One of the most persistent misconceptions among foreign entrepreneurs entering the Turkish market is that they must find a Turkish citizen and give that person shares before they can establish a business.

In most cases, this is incorrect.

A foreign entrepreneur generally does not need a Turkish partner to establish a company in Türkiye.

Türkiye’s foreign investment system allows foreign individuals and foreign legal entities to establish companies and, subject to certain sector-specific exceptions, own 100% of their shares.

Law No. 4875 on Foreign Direct Investments expressly provides that foreign investors are free to make direct investments in Türkiye and, unless otherwise stipulated by international agreements or special legislation, are subject to equal treatment with domestic investors.

Therefore, a foreign founder may usually establish a company in Türkiye without transferring even 1% of the company to a Turkish citizen.

However, this general rule must be distinguished from several separate legal questions, including work permits, regulated sectors, management structure, real estate ownership and sector-specific licensing.

This article explains when a Turkish partner is not required, when special rules may apply and why foreign founders should be cautious about using unnecessary nominee shareholders.

1. Do Foreigners Need a Turkish Partner to Start a Company?

As a general rule:

No.

A foreign individual may establish a Turkish company and hold 100% of its shares.

Similarly, a foreign company may establish a Turkish subsidiary and own 100% of that subsidiary.

Türkiye’s official investment guidance confirms that companies established under the Turkish Commercial Code with foreign shareholders are generally treated equally to companies with domestic shareholders and that foreign investors may establish a company with 100% foreign shareholding or acquire all the shares of an existing Turkish company.

For example, the following structures are generally possible:

UK Founder → 100% Turkish Ltd. Şti.

German Founder → 100% Turkish A.Ş.

US Corporation → 100% Turkish Subsidiary

UAE Holding Company → 100% Turkish A.Ş.

French Entrepreneur → 100% Turkish Ltd. Şti.

No Turkish shareholder is generally required merely because the investor is foreign.

2. Can One Foreign Person Establish a Company Alone?

Yes.

Both of the principal company types used by foreign entrepreneurs can generally be established with a single shareholder:

• Limited Şirket – Limited Liability Company
• Anonim Şirket – Joint Stock Company

Therefore, one foreign entrepreneur may establish a company without:

• a Turkish shareholder;
• a Turkish co-founder;
• a Turkish nominee;
• a Turkish majority owner; or
• a local equity partner.

This is particularly important for international founders who want to retain complete ownership of their Turkish operations.

3. Can the Company Be 100% Foreign-Owned?

Yes, in most ordinary sectors.

Foreign ownership may generally be:

• 10%;
• 25%;
• 49%;
• 51%;
• 75%;
• 99%; or
• 100%.

There is no general rule requiring Turkish citizens to hold a certain percentage of ordinary Turkish companies.

For example, a foreign entrepreneur wishing to establish a SaaS company in İstanbul may generally hold all shares personally.

Similarly, an international corporation establishing a Turkish sales subsidiary may generally own the subsidiary entirely through the foreign parent company.

The key issue is therefore not normally the nationality of the shareholder, but rather the activity that the company intends to conduct.

4. Which Types of Turkish Companies Can Be Fully Foreign-Owned?

The most common structures are:

Limited Liability Company – Ltd. Şti.

A limited liability company is commonly used by:

• consulting companies;
• technology businesses;
• software developers;
• e-commerce businesses;
• import-export companies;
• local subsidiaries;
• marketing agencies;
• SaaS businesses; and
• SMEs.

A single foreign person or foreign legal entity may generally own all shares.

The current statutory minimum capital is TRY 50,000.

Joint Stock Company – A.Ş.

A joint stock company may also generally be wholly foreign-owned.

It is frequently preferred for:

• startups;
• venture capital investments;
• institutional investments;
• technology companies;
• larger businesses;
• M&A structures;
• joint ventures; and
• businesses expecting several financing rounds.

The current statutory minimum capital for a standard A.Ş. is TRY 250,000.

Accordingly, choosing between an Ltd. Şti. and A.Ş. is generally a corporate structuring question rather than a foreign ownership question.

