Introduction

Turkey is increasingly considered by foreign entrepreneurs, international companies, investors and technology businesses seeking to establish a commercial presence between Europe, Asia and the Middle East. Its large domestic market, developed manufacturing sector, international logistics connections, banking system and access to regional markets make Turkey an important jurisdiction for foreign investment.

One of the first questions foreign investors usually ask is:

What are the requirements for foreigners to establish a company in Turkey?

Turkish law generally provides a favourable framework for foreign investment. Under the principle of equal treatment applicable to foreign direct investments, international investors may generally establish the same types of companies and conduct business under substantially the same company law rules as Turkish investors. A foreign investor does not normally need a Turkish citizen as a shareholder simply to establish a company in Turkey.

Therefore, in many sectors, a company can be:

• 100% foreign-owned;
• established by a single foreign individual;
• owned by a foreign parent company;
• established jointly by several foreign investors;
• formed as a Turkish-foreign joint venture; or
• acquired by purchasing shares in an existing Turkish company.

However, company incorporation should not be confused with obtaining a residence permit, work permit or Turkish citizenship. These are separate legal regimes.

Foreign investors must also comply with rules concerning minimum capital, corporate documents, registration, taxation, accounting, beneficial ownership, work permits, banking compliance and sector-specific licences.

This guide explains the principal legal requirements for foreigners establishing a company in Turkey and highlights the issues that should be examined before the investment is made.

1. Can Foreigners Legally Establish a Company in Turkey?

Yes.

The Turkish foreign direct investment framework is based on the principle that foreign investors should generally be treated in the same manner as domestic investors.

Foreign investors may establish the company types regulated under the Turkish Commercial Code No. 6102.

The most commonly used structures are:

1. Limited Liability Company – Limited Şirket (Ltd. Şti.)
2. Joint Stock Company – Anonim Şirket (A.Ş.)

Other commercial partnership forms are also recognised, but limited liability companies and joint stock companies are by far the most common structures for foreign investment.

In most ordinary business sectors, there is no general requirement that:

• a Turkish citizen owns part of the company;
• the foreign investor permanently resides in Turkey;
• the foreign investor already possesses Turkish citizenship; or
• the company has a Turkish majority shareholder.

A foreign individual can therefore potentially establish a company with 100% foreign ownership.

Likewise, a company incorporated abroad may own 100% of the shares in a Turkish subsidiary.

2. Is a Turkish Partner Required to Establish a Company in Turkey?

Generally, no.

One of the most important advantages of the Turkish foreign investment regime is that foreigners are generally permitted to hold the entire share capital of a Turkish company.

For example, a German citizen may establish a Turkish limited liability company and own all of its shares.

Similarly, a company incorporated in the United Kingdom, United States, Sweden, Netherlands, United Arab Emirates or another jurisdiction may establish a wholly owned Turkish subsidiary.

The nationality of shareholders and persons holding management rights is not generally restricted, although specific restrictions may exist in certain regulated sectors such as broadcasting, maritime activities and civil aviation.

Therefore, a foreign investor should first determine whether the intended field of activity is subject to:

• foreign ownership restrictions;
• licensing requirements;
• minimum capital rules;
• regulatory approval;
• professional qualification requirements; or
• nationality restrictions.

This sectoral review should preferably be carried out before the company is incorporated.

3. What Is the Best Type of Company for a Foreign Investor in Turkey?

For most foreign investors, the practical choice is between a limited liability company and a joint stock company.

The right choice depends on the investment amount, number of shareholders, future financing plans, management structure and intended exit strategy.

Limited Liability Company

A Turkish limited liability company is frequently used for:

• consulting businesses;
• software companies;
• e-commerce businesses;
• import-export businesses;
• restaurants;
• trading companies;
• small and medium-sized enterprises;
• real estate-related businesses;
• family businesses; and
• foreign entrepreneurs establishing their first Turkish operation.

A limited liability company may be established by one or more individuals or legal entities.

It can have between one and fifty shareholders.

The current statutory minimum capital is TRY 50,000.

Joint Stock Company

A joint stock company is generally more suitable for:

• large investments;
• multinational subsidiaries;
• startup investment structures;
• venture capital transactions;
• private equity investments;
• businesses expecting multiple financing rounds;
• companies with several investor groups; and
• businesses considering an eventual public offering.

The current statutory minimum capital for an ordinary joint stock company is TRY 250,000.

For non-public joint stock companies adopting the registered capital system, the minimum initial capital is currently TRY 500,000.

