Residence & Work Permit Strategies for Foreign Shareholders in Türkiye

yazarı lawyerfbc

açık Kasım 12, 2025

1) The Big Picture: Residence versus Work Authorization

Think of your status in Türkiye as two layered permissions:

Residence answers the question: Can you lawfully live in Türkiye?
Work answers the question: Can you lawfully perform work for a Turkish employer or in your own company?

A work permit usually serves two functions at once: it authorizes the specific work relationship and functions as a residence permit for the same period. That is why foreign shareholders who will actively manage the business should almost always anchor their stay on a work authorization pathway, rather than relying only on a residence card (which by itself does not grant the right to work). Family, property or student residence categories may still be relevant, but they do not replace the need for work authorization when the person will actually perform work.

2) Strategy First: Decide What Role the Foreign Shareholder Will Play

The most important decision comes before any application: what will the foreign partner do in Türkiye?

Hands-on executive or manager who will live and work in Türkiye
- Choose a company-sponsored work permit as the core status.
- Build the company and payroll to satisfy the Ministry of Labour’s evaluation criteria (capital adequacy, genuine workplace, appropriate salary level for the position, and the required Turkish staff ratio assessed during the first term).
- Plan renewal from the day you file the first application.
Passive investor or non-resident board member with occasional visits
- Consider a work-permit exemption for narrowly defined, time-limited activities (e.g., attending board meetings, investor oversight, project inspection).
- Exemptions are not substitutes for daily management; they do not build a long-term status and must be used precisely within their time limits.
Highly qualified founder/executive or investor seeking stability
- Evaluate long-horizon instruments such as the Turquoise Card (a talent/investor track that progresses to indefinite status after a transition period).
- This route is ideal once your Turkey strategy is clearly long-term and you want to reduce renewal friction.

3) Company-Backed Work Permit for Shareholders: How to Build a File that Gets Approved

A company-backed work permit is the main path for foreign partners who will actually run the business. The Ministry of Labour focuses on three clusters: employer eligibility, genuine job/role, and economic contribution.

3.1 Employer Readiness: Entity, Capital, Workplace

Entity type and authority
For LLCs, identify the manager(s) and authorized signatories in the articles and trade registry; for JSCs, clarify whether the board member carries executive authority. The title you declare in the application should match the authority recorded in corporate documents.
Paid-in capital and financials
New companies often fail because they file before capital is fully paid and registered. Complete the capitalization (bank deposit, registry, gazette) before applying. Mature entities should maintain clean corporate filings and up-to-date tax/SGK registrations at the workplace where the foreigner will work.
Real workplace
Lease the intended office/production site and align your NACE code and commercial scope with the actual activities. Virtual offices may be acceptable for some service businesses at the very beginning, but genuine activity and an address that can be inspected are essential as you approach renewal.

3.2 The Job Itself: Role, Title, and Salary Criterion

Role clarity
Your role description should reflect executive or managerial functions if that is the basis for the application. Avoid “assistant” or generic titles if you are the actual managing partner.
Salary alignment
Türkiye uses a salary criterion that scales with the level of responsibility. It is periodically recalibrated against the minimum wage. Pay at or above the appropriate level for the declared position and keep it consistent in payroll records.
Full-time, single employer
Standard work permits are employer- and workplace-specific. If you change company, address, or role, you generally need a new application (or an amendment where allowed). Plan corporate changes with immigration timing in mind.

3.3 Turkish Employment Ratio and the “Mid-Term” Checkpoint

During the first permit term, authorities review whether the workplace employs a sufficient number of Turkish staff per foreigner. Many companies forget that the ratio is audited part-way into the first year (commonly around the 6–7th month) and especially at extension time. Plan hires in advance, with redundancy to cover attrition, parental leave, or sick leave.

3.4 Filing Route: Domestic vs. Consular

Domestic filings are available if the applicant already holds a sufficiently long residence permit.
Consular filings are used when the foreigner is abroad or does not have enough residence validity domestically. After approval and entry, the work permit serves as residence for the term.

Practical tip: consular filings often produce cleaner sequences for first-timers because the “activation after entry” step lines up naturally with onboarding and address registration.