5. Does Türkiye Have a 51% Turkish Ownership Rule?

There is no general 51% Turkish ownership requirement applicable to ordinary businesses.

Foreign founders sometimes encounter statements such as:

“You need a Turkish partner who owns 51% of the company.”

For most ordinary commercial activities, that statement is incorrect.

A foreign investor may generally own the controlling majority or the entire company.

However, certain strategic or regulated sectors can be subject to special legislation.

Therefore, the correct question is not:

“Do all foreigners need Turkish partners?”

It is:

“Does the particular industry in which this company will operate have a specific foreign ownership restriction?”

6. Are There Exceptions for Certain Industries?

Yes.

The equal-treatment principle under the Foreign Direct Investment Law is expressly subject to exceptions contained in international agreements and special legislation.

Türkiye’s official foreign investment legal guide specifically notes that restrictions may exist in certain strategic sectors, including areas such as:

• television broadcasting;
• maritime activities; and
• civil aviation.

Other regulated industries may require sector-specific licences, permits or shareholder approvals.

Depending on the business, relevant authorities may include:

• Capital Markets Board – SPK;
• Banking Regulation and Supervision Agency – BDDK;
• Central Bank of the Republic of Türkiye – TCMB;
• Energy Market Regulatory Authority – EPDK;
• Ministry of Health;
• Ministry of Transport and Infrastructure; or
• other sectoral authorities.

Therefore, foreign ownership and regulatory licensing should be examined separately.

7. Does a Fintech Startup Need a Turkish Partner?

Not merely because it is foreign-owned.

However, fintech businesses may be regulated depending on their activities.

For example, a company providing:

• payment services;
• electronic money services;
• banking-related services; or
• other regulated financial services

may require authorization from the relevant Turkish regulator.

The regulator may impose:

• minimum capital requirements;
• shareholder suitability requirements;
• management requirements;
• technical infrastructure obligations;
• internal control requirements; and
• licensing conditions.

Therefore:

“No Turkish partner required” does not mean “no regulatory approval required.”

This distinction is crucial.

8. Does a Foreign-Owned SaaS Company Need a Turkish Partner?

Normally, no.

A foreign entrepreneur can generally establish and own 100% of a Turkish SaaS company.

For example, a foreign founder may establish a company offering:

• CRM software;
• artificial intelligence software;
• cloud-based applications;
• appointment systems;
• accounting software;
• business automation tools; or
• subscription-based digital services.

However, the company may still need to consider:

• KVKK compliance;
• overseas data transfers;
• consumer law;
• electronic contracts;
• tax rules;
• intellectual property;
• employment law; and
• sector-specific regulation.

The absence of a local-partner requirement does not eliminate these obligations.

9. Does an E-Commerce Company Need a Turkish Partner?

Generally, no.

A foreign founder may usually own 100% of a Turkish e-commerce business.

However, depending on the business model, obligations may arise under:

• Turkish Commercial Code;
• consumer protection legislation;
• e-commerce legislation;
• distance selling rules;
• personal data protection law;
• commercial electronic communication rules; and
• tax legislation.

Marketplace operators may be subject to additional obligations.

Again, ownership and regulatory compliance should not be confused.

10. Does a Foreign Investor Need a Turkish Partner When Buying an Existing Company?

Generally, no.

A foreign investor may acquire:

• a minority interest;
• majority control; or
• 100% of an existing Turkish company.

The foreign investor could therefore purchase all shares from existing Turkish shareholders and become the sole owner.

However, before acquiring an existing business, the investor should conduct legal due diligence concerning:

• tax liabilities;
• social security debts;
• litigation;
• employment claims;
• contracts;
• bank loans;
• guarantees;
• intellectual property;
• regulatory licences;
• KVKK compliance; and
• corporate records.

Purchasing 100% of the shares generally means purchasing the existing legal entity with its historical liabilities.

11. Does the Company Need a Turkish Manager?

Not necessarily.

This question must be considered separately for Ltd. Şti. and A.Ş. structures.

Limited Liability Company

A Turkish limited company may have foreign managers.

However, at least one shareholder must generally be granted management and representation authority.

This does not mean that person must be Turkish.