4. How Much Capital Is Required to Establish a Company in Turkey?

The minimum capital depends on the company type.

As of the current legal framework:

Limited Liability Company:
Minimum capital: TRY 50,000

Joint Stock Company:
Minimum capital: TRY 250,000

Non-public Joint Stock Company Using the Registered Capital System:
Minimum initial capital: TRY 500,000.

However, foreign investors should not automatically select the statutory minimum.

The appropriate capital should also reflect:

• expected operating expenses;
• banking requirements;
• licence requirements;
• commercial credibility;
• work permit plans;
• investment agreements;
• financing structure; and
• working capital needs.

For example, although a limited liability company can legally be established with TRY 50,000 capital, a company expecting substantial commercial operations may benefit from a significantly higher capital structure.

5. When Must the Capital Be Paid?

The payment rules differ between limited liability companies and joint stock companies.

For a limited liability company, the subscribed cash capital may generally be paid within 24 months following registration.

The pre-registration 25% capital deposit requirement applicable to joint stock companies does not generally apply to limited liability companies.

For a joint stock company, at least 25% of the subscribed cash capital must generally be paid before registration, with the remaining amount payable within 24 months.

This distinction may influence which company type is commercially suitable for the investor.

6. Can One Foreign Person Establish a Company Alone?

Yes.

A single foreign individual may generally establish either:

• a Turkish limited liability company; or
• a Turkish joint stock company.

There is no general requirement to find a second shareholder merely for incorporation purposes.

Similarly, a single foreign company can own the entire share capital of a Turkish subsidiary.

This provides considerable flexibility for entrepreneurs who want complete ownership over their Turkish business.

Nevertheless, sole ownership does not eliminate the need for proper corporate governance.

The investor must still determine:

• who will manage the company;
• who will have signing authority;
• who will control company bank accounts;
• which transactions require approval;
• how accounting will be managed; and
• whether the foreign shareholder will actively work in Turkey.

7. What Documents Does a Foreign Individual Need to Establish a Company?

A foreign natural person generally needs identification and registration documentation.

Depending on the particular circumstances and Trade Registry requirements, the process commonly includes:

• passport;
• Turkish translation of the passport;
• notarisation of the translated passport;
• potential Turkish tax identification number;
• address information;
• residence permit documentation where relevant;
• signature declarations where required; and
• power of attorney where the procedure is handled through a representative.

The official investment guidance specifically identifies translated and notarised passport documentation and potential tax identification numbers among the principal requirements for foreign individual shareholders.

Documentation should be checked before filing because inconsistencies between passport names, transliterations and other foreign records can cause delays.

8. What Documents Are Required When the Shareholder Is a Foreign Company?

Where a foreign legal entity will become the shareholder of a Turkish company, the documentation requirements are more extensive.

Documents may typically include:

• certificate of incorporation;
• certificate of activity or good standing;
• commercial registry extract;
• articles of association;
• document showing authorised representatives;
• corporate resolution approving the establishment of the Turkish company;
• resolution approving the investment amount and ownership structure;
• documents appointing representatives;
• power of attorney; and
• other corporate documents requested by the Trade Registry.

The corporate resolution should clearly identify the investment decision.

Depending on the proposed structure, it may contain:

• the name of the Turkish company;
• company type;
• capital amount;
• shareholder percentage;
• authorised representatives;
• directors or managers; and
• authority to execute incorporation documents.

Turkish authorities must be able to verify that the foreign company legally exists and that the person signing on its behalf has authority to make the investment.

9. Do Foreign Documents Need an Apostille?

In many cases, yes.

Foreign documents used before Turkish authorities generally need to be authenticated.

Depending on the country in which the document is issued, this may involve:

• an apostille under the Hague Apostille Convention; or
• certification by the competent Turkish consular authority.

Foreign documents generally must also be translated into Turkish by an authorised translator and notarised as required in Turkey. The official investment guidance expressly refers to apostille or Turkish consular certification requirements for relevant foreign-issued incorporation documents.

This step is especially important where the shareholder is a foreign company.

Improper apostille, missing certification or inadequate corporate resolutions can delay incorporation significantly.

10. Does a Foreign Shareholder Need a Turkish Tax Number?

Foreign shareholders and certain foreign managers or board members may need to obtain a potential Turkish tax identification number.

This number is used during various incorporation, banking and administrative procedures.

The official investment framework expressly provides for obtaining potential tax numbers for non-Turkish shareholders and foreign board members where necessary.