3.5 Timelines and Day-One Compliance

Start-work and SGK registration must be completed shortly after issuance (there is a formal window; treat it as a day-one obligation).
Address registration in the civil registry must follow swiftly after arrival/issuance.
Keep evidence: payroll slips, social security notifications, and lease/utility proofs should all be filed and retrievable—these documents make your extension easier and your audits painless.

4) Work-Permit Exemptions: Powerful but Narrow

A work-permit exemption can be the right tool for non-resident board members, passive investors, or foreign specialists who enter for short, specific tasks. The exemption confirms that the activity is permitted without a full permit for a defined period. Use cases include:

Attending board meetings or shareholder meetings.
Investor oversight trips, due diligence, limited supervision.
Short technical interventions on a project.

Boundaries to respect:

Duration caps apply; exemptions are typically framed around a “days-within-period” concept.
Exemptions do not lead to long-term residence or permanent work rights.
The moment your activity becomes continuous or managerial, you must pivot to a regular work permit.
Always carry proof of the exemption decision and the documents that show the scope of your activity.

5) The Turquoise Card: Long-Term Stability for High-Value Profiles

The Turquoise Card was designed to attract and retain top-tier founders, executives, investors, scientists, and artists. It begins with a transition period (during which your economic and professional contribution is monitored) and then converts into an indefinite status. Key advantages:

Employer-agnostic after conversion, with flexibility similar to permanent work rights.
Family members receive dependent cards functioning as residence permits.
Excellent for founders and C-suite executives who anticipate sustained operations and want to avoid the friction of repeated extensions.

If you are building a regional headquarters, a high-growth tech company, or a capital-intensive operation with clear job creation, consider positioning your lead executive(s) for this track from day one.

6) Complementary Residence Paths (That Do Not Authorize Work)

Some shareholders start their Turkey journey on non-work residence categories:

Family residence (for spouses/children of eligible sponsors).
Property-based short-term residence (supported by a valuation report and province-specific practice).
Student or other short-term residence categories.

All are legitimate residence tracks, but they do not authorize work. If you will perform any work—management included—pair the residence with a work permit or switch to a work-authorized status. Use these categories strategically to sequence your filings (e.g., enter on a family card, set up the company, then transition to a work permit).

7) Designing Your Corporate Structure Around Immigration Success

7.1 Capitalization and Shareholding

Capital first, then filing. Complete and register the paid-in capital before filing the work permit.
Executive shareholding. Where the foreigner is an executive-shareholder, ensure their title and decision-making powers appear in registry records.
Multiple foreign founders. When planning to onboard several foreign partners, verify whether your group financials or investment plan can support the staff ratio and salary burden across all targeted work permits.

7.2 Authorizations and Internal Governance

Update signature circulars and board/manager resolutions to reflect the actual executives who will be named in immigration filings.
Keep MERSİS and Trade Registry Gazette records synchronized with your immigration claims (role, address, activity).

7.3 Workplace and NACE Alignment

The workplace address listed in the application should be your operating address.
Match your sector code and scope of activity with what you actually do; misalignment invites inspection issues and renewal headaches.

8) Payroll, HR and Social Security: Where Good Files Go Bad

8.1 Salary Level and Payment Hygiene

Pay at or above the criterion appropriate to the role; pay on time and through the banking system; maintain pay slips.
Avoid “silent downgrades” where the title remains executive but the remuneration is treated as junior—this is a red flag at renewal.

8.2 Social Security (SGK)

Register the employee immediately after issuance/entry within the legal window.
File and pay monthly contributions consistently.
Keep onboarding checklists (contract, SGK entry, job description, internal appointment letter).

8.3 Turkish Staff Ratio

Build a hiring plan that lands your Turkish employees before the mid-term audit window.
Maintain a buffer (e.g., hire one or two additional staff) to absorb turnover without dropping below the threshold.

9) Timing the Filings: Domestic vs. Consular, Initial vs. Extension

Domestic filing works if the applicant already holds a residence permit with sufficient remaining validity.
Consular filing is standard for first-timers abroad and often cleaner for project planning.
Initial permits are commonly granted for one year. Extensions then lengthen if compliance is clean.
Start the extension process well before expiry; do not wait for the last month. Align this with HR reviews and payroll checks so that nothing surprises you at renewal.

