather than rebuilt after a problem surfaces.
Frequently asked questions
Can a foreigner own 100 percent of a Turkish company?
Yes. The Foreign Direct Investment Law No. 4875 grants foreign investors equal treatment with Turkish nationals and permits full foreign ownership of a Turkish company. A foreign individual or a foreign corporate parent can hold all shares in a limited liability or joint stock company, subject only to sector-specific rules in a small number of regulated industries.
What is the difference between an LLC and a JSC in Turkey?
Both are limited-liability entities under the Turkish Commercial Code No. 6102. A limited liability company suits closely held operating businesses but requires a notarized deed and registry filing to transfer shares. A joint stock company suits capital-led structures and investor entry, allows freer share transfers, and carries stricter board governance and capital formalities.
Does forming a company require me to be physically present in Turkey?
Not necessarily. Foreign shareholders can complete most steps through a properly drafted and legalized power of attorney granted to local counsel, which lets the formation proceed while the shareholder is abroad. Banking and certain verifications may still call for presence depending on the bank, so the power-of-attorney scope should be set before signing.
How is a Turkish company taxed?
A resident Turkish company pays corporate income tax on its profits, charges and accounts for value-added tax on most goods and services, and pays social security contributions for its employees. The company must keep statutory accounting records and file periodic and annual returns. Exact rates and thresholds change with the annual budget, so they should be confirmed for the relevant tax year.
Can I convert a liaison office into an operating company later?
A liaison office cannot trade and is limited to non-commercial functions, so converting to commercial activity means incorporating a separate operating entity rather than upgrading the office in place. Investors who expect to trade should weigh starting with an operating company from the outset to avoid a second formation later.
Request a confidential case assessment
Send the shareholder structure, the intended business activity, and any residence or citizenship objective, and we will return a written entity recommendation, a document checklist, a staged timeline, and an all-inclusive fee. Request a confidential case assessment by contacting Serka Law Firm at info@serkalaw.com.
Related practice areas: foreign direct investment structuring, corporate and commercial law, citizenship by investment, immigration and residence permits, and employment law and work permits.
This page is general information, not legal advice. Statutory rates, thresholds, and procedures change, and outcomes depend on the specific facts of each matter. An attorney-client relationship is formed only by a signed engagement.