The tax number should not be confused with Turkish citizenship or residence status.

Obtaining a tax identification number does not itself give the foreign investor:

• Turkish citizenship;
• permanent residence;
• permission to work; or
• any immigration status.

It is an administrative and tax identification mechanism.

11. Does the Company Need a Registered Address in Turkey?

Yes.

Every Turkish company must have a registered office address.

The address is recorded with the Trade Registry and is used for:

• tax registration;
• official notices;
• commercial correspondence;
• service of documents;
• regulatory notifications; and
• other legal purposes.

The registered address may generally be based on an appropriate commercial premises arrangement.

A lease agreement may be required during relevant tax and administrative procedures.

Foreign investors should avoid using an address without examining whether it is suitable for the proposed business.

Certain regulated activities may require specific physical premises.

For example, companies operating in fields subject to licences or operational permits may need to meet additional workplace standards.

12. What Is MERSIS and Why Is It Important?

Company registration procedures are conducted through MERSIS, Turkey’s Central Registry Record System.

MERSIS is the electronic system through which commercial registry transactions and company records are processed.

The company’s articles of association are prepared electronically through MERSIS as part of the incorporation procedure.

The articles of association typically contain important information including:

• company name;
• company type;
• registered address;
• business activities;
• share capital;
• shareholders;
• share percentages;
• management arrangements; and
• representation authorities.

Foreign investors should not treat the articles of association as a simple administrative template.

A poorly drafted corporate structure may create serious problems later, particularly where the company has multiple investors.

13. What Should Be Included in the Articles of Association?

The articles of association are the constitutional document of the company.

They should be prepared according to the business model and investment structure.

Important matters may include:

Company Name

The proposed trade name must comply with Turkish commercial registry rules and should be checked for availability.

Trademark availability should also be reviewed separately.

Registering a company name does not automatically provide the same legal protection as registering a trademark.

Business Purpose

The company’s principal activities should be correctly defined.

The investor should determine whether any intended activity requires a special licence or regulatory permission.

Capital

The articles must state the company’s capital and shareholding structure.

Shareholders

The shareholders and their respective interests must be identified.

Management

The articles should determine the company’s management and representation structure.

Signature Authority

It should be clear who may legally bind the company.

This issue is particularly important for foreign investors who will not be physically present in Turkey on a daily basis.

14. Who Can Manage a Foreign-Owned Turkish Company?

Foreign persons may generally participate in the management of Turkish companies, subject to applicable corporate and immigration rules.

For a limited liability company, management is exercised through one or more managers.

Under the Turkish Commercial Code structure, at least one shareholder must generally have management and representation authority in a limited liability company.

A joint stock company is managed through its board of directors.

The nationality of shareholders or management personnel is not generally restricted except where special legislation applies to the relevant sector.

However, an important distinction must be made:

Being legally appointed as a manager or board member under Turkish company law does not necessarily mean that the foreign person can actively work in Turkey without examining work permit legislation.

15. Does Establishing a Company Give the Foreigner the Right to Work in Turkey?

No.

This is one of the most frequently misunderstood issues.

Company ownership and permission to work are legally distinct.

Under Turkish international labour legislation, foreigners who work in Turkey generally require a work permit or applicable work permit exemption before commencing work.

The Ministry of Labour and Social Security specifically states that foreigners within the scope of Law No. 6735 must obtain a work permit or exemption before working.

A foreigner may therefore be:

• a shareholder of a company;
• an investor in the company; or
• in certain circumstances a non-executive board member,

without this automatically granting unlimited permission to work in Turkey.

The foreign shareholder’s actual role must be examined.

16. Do Foreign Company Partners Need a Work Permit?

The answer depends on their role.

According to guidance published by the Ministry of Labour and Social Security, foreign partners of limited liability companies and foreigners occupying certain management functions may work subject to obtaining the appropriate work permit.

By contrast, non-resident members of the board of directors of joint stock companies and non-managing partners of other companies may fall within a work-permit exemption framework.

This distinction can be highly important when structuring a foreign-owned company.

A foreign investor who intends only to own shares is in a different legal position from a foreign founder who intends to live in Turkey and personally manage daily operations.

17. Does Establishing a Company Automatically Provide a Residence Permit?

No.

Another common misconception is that company incorporation automatically grants residence rights.

It does not.

Corporate law and immigration law are separate.

A foreign investor may own a Turkish company without automatically acquiring a residence permit.

If the shareholder intends to reside in Turkey, the appropriate residence or work authorisation must be evaluated separately.

