Starting a company in Türkiye can be an attractive option for foreign entrepreneurs who want to access the Turkish market, establish a regional business hub, hire local employees, develop technology projects or conduct business between Europe, the Middle East and Central Asia.
One of the first questions foreign founders usually ask is:
Can a foreigner establish and own a company in Türkiye without a Turkish partner?
In most cases, the answer is yes.
Türkiye’s foreign investment regime is based on the principle of equal treatment between foreign and domestic investors. Under Law No. 4875 on Foreign Direct Investments, foreign investors are generally free to make direct investments in Türkiye and are, as a rule, subject to the same treatment as Turkish investors.
This means that, except for certain regulated sectors, a foreign individual or foreign company may establish a company in Türkiye with 100% foreign ownership. There is generally no requirement to appoint a Turkish shareholder merely because the founders are foreigners.
However, establishing the company is only the first part of the process. Foreign entrepreneurs should also carefully consider banking, tax, employment, work permit, corporate governance, data protection and shareholder issues before beginning operations.
This guide explains the main legal steps.
1. Can a Foreigner Start a Company in Türkiye?
Yes.
Foreign individuals and foreign legal entities may generally establish companies in Türkiye under the Turkish Commercial Code No. 6102.
The Foreign Direct Investment Law significantly liberalized the Turkish foreign investment regime. Foreign investors are generally not required to obtain prior investment approval simply because they are foreign.
Foreign founders may therefore:
- establish a new Turkish company;
- acquire shares in an existing Turkish company;
- become minority or majority shareholders;
- own 100% of a Turkish company;
- make capital investments into Turkish companies;
- establish branches in Türkiye; or
- under certain conditions, establish liaison offices.
Foreign ownership restrictions may nevertheless apply in certain regulated or strategic sectors. Accordingly, sector-specific legislation must always be checked before an investment is completed.
2. Does a Foreign Entrepreneur Need a Turkish Partner?
As a general rule, no.
A foreign entrepreneur may own 100% of the shares of a Turkish limited liability company or joint stock company.
For example, a German software entrepreneur may establish a Turkish company and own all its shares personally.
Similarly, a UK, UAE, Swedish or US company may establish a Turkish subsidiary and hold 100% of its shares.
The nationality of the investor does not, by itself, require a Turkish partner.
This is an important distinction because some foreign entrepreneurs still assume that Türkiye operates a mandatory local-partner system. For most ordinary business activities, this is not the case.
3. Which Type of Company Should a Foreign Founder Establish?
The two structures most commonly used by foreign investors are:
Limited Liability Company – Limited Şirket (Ltd. Şti.)
A Turkish limited liability company is frequently preferred by small and medium-sized businesses, consulting companies, SaaS businesses, agencies and operational subsidiaries.
A limited company may generally have between one and fifty shareholders.
Its minimum capital is currently TRY 50,000.
The company’s management is carried out by one or more managers.
An important point under Turkish company law is that if there are several managers in a limited company, at least one shareholder must have management and representation authority.
Joint Stock Company – Anonim Şirket (A.Ş.)
A joint stock company is usually more suitable for:
- startups expecting institutional investment;
- venture capital transactions;
- businesses expecting several financing rounds;
- companies planning complex share structures;
- larger investments;
- M&A transactions; and
- businesses where the future transferability of shares is important.
The minimum capital for a standard joint stock company is currently TRY 250,000.
For a non-public joint stock company adopting the registered capital system, the minimum initial capital is TRY 500,000.
For technology startups in particular, an A.Ş. may often provide greater flexibility for future investment rounds, share transfers and investor rights.
However, the correct choice depends on the founders’ business model rather than simply the cost of incorporation.
4. How Much Capital Is Required to Start a Company in Türkiye?
As of 2026, the statutory minimum capital amounts for new companies are:
| Company Type | Minimum Capital |
|---|---|
| Limited Liability Company (Ltd. Şti.) | TRY 50,000 |
| Joint Stock Company (A.Ş.) | TRY 250,000 |
| Non-public JSC using the registered capital system | TRY 500,000 |
For a joint stock company, at least 25% of the cash capital subscribed must generally be paid before registration, with the remaining amount payable within twenty-four months.
For a limited liability company, the capital does not generally have to be paid before registration and may be paid within twenty-four months following incorporation.
