A foreign entrepreneur can legally own 100% of a Turkish company.

But does owning the company automatically give that entrepreneur the right to work in Türkiye?

The answer is:

No. Company ownership and the right to work are separate legal matters.

A foreign person may be the sole shareholder of a Turkish limited liability company or joint stock company without automatically obtaining work authorization.

If the foreign shareholder will actively manage, operate or work for the company in Türkiye, a work permit or applicable work permit exemption may be required.

This distinction is particularly important for startup founders who assume that registering themselves as:

• shareholder;
• manager;
• board member;
• chairman;
• CEO; or
• company owner

automatically authorizes them to work in Türkiye.

It does not.

The Ministry of Labour and Social Security expressly states that foreigners within the scope of Law No. 6735 on International Labour Force must obtain a work permit or work permit exemption before starting work in Türkiye.

Foreign founders should therefore structure company formation and immigration planning together.

1. Does Every Foreign Company Owner Need a Work Permit?

Not necessarily.

The answer depends primarily on what the foreign owner actually does.

There is an important difference between:

passively owning shares

and

actively working for or managing the company in Türkiye.

For example:

Scenario A – Passive Investor

A German investor owns 30% of a Turkish startup but lives permanently in Berlin and does not participate in the company’s daily management.

Scenario B – Active Founder

A British founder owns 100% of a Turkish SaaS company, lives in İstanbul, works from the company’s office, hires employees and negotiates contracts.

These two people are both shareholders.

However, their work permit position is fundamentally different.

The active founder should normally be analyzed under Türkiye’s work permit rules.

2. Does Owning 100% of a Turkish Company Give the Founder the Right to Work?

No.

This is one of the most important misconceptions concerning foreign entrepreneurs in Türkiye.

A foreigner may legally own:

• 20%;
• 50%;
• 75%; or
• 100%

of a Turkish company.

But ownership itself does not constitute work authorization.

Therefore:

100% ownership ≠ automatic work permit

and

company registration ≠ right to work in Türkiye.

The Ministry defines a work permit as the official document granting a foreigner the right to work and reside in Türkiye during its validity period.

3. Which Law Regulates Foreigners Working in Türkiye?

The principal legislation is:

Law No. 6735 on International Labour Force – Uluslararası İşgücü Kanunu.

The Ministry of Labour and Social Security, particularly the Directorate General of International Labour Force, administers the work permit system.

The law applies broadly to foreigners who:

• apply to work in Türkiye;
• actually work in Türkiye;
• receive vocational training;
• undertake internships;
• provide certain cross-border services; or
• fall within other categories covered by the legislation.

Unless a specific exemption applies, the foreigner must obtain appropriate work authorization before starting work.

4. Do Foreign Shareholders of a Limited Company Need a Work Permit?

The key question is whether the shareholder is also involved in management.

The Ministry’s current guidance states that a foreign person who is both:

a shareholder and manager of a Turkish limited liability company

may work by obtaining a work permit.

For example:

Foreign Founder – 100% shareholder

and

Foreign Founder – Company Manager

If that founder actively works in Türkiye, a work permit should be considered.

By contrast, a passive, non-managing foreign shareholder may fall within the work permit exemption framework depending on the circumstances.

5. Do Foreign Board Members of an A.Ş. Need a Work Permit?

Again, the answer depends on the person’s status and activities.

A foreign shareholder who is also a board member and actively works for a Turkish joint stock company may need work authorization.

However, the Ministry expressly distinguishes non-resident board members.

According to current Ministry guidance, non-resident members of the board of directors of Turkish joint stock companies are within the work permit exemption framework.

This distinction is particularly important for multinational companies.

For example:

German Parent Company – 100% shareholder

Board:

• German CEO – resident in Germany
• German CFO – resident in Germany
• Turkish General Manager – resident in Türkiye

The two German executives may not necessarily require ordinary work permits merely because they sit on the Turkish subsidiary’s board.