If the sole shareholder is a foreigner, the corporate management structure can therefore generally be organized without introducing a Turkish shareholder merely for management purposes.

Joint Stock Company

A joint stock company is managed by a Board of Directors.

Foreign nationals can generally serve as board members.

Board members do not ordinarily need to be shareholders.

Therefore, foreign founders can construct a management structure without giving shares to a Turkish manager.

12. Is a Turkish Citizen Required as the Company’s Legal Representative?

There is no general nationality requirement applicable to every ordinary Turkish company that would force the founders to appoint a Turkish citizen as shareholder or representative.

Foreign nationals may hold corporate management positions subject to applicable rules.

However, companies frequently appoint Turkish-based accountants, lawyers, managers or authorized representatives for practical reasons.

This may help with:

• banks;
• tax procedures;
• government notifications;
• accounting;
• employment matters; and
• day-to-day operations.

But appointing a local professional is very different from giving that person company shares.

Operational assistance does not require equity ownership.

13. Does a Foreign Founder Need a Turkish Partner to Obtain a Work Permit?

No.

Having a Turkish shareholder is not, by itself, a general requirement for a foreign company partner to obtain a work permit.

However, work permit rules impose their own criteria.

As of August 2026, the Ministry of Labour and Social Security states that, for a foreign company partner under the ordinary criteria, the company must generally have at least TRY 500,000 paid-in capital, the foreign partner’s capital contribution must be at least TRY 500,000, and the foreign partner must generally own at least 20% of the company.

The ordinary criteria also require at least five Turkish citizens to be employed, with the employment requirement generally becoming applicable from the beginning of the seventh month of the first work permit for a new workplace or foreign company partner.

The Ministry further provides that the ordinary financial and employment criteria are not applied to a foreign partner whose capital share is at least USD 100,000.

These are work permit criteria, not company ownership requirements.

A foreigner may therefore legally own 100% of a company even where their particular work permit application requires separate analysis.

14. Owning the Company and Working for the Company Are Different

This distinction is extremely important.

A foreign entrepreneur may:

own a Turkish company

without automatically having the right to:

work in Türkiye.

The Ministry of Labour expressly distinguishes foreign company partners and board members for work permit purposes.

Its current guidance states that foreign partners who actively work may need a work permit, while non-resident board members of joint stock companies and non-managing partners of other companies may fall within the scope of work permit exemption.

Therefore, three questions should always be analyzed separately:

1. Can the foreigner own the company?
2. Can the foreigner manage the company?
3. Does the foreigner need a work permit to perform their activities in Türkiye?

The answer to the first question is generally yes, even with 100% ownership.

15. Does Establishing a Company Give the Foreigner a Residence Permit?

Not automatically.

This is another common misunderstanding.

A foreign founder may legally own a Turkish company while living permanently outside Türkiye.

Company ownership and immigration status are separate legal concepts.

Establishing a company therefore does not automatically guarantee:

• residence;
• citizenship; or
• unrestricted work rights.

Foreign founders planning to relocate should structure the company and immigration strategy together.

16. Why Are Some Foreign Entrepreneurs Told They Need a Turkish Partner?

There are several possible reasons.

Outdated Information

Türkiye’s foreign investment regime has become significantly more liberal over time.

Some business advice may therefore reflect older practices.

Confusion With Regulated Industries

Specific industries may contain foreign ownership restrictions or licensing requirements.

Those exceptions are sometimes incorrectly presented as general rules.

Confusion With Work Permit Requirements

The requirement to employ Turkish citizens under certain work permit criteria can be misunderstood as a requirement to have Turkish shareholders.

It is not the same thing.

Banking Problems

A bank may request additional information from a foreign-owned company.

This does not necessarily mean Turkish law requires a Turkish shareholder.

Nominee Arrangements

Unfortunately, foreign founders are sometimes advised to give shares to a local person simply because it appears administratively convenient.

This can create significant legal risk.

17. Should a Foreign Founder Use a Nominee Turkish Shareholder?

Generally, a foreign founder should be very cautious before doing so where there is no genuine commercial reason.