Foreign founders should nevertheless avoid automatically selecting the statutory minimum.
The appropriate capital should also be assessed according to:
- banking requirements;
- operational expenses;
- visa and work permit plans;
- investor expectations;
- regulatory requirements;
- customer contracts; and
- the credibility required for the company’s intended activities.
A company legally incorporated with TRY 50,000 capital may, for example, still encounter difficulties if it intends to employ foreign executives or operate a capital-intensive business.
5. Is There a Special Minimum Investment Amount for Foreigners?
Generally, there is no separate minimum foreign investment amount merely because the shareholder is foreign.
The same statutory minimum capital rules generally apply to Turkish and foreign shareholders.
However, this should not be confused with other legal regimes.
Different financial thresholds may apply where the foreign shareholder intends to:
- obtain a work permit;
- qualify under a specific foreign direct investment regime;
- obtain an investment incentive;
- operate in a regulated industry; or
- rely on an investment-based residence or citizenship program.
Therefore, “minimum capital required to establish a company” and “capital required for a foreign founder’s work permit” are two different questions.
This distinction is particularly important.
6. What Documents Does a Foreign Individual Need?
The documents required may vary depending on the relevant Trade Registry Directorate and the structure of the company, but a foreign individual shareholder will generally need documentation relating to:
- passport;
- Turkish tax identification number;
- address and identity information;
- notarized Turkish translation of the passport where required;
- signature declarations;
- company articles of association; and
- power of attorney if the incorporation process is handled through a lawyer or another representative.
Official guidance also provides that documents issued abroad may need to be notarized and apostilled, or alternatively legalized through the relevant Turkish consulate, depending on the document and the country concerned. Foreign-language documents generally require an official Turkish translation.
Proper document preparation is often one of the most important practical elements of a foreign-owned company formation.
7. What If the Shareholder Is a Foreign Company?
A foreign company may also become a shareholder of a Turkish company.
This is commonly used where an international business wants to establish a Turkish subsidiary.
Additional corporate documents may then be required, including documents showing:
- the foreign company’s existence;
- its current legal status;
- persons authorized to represent it;
- the corporate decision approving the Turkish investment;
- appointment of representatives where necessary; and
- authorization of the person signing incorporation documents.
Documents issued abroad will generally need the appropriate legalization or apostille procedure and Turkish translation.
The corporate resolution should be drafted carefully enough to authorize the intended transaction without creating uncertainty before the Turkish Trade Registry.
8. Obtaining a Turkish Tax Identification Number
Foreign shareholders and certain foreign board members will generally need a Turkish potential tax identification number.
The number becomes important for various incorporation procedures, including banking and registration processes.
Foreign founders should therefore deal with the tax number at an early stage of the incorporation process rather than leaving it until the company is ready for registration.
9. Choosing the Company’s Registered Address
Every Turkish company must have a registered address in Türkiye.
The address is not merely an administrative formality. It is relevant for:
- tax registration;
- official notifications;
- trade registry records;
- contractual documentation; and
- regulatory correspondence.
Foreign founders sometimes establish a company using a temporary or virtual office arrangement without first checking whether that location is appropriate for the company’s intended activities.
This can create problems later, particularly where the business requires a specific operating licence or workplace qualification.
The registered address should therefore be selected according to the actual business model.
10. Preparing the Articles of Association
Company incorporation transactions are generally initiated through MERSİS, Türkiye’s Central Registry Record System.
The articles of association are one of the most important documents in the incorporation process.
They typically regulate matters including:
- company name;
- registered address;
- purpose and scope of business;
- share capital;
- shareholding structure;
- management;
- representation authority; and
- corporate organs.
Official guidance confirms that company registration procedures are carried out through MERSİS.
For a simple single-shareholder company, standard articles may sometimes appear sufficient.
For startups and joint ventures, however, relying exclusively on standard incorporation wording can be dangerous.
Issues such as founder departures, dilution, investment rounds, deadlock and exit rights usually require much more detailed contractual planning.
11. Should Foreign Founders Sign a Shareholders’ Agreement?
In many cases, yes.
The articles of association and a shareholders’ agreement serve different purposes.