Their actual functions and residence should nevertheless be examined carefully.

6. What About a Foreign Shareholder Who Does Not Manage the Company?

A passive investor should not automatically be treated in the same manner as an active founder.

Current Ministry materials place certain non-managing company partners within the work permit exemption framework, with the precise scope depending on the company type, residence and actual role.

This means that merely owning shares does not necessarily create a work permit requirement.

The more important question is:

Is the person actually working?

Relevant indicators may include whether the foreign shareholder:

• works from Türkiye;
• represents the company;
• manages employees;
• negotiates contracts;
• signs operational documents;
• supervises departments;
• performs executive functions; or
• participates in the company’s daily commercial activities.

7. What If the Foreign Founder Is Both Owner and CEO?

This is a classic startup scenario.

Suppose:

Foreign Founder – 100% Shareholder

The founder also:

• lives in İstanbul;
• calls themselves CEO;
• works from the company office;
• supervises developers;
• negotiates customer contracts;
• manages the company’s bank account; and
• recruits employees.

The founder is no longer merely a passive shareholder.

They are actively working for the Turkish business.

A work permit analysis is therefore essential.

The fact that the founder owns the company does not remove the work authorization requirement.

8. What Are the Current Work Permit Criteria for Foreign Company Partners?

As of August 2026, the Ministry applies specific evaluation criteria to foreign company partners.

For a company subject to balance-sheet accounting, the ordinary criteria provide that:

• the company’s paid-in capital must be at least TRY 500,000;
• the foreign partner’s own capital contribution must be at least TRY 500,000; and
• the foreign partner must hold at least 20% of the company.

This is one of the most important rules foreign founders need to understand.

9. Is TRY 500,000 the Minimum Capital for Establishing a Company?

No.

This is where company law and work permit law are frequently confused.

For example, the statutory minimum capital for establishing a Turkish limited liability company is much lower than the TRY 500,000 work permit threshold applicable under the ordinary foreign company-partner criteria.

Therefore, a foreigner may validly establish a company but still fail to satisfy the ordinary work permit evaluation requirements.

For example:

Company capital: TRY 50,000

Foreign founder: 100% shareholder

The company may be validly incorporated.

But the founder’s intended work permit may present a separate problem because the work permit criteria are not the same as the company incorporation criteria.

10. Does the Foreign Founder Need at Least 20% of the Company?

Under the ordinary company-partner work permit evaluation criteria, yes.

The Ministry currently requires the foreign partner to hold at least 20% of the company, together with the applicable capital requirements.

This usually does not create difficulty for a founder who owns:

• 100%;
• 70%;
• 51%; or
• 30%

of the startup.

But it can become important after several financing rounds.

11. Can Dilution Affect a Foreign Founder’s Work Permit?

Potentially, yes.

Consider this startup:

Incorporation

Foreign Founder – 100%

Seed Round

Foreign Founder – 70%
Investor – 30%

Series A

Foreign Founder – 35%
Investors – 65%

Series B

Foreign Founder – 15%
Investors – 85%

The founder may remain the CEO and operational leader.

However, the founder’s shareholding has fallen below the 20% threshold applicable under the ordinary foreign company-partner criteria.

This demonstrates why work permit planning can become relevant during investment negotiations.

A founder’s immigration status should not be ignored when restructuring the cap table.

12. Must the Foreign Partner Personally Invest TRY 500,000?

Under the ordinary criteria, the Ministry requires the foreign partner’s capital amount to be at least TRY 500,000, provided that the company’s paid-in capital is also at least TRY 500,000 and the foreign partner owns at least 20%.

This means that percentage ownership alone is insufficient.

For example:

Company paid-in capital:

TRY 1,000,000

Foreign founder ownership:

20%

Foreign founder capital amount:

TRY 200,000

The 20% ownership threshold may be met, but the ordinary TRY 500,000 personal capital requirement would not be satisfied.

The capitalization structure must therefore be designed carefully.

