Türkiye offers international entrepreneurs access to a dynamic domestic market and commercial opportunities connecting Europe, Asia, and the Middle East.
Under Turkish law, foreign investors may establish companies, acquire shares in existing businesses, and conduct commercial activities under substantially the same conditions as Turkish investors.
However, choosing the appropriate corporate structure and completing the registration process correctly are essential for protecting an investment.
1. Can Foreigners Establish a Company in Türkiye?
Yes. Under Foreign Direct Investment Law No. 4875, international investors generally enjoy equal treatment with domestic investors.
Foreign individuals and foreign legal entities may establish companies in Türkiye without requiring a Turkish shareholder, subject to sector-specific restrictions.
A company may generally be established with 100% foreign ownership.
2. Choosing the Right Company Structure
The two most common corporate structures for international investors are:
Limited Liability Company (Ltd. Şti.)
A limited liability company is particularly suitable for small and medium-sized businesses, e-commerce operations, consultancy firms, and international trading activities.
Its minimum share capital is TRY 50,000.
Joint Stock Company (A.Ş.)
A joint stock company is generally preferred for larger investments, corporate acquisitions, and businesses intending to attract institutional investors.
Its minimum share capital is TRY 250,000 under the ordinary capital system. Companies adopting the registered capital system must meet the applicable higher minimum.
Both structures provide separate legal personality, although the shareholders’ liability and certain public-debt obligations differ according to company type.
3. Documents Required for Company Formation
Foreign investors generally need to prepare:
- Passport copies of individual shareholders.
- Turkish tax identification numbers.
- Articles of association.
- Registered company address.
- Shareholding and management information.
- Notarised and translated corporate documents, where applicable.
When a foreign company becomes a shareholder, additional documents such as its certificate of activity and corporate authorisation documents may be required.
Foreign-issued documents may also require apostille certification or consular legalisation.
4. Company Registration Procedure
Company establishment is conducted through the Turkish Central Registry Record System (MERSIS) and the relevant Trade Registry Directorate.
The process generally includes:
- Selecting the company type and trade name.
- Preparing the articles of association.
- Completing the MERSIS application.
- Obtaining the necessary tax identification numbers.
- Completing signature and registration formalities.
- Registering the company with the Trade Registry.
- Completing post-registration tax and accounting procedures.
The company acquires legal personality upon registration with the Trade Registry.
5. Opening a Corporate Bank Account
Foreign-owned companies may apply to Turkish banks for corporate accounts.
Banks generally request company registration documents, information about shareholders and beneficial owners, authorised signatory documents, and identification records.
Additional compliance checks may apply depending on the shareholder structure, country of residence, and intended business activities.
Corporate bank account approval remains subject to the bank’s internal compliance procedures and is not automatically guaranteed by company registration.
6. Does Establishing a Company Provide a Residence or Work Permit?
No. Establishing a company does not automatically grant Turkish residence or work authorisation.
A foreign shareholder who intends to actively work in Türkiye may need to obtain a work permit under Law No. 6735.
Certain non-resident board members and non-managing foreign shareholders may qualify for statutory work permit exemptions.
Work permit applications are assessed separately according to the applicable legal criteria.
7. Protecting Foreign Shareholders
Foreign investors should not rely exclusively on standard company registration documents.
A properly structured shareholders’ agreement can regulate:
- Voting and management rights.
- Dividend distribution.
- Restrictions on share transfers.
- Minority shareholder protection.
- Exit rights and valuation mechanisms.
- Deadlock resolution.
- Arbitration and dispute resolution.
These provisions are especially important where a foreign investor establishes a joint venture with a Turkish business partner.
8. Legal Assistance for Company Formation in Türkiye
Establishing a company involves more than completing commercial registration.
International investors should consider corporate governance, tax compliance, contractual protection, banking requirements, and future investment objectives before commencing operations.
Ferhat Küle Law Office provides legal assistance to foreign entrepreneurs and international companies concerning company establishment, corporate documentation, shareholder agreements, and investment-related legal matters in Türkiye.
A legally structured investment can reduce potential disputes and support the long-term development of commercial operations.
Disclaimer: This article provides general legal information and does not constitute legal advice. Legal requirements may vary depending on the investor’s nationality, proposed business activity, and corporate structure.
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