10) What Changes Require a New Filing?

Immigration status is employer- and role-specific. You generally need a new application (or a formal amendment where available) if you:

Change employer or company ownership materially.
Move to a new workplace address.
Switch role (e.g., from technical specialist to executive manager).
Restructure the entity (merger, de-merger) in a way that impacts the contractual employer.

Plan these corporate actions with immigration timing; never announce a structural change to third parties while ignoring its impact on the foreign executive’s permit.

11) Long-Term Tracks: Permanent Work Rights and Citizenship

Foreign executives usually aim for one or both of the following after several years of compliant stay:

Permanent/indefinite work authorization (or long-term residence) after fulfilling the required years of legal stay and good-standing conditions.
Naturalization after completing the continuous residence requirement and meeting the separate criteria assessed by the Ministry of Interior (integration, public order, etc.).

Work-authorized years generally count as residence for these horizons. If long-term settlement is a board-level objective, document continuity from day one: uninterrupted payroll, address registration, timely renewals, tax and SGK compliance, and family status consistency.

12) Special Cases: Startups, Scale-Ups, and Multi-Founder Teams

12.1 Early-Stage Startups

Proof of genuine activity matters more than lavish spend. Keep clean contracts with clients, a real office, and basic corporate hygiene.
For the first foreign executive, design a role and salary that match the founder’s responsibilities.
Use convertible notes or equity rounds to strengthen the capitalization story for extensions.

12.2 High-Growth Scale-Ups

If hiring multiple foreign specialists, pressure-test whether the staff ratio and salary burden are sustainable.
Consider concentrating headcount in an entity with stronger financial metrics and clearer export/revenue profiles.
For your top executive, revisit the Turquoise Card once traction and contribution are demonstrable.

12.3 Group Structures and Intra-Group Mobility

Secondments and intra-group transfers still require local work authorization if the individual will work in Türkiye.
Keep inter-company agreements and board resolutions consistent with the story you tell in immigration filings.

13) M&A, Joint Ventures, and Restructurings: Keeping Permits Alive During Change

When buying or selling a company—or forming a JV—map immigration from the term sheet stage:

Identify permit holders and list their employer entity, workplace, and role.
Determine whether your transaction triggers a new application (e.g., change of employer).
Coordinate closing schedules with permit timelines so there is no unlawful work period.
Draft transition clauses in the SPA/JVA that allocate responsibility for re-filings, legal fees, and any downtime risk.

14) Compliance Checklist: Avoid the Classic Renewal Rejection

Capital fully paid and registered; corporate filings updated.
Lease for the operating address in force; utility or site proof available.
Job title and authority reflected in registry/board records.
Salary at or above criterion; paid through bank; slips archived.
SGK onboarding within the legal window; monthly filings on time.
Address registration completed soon after issuance/entry.
Turkish staff ratio satisfied and maintained, with buffer for attrition.
Consistent activity with the declared NACE code and sector.
No silent role changes; if duties changed, consider a re-filing.
Extension initiated well before expiry; documents updated.

15) Frequent Pitfalls—and How to Engineer Around Them

Under-capitalized newco: top up capital before filing; do not rely on promised capital injections after approval.
Title-salary mismatch: if you are a managing partner, pay at a level that credibly reflects executive responsibilities.
Late SGK or address registration: diarize deadlines; missing them jeopardizes the permit’s validity.
Relying on exemptions for real work: exemptions are for short, specific activities; once daily management starts, file for a proper permit.
Ignoring mid-term audits: hire Turkish staff earlier than you think you need them; build redundancy.
Corporate changes without immigration planning: new employer or address generally requires a new filing—coordinate HR, legal, and immigration.

16) Practical Filing Timeline (Initial Hire)

T-30 to T-15: finalize capital; update articles, registry, signature circulars; execute lease; prepare employment contract and job description; open employer account on the work-permit portal; collect personal docs (passport, diploma/experience proofs, photo).
T-14 to T-0: submit application (domestic or consular); respond quickly to any document clarifications; line up SGK onboarding steps and address registration.
T+0 to T+30: issue internal appointment/resolution; start work; register with SGK within the legal window; complete address registration; store confirmations.
Month 4–5: start Turkish hiring if not already done; integrate HR records and payroll for the mid-term audit window.
Month 6–7: verify staff ratio every pay cycle; fix gaps promptly.
60 days before expiry: gather extension documents; confirm payroll, staff ratio, lease, and bank/tax hygiene.