A nominee shareholder is a person who appears in the formal ownership structure while the parties intend another person to be the true economic owner.

Because 100% foreign ownership is generally permissible, introducing a Turkish nominee simply for perceived convenience may create unnecessary problems.

These problems can become severe if the relationship later deteriorates.

18. What Are the Risks of Giving Shares to a Nominee?

Suppose a foreign founder intends to own the entire business but is incorrectly told:

“You must give 10% to a Turkish citizen.”

The founder gives 10% to a local acquaintance.

Three years later, the startup becomes worth EUR 10 million.

The person appearing as the owner of 10% may now have significant statutory and contractual rights.

Possible disputes include:

• dividend claims;
• voting rights;
• share transfer disputes;
• access to company information;
• blocking corporate decisions;
• inheritance issues;
• creditor claims;
• enforcement against the nominee’s shares; and
• disputes over the alleged beneficial ownership agreement.

The founder may then need litigation merely to establish an arrangement that was unnecessary from the beginning.

Where the law permits 100% direct foreign ownership, transparent ownership is usually preferable.

19. What If the Nominee Dies?

This can make the situation even more complicated.

If a Turkish nominee shareholder dies, the formally registered shareholding may become part of the nominee’s estate, subject to the applicable company and inheritance rules.

The foreign founder could suddenly find themselves dealing with:

• the nominee’s spouse;
• children;
• other heirs;
• inheritance proceedings; and
• disputes about the underlying arrangement.

This illustrates why company shares should not be transferred casually.

20. What If the Nominee Has Personal Debts?

Another risk concerns enforcement.

If the nominee is formally the owner of company shares and becomes personally indebted, creditors may potentially seek enforcement against the nominee’s assets, including the economic rights associated with those shares, subject to applicable enforcement and company law.

The foreign founder may then face a dispute involving a third-party creditor.

Again, this risk may have been entirely avoidable if the founder had simply held the shares directly.

21. A Local Director Is Not the Same as a Local Shareholder

Foreign businesses often benefit from appointing someone in Türkiye to manage day-to-day matters.

For example, a foreign parent may want a local executive to:

• sign contracts;
• deal with employees;
• communicate with accountants;
• handle customers; and
• represent the company.

This does not automatically mean that the local executive should own shares.

Corporate ownership and management can often be separated.

This is particularly flexible in joint stock companies, where board membership does not generally depend on share ownership.

Therefore, foreign founders should ask:

“Does this person need authority?”

rather than:

“Should we give this person equity?”

These are entirely different questions.

22. Example: UK Founder Establishing a SaaS Company

Assume a British entrepreneur plans to launch a SaaS platform in Türkiye.

The founder will:

• invest the capital;
• own the software;
• hire Turkish developers;
• serve Turkish customers; and
• later seek venture capital.

The founder does not generally need a Turkish shareholder.

A possible initial structure could be:

UK Founder – 100%

Later, if an investor enters:

UK Founder – 80%

VC Investor – 20%

The cap table can therefore reflect genuine economic ownership rather than an artificial nationality requirement.

23. Example: German Company Establishing a Turkish Subsidiary

Assume a German technology company wants a Turkish subsidiary.

The subsidiary will employ a Turkish sales and support team.

The ownership may simply be:

German Parent Company – 100%

The Turkish employees or local managers do not need to become shareholders merely because they work in Türkiye.

Management authority can be separately delegated under the company’s corporate documents.

24. Example: UAE Investor Acquiring a Turkish Startup

Assume a UAE investor wants to acquire all shares of a Turkish technology startup.

Subject to sector-specific restrictions and transaction requirements, the investor may generally purchase:

100% of the shares.

There is no general requirement for the former Turkish founders to retain 1%, 10% or 49%.

However, the investor should conduct legal and financial due diligence before completing the acquisition.

25. Example: Foreign Founder Who Wants to Work in Türkiye

Suppose a foreign founder establishes a company with:

Founder – 100% ownership.

The corporate ownership may be perfectly valid.

However, if the founder intends to relocate to İstanbul and actively work in the business, work permit rules must be considered separately.