A properly drafted shareholders’ agreement may regulate matters such as:
- founder vesting;
- reserved matters;
- board appointment rights;
- information rights;
- anti-dilution mechanisms;
- pre-emption rights;
- right of first refusal;
- tag-along rights;
- drag-along rights;
- founder departure;
- non-compete obligations;
- intellectual property ownership;
- deadlock mechanisms;
- financing obligations; and
- exit procedures.
A foreign investor should therefore not assume that incorporation documents alone are enough to protect the commercial agreement between the shareholders.
12. Registration Before the Trade Registry
Once the required documents are prepared and the MERSİS process is completed, the company is registered before the competent Trade Registry Directorate.
Türkiye has developed a relatively centralized registration system through Trade Registry Directorates operating within chambers of commerce.
Official investment guidance notes that, where the documents are complete, incorporation can in principle be completed very quickly and even within the same day.
In practice, however, a foreign-owned company may require additional time because of:
- apostille procedures;
- translations;
- tax numbers;
- powers of attorney;
- foreign corporate documents;
- bank compliance procedures; or
- sector-specific approvals.
Foreign founders should therefore distinguish between the formal registration period and the entire project timeline.
13. Competition Authority Contribution
During incorporation, an amount corresponding to 0.04% of the company’s capital is payable to the Competition Authority in accordance with the applicable incorporation procedure.
This is normally handled as part of the Trade Registry process.
14. Opening a Bank Account for a Foreign-Owned Turkish Company
Banking is one of the areas where foreign entrepreneurs most frequently encounter practical difficulties.
Legally establishing a company does not guarantee that every Turkish bank will immediately open an account for it.
Banks conduct their own:
- KYC procedures;
- anti-money laundering checks;
- beneficial ownership checks;
- sanctions screening;
- source-of-funds review; and
- commercial risk assessment.
Banks may request information concerning:
- shareholders;
- ultimate beneficial owners;
- expected turnover;
- countries from which payments will be received;
- business contracts;
- source of investment funds;
- company website;
- invoices;
- residence status; or
- physical presence of company representatives.
This is particularly important for companies operating in sectors such as crypto assets, fintech, payment services, international e-commerce and other activities considered higher-risk from a compliance perspective.
As a result, company registration and bank account opening should be treated as two separate workstreams.
15. Does Starting a Company Automatically Give the Founder a Work Permit?
No.
This is one of the most important misconceptions concerning company formation in Türkiye.
Being a shareholder does not automatically give a foreign national the right to work in Türkiye.
The legal capacity to own shares and the legal authorization to work are separate matters.
The Ministry of Labour and Social Security currently applies specific financial and employment criteria to work permit applications involving foreign company partners.
Under the current criteria, a foreign company partner’s work permit application may generally require, among other conditions:
- the company’s paid-in capital to be at least TRY 500,000;
- the foreign shareholder’s capital contribution to be at least TRY 500,000;
- the foreign shareholder to hold at least 20% of the company; and
- generally, employment of at least five Turkish citizens from the beginning of the seventh month of the first permit.
Different rules and exemptions may apply depending on the circumstances. A foreign partner whose capital share is at least USD 100,000 is among the situations for which certain ordinary criteria are not applied.
These rules demonstrate why a founder should plan the corporate structure and immigration strategy together.
Establishing an LLC with the statutory minimum TRY 50,000 capital may be perfectly valid under company law, while being insufficient for the founder’s intended work permit strategy.
16. Do Foreign Board Members Need a Work Permit?
The answer depends on the person’s position and activities.
The Ministry of Labour distinguishes between certain foreign persons who actively work or manage the company and certain non-resident or non-managing shareholders or board members.
For example, official guidance indicates that non-resident board members of joint stock companies and non-managing shareholders of other companies may fall within a work permit exemption framework, whereas persons actively working in Türkiye may need a work permit.
The corporate title given to a foreign founder should therefore not be chosen without considering immigration and labour law consequences.
17. Does Starting a Company Automatically Give a Residence Permit?
Not automatically.
Company ownership, residence rights and work authorization are legally distinct concepts.
A foreigner may be:
- a shareholder without residing in Türkiye;
- a shareholder and manager;
- a shareholder holding a separate residence permit;
- a shareholder holding a work permit; or
- a non-resident investor.
The appropriate immigration status depends on what the founder intends to do physically in Türkiye.
Foreign entrepreneurs planning to relocate should therefore address residence and work permit questions independently from the incorporation procedure.
