Open a Company in Turkey

Foreign investors often open a Limited Şirket (Ltd. Şti.) or Joint Stock Company (A.Ş.) in Turkey to trade, hold assets, or support a property investment strategy. This guide covers 2026 formation rules — capital, Central Trade Registry System (MERSIS), trade registry, tax and Social Security Institution (SGK) registration, and what happens after incorporation. It does not replace corporate tax, personal foreign-income, or rental-tax advice; those sit on separate owner pages linked below. The Central Trade Registry System (MERSIS) is Turkey’s online company-registration platform. The Social Security Institution (SGK) administers employer and employee social-security registration.

Figures reflect Presidential Decree No. 7887 (Official Gazette 25 November 2023) and Ministry of Trade guidance effective from 1 January 2024. Confirm fees and timelines with your accountant or lawyer before filing.

Overview

Company formation in Turkey runs through the MERSIS central registry, then the local Trade Registry Directorate (one-stop shop). When documents are complete, registry staff often complete registration within the same working day, per Invest in Türkiye. End-to-end timelines for foreign shareholders are usually one to three weeks because of apostille, translation, and tax-number steps.

After registration, the company receives a tax number, may register for SGK (social security) if it will employ staff, and should appoint a Turkish accountant for VAT, payroll, and annual corporate filings. Ongoing tax is covered on our corporate tax guide — not repeated here in depth.

Can Foreigners Open a Company in Turkey?

Yes. Under the Foreign Direct Investment Law (No. 4875), foreign natural persons and foreign legal entities may found or participate in Turkish companies on the same basis as Turkish investors, subject to sector rules. 100% foreign ownership is permitted in most ordinary commercial activities.

Foreign shareholders and directors typically need a Turkish potential tax identification number before MERSIS and banking steps — see our bank account, tax number and DAB guide. Remote incorporation is possible with a notarised and apostilled power of attorney to a local representative — our lawyer services page outlines how advisers usually assist.

Company Types

Limited liability company (Ltd. Şti.)

The usual choice for small and mid-sized foreign investors. One or more shareholders (individuals or companies); liability limited to subscribed capital. Minimum capital €1.000 since 2024. No mandatory pre-registration bank block for cash capital under current rules; subscribed capital is paid within 24 months. Management can be simpler than a joint stock company.

Joint stock company (A.Ş.)

Suited to larger capital, multiple investors, or plans to use the registered capital system. Minimum capital €5.000 for a standard non-public A.Ş. For a non-public A.Ş. that adopts the registered-capital system, minimum initial capital is €10.000. At least 25% of subscribed cash capital must be deposited with a Turkish bank before trade registry registration; the balance is due within 24 months.

Commandite companies, collective companies, and cooperatives exist under the Turkish Commercial Code but are uncommon for foreign property or trading investors — this guide focuses on Ltd. and A.Ş.

Capital Requirements (2026)

Decree 7887 raised minimum share capital from 1 January 2024:

• Ltd. Şti.: €1.000 (previously TRY 10,000)
• A.Ş.: €5.000 (previously TRY 50,000)
• Non-public A.Ş. (registered-capital system): €10.000 initial capital

Companies incorporated before 2024 whose capital remains below the new floors must increase capital by 31 December 2026 or risk deemed dissolution under transitional Commercial Code rules (Law 7511). Capital increases are also filed through MERSIS and the trade registry.

Registration Process

MERSIS

All commercial registrations use MERSIS (Merkezi Sicil Kayıt Sistemi). Founders reserve the trade name, prepare articles of association, and generate registry forms electronically. Foreign corporate shareholders need apostilled registry extracts and sworn Turkish translations.

Trade Registry

The signed application pack is filed at the Trade Registry Directorate where the registered office is located. The company gains legal personality on registration and is announced in the Trade Registry Gazette. A 0.04% fee on share capital is payable to the Competition Authority via a state bank as part of the process.

Tax Office

The registry notifies the local tax office. The company receives a corporate tax number; a tax plate and address verification may follow. This is separate from a shareholder’s personal tax number — see bank account, tax number and DAB guide for individuals buying property.

SGK

If the company will employ staff, register a workplace file with the Social Security Institution (SGK). Shareholders who are not employees do not automatically receive social coverage through incorporation alone.

Bank Accounts

After registration, open a corporate bank account in the company name. For A.Ş. formations, the 25% pre-registration deposit requires a bank block letter (blokaj mektubu) before the registry filing. Ltd. companies generally open accounts after registration unless the articles require earlier capital payment. Banks apply standard KYC; foreign ownership is routine but document-heavy.

