Turkish Citizenship By Establishing A Company

Serka Law Firm Investment And Company Consultancy in Turkey - Turkish Citizenship By Establishing A Company
Turkish Citizenship By Establishing A Company
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Obtain Turkish Citizenship Through Company Establishment

According to 2nd subclause of Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law; foreigns determined by the Capital Markets Board to have purchased a venture capital investment fund participation share of at least 500,000 USD or its equivalent in foreign currency on the condition that they hold at least three years, can acquire Turkish citizenship exceptionally.

Foreign investor who wishes to apply for Turkish citizenship by investment buys a non-public company completely or becomes a partner to a certain share. The amount corresponding to the share purchased must be at least 500,000 USD or its equivalent in foreign currency or equivalent in Turkish lira. In this case, the applicant may also be asked to submit a company valuation report obtained from the authorized institutions related to the market value report of the company.

However, the company should include investment elements such as building, land, equipment and machinery to produce goods and services. Foreign investor can also become a partner of an existing company that fulfills these conditions. If the investor wishes to make an additional investment in a previously made investment, the increase in the investment amount and the share of the foreign investor in the company are considered as of the date of the additional investment. In other words, if the foreign investor is a partner in the company at a certain share, the percentage corresponding to the partnership share is multiplied by the additional investment amount. The resulting amount must be a minimum of 500,000 USD or the equivalent in foreign currency or Turkish Lira.

What should be the type of the company to be established?

According to us, setting up a new company would be better. Purchasing a shelf company may cause some problems in the future. The main disadvantage of a shelf company is the uncertainty surrounding its past. When you buy a shelf company, you also become liable for debts that were unknown or undisclosed at the time of purchase, but which may come to light in the future. Besides, some people may sell their companies with bad credit history. There are even some scammers who will sell you their company that they do not actually own. As setting up a new company has become simpler, faster and more cost-effective, purchasing a shelf company has become less advantageous.

As for the company’s type, Limited Liability Company (LTD) or Joint Stock Company (A.Ş.) might be established. We advise establishing LTD company in the beginning as it is simpler, easy to manage and has less bureaucracy. A limited company with a single shareholder can be established with a share capital of minimum 10.000 Turkish Liras. It is possible to pay all of the capital brought in cash within 24 months after the registration of the company. The total number of shareholders cannot be above 50.  For joint stock companies (A.Ş), the minimum capital amount is 50.000 Turkish Liras. In LTD companies, there is no obligation to deposit or block money in the bank before registration. For A.Ş companies, at least 12.500 Turkish Liras must be blocked. It is necessary to deposit this amount in the bank and submit the letter which is received from the bank to the The Registry of Commerce. In conclusion, the establishment procedure of LTD companies is easier.

As Serka Law Firm, we carry out establishment procedure of your company quickly and effectively.

Establishing company in a Free Trade Zone

The company you will establish can operate in a free trade zone in Turkey, for sure. Turkey provides many advantages in free trade zones in order to bring foreign investments and technologies to the country. However, establishing a company in a free trade zone has some bureaucratic difficulties. Person who wants to establish a company in a free trade zone must first get an ‘operating license’. Many criteria are taken into consideration in the evaluation of operating license applications. First of all, the company’s activities must be for production and mostly aimed at selling abroad. Investors must carry out production activities in their companies in order to take advantage of the free zone. In addition, the company’s activities must not be harmful to human health and the environment, must not include sensitive products to be determined by the General Directorate, and must not destructive and provide an environment for unfair competition in the domestic market. The company must also provide employment in a certain capacity, include new and high technology, and provide a service that supports international trade. General Directorate of Free Zones within the Undersecretariat of Foreign Trade evaluates whether all these criterias are fulfilled by investor or not.

If you are intent on setting up a company in the free trade zone, as Serka Law Firm we are ready to carry out this process on your behalf.

What are the documents required to become a Turkish citizen by establishing a company?

  1. Investment Information Form : This form should contain information about the invested company, the subject of the investment transferred to the company’s equity and information about the share of the investor in the capital investment.
  2. Valid passport and notarized Turkish translation of the passport,
  3. Four (4) passport-sized biometric photographs,
  4. A copy of the residence permit on both sides,
  5. Special purpose report with the approval of the Certified Public Accountant (CPA) showing that a minimum of 500,000 USD or its equivalent in foreign currency or Turkish lira has been invested as a capital investment.
  6. If the capital investment related to the application is made through a legal entity, the Turkish Trade Registry Gazette Registration, which shows the capital amount and the shareholding structure of the legal entity that made the fixed capital investment, is required.


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