18. What Happens After the Company Is Registered?
Registration does not complete the company’s compliance obligations.
Depending on the business, post-incorporation matters may include:
- tax registration;
- corporate books;
- accounting arrangements;
- electronic notification systems;
- social security registration;
- employment agreements;
- payroll;
- VAT and corporate tax compliance;
- invoicing;
- beneficial ownership notifications;
- data protection documentation;
- commercial electronic communication compliance;
- consumer law documents;
- website disclosures; and
- sector-specific licences.
The Trade Registry also makes certain notifications concerning incorporation to the tax administration and Social Security Institution as part of the registration system.
Nevertheless, companies should work with their accountant and legal counsel after incorporation to ensure that all operational compliance steps have actually been completed.
19. Can a Foreign-Owned Company Hire Employees in Türkiye?
Yes.
A Turkish company with foreign shareholders remains a Turkish legal entity and may employ Turkish employees in accordance with Turkish labour legislation.
Employment relationships should generally be assessed under:
- Turkish Labour Law;
- Social Security legislation;
- occupational health and safety legislation;
- personal data protection rules; and
- mandatory employment regulations.
If foreign employees will also be hired, separate work permit requirements apply.
Technology startups should pay particular attention to employment agreements covering:
- confidentiality;
- intellectual property;
- software ownership;
- inventions;
- trade secrets;
- remote working;
- non-solicitation; and
- post-employment restrictions.
20. Who Owns the Software and Intellectual Property?
Foreign technology founders should deal with intellectual property before hiring developers or outsourcing software development.
Incorporating a Turkish company does not automatically mean that every piece of code created for the business belongs to the company.
Employment contracts, software development agreements and intellectual property assignment provisions should clearly define ownership.
This becomes particularly important during:
- venture capital investment;
- due diligence;
- acquisition negotiations; and
- technology licensing.
An investor examining a Turkish startup will often ask a very basic question:
Does the company actually own the technology on which its business depends?
If the answer cannot be documented, the company’s valuation and investment process may be adversely affected.
21. What About KVKK and Customer Data?
Technology companies operating in Türkiye should also examine compliance with Law No. 6698 on the Protection of Personal Data (KVKK).
This is particularly important for:
- SaaS companies;
- artificial intelligence companies;
- healthcare technology companies;
- fintech platforms;
- e-commerce businesses;
- marketplaces; and
- mobile applications.
Foreign-owned businesses sometimes incorrectly assume that GDPR compliance automatically means full compliance with Turkish law.
It does not.
The company’s role as data controller or data processor, privacy notices, data processing agreements, security measures and cross-border transfers should be evaluated separately under Turkish data protection law.
The issue becomes especially important where Turkish customer data is transmitted to servers or AI service providers located abroad.
22. Are Some Business Activities Subject to Special Permission?
Yes.
Ordinary company registration should not be confused with authorization to conduct a regulated activity.
Certain sectors may require licences, permissions or regulatory approval from authorities such as:
- Banking Regulation and Supervision Agency (BDDK);
- Central Bank of the Republic of Türkiye (TCMB);
- Capital Markets Board (SPK);
- Ministry of Trade;
- Ministry of Health;
- Energy Market Regulatory Authority; or
- other competent public authorities.
Special rules may apply to areas including:
- banking;
- payment services;
- electronic money;
- fintech;
- insurance;
- crypto asset services;
- capital markets;
- healthcare;
- energy;
- aviation; and
- certain media activities.
Accordingly, a company being successfully registered at the Trade Registry does not necessarily mean that it is legally authorized to begin every activity written in its articles of association.
23. Common Mistakes Foreign Entrepreneurs Make
Foreign founders frequently encounter problems because company incorporation is treated as a purely administrative exercise.
Common mistakes include:
Choosing the wrong company type.
An LLC may initially appear cheaper or simpler but may not suit a startup expecting institutional investment.
Using minimum capital without considering work permit requirements.
Company law minimum capital and foreign founder work permit criteria are different.
Failing to prepare a shareholders’ agreement.
Disputes frequently arise only after the startup becomes valuable.
Ignoring intellectual property ownership.
Software may remain legally connected to an employee, freelancer or founder rather than the company.
Assuming a bank account is guaranteed after incorporation.
Banks conduct independent compliance reviews.
Failing to review regulated activity requirements.
Registration does not replace sectoral licensing.