A valid Turkish work permit generally also operates as a residence permit during its validity period under the applicable immigration framework.

Accordingly, the investor’s immigration planning should be considered together with the corporate structure before incorporation.

18. Does Establishing a Company Give Turkish Citizenship?

No.

Establishing a Turkish company by itself does not automatically result in Turkish citizenship.

Turkish citizenship by investment is governed by a separate legal regime with specific qualifying investment categories and monetary thresholds.

Therefore:

Company incorporation ≠ residence permit ≠ work permit ≠ citizenship.

A foreign investor considering Turkish citizenship should structure the investment specifically according to the applicable citizenship legislation rather than assuming that an ordinary company investment will qualify.

19. Can the Company Open a Turkish Bank Account?

Once incorporated, the Turkish company may apply to banks for a corporate account.

However, the fact that a company has been legally registered does not create an automatic right to obtain an account from a specific bank.

Turkish banks conduct their own:

• KYC procedures;
• customer identification;
• beneficial ownership analysis;
• source-of-funds checks;
• sanctions screening;
• anti-money laundering controls; and
• commercial risk assessment.

Foreign-owned companies may be asked to provide additional information about:

• shareholders;
• ultimate beneficial owners;
• foreign parent companies;
• source of investment funds;
• expected transaction volumes;
• countries from which funds will arrive;
• expected outgoing transfers;
• business activities; and
• major customers or suppliers.

For this reason, banking strategy should be considered before company registration, especially where the company expects substantial international transfers.

20. What Is the Competition Authority Contribution?

As part of the incorporation process, an amount corresponding to 0.04% of the company’s capital is paid to the relevant Competition Authority account through the registration mechanism.

This payment forms part of the company registration procedure described in the official foreign investment guidance.

It should be distinguished from the share capital itself.

21. How Is a Company Registered With the Trade Registry?

Once the incorporation documents have been prepared, the registration application is submitted to the competent Trade Registry Directorate.

The registration file may include, depending on the company and shareholder structure:

• registration petition;
• articles of association;
• founder documentation;
• foreign shareholder documentation;
• signature declarations;
• corporate resolutions;
• proof of required capital payment for a joint stock company;
• Competition Authority contribution;
• Chamber of Commerce registration documents;
• documents relating to managers or directors; and
• documentation for capital contributions in kind where applicable.

Trade Registry Directorates operate as a form of one-stop incorporation mechanism.

Official investment guidance indicates that the formal company registration process may be completed within the same day where all required documents are properly prepared.

However, foreign investors should understand that this refers primarily to the registry stage.

The complete process may take longer because of:

• foreign document preparation;
• apostille procedures;
• translations;
• tax numbers;
• banking requirements;
• regulatory permissions; and
• shareholder structuring.

22. What Happens After the Company Is Registered?

Company registration is not the end of the legal process.

Following registration, various tax, accounting and operational steps must be completed.

The Trade Registry transmits incorporation information to the relevant tax office and Social Security Institution through the registration framework, and the company must complete the necessary post-registration formalities.

Depending on its activities, the company may also need to address:

• tax registration;
• statutory accounting books;
• e-invoice requirements;
• e-ledger obligations;
• payroll;
• social security;
• employment contracts;
• workplace licences;
• municipality licences;
• sectoral licences;
• data protection compliance;
• consumer law;
• e-commerce legislation; and
• intellectual property protection.

A company should therefore not commence business solely on the assumption that Trade Registry registration authorises every activity stated in its corporate documents.

23. Are Foreign-Owned Companies Subject to Turkish Taxes?

A company incorporated in Turkey is generally subject to Turkish tax rules applicable to its legal and commercial activities.

Depending on the business model, relevant obligations may include:

• corporate income taxation;
• VAT;
• withholding tax;
• payroll taxation;
• stamp tax;
• social security payments; and
• other applicable taxes or charges.

Foreign investors should also consider cross-border taxation.

This is particularly important where the Turkish company:

• pays dividends to a foreign shareholder;
• receives shareholder loans;
• pays management fees abroad;
• purchases services from related foreign companies;
• pays royalties;
• licenses intellectual property;
• exports services;
• imports goods; or
• conducts transactions with group companies.

Relevant double taxation treaties and transfer pricing rules may materially affect the structure.

24. Is an Accountant Required?

Turkish companies must comply with accounting, bookkeeping and tax filing requirements.

In practice, companies ordinarily work with an authorised financial adviser or accountant to manage statutory accounting and tax obligations.