13. Is There an Exception for a USD 100,000 Capital Share?

Yes, and this is an important exception.

Under the Ministry’s current criteria, where the foreign partner’s capital share is USD 100,000 or more, the ordinary company-partner requirements concerning:

• the TRY 500,000 financial threshold; and
• the five-Turkish-employee criterion

are not applied in the same manner.

This can be highly relevant for founders making substantial investments into their Turkish companies.

However, satisfying this exception does not automatically guarantee approval.

The Ministry continues to evaluate the work permit application under applicable law and international labour force policy.

14. Does the Company Need to Employ Five Turkish Citizens?

Under the ordinary company-partner criteria, yes.

The Ministry currently requires employment of at least:

five Turkish citizens

for a foreign company partner’s work permit under the ordinary framework.

However, an important grace period applies to newly established businesses and foreign company partners.

15. Does the Five-Employee Rule Apply Immediately?

Not necessarily.

For a new workplace or foreign company partner receiving an initial permit, the Ministry’s current rule provides that the five-Turkish-citizen employment requirement becomes applicable from the beginning of the seventh month of the initial work permit period.

Therefore, during the first six months, the company may not yet have to satisfy the five-employee threshold.

From the seventh month onward, however, the business must generally employ at least five Turkish citizens each month where the ordinary rule applies.

16. What Happens During a Work Permit Extension?

The employment requirement becomes particularly important.

The Ministry’s current permit annotations state that where a company owner or partner’s work permit is extended, the company must maintain the required five Turkish employees throughout the permit period where the criterion applies.

Failure to satisfy the condition may result in the extension request being rejected.

Foreign startup founders should therefore plan payroll and headcount before relying on the company-partner work permit route.

17. Does Hiring Five Turkish Citizens Guarantee the Permit?

No.

This is another important distinction.

Meeting:

• capital;
• ownership; and
• employment

criteria does not create an unconditional legal right to receive a work permit.

The Ministry evaluates applications according to:

• international labour force policy;
• statutory requirements;
• applicant qualifications;
• business activity;
• company documentation;
• employment impact; and
• other applicable criteria.

Therefore:

meeting the numerical thresholds makes the application eligible for evaluation—it does not guarantee approval.

18. Are Some Foreigners Exempt From the Financial and Employment Criteria?

Yes.

The Ministry’s current evaluation rules contain several categories for which ordinary:

• employment;
• financial eligibility; and
• salary

criteria are not applied.

These include, subject to proof of the relevant status, certain foreigners such as:

• persons whose mother, father or child is a Turkish citizen;
• holders of humanitarian residence permits;
• certain victims of human trafficking;
• stateless persons;
• long-term residence permit holders;
• foreigners married to Turkish citizens for at least three years;
• certain foreigners who have legally remained in Türkiye for at least eight years;
• certain persons of Turkish origin; and
• citizens of the Turkish Republic of Northern Cyprus.

Importantly, this is an exemption from specified evaluation criteria, not necessarily a blanket exemption from obtaining work authorization.

19. A Criteria Exemption Is Not the Same as a Work Permit Exemption

Foreign founders should distinguish these two concepts.

Work Permit Evaluation Criteria Exemption

The foreigner still applies for a work permit, but certain normal requirements—such as financial or employment criteria—may not apply.

Work Permit Exemption

The foreigner falls within a statutory category that allows work without obtaining an ordinary work permit, provided the applicable exemption procedure is followed.

Confusing these two concepts can lead to unlawful working.

20. What Is a Work Permit Exemption?

A work permit exemption is an official authorization issued by the Ministry allowing a foreigner to work and reside in Türkiye without obtaining an ordinary work permit during the exemption period.

The Ministry expressly defines the exemption in this manner.

An exemption should therefore not be interpreted as:

“I simply do not have to do anything.”

In many situations, a formal exemption application/document is still required.

