Foreign investors often ask whether purchasing a company in Turkey automatically gives them the right to work in the country.
The short answer is no.
Buying shares in a Turkish company does not automatically provide a work permit. If the foreign shareholder intends to actively manage or work for the company, a separate work permit application may be required under Turkish law.
Can a Foreign Company Owner Apply for a Work Permit?
Yes.
A foreign national who becomes a shareholder in a Turkish company may apply for a work permit, provided that the applicable legal and financial requirements are satisfied.
Under the current work permit evaluation criteria, where a foreign shareholder applies for a work permit:
- the company’s paid-in capital must generally be at least TRY 500,000;
- the foreign investor’s capital contribution must generally be at least TRY 500,000; and
- the foreign shareholder must generally own at least 20% of the company.
If the foreign shareholder’s capital contribution is USD 100,000 or more, certain financial and employment criteria are not applied.
Is It Necessary to Employ Turkish Citizens?
As a general rule, a company owner or shareholder applying for a work permit is also subject to an employment requirement.
Under the current criteria, the company must generally employ at least five Turkish citizens.
For the first work permit of a foreign company shareholder or business owner, this requirement is not applied during the first six months. From the beginning of the seventh month, at least five Turkish citizens must generally be employed each month.
Different rules or exemptions may apply depending on the investor and the size or nature of the investment.
Does Every Foreign Shareholder Need a Work Permit?
Not necessarily.
The legal position depends on whether the foreign investor is merely a shareholder or actively manages the company.
For example, foreign nationals who act as managers of Turkish limited liability companies or shareholder-board members of joint stock companies may work after obtaining the appropriate work permit.
On the other hand, certain shareholders who do not have a managerial role, as well as non-resident foreign board members of joint stock companies, may fall within the work permit exemption framework.
Therefore, the shareholder structure and management position should be planned before completing the company acquisition.
Does a Work Permit Also Provide Residence Rights?
Generally, yes.
A valid Turkish work permit also serves as a residence permit during its validity period, subject to specific statutory exceptions.
This makes the work permit particularly important for foreign investors who intend to personally manage and operate their Turkish business.
Conclusion
Buying a company in Turkey does not automatically grant a foreign investor a work permit.
However, a foreign shareholder may apply for a work permit if the company, investment amount, shareholding percentage and other applicable requirements are satisfied.
Before buying an existing Turkish company, foreign investors should therefore consider not only the purchase agreement but also:
shareholding structure, capital amount, management position and work permit eligibility.
Structuring the investment correctly from the beginning can significantly reduce problems during the work permit application process.
This article provides general information and does not constitute legal advice. Work permit requirements may differ depending on the foreign investor’s nationality, shareholding structure, company activity and individual circumstances.
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