Under the Ministry’s current criteria, company-partner work permit applications can be subject to capital, shareholding and Turkish employment thresholds.

Adding a Turkish shareholder does not automatically solve those requirements.

The founder should instead structure:

• capitalization;
• employment;
• management; and
• immigration status

according to the actual work permit rules.

26. What About Turkish Employees?

A wholly foreign-owned company may hire Turkish employees.

The company does not need Turkish shareholders merely because it employs a Turkish workforce.

Once incorporated under Turkish law, it operates as a Turkish legal entity and is subject to Turkish employment and social security rules.

Employee matters may include:

• employment agreements;
• payroll;
• social security;
• working hours;
• overtime;
• annual leave;
• termination;
• severance;
• confidentiality;
• intellectual property; and
• personal data protection.

Ownership nationality does not remove these obligations.

27. Can a Foreign Founder Control All Corporate Decisions?

A sole shareholder will generally have very substantial control over the company, subject to:

• mandatory Turkish Commercial Code provisions;
• duties of directors or managers;
• creditor protection rules;
• capital maintenance requirements;
• tax legislation;
• regulatory legislation; and
• other mandatory laws.

However, the shareholder and company remain separate legal persons.

A foreign founder who owns 100% of the company should not treat the company’s assets as personal property.

For example, withdrawing corporate funds without a proper legal or accounting basis can create serious problems.

28. Can a Foreigner Own 100% and Appoint Turkish Management?

Yes.

This is often commercially sensible.

For example:

Foreign Parent Company – 100% shareholder

while

Turkish General Manager – operational management

may be a practical structure.

The local manager can be given an appropriate level of representation authority without receiving equity.

The company should carefully regulate:

• signature authority;
• transaction limits;
• banking authority;
• employment authority;
• borrowing authority;
• litigation authority; and
• major contract approval.

Giving someone authority to operate the business should not automatically mean giving them ownership.

29. Should the Foreign Founder Own the Company Personally or Through a Holding Company?

The absence of a Turkish-partner requirement leaves the founder with another strategic question:

Who should hold the shares?

Possible structures include:

Direct Personal Ownership

Foreign Founder → Turkish Company

This may be suitable for a simple founder-owned business.

Foreign Holding Company

Foreign Holding Company → Turkish Company

This may be preferable where:

• the business operates in several countries;
• international investors are expected;
• IP is held by a parent company;
• several subsidiaries exist;
• future fundraising will occur at holding-company level; or
• a group exit is planned.

Tax, treaty, investment, financing and exit considerations should be analyzed before deciding.

30. Do Foreign Founders Receive the Same Shareholder Rights?

As a general principle, yes.

The Foreign Direct Investment Law expressly states that foreign investors are subject to equal treatment with domestic investors unless international agreements or special legislation provide otherwise.

Therefore, foreign shareholders may generally exercise shareholder rights such as:

• voting;
• receiving dividends;
• participating in general assemblies;
• receiving information;
• transferring shares;
• participating in capital increases; and
• challenging unlawful corporate resolutions,

subject to the Turkish Commercial Code, articles of association and relevant agreements.

31. Can Foreign Shareholders Transfer Their Profits Abroad?

Yes, subject to applicable corporate, tax and banking requirements.

The Foreign Direct Investment Law expressly provides for the transfer abroad, through banks or special financial institutions, of items including:

• net profits;
• dividends;
• proceeds from the sale of an investment;
• liquidation proceeds;
• certain licence and management payments; and
• certain foreign loan repayments and interest.

Therefore, a foreign investor generally does not need a Turkish shareholder simply to facilitate profit distribution.

32. Can Foreign Founders Sell the Company Later?

Yes.

A foreign founder may generally sell shares to:

• another foreign investor;
• a Turkish buyer;
• a private equity fund;
• a venture capital fund;
• a strategic buyer; or
• another company.

If the foreign founder owns 100%, the founder may potentially sell the entire company through a share sale.

The transaction structure will depend on:

• company type;
• articles of association;
• regulatory approvals;
• shareholder agreements;
• tax considerations; and
• the proposed acquisition structure.