21. Which Company Owners or Board Members May Fall Within an Exemption?

Current Ministry materials include within the exemption framework categories such as:

• non-resident, non-shareholder board members of joint stock companies;
• certain non-executive partners in companies other than joint stock companies who are non-resident in Türkiye; and
• certain non-resident persons authorized at the highest level to represent and bind companies.

A founder should not rely on these categories merely because they are formally described as a “board member.”

The person’s:

• shareholding;
• residence;
• actual executive functions; and
• legal representation authority

must be examined.

22. Can a Foreign Investor Attend Board Meetings Without a Work Permit?

Potentially, yes, particularly where the foreigner is a non-resident board member falling within the exemption framework.

For example, an international VC fund representative who:

• lives in London;
• sits on the Turkish startup’s board;
• attends periodic board meetings; and
• does not operate the business daily in Türkiye

may have a different legal position from the foreign CEO who works permanently from İstanbul.

The Ministry expressly distinguishes non-resident JSC board members from active foreign company partners.

23. Does a Residence Permit Allow the Company Owner to Work?

No.

A residence permit alone generally does not provide work authorization.

The Ministry expressly states that, other than certain protected statuses, having a residence permit does not give a foreigner the right to work.

For example:

Short-term residence permit

does not automatically equal

permission to manage a Turkish company professionally.

This is especially important for foreign founders who obtain residence first and begin working before addressing work authorization.

24. Does a Work Permit Also Give the Founder Residence Rights?

Generally, yes.

A valid work permit or work permit exemption generally counts as a residence permit under Article 27 of Law No. 6458, subject to specific exceptions concerning certain protected immigration categories.

This makes the work permit particularly important for founders who intend both to:

• live in Türkiye; and
• actively manage their business.

Instead of treating residence and work rights as unrelated procedures, the founder should analyze whether the work permit itself provides the required residence status.

25. How Can a Foreign Founder Apply From Within Türkiye?

A domestic work permit application can generally be made for a foreigner who has a residence permit:

• issued for at least six months; and
• still valid at the date of the work permit application.

The application is submitted to the Ministry through the electronic work permit system.

The Ministry also notes that certain foreigners lawfully present in Türkiye may apply through the system without a valid residence permit where the Directorate General has determined that they fall within the relevant categories.

26. How Can a Foreign Founder Apply From Abroad?

Where the foreigner does not have the necessary residence status for an in-country application, the procedure generally begins abroad.

The process has two stages.

Stage 1 – Turkish Consulate

The foreigner applies personally to the relevant Turkish embassy or consulate in the country of citizenship or lawful residence.

The foreigner receives a:

16-digit reference number.

Stage 2 – Application in Türkiye

That reference number is then used in the electronic work permit application submitted to the Ministry.

Foreign founders should therefore determine their immigration route before traveling and beginning operations.

27. How Long Does the Ministry Take to Evaluate the Application?

The Ministry states that duly completed work permit applications are generally evaluated within 30 days, provided that the information and documents are complete.

If additional information or documents are requested, the period runs from completion of the requested documentation.

This is a statutory/administrative evaluation period and should not be treated as a guaranteed commercial closing schedule.

Founders should avoid beginning unlawful work while assuming that approval will eventually arrive.

28. How Long Is the First Work Permit Valid?

For the ordinary fixed-term work permit, the first permit may generally be issued for up to:

one year

provided that it does not exceed the duration of the relevant employment or service relationship.

If a timely extension is approved:

• the first extension may be granted for up to two years; and
• subsequent extensions may be granted for up to three years

under the same employer structure.

The exact structure applicable to a foreign company partner should be checked in light of the permit category and application.

29. When Should a Work Permit Extension Be Filed?

The Ministry states that an extension application may be submitted beginning:

60 days before the existing permit expires

and must be completed before the permit’s expiry.

Applications submitted after expiration are generally evaluated according to the rules applicable to a first application.

Foreign founders should therefore monitor expiration dates carefully.