Ignoring KVKK.
Foreign technology businesses handling Turkish customer information may have significant Turkish data protection obligations.
Giving managers excessively broad representation powers.
Corporate signing authority should be carefully structured.
24. Can the Entire Incorporation Process Be Completed Through a Lawyer?
Many stages can be handled through an appropriately drafted power of attorney.
This may be particularly useful where the founder lives outside Türkiye.
However, banks and certain public or private institutions may still request the founder or authorized representative to appear personally, depending on the procedure and their compliance rules.
For that reason, the power of attorney should be drafted specifically for the intended incorporation and post-incorporation procedures rather than relying on a generic authorization.
25. Legal Checklist Before Establishing a Turkish Company
Before incorporation, a foreign entrepreneur should ideally determine:
- Who will own the company?
- Will the shareholder be an individual or a foreign holding company?
- Should the company be an LLC or JSC?
- How much capital should actually be contributed?
- Will the foreign founder live or work in Türkiye?
- Will a work permit be required?
- Who will manage and legally represent the company?
- Does the business require a licence?
- Where will the registered office be located?
- Which Turkish bank will be approached?
- Who owns the company’s software and intellectual property?
- Will customer data be transferred abroad?
- Is a shareholders’ agreement required?
- What happens if a founder leaves?
- How will future investors enter the company?
- How will shares eventually be sold or transferred?
Answering these questions before incorporation is usually much cheaper than restructuring the company after an investment or shareholder dispute arises.
Conclusion: Starting a Company in Türkiye as a Foreign Entrepreneur
Türkiye offers a relatively liberal foreign investment regime.
Foreign investors may generally establish and own 100% of a Turkish company without having a Turkish shareholder, and the principal corporate structures available to foreign investors are the limited liability company and joint stock company.
However, successful company formation requires more than Trade Registry registration.
Foreign founders should consider the complete legal structure, including:
- company type;
- shareholding;
- management authority;
- minimum and practical capital;
- banking;
- tax;
- work permits;
- shareholder agreements;
- intellectual property;
- employment law;
- KVKK compliance; and
- sector-specific licensing.
For startups in particular, the legal structure chosen during the first days of the company can significantly affect future investment rounds, founder control, dilution and exit opportunities.
For this reason, foreign entrepreneurs planning to establish a company in Türkiye should ideally design the corporate, investment and immigration structure together before incorporation, rather than addressing these issues separately after the company has already been registered.
Frequently Asked Questions
Can a foreigner own 100% of a company in Türkiye?
Yes. In most sectors, a foreign individual or foreign company may own 100% of a Turkish company without a Turkish shareholder.
Does a foreigner need a Turkish partner?
Generally, no. Certain regulated sectors may be subject to separate restrictions.
What is the minimum capital for an LLC in Türkiye?
The statutory minimum capital for a limited liability company is currently TRY 50,000.
What is the minimum capital for a joint stock company?
The statutory minimum capital for a standard joint stock company is currently TRY 250,000.
Can a foreigner establish a company without coming to Türkiye?
Many incorporation procedures may be performed through an appropriately authorized representative. However, banking and particular administrative procedures may sometimes require additional steps or personal participation.
Does company ownership give a foreigner a work permit?
No. Owning shares in a Turkish company does not automatically grant a work permit.
Does company ownership give a residence permit?
Not automatically. Company ownership, residence rights and work authorization are separate legal matters.
Can a foreign company establish a subsidiary in Türkiye?
Yes. A foreign legal entity may generally establish and own a Turkish subsidiary, subject to the required corporate documentation and any sector-specific restrictions.
Which company type is better for a startup: LLC or JSC?
There is no universal answer. However, startups expecting venture capital investment, multiple financing rounds or sophisticated shareholder arrangements often prefer a joint stock company because of its corporate and share structure.
Can a foreign-owned Turkish company transfer profits abroad?
Türkiye’s Foreign Direct Investment Law provides important protections regarding foreign investment and, subject to applicable tax, banking and other legal requirements, foreign investors may generally transfer items such as profits and dividends abroad through banks or financial institutions.
Legal Note: This article provides general information regarding Turkish law and does not constitute legal advice. Company formation, foreign investment, taxation, banking, immigration and regulatory requirements should be evaluated according to the nationality of the investor, business model, sector and proposed corporate structure.
No Responses