Introduction

Türkiye as the world’s 19th-largest economy (GDP: $1.3 trillion in 2024) offers strong potential for foreign companies. With a population of 85 million (over half under age 35) Türkiye stands out as a large, skilled, dynamic market. Turkish industrial output, which grew by 8.3% in 2025 YTD, is the engine of the economy. Its industry generates 30% of total domestic turnover, of which 30% are medium- to high-technology products. The presence of foreign companies in Türkiye continues to grow annually, despite the global economic slowdown. Since 2021, 39,700 new foreign companies have been established. According to the National Statistics Office, foreign companies held 12.9% of total turnover in 2021 and are estimated to retain this rate in 2024. Foreign companies are a significant part of the Turkish economy, with total turnover reaching $354 billion today. Foreign company presence is concentrated in the wholesale-retail trade and manufacturing of industrial goods, which are also the backbone sectors of the Turkish economy.


The State of Türkiye values foreign company establishment and highlights several investment areas that provide a well-established ecosystem of companies, accessible resources, and accumulated business know-how:
• Technology Development Zones – Technoparks
• Organised Industrial Zones
• Free Zones
• Industrial Zones

Most common business structures and requirements

In Türkiye, the Limited Liability Company (LLC – Limited Şirket) is the predominant structure for foreign enterprises, accounting for roughly 90% of foreign company presence due to its operational flexibility and straightforward establishment. The LLC requires a minimum capital of 50,000 TRY ($1,206), payable within 24 months of registration. An LLC may be established by one to fifty shareholders, individuals or legal entities, foreign or domestic.

Türkiye’s Foreign Direct Investment Law No. 4875 guarantees national treatment, equal footing with local investors, and explicitly allows free transfer abroad of net profits, dividends, sale/liquidation proceeds, license/management fees, and loan repayments through banks, subject to tax compliance. Expropriation is barred except for public interest with due compensation. Dividends/profits are freely transferable after tax, transfers must follow banking/FX procedures (Decree No. 32). For exporters resident in Türkiye, separate export revenue repatriation timelines may apply under Communiqué 2018-32/48 , which is not a ban on dividends but rather a rule for bringing export proceeds back via intermediary banks.

Türkiye offers layered investment incentives (tax reductions/credits, VAT/customs relief, interest support) under the general scheme, plus Free Zones with corporate income tax and VAT exemptions on eligible zone-based activities. Technology Development Zones (Technoparks) and Organized Industrial Zones can provide additional advantages for R&D/manufacturing footprints. Incentives mainly require sectoral eligibility and location-specific rules.

The Joint Stock Company (JSC – Anonim Şirket) is generally preferred for larger-scale ventures, particularly those considering public offerings or seeking to attract a broad investor base. The minimum capital requirement for a JSC is 250,000 TRY ($6,029), of which 25% must be paid before registration and the remainder within 24 months. If a foreign investor does not plan to register a Turkish subsidiary, a branch or a liaison (representative) office may be considered.

Investors can open a branch in Türkiye for their home-based company. A branch isn’t a separate legal entity; it trades in Türkiye on behalf of the parent (simpler equity picture, but parent bears liability). Branches are often used for short- to medium-term market entry when a separate local balance sheet is unnecessary; they are not separate legal entities, so the parent remains liable. Branch opening is simply translated and apostilled company documents to be registered similar to LLC and JSC but without the capital deposit.

The least common structure is opening a liaison-representative office. A liaison (representative) office cannot conduct commercial activities (no trading, no invoicing). It is limited to market research, partner development, promotion, and similar non-commercial functions. Permits are issued by the Ministry of Industry & Technology (via E-TUYS) and may be revoked if commercial activity is detected.

LLC: Suits most market entries that prioritize simplicity, a shareholder range of 1–50, and flexible governance. It is commonly selected for sales/distribution subsidiaries, service operations, and pilot market tests. Compliance obligations are lighter than a JSC, though share transfers are more formal (notarization and share-ledger updates), making the structure less suited to accommodating many investors or preparing for a public listing.

A JSC: Appropriate for scale-oriented entries that anticipate external capital raising, multiple investors, or future IPO/exit options. It provides investor-friendly share transferability, formal board governance, and access to a registered capital system that facilitates quicker future capital increases, hence its frequent selection for private equity or venture capital backed transactions, larger joint ventures, and structures expecting frequent ownership changes.

Branch: Not a separate legal entity; parent liable; can trade/invoice; no statutory capital.

Liaison: Non-commercial; E-TUYS System permit; no invoicing.

In practice, LLCs suit streamlined entries and operating subsidiaries, while JSCs fit scale-oriented structures anticipating multiple investors, advanced governance, or potential public listing. By contrast, a branch operates as an extension of the foreign parent (no separate legal personality), enabling trading and invoicing in Türkiye but leaving ultimate liability with the parent and offering fewer equity/exit options. A liaison (representative) office provides a non-commercial presence, and limited to activities such as market research, partner development, and promotion, hence cannot issue invoices or conduct trade.

Step-by-step guide to registering for a Turkish company

The Turkish government provides a detailed official guide at invest.gov.tr for foreign companies that practically explains the investment routes, sector reports, incentives and establishment structures. The establishment of a foreign company follows the same legal procedures as for local companies, with the only addition being the requirement that foreign-issued documents be apostilled and translated. A large number of experienced law and consultancy companies in Türkiye offer affordable services to assist foreign companies with company establishment. Foreign company establishment requires a straightforward chain of applications to register the company as a legal commercial entity.