30. What Is an Independent Work Permit?

Turkish law also recognizes an independent work permit.

This permits a foreigner to work in Türkiye in their own name and on their own account without being tied to a specific employer.

When evaluating an independent work permit, the Ministry may consider factors such as:

• education;
• professional experience;
• contribution to science and technology;
• impact on the Turkish economy;
• impact on employment;
• investment activities; and
• where the foreigner is a company partner, the person’s capital share.

An independent work permit is not automatically granted merely because the applicant owns a company.

31. What Is an Indefinite Work Permit?

Foreigners who meet specific long-term conditions may apply for an indefinite work permit.

The Ministry currently states that foreigners who:

• hold a long-term residence permit; or
• have at least eight years of legal work permit history in Türkiye

may apply.

Satisfying these prerequisites does not itself create an absolute right to approval.

An indefinite permit allows the foreigner to work and reside in Türkiye indefinitely, although the permit document itself is subject to periodic renewal procedures.

32. Can Foreign Investors Apply for a Turquoise Card?

Potentially.

The Turquoise Card is another special regime available to qualifying foreigners.

The Ministry evaluates factors including:

• education;
• professional experience;
• contribution to science and technology;
• economic impact;
• investment impact; and
• contribution to employment.

A Turquoise Card holder benefits from rights broadly associated with an indefinite work permit, and qualifying family members may receive documentation serving as residence authorization.

This route is typically relevant to high-value or highly qualified applicants rather than ordinary small-business incorporation.

33. Are There Special Rules for Major Foreign Direct Investments?

Yes.

Türkiye has a special regime for certain specific foreign direct investments and qualifying key personnel.

For 2026, the Ministry publishes updated financial thresholds identifying investments falling within this framework.

Among the qualifying conditions are very substantial:

• foreign capital;
• turnover;
• export;
• employment;
• fixed investment; or
• international group-presence thresholds.

Where a company qualifies, more favorable work permit treatment may apply to certain key personnel.

This regime should not be confused with the ordinary startup founder work permit criteria.

34. Can a Startup Founder Qualify as Key Personnel?

Potentially, but only if the company first falls within the relevant specific foreign direct investment regime and the person satisfies the key personnel conditions.

The Ministry identifies positions including:

• company partner;
• chairman;
• board member;
• general manager;
• deputy general manager;
• company manager; and
• similar senior positions

among roles potentially relevant when assessing key personnel.

For an ordinary early-stage startup, however, the standard company-partner criteria will often be more relevant.

35. What Happens If a Foreign Company Owner Works Without a Permit?

The consequences can be serious.

The Ministry states that foreigners found working without valid work authorization and their employers may face administrative fines.

Foreigners working without authorization may also be reported to the Ministry of Interior for deportation proceedings.

Therefore, a founder should not assume that:

“I own the company, so technically I am not an employee.”

If the founder is performing work in Türkiye, immigration and labour law may still apply.

36. What Are the 2026 Fines for Working Without a Permit?

For 2026, the Ministry publishes the following administrative fine levels:

• TRY 102,503 for an employer employing a foreigner without a work permit, per foreign worker;
• TRY 40,977 for a foreigner working dependently without a work permit;
• TRY 82,010 for a foreigner working independently without a work permit; and
• TRY 6,805 for specified failures to comply with notification obligations.

Repeated violations are subject to increased penalties under the applicable legislation.

These figures are adjusted periodically, so the current amounts should always be checked when advising on an actual case.

37. Can Working Without a Permit Cause Deportation Problems?

Potentially, yes.

The Ministry expressly states that foreigners discovered working without a valid work permit are reported to the Ministry of Interior for deportation purposes in addition to administrative penalties.

Therefore, unauthorized work can affect more than the company.

It may create risks for the foreigner’s:

• immigration record;
• future visa applications;
• residence status;
• work permit applications; and
• continued stay in Türkiye.

Foreign founders should address work authorization before operational activities begin.