33. Why a Shareholders’ Agreement May Still Be Necessary

The fact that a Turkish partner is not legally required does not mean foreign founders should avoid partnerships entirely.

A genuine Turkish partner may provide considerable commercial value through:

• local market knowledge;
• sales networks;
• operational experience;
• industry relationships;
• supplier access; or
• management expertise.

Where there is a genuine partnership, the parties should enter into a properly drafted shareholders’ agreement.

Important provisions may include:

• ownership percentages;
• management authority;
• reserved matters;
• financing obligations;
• founder vesting;
• confidentiality;
• non-compete obligations;
• pre-emption rights;
• tag-along rights;
• drag-along rights;
• deadlock procedures; and
• exit mechanisms.

The distinction is important:

A Turkish partner may be commercially useful without being legally mandatory.

34. What If the Foreign and Turkish Partners Own 50/50?

A 50/50 structure can create significant deadlock risk.

Imagine:

Foreign Founder – 50%

Turkish Founder – 50%

If the shareholders later disagree about:

• raising investment;
• hiring a CEO;
• approving a budget;
• taking debt;
• selling the company; or
• distributing dividends,

the company may become unable to make important decisions.

A shareholders’ agreement should therefore contain a clear deadlock mechanism.

Possible solutions can include:

• escalation procedures;
• mediation;
• buy-sell mechanisms;
• call options;
• put options;
• predetermined voting structures; or
• exit procedures.

A local partner should never be added without considering what happens if the relationship breaks down.

35. What Foreign Founders Should Check Before Giving Equity to Anyone

Before giving shares to a Turkish partner, consultant, employee or nominee, the founder should ask:

• Is this person legally required as a shareholder?
• What commercial value will this person contribute?
• Will the shares vest over time?
• What happens if the person leaves after six months?
• Can the shares be transferred to someone else?
• Does the company have a right to buy the shares back?
• What happens if the shareholder dies?
• What happens if the shareholder becomes bankrupt?
• What voting rights will the shares carry?
• Can the person block an investment round?
• Is there a non-compete obligation?
• Is there a confidentiality agreement?
• Are there tag-along and drag-along provisions?
• What happens during a company sale?
• How will disputes be resolved?

Equity should be granted because there is a genuine commercial reason—not because of an incorrect assumption about Turkish nationality requirements.

36. Common Myths About Turkish Partners

Myth 1: “A foreigner can own only 49%.”

Generally false for ordinary businesses.

Myth 2: “A Turkish citizen must own 51%.”

There is no such general rule.

Myth 3: “The company manager must be Turkish.”

There is no universal rule requiring all company managers or board members to be Turkish citizens.

Myth 4: “A Turkish partner is required for a work permit.”

Not as a general ownership requirement. Work permits have separate eligibility criteria.

Myth 5: “A foreign company cannot own a Turkish company directly.”

Generally false. Foreign legal entities may establish Turkish subsidiaries.

Myth 6: “A nominee Turkish shareholder makes incorporation easier.”

Even if someone proposes this approach, it may create substantial legal risk and is generally unnecessary where direct 100% foreign ownership is permitted.

37. When Should a Foreign Founder Obtain Legal Advice?

Legal review is particularly important where:

• the business operates in a regulated industry;
• an investor will enter immediately;
• several founders are involved;
• the business involves fintech or payments;
• crypto assets are involved;
• customer data will be transferred abroad;
• intellectual property is located outside Türkiye;
• the founder intends to work in Türkiye;
• a foreign holding company will own the shares;
• substantial investment capital will be transferred;
• real estate will be acquired;
• an existing company will be purchased; or
• a local partner will receive a significant shareholding.

The legal structure should ideally be determined before the company is registered.

38. Practical Structure for a Foreign Startup Founder

A foreign startup founder could, for example, initially establish:

Founder: 100%

After an angel round:

Founder: 90%
Angel Investor: 10%

After Series A:

Founder: 70%
Angel Investor: 8%
VC Fund: 22%

No artificial Turkish shareholder needs to be inserted into the cap table merely because the company operates in Türkiye, provided that no special sector rule requires otherwise.

This allows the company’s capitalization to reflect its real commercial relationships.