Accounting and VAT

Turkish companies must keep books under Turkish accounting standards and file an annual corporate income tax return. Most foreign-owned companies use a licensed accountant for monthly VAT, withholding tax, and SGK declarations. VAT registration is required when taxable supplies begin (standard rate 20% in 2026). Electronic invoicing (e-Fatura) and e-ledger obligations may apply once turnover thresholds are met — your accountant confirms timing.

Corporate tax rates, the 10% minimum tax regime, dividend withholding, and Law 7582 manufacturing incentives belong on the corporate tax page, not here.

Work Permits

Forming a company does not grant a work permit. A foreign shareholder who will manage the business from Turkey needs a separate work or residence permit route. Passive shareholding without working in Turkey is a different immigration picture. Do not assume incorporation alone authorises employment in Turkey.

Costs and Timeline

Official registry and notary charges vary by province and capital; professional fees for translation, apostille, and accounting are additional. Budget for capital (blocked or subscribed), registry fees, accountant setup, and registered address — exact totals depend on structure and city.

Typical timeline: document preparation 3–10 business days; MERSIS and trade registry 1–5 business days once the file is complete; bank and tax activation several days after registration. Remote formations add courier and apostille time in the home country.

Property, Rental Income, and Law 7582

A Turkish Ltd. or A.Ş. may hold tapu on real estate. Acquisition costs resemble personal purchases, but ongoing tax is corporate. Company rent is taxed at corporate level — see corporate tax and contrast with personal rental income tax. See our buying property through a company in Turkey guide for Title Deed (TAPU), Provincial Directorate of Planning and Coordination (PDPC) approval, and tax treatment.

Income Tax Law (GVK) Article 20/D (Law 7582 foreign-income exemption) applies to qualifying individuals only, not to companies. Shareholders do not import the 20-year personal exemption through an LTD — see foreign income tax. Citizenship by investment is a separate path from ordinary company formation.

Common Mistakes

• Using outdated TRY 10,000 Ltd. or TRY 50,000 A.Ş. capital figures from pre-2024 guides
• Assuming company formation = work permit
• Believing an LTD qualifies for Article 20/D foreign-income exemption
• Skipping potential tax ID steps for foreign founders
• Treating company rental income like personal landlord rules
• Ignoring the 31 December 2026 legacy capital deadline for older companies
• Confusing this page with full corporate tax planning — use the corporate tax owner

LTD vs Joint Stock Company

Capital Requirements

Formation Timeline

Official Sources

• Invest in Türkiye — Establishing a business
• Ministry of Trade — Establishing a company
• Revenue Administration (GİB)

Frequently Asked Questions

Can foreigners own 100%?
Yes in most sectors. Foreign and local founders face the same capital and registry rules under FDI Law 4875. Sector-specific licences (finance, energy, etc.) may impose extra conditions.

How much capital is required?
€1.000 for an Ltd. Şti. and €5.000 for a standard A.Ş. from 1 January 2024 (Decree 7887). A non-public A.Ş. using the registered-capital system needs €10.000 initial capital.

Can I open a company remotely?
Yes. Many founders grant a notarised, apostilled power of attorney to a Turkish lawyer or consultant who completes MERSIS, registry, and bank steps. You may still need to visit Turkey for banking or permits depending on your case.

How long does registration take?
The trade registry phase can finish in one working day when the file is complete. Foreign shareholders should plan roughly two to four weeks end-to-end including apostille, translation, and tax-number steps.

Do I need a Turkish partner?
No for a standard commercial Ltd. or A.Ş. — 100% foreign shareholding is allowed. Some regulated sectors may require local participation or approvals.

Can a company buy property?
Yes. A Turkish-registered company may hold tapu. Transfer taxes and ongoing obligations differ from personal ownership; See our buying property through a company in Turkey guide for tapu, PDPC approval, and tax treatment.

Can I get a work permit?
Not automatically. Company formation and work authorisation are separate. Managing directors who will work in Turkey need an appropriate residence or work permit route.

Do companies benefit from Article 20/D?
No. GVK Article 20/D under Law 7582 is for qualifying individuals only. Companies pay corporate income tax on profits — see our foreign income tax guide for the personal regime.

What taxes apply?
At company level: corporate income tax on profits, VAT on taxable supplies, withholding on salaries and certain payments, and 15% dividend withholding on distributions to non-residents (treaty rates may reduce). Detail lives on the corporate tax page.

Can a company own rental property?
Yes. Rent is company income taxed under KVK, not the personal rules on rental income tax. Tenant withholding and VAT on commercial rent may apply — your accountant confirms.

Do I need a Turkish accountant?
Practically yes. Monthly VAT, payroll, e-invoice, and annual corporate filings are almost always handled by a Turkish accountant or accounting firm familiar with foreign-owned companies.