38. Example: Foreign Founder With TRY 50,000 Company Capital

Assume a British entrepreneur establishes:

ABC Software Ltd. Şti.

Capital:

TRY 50,000

Ownership:

British Founder – 100%

The company itself may be validly incorporated.

However, the founder plans to:

• move to İstanbul;
• act as manager;
• hire employees;
• negotiate contracts; and
• operate the company daily.

Under the ordinary company-partner work permit criteria, the TRY 50,000 capitalization would not satisfy the current TRY 500,000 paid-in company capital and foreign-partner capital requirements.

The founder should therefore address the work permit strategy before beginning operations.

39. Example: Founder With TRY 500,000 Capital but No Employees

Assume:

Company paid-in capital:

TRY 500,000

Foreign Founder:

100% – TRY 500,000

The capital and ownership criteria may be satisfied.

However, under the ordinary framework, the five-Turkish-employee requirement becomes relevant.

For an initial permit, the Ministry currently provides a grace period for the first six months; from the beginning of the seventh month, the required Turkish employment should generally be maintained where the criterion applies.

Therefore, capitalization alone is not enough.

40. Example: Founder Investing USD 150,000

Assume a foreign founder has a capital share worth:

USD 150,000

The Ministry’s current criteria provide that where the foreign partner’s capital share is at least USD 100,000, the ordinary company-partner financial and five-employee criteria are not applied.

This may significantly improve the founder’s position.

However, the application must still be submitted and approved under the relevant work permit framework.

The USD 100,000 rule is therefore an evaluation-criteria exception, not an automatic work permit.

41. Example: Foreign VC Investor Sitting on the Board

A US investment fund buys 20% of a Turkish A.Ş.

Its representative:

• lives in New York;
• attends quarterly board meetings;
• does not work from Türkiye;
• does not manage employees; and
• does not conduct daily operations.

This person may potentially fall within the non-resident board-member exemption framework.

The analysis would be different if the person moved to İstanbul and began acting as an operational executive.

42. Example: Foreign Sole Shareholder Who Lives Abroad

Assume a Swedish entrepreneur owns 100% of a Turkish e-commerce company.

The founder lives in Stockholm.

A Turkish professional management team operates the business.

The founder receives shareholder information and participates in major corporate decisions but does not actively work in Türkiye.

The founder’s position should not automatically be treated in the same manner as an executive physically working in Türkiye.

Mere share ownership does not itself equal work.

43. Example: Foreign Founder Becomes Diluted Below 20%

Assume a founder originally owns 80% and receives a work permit as a company partner.

After several investment rounds:

Founder – 15%
Investors – 85%

The founder remains CEO.

The new cap table should be reviewed before the next permit or extension because the ordinary company-partner criteria currently contain a 20% minimum shareholding threshold.

This is a useful example of why legal immigration planning should be included in fundraising due diligence.

44. Does the Work Permit Belong to the Founder Personally?

Yes, work authorization concerns the foreign person, although it is connected with the relevant employment, company or business structure depending on the permit type.

A company cannot simply say:

“Our company has permission to employ foreigners.”

and assume every foreign executive is automatically authorized.

Each foreign person’s status must be considered individually.

45. Can the Founder Work for Another Company With the Same Permit?

Not automatically.

Ordinary fixed-term work permits are typically issued in relation to a specific:

• workplace;
• employer;
• job; and
• employment relationship.

The Ministry states that applications to work for a different employer are generally evaluated according to first-application rules.

Therefore, a permit connected with one startup should not automatically be treated as unrestricted authorization to work elsewhere.

46. Can the Founder Receive a Salary?

A foreign founder may potentially receive compensation from the Turkish company where legally structured.

However, salary creates additional issues concerning:

• work authorization;
• payroll;
• income tax;
• social security;
• withholding obligations;
• tax residency; and
• double taxation treaties.

A founder should therefore avoid paying themselves informal transfers directly from the company bank account without proper legal and accounting characterization.