17) Family Strategy: Bring Everyone into Status

Spouses and children can obtain dependent residence once the principal has an eligible status.
Start school enrollment and health insurance planning early; keep passports, birth/marriage records, and apostilles ready.
If the spouse also plans to work, that spouse needs their own work authorization (dependent residence by itself does not grant a right to work).

18) Data, Documents, and Evidence: How to Build a “Self-Proving” File

Maintain a digital binder for each foreign executive with: passport, visa, address registration, SGK entry, payroll slips, tax numbers, lease, utility proof, internal appointment letters, board/manager resolutions, and a role description.
Keep client contracts or revenue evidence showing genuine activity, especially for early-stage companies.
Store valuation/capitalization evidence for your equity story (bank receipts, share subscription docs, registry entries).

19) Tax & Employment Law Intersections (Briefly)

A Turkish work relationship generally triggers Turkish payroll taxation and social security. Coordinate with payroll providers from day one.
Draft employment contracts that match the permit scope (employer, workplace, duties).
Keep termination and notice mechanics aligned with Turkish employment law; if you terminate a foreign executive’s employment, their work authorization also ends, so plan exit timing with immigration.

20) Choosing the Right Route: A Quick Decision Tree

I will live in Türkiye and run the company → Company-backed work permit; design capital, payroll, and staff ratio to meet evaluation criteria; schedule mid-term audit checks; plan early for extension.
I am non-resident and attend only board meetings or short oversight trips → Work-permit exemption for the precise activity and duration; do not manage daily operations under this.
I’m a seasoned founder/executive/investor seeking long-term stability → Explore the Turquoise Card to progress toward indefinite status after the transition period.
My family will accompany me → Add dependent residence for spouse/children; if a spouse will work, arrange a separate work authorization.
We have multiple foreign founders/specialists → Confirm whether your entity’s finances and hiring plan can sustain the salary and Turkish staff ratio across all targeted permits; consider centralizing in an entity with stronger metrics.

21) FAQs for Foreign Shareholders

Q1: Can I manage my company on a property-based residence card without a work permit?
No. Residence categories other than a work-linked status do not grant work rights. If you will manage or perform any work, obtain a work permit (or an exemption if your activity is very limited and short).

Q2: Do exemptions count toward long-term residence or permanent work rights?
No. Exemptions are temporary permissions for specific activities and do not typically accrue toward long-term statuses.

Q3: We want three foreign co-founders in year one. Is that possible?
Yes, but plan for the salary criterion and the Turkish staff ratio that will be assessed during the first term and at renewal. Structure capital and hiring so each file stands on its own merits.

Q4: What happens if we change our office address or reorganize the company?
Treat it as a potential immigration event. Address moves and changes of employer often require a new filing or formal amendment. Coordinate legal, HR, and immigration timetables.

Q5: When should we start the extension process?
Begin well before expiry—ideally a couple of months in advance—so you can refresh documents, confirm payroll and staff ratio, and correct any issues.

22) Final Takeaways for Founders and Counsel

Match reality to the permit. If you will truly manage in Türkiye, anchor your stay on a work permit. Exemptions and non-work residence types are supportive tools—not substitutes.
Engineer compliance on day one. Capital fully paid and registered; lease signed; job title and salary aligned; payroll ready; HR checklists in place for SGK and address registration.
Hire early and maintain buffer. The Turkish staff ratio is where many extensions fail. Build redundancy into your hiring plan so you never fall short in the audit window.
Document everything. A tidy digital binder turns renewals into a formality and helps during corporate transactions or inspections.
Think long-term. If Türkiye is a multi-year base, map a path to indefinite work rights or explore the Turquoise Card for your top executive(s), and align family status accordingly.

Categories:

Tags:

citizenship company LawyerinIstanbul TurkishLawyer