1. Founders first submit the draft articles of association via MERSİS (the Ministry of Trade’s Central Trade Registry System). 

2. The company notarises the incorporation documents by ensuring all foreign documents are apostilled/translated.

3. The company obtains a tax identity number for non-Turkish shareholders. 

4. The company needs to pay 0.04% of its denoted capital to the Competition Authority and deposit its denoted capital in a bank.

5. The company applies for registration to the Trade Registry Directorate.

6. When the Directorate notifies the tax office in a few days, the Social Security Registration certifies the statutory records and issues the company’s signature circular.

7. Finally, the certified company records that were formerly on paper have been migrated to the E-TUYS electronic system, which allows companies to do all activities electronically.

Company establishment in Türkiye is considered low-cost, with no difference in fees between foreign and local companies. The process for forming an LLC typically ranges from $911 to $2,100, while for a JSC, the company establishment fee ranges from $3,055 – $5,315 due to higher denoted capital. These costs include a mix of official fees and professional service charges, which is recommended for all foreign companies.

What are the documents typically required for setting up a company in Turkey?

• Founders & management: Passports/IDs of shareholders and directors; tax ID numbers for non-Turkish persons; signature declarations (Turkish notary) and biographical details for MERSİS.
• If a shareholder is a company: Certificate of incorporation/good standing, articles/registry extract, and board resolution authorizing the Turkish entity and appointing a local representative, which are all apostilled/consularised and sworn-translated into Turkish.
• Constitutional & address items: Draft Articles of Association (AoA) via MERSİS; registered address/lease (or usage permit); NACE activity code(s).
• Bank & capital (where applicable): Capital deposit slip (e.g., JSC ≥25% before registration); proof of Competition Authority payment (0.04%).
• Post-registry: Commercial Registry Gazette publication, statutory book certifications, tax office activation, SGK employer registration, and signature circular.

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Duration of registration and common bottlenecks

Once documents are ready, ~3–10 business days is typical for LLC/JSC registration. The longest lead times are usually apostille/consularization and sworn translations, bank KYC (opening the account for the capital deposit), and notary/registry scheduling—these can extend the critical path.

Language requirements and translation

• Filing language: Turkish is mandatory for all official filings, registry records, notary acts, and the Gazette. Foreign-language documents must be sworn-translated into Turkish (and apostilled/consularized if issued abroad).
• Bilingual documents: Many companies use bilingual (Turkish–English) AoA and corporate documents for convenience; however, the Turkish text prevails before authorities.
• Operational phase: Day-to-day contracts can be in English, but for court/administrative use or registration/permit processes, Turkish translations will be required. Banks and some service providers accept English for onboarding, yet Turkish forms are commonly requested for execution.

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Restrictions to take note of when setting up a company in Turkey

• Media/broadcasting: foreign persons/entities may own ≤50% of a Turkish broadcasting company and cannot directly hold shares in more than two broadcasters.
• Civil aviation (airlines/operators): foreign ownership is generally capped at 49% and operators must meet Turkish control/board-composition requirements.
• Maritime cabotage: coastal shipping/services in Turkish waters are reserved to Turkish citizens/entities.
• Real estate: Foreign legal entities established abroad (non-Turkish companies): cannot generally buy real estate unless a special law expressly allows it (classic examples: Petroleum Law, Tourism Promotion Law, Industrial Zones Law). They may, however, take mortgages or certain limited rights in rem connected to such special-law purposes. Turkish companies with foreign capital (i.e., incorporated in Türkiye): may acquire real estate and limited rights in rem if the property is needed for, and aligned with, the company’s stated activities in its articles of association (standard corporate practice). Usual public-order limits still apply (e.g., military/security zones).
• Regulated/strategic industries (licenses/approvals): banking, telecoms, energy, and defence require prior approvals or are tightly licensed/supervised by the relevant regulators (e.g., BDDK for banking, ICTA for telecoms). Some defence-related activities are restricted on national-security grounds even when no explicit “ownership cap” is stated.

FAQ about registering a company in Turkey

How much is a business license in Türkiye for foreigners?

There is no single “business license” fee. Foreigners pay the same registry, chamber of commerce, notary, gazette, and (if applicable) municipal workplace-opening fees as locals. Altogether, these typically range from several hundred to a few thousand USD depending on the scope of activity.

Can a foreigner set up a business in Türkiye?

Yes. Under the equal-treatment principle, foreigners can own 100% of a Turkish company and may establish either an LLC or JSC without requiring a Turkish partner.

How much does it cost to register a company in Türkiye?

Starting a company in Türkiye is relatively low-cost. Typical setup fees (excluding share capital) range from about $900–$2,100 (TRY 27,000–62,000) for an LLC and $3,000–$5,300 (TRY 91,000–159,000) for a JSC. The statutory minimum capital is $1,200 (TRY 50,000) for an LLC and $6,000 (TRY 250,000) for a JSC, with JSCs requiring 25% of capital paid upfront, while LLCs have no such obligation.

Intend to enter the Turkish market?

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