47. Does the Founder Have to Be Registered With Turkish Social Security?

Social security treatment must be analyzed according to:

• work permit status;
• role;
• nationality;
• applicable Turkish legislation; and
• any bilateral social security agreement.

Türkiye has social security agreements with various countries, and qualifying persons temporarily assigned from treaty states may have exemptions for defined periods where treaty conditions are satisfied.

Foreign founders should obtain payroll and social security advice after work authorization is determined.

48. Company Formation and Work Permit Planning Should Happen Together

Foreign entrepreneurs frequently follow this order:

1. Establish the cheapest company possible.
2. Register themselves as manager.
3. Rent an apartment.
4. Start operating.
5. Ask about the work permit later.

This can be a serious mistake.

A better order is:

1. Determine ownership structure.
2. Determine whether the founder will actively work in Türkiye.
3. Review work permit eligibility.
4. Determine appropriate capitalization.
5. Determine whether the founder will remain above the required ownership threshold.
6. Plan Turkish employee hiring.
7. Establish the company.
8. Complete the work permit process.
9. Begin active work when legally authorized.

This can avoid expensive restructuring after incorporation.

49. Work Permit Checklist for Foreign Company Owners

Before a foreign founder begins working in Türkiye, the following questions should be answered:

• Am I merely a shareholder or will I actively work?
• Will I reside in Türkiye?
• Am I an Ltd. Şti. manager?
• Am I an A.Ş. board member?
• Am I a passive investor?
• Do I fall within a work permit exemption?
• Is a formal exemption application required?
• Does my company have at least TRY 500,000 paid-in capital?
• Is my own capital share at least TRY 500,000?
• Do I own at least 20% of the company?
• Is my capital share at least USD 100,000?
• Does the five-Turkish-employee rule apply?
• When will the seventh month of the first permit begin?
• Can the company maintain the required employment?
• Do I qualify for an exemption from evaluation criteria?
• Do I have an eligible Turkish residence permit for an in-country application?
• Do I need to apply through a Turkish consulate?
• Have I obtained the 16-digit reference number where required?
• What social security obligations apply?
• Does a bilateral social security agreement apply?
• When will the work permit expire?
• When must the extension application be submitted?
• Will an upcoming investment round dilute me below 20%?
• Am I working only for the company named in the permit?
• Have corporate and immigration structures been coordinated?

Conclusion: Does a Foreign Company Owner Need a Work Permit in Türkiye?

The correct answer is:

Sometimes yes, sometimes no.

Simply owning shares in a Turkish company does not automatically mean that the foreign investor needs an ordinary work permit.

A passive foreign investor who does not manage or work for the company in Türkiye may fall outside the ordinary active-work framework or may qualify for a work permit exemption depending on the specific circumstances.

However, where a foreign shareholder:

• lives in Türkiye;
• acts as manager;
• sits on the board and performs executive duties;
• runs daily operations;
• manages employees;
• negotiates contracts; or
• otherwise actively works for the Turkish company,

work authorization becomes a critical issue.

The Ministry expressly confirms that foreign shareholder-managers of limited companies and foreign shareholder-board members of joint stock companies may work by obtaining a work permit, while certain non-resident and non-managing company participants fall within the exemption framework.

For foreign company partners, the current ordinary evaluation criteria are particularly important.

As of August 2026, they generally require:

• at least TRY 500,000 paid-in company capital;
• at least TRY 500,000 capital contribution by the foreign partner;
• at least 20% ownership by the foreign partner; and
• employment of at least five Turkish citizens, with the employment requirement generally beginning from the seventh month of the initial permit.

Where the foreign partner’s capital share is at least USD 100,000, the ordinary financial and employment criteria are not applied in the same way.

Most importantly:

meeting these conditions does not itself create an automatic right to a work permit.

The Ministry still evaluates the application.

Foreign founders should therefore avoid treating a Turkish company as an automatic immigration vehicle.