The foreign investor should establish an accounting structure immediately after incorporation.

Ignoring accounting obligations can create:

• tax penalties;
• late filings;
• social security liabilities;
• problems with commercial books;
• difficulties during audits; and
• complications when selling the company.

Financial compliance should therefore be treated as a core component of company formation.

25. Are Shareholders Personally Liable for Company Debts?

This issue depends significantly on the company type and nature of the debt.

As a general corporate-law principle, shareholders of capital companies are not ordinarily personally responsible for ordinary company debts beyond their capital commitments.

However, investors should be particularly careful with limited liability companies and public debts.

Under Turkish public receivables legislation, shareholders of limited liability companies may, under the statutory conditions, face liability for certain public debts that cannot be collected from the company, generally in proportion to their shareholding.

This is one reason why the words “limited liability” should not be understood as eliminating every possible shareholder exposure.

The legal position of a joint stock company shareholder may differ.

Foreign investors purchasing an existing Turkish company should therefore examine potential tax and public debt liabilities carefully.

26. Should Foreign Investors Sign a Shareholders’ Agreement?

If there is more than one shareholder, a shareholders’ agreement is strongly advisable in many investments.

The articles of association alone may not adequately regulate the commercial relationship between investors.

A shareholders’ agreement may address:

• management rights;
• voting thresholds;
• reserved matters;
• funding obligations;
• shareholder loans;
• future capital increases;
• anti-dilution mechanisms;
• share transfers;
• pre-emption rights;
• right of first refusal;
• tag-along rights;
• drag-along rights;
• non-compete obligations;
• intellectual property;
• confidentiality;
• deadlocks;
• exit mechanisms; and
• dispute resolution.

Joint venture participants in Turkey commonly use shareholder agreements to regulate their internal relationship.

For startup companies, investment structures and international joint ventures, this document can be as important as the articles of association.

27. Can a Foreigner Buy an Existing Turkish Company Instead of Establishing a New One?

Yes.

Foreign investors may acquire shares in an existing Turkish company instead of incorporating a new business.

This may be attractive where the target already owns:

• customer contracts;
• licences;
• real estate;
• trademarks;
• equipment;
• employees;
• distribution networks; or
• operating infrastructure.

However, buying shares in an existing company can expose the investor to historical risks.

A legal due diligence investigation should therefore be conducted before the acquisition.

The review may include:

• tax liabilities;
• Social Security debts;
• pending litigation;
• enforcement proceedings;
• employee claims;
• commercial contracts;
• bank loans;
• guarantees;
• intellectual property;
• licences;
• real estate;
• related-party transactions; and
• regulatory investigations.

The share purchase agreement should then contain suitable representations, warranties, indemnities and disclosure mechanisms.

28. Are There Special Requirements for Regulated Businesses?

Yes.

Although foreign investors may generally establish companies under the same company law framework as Turkish investors, certain activities are separately regulated.

Additional requirements may arise in sectors including:

• banking;
• insurance;
• financial services;
• payment institutions;
• energy;
• broadcasting;
• aviation;
• maritime activities;
• healthcare;
• education;
• tourism;
• telecommunications;
• defence-related activities; and
• other regulated professions.

In some industries, merely registering the business activity in the articles of association does not authorise the company to begin operations.

Separate regulatory approval may be mandatory.

Foreign investors should therefore conduct sector-specific legal analysis before incorporation.

29. Can the Company Be Established Through a Power of Attorney?

In many cases, substantial portions of the incorporation procedure can be handled by an authorised representative.

A foreign shareholder may issue a power of attorney authorising a lawyer or representative to conduct relevant registration procedures.

Where a power of attorney is issued abroad, appropriate legalisation, apostille or Turkish consular certification may be required, together with Turkish translation and notarisation.

The scope of authority should be drafted carefully.

Depending on the transaction, it may include authority to:

• obtain tax numbers;
• sign incorporation documents;
• appear before the Trade Registry;
• submit applications;
• receive documents;
• complete corporate registration formalities; and
• carry out other specifically authorised transactions.

Foreign investors should avoid using unnecessarily broad powers of attorney where significant financial authority is involved.

30. What Are the Most Common Mistakes Foreigners Make When Establishing a Company in Turkey?

Several recurring mistakes can create expensive problems.

Choosing the Company Type Only According to Cost

The cheapest structure today may not be the best structure for future investment, shareholder entry or sale.

Using Generic Articles of Association

Standard documents may not adequately protect investor control.