39. Legal Checklist: Do You Actually Need a Turkish Partner?

Before introducing a Turkish shareholder, determine:

• Is the business in a regulated sector?
• Does special legislation restrict foreign ownership?
• Is a specific licence required?
• Is the proposed Turkish partner genuinely investing?
• Is local management needed rather than local ownership?
• Can a professional manager solve the operational need?
• Will the foreign founder actively work in Türkiye?
• What work permit requirements apply?
• Will the company acquire real estate?
• Are future venture capital rounds expected?
• Is an Ltd. Şti. or A.Ş. more suitable?
• Has a shareholders’ agreement been prepared?
• Are exit and deadlock mechanisms documented?

In many cases, this analysis will show that the foreign founder does not need to give equity to a Turkish person.

40. Conclusion: Is a Turkish Partner Mandatory for Foreign Founders?

For most ordinary businesses, no.

A foreign individual or foreign legal entity may generally establish and own 100% of a Turkish company without a Turkish shareholder.

The legal basis is Türkiye’s foreign investment regime, which provides freedom of investment and equal treatment between foreign and domestic investors, subject to exceptions contained in international agreements and special legislation.

Therefore, a foreign founder can generally:

• establish a company alone;
• own 100% of its shares;
• appoint management;
• hire Turkish employees;
• receive dividends;
• bring in investors later; and
• eventually sell the company.

A Turkish partner may still be commercially valuable, but that is different from being legally mandatory.

Foreign founders should be especially cautious before giving equity to a local nominee merely because they have been told that “Turkish law requires a local partner.”

In many cases, it does not.

The more important questions are:

What will the company do?

Is the sector regulated?

Will the foreign founder work in Türkiye?

How will the company raise investment?

Who should control management?

How will the founder eventually exit?

Answering these questions before incorporation is considerably more important than adding an unnecessary local shareholder.

Frequently Asked Questions

Does a foreigner need a Turkish partner to start a company in Türkiye?

Generally, no. Foreign investors may establish companies with 100% foreign ownership, subject to sector-specific exceptions.

Can one foreigner own 100% of a Turkish company?

Yes. A single foreign individual may generally own all shares of an Ltd. Şti. or A.Ş.

Can a foreign company own 100% of a Turkish subsidiary?

Yes. A foreign legal entity may generally establish and wholly own a Turkish subsidiary.

Is there a 51% Turkish ownership requirement?

There is no general 51% Turkish ownership requirement for ordinary commercial businesses.

Do I need to give 1% of my company to a Turkish citizen?

Generally, no. There is no universal rule requiring a nominal Turkish shareholder.

Can a foreigner become a company manager?

Yes, subject to the applicable corporate and work permit rules.

Can foreigners serve on the board of a Turkish A.Ş.?

Generally, yes.

Does a foreign company owner need a work permit?

If the foreign owner actively works in Türkiye, a work permit may be required. Current company-partner applications are subject to specific financial, shareholding and employment criteria unless an exemption applies.

Does owning a Turkish company automatically provide a work permit?

No.

Does owning a Turkish company automatically provide a residence permit?

No. Corporate ownership and immigration status are separate legal issues.

Are there sectors where foreign ownership is restricted?

Yes. Special rules may apply in certain strategic and regulated sectors, including areas identified in official investment guidance such as television broadcasting, maritime activities and civil aviation.

Should I use a Turkish nominee shareholder?

There is normally no reason to do so merely to satisfy a general nationality requirement because 100% foreign ownership is generally permitted. Nominee arrangements can also create substantial ownership and enforcement risks.

Can a foreign founder hire a Turkish CEO without giving the CEO shares?

Yes. Ownership and management can generally be structured separately.

Can a foreign investor later sell 100% of the company?

Generally, yes, subject to corporate transfer requirements, contractual restrictions, tax consequences and any applicable regulatory approvals.

Legal Disclaimer: This article is intended for general informational purposes and does not constitute legal advice. Foreign ownership rules may differ in regulated sectors, and work permits, real estate acquisitions, licensing requirements, taxation and corporate governance should be evaluated according to the specific investment and business model.