The correct approach is to structure:

company ownership + company capital + management position + residence status + work authorization + employee planning

as a single legal project.

For a foreign entrepreneur who intends to actively build a business in Türkiye, the work permit structure should ideally be determined before the company is incorporated and before the founder begins working.

Frequently Asked Questions

Does owning a Turkish company automatically give me a work permit?

No. Company ownership and work authorization are separate.

Can I own 100% of a Turkish company without a work permit?

Yes, ownership itself does not necessarily require a work permit. The issue changes if you actively work for or manage the company in Türkiye.

Do I need a work permit if I am the manager of my Turkish Ltd. Şti.?

A foreign shareholder-manager who actively works in the company should generally obtain appropriate work authorization. The Ministry expressly identifies foreign shareholder-managers of limited companies within the work permit framework.

Do foreign A.Ş. board members need work permits?

It depends. Active shareholder-board members may need work authorization, while non-resident board members can fall within the work permit exemption framework.

What is the minimum capital for a foreign company-partner work permit?

Under the current ordinary criteria, the company must generally have at least TRY 500,000 paid-in capital and the foreign partner’s capital amount must also be at least TRY 500,000.

How much of the company must the foreign founder own?

The ordinary company-partner criteria currently require at least 20% ownership.

Do I need five Turkish employees?

Under the ordinary company-partner criteria, generally yes. For the first permit of a new business or foreign partner, the requirement generally applies beginning from the seventh month.

What happens during the first six months?

The Ministry’s current rules provide a grace period regarding the five-Turkish-employee requirement for an initial company-partner permit. From the seventh month, the requirement generally applies where no exception exists.

What if my capital share is USD 100,000 or more?

The Ministry currently provides that the ordinary company-partner financial and employment criteria are not applied where the foreign partner’s capital share is at least USD 100,000.

Does USD 100,000 investment automatically guarantee a work permit?

No. It removes specified ordinary evaluation criteria but does not create an automatic right to approval.

Can I work with only a Turkish residence permit?

Generally, no. A residence permit by itself does not normally provide the right to work.

Does a Turkish work permit also provide residence rights?

Generally, yes. A valid work permit or work permit exemption normally serves as a residence permit, subject to limited statutory exceptions.

Can I apply for a work permit from Türkiye?

Generally, a domestic application can be made where the foreigner has an eligible residence permit issued for at least six months and still valid at the application date, subject to statutory exceptions.

How do I apply if I do not have a residence permit?

The process generally begins at the Turkish embassy or consulate in the country of citizenship or lawful residence. The foreigner receives a 16-digit reference number used for the subsequent electronic application.

How long does a work permit application take?

The Ministry states that duly completed applications are generally evaluated within 30 days where all necessary documents are complete.

How long is the first work permit?

An ordinary fixed-term permit may generally be issued for up to one year at the initial application.

Can the work permit be extended?

Yes. A first extension may generally be granted for up to two years and later extensions for up to three years under the applicable conditions.

What happens if I work without a permit?

Administrative penalties may apply, and the foreigner may also be reported to the Ministry of Interior for deportation procedures.

What is the 2026 fine for a foreigner working independently without authorization?

The Ministry lists the 2026 administrative fine as TRY 82,010 for a foreigner working independently without a work permit.

What is the 2026 fine for an employer employing a foreigner without authorization?

The Ministry lists TRY 102,503 per foreign worker for 2026.

Can my investment round affect my work permit?

Potentially. If your ownership falls below the ordinary 20% company-partner threshold, your work permit strategy should be reviewed before the next application or extension.

Legal Disclaimer: This article provides general information concerning Turkish work permit, immigration and corporate law and does not constitute legal advice. Work permit eligibility depends on the foreigner’s nationality, residence status, company type, ownership percentage, capital contribution, actual management activities, employment levels and applicable exemptions. Work permit criteria and monetary thresholds may change, and the rules in force on the date of the application should always be reviewed.