Giving Unlimited Signature Authority

A foreign shareholder should carefully control who can bind the company and operate bank accounts.

Ignoring Work Permit Rules

Company ownership does not automatically authorise the foreign shareholder to work in Turkey.

Confusing Company Formation With Residence or Citizenship

These procedures must be examined separately.

Failing to Plan Taxation

Cross-border payments should not be structured after the company has already started operations.

Ignoring Banking Compliance

A company may be legally established but still experience difficulties opening or operating bank accounts.

Failing to Register Trademarks

A registered company name does not automatically provide full trademark protection.

Investing With a Partner Without a Shareholders’ Agreement

Disagreements over capital, management and exits are much harder to resolve after the dispute has begun.

Frequently Asked Questions About Establishing a Company in Turkey as a Foreigner

Can a foreigner own 100% of a Turkish company?

Yes. In most sectors, a foreign investor may own 100% of a Turkish company.

Do I need a Turkish partner?

Generally, no.

Can one foreign person establish a company?

Yes. A limited liability company or joint stock company may generally be established by a single shareholder.

What is the minimum capital for a Turkish limited liability company?

The current statutory minimum is TRY 50,000.

What is the minimum capital for a joint stock company?

The current statutory minimum is TRY 250,000.

Must the capital of a limited company be paid before registration?

Generally, no. The subscribed capital may generally be paid within 24 months following registration.

Does a foreign shareholder need a Turkish tax number?

A potential Turkish tax identification number is generally required for relevant incorporation procedures.

Can a foreign company own a Turkish company?

Yes.

Is an apostille required for foreign corporate documents?

Depending on the issuing country and applicable international arrangements, apostille or Turkish consular legalisation may be required.

Does establishing a company automatically provide a work permit?

No.

Does establishing a company automatically provide a residence permit?

No.

Does establishing a company automatically provide Turkish citizenship?

No.

Can the company be established remotely?

Many incorporation procedures may be handled through properly authorised representatives, although some banking or regulatory processes may involve additional identification requirements.

How long does company registration take?

The formal Trade Registry registration may potentially be completed within the same day when the documents are complete, although preparation of foreign documents, apostilles, translations and related procedures may make the overall process longer.

Conclusion: Requirements for Foreigners to Establish a Company in Turkey

Turkey provides a relatively open corporate framework for foreign investors.

In most sectors, a foreign individual or foreign company can establish and own 100% of a Turkish company without requiring a Turkish shareholder.

The principal legal requirements generally involve:

• choosing the correct company type;
• determining the shareholders;
• satisfying minimum capital requirements;
• preparing passports or foreign corporate documents;
• obtaining apostilles or consular legalisation where necessary;
• translating and notarising foreign documents;
• obtaining potential tax identification numbers;
• establishing a registered office;
• preparing the articles of association through MERSIS;
• defining management and representation authority;
• completing Trade Registry registration;
• completing tax and accounting formalities;
• satisfying banking and KYC requirements;
• obtaining work permits where foreign shareholders or managers will actively work in Turkey; and
• obtaining any sector-specific licences required for the business.

For many investors, the technical process of registering a company is relatively straightforward.

The more significant legal challenge is creating the correct structure before registration.

A foreign investor should therefore consider not only how to establish the company but also:

• who will control it;
• who will sign contracts;
• how money will enter and leave the company;
• how profits will be distributed abroad;
• whether foreign shareholders will work in Turkey;
• what happens when new investors join;
• how shares may be transferred;
• how intellectual property will be owned;
• how a shareholder may exit; and
• what happens if a dispute occurs.

A carefully designed Turkish corporate structure can provide foreign investors with an effective platform for doing business, hiring employees, entering contracts, acquiring assets and expanding operations in Turkey.

By contrast, problems concerning shareholder control, tax structuring, signing authority, immigration status or regulatory permissions can become much more difficult and expensive to solve after the company has already begun operating.

Foreign entrepreneurs and international companies planning to establish a company in Turkey should therefore conduct a legal review of the proposed ownership, management, investment and business structure before completing incorporation.

Early legal planning can help ensure that the Turkish company is not merely successfully registered but is also structured in a way that supports the investor’s long-term commercial objectives.

This article is intended to provide general information concerning Turkish company and foreign investment law and does not constitute legal advice for any particular investor or transaction. Company formation, tax, immigration, work permit and regulatory requirements should be assessed according to the investor’s nationality, proposed business activity, ownership structure and the legislation applicable at the time of the investment.