Does Establishing a Company in Türkiye Automatically Give a Foreigner a Work Permit?

No.

Establishing a company in Türkiye does not automatically give a foreign founder, shareholder or investor the right to work in Türkiye.

This is one of the most important distinctions for foreign entrepreneurs entering the Turkish market.

Türkiye generally allows foreign investors to establish companies under the same basic corporate framework applicable to domestic investors. The official investment framework states that foreign investors may establish company types recognised under the Turkish Commercial Code and benefit from the principle of equal treatment in company establishment and share transfers.

However:

the right to own a company is not the same as the right to work for that company.

A foreigner may legally:

• establish a Turkish limited liability company;
• acquire shares in an existing Turkish company;
• become an investor;
• contribute capital;
• receive dividends;
• or hold a passive shareholding

without this automatically creating a personal right to perform work in Türkiye.

If the foreigner wishes to:

• manage the company;
• actively run the business;
• work at the workplace;
• perform executive functions;
• provide services;
• or otherwise personally participate in the company’s operations,

the foreign national may need a Turkish work permit unless a specific work permit exemption applies.

The Ministry of Labour and Social Security expressly states that foreigners who establish a workplace must obtain the required work permit before they begin working. The Ministry also explains that a foreigner wishing to work in their own name and account should first complete the company’s or workplace’s establishment procedures and then apply for the appropriate work authorisation before beginning the activity.

Therefore, the fundamental rule is:

Company registration does not equal work authorisation.

This distinction should be considered before the foreign entrepreneur begins personally operating the business.

Short Answer

A foreign national can establish or become a shareholder of a company in Türkiye without automatically receiving a work permit.

Whether the person needs a work permit depends mainly on:

• the type of company;
• the foreigner’s shareholding;
• whether the foreigner has a management role;
• whether the person actually works in Türkiye;
• whether the person resides in Türkiye;
• and whether a statutory work permit exemption applies.

Current Ministry guidance specifically provides that:

• a foreign shareholder who is also a manager of a limited company may work by obtaining a work permit;
• a foreign shareholder who is also a board member of a joint stock company may work by obtaining a work permit;
• a foreign managing general partner in a partnership limited by shares may similarly require work authorisation;
• a non-resident foreign board member of a joint stock company falls within the work permit exemption framework;
• and a shareholder of another company who does not have a managerial capacity is also evaluated under the exemption framework.

Thus, the legal answer depends on whether the foreign investor is a passive investor or an active manager/operator.

Can a Foreigner Establish a Company in Türkiye Without a Work Permit?

Generally, yes.

Foreign investment law and Turkish corporate law permit foreign persons to establish companies and acquire shares.

Official investment guidance confirms that international investors are generally subject to the same conditions as domestic investors when establishing companies or transferring shares. Foreign investors can establish corporate forms permitted by the Turkish Commercial Code, particularly:

• Joint Stock Companies (Anonim Şirket — A.Ş.);
• Limited Liability Companies (Limited Şirket — Ltd. Şti.).

Other partnership structures are also available.

This means a work permit is not ordinarily a prerequisite merely to:

• become a founder;
• sign incorporation documents;
• make a capital contribution;
• or own shares.

Indeed, the Ministry’s own guidance regarding foreign entrepreneurs contemplates the sequence:

first complete the company’s establishment procedures, then apply for a work permit before personally beginning work.

This sequence itself demonstrates that company formation and work permission are separate procedures.

What Is the Difference Between Owning a Company and Working in the Company?

This distinction is crucial.

Consider two foreign investors.

Investor A: Passive Shareholder

A foreign investor owns 30% of a Turkish company.

The person lives in London.

The investor:

• does not manage daily operations;
• is not an authorised manager;
• does not regularly work in Türkiye;
• and simply receives dividends.

The work permit analysis may be significantly different from that of an active manager.

Investor B: Active Founder and Manager

A foreign investor establishes a Turkish limited company.

The foreigner:

• moves to Istanbul;
• is registered as company manager;
• signs contracts;
• supervises employees;
• meets clients;
• operates the office;
• and manages the company’s daily business.

This is no longer merely passive investment.

It amounts to active participation in the Turkish labour and business market.

The Ministry specifically states that a foreign shareholder-manager of a limited company can perform that role by obtaining a work permit.

Thus:

share ownership may not require a work permit by itself, but active management may.

Does a Foreign Manager of a Limited Company Need a Work Permit?

In the ordinary case, yes.

The Ministry’s current official FAQ expressly identifies the foreign shareholder-manager of a limited liability company as a person who can work by obtaining a work permit.

This category is extremely common.

For example:

A French citizen establishes:

ABC Teknoloji Limited Şirketi

The foreigner owns 100% of the company and is registered in the Trade Registry as the manager.

The foreigner then begins:

• signing contracts;
• negotiating sales;
• supervising employees;
• managing payments;
• meeting suppliers;
• and conducting day-to-day company activity.

The fact that the individual owns the company does not eliminate the work permit requirement.

The founder should evaluate and obtain the appropriate work authorisation.

Does a Foreign Board Member of a Joint Stock Company Need a Work Permit?

The answer depends on the person’s status.

The Ministry distinguishes between:

foreign shareholder-board members who actively fall within the working category

and

non-resident board members falling within a work permit exemption.

Current official guidance states that a foreign shareholder who is a board member of a Turkish joint stock company can work through the work permit system.

However, an A.Ş. board member who does not reside in Türkiye is evaluated within the work permit exemption framework.

This distinction is particularly useful for international groups.

For example, a German parent company may appoint a Germany-based executive to the board of its Turkish subsidiary.

If that person remains abroad and does not become an ordinary resident executive working in Türkiye, the legal regime may be based on an exemption rather than a standard work permit.

Does a Passive Foreign Shareholder Need a Work Permit?

Not necessarily.

Current Ministry guidance provides that shareholders of companies other than the specific management categories who do not have managerial capacity are evaluated within the work permit exemption framework.

However, this should not be interpreted as:

“Every passive foreign shareholder can completely ignore Turkish work permit law.”

The work permit exemption system itself is regulated and documented.

The Ministry maintains the e-Muafiyet system and explains that qualifying exemption cases may require a formal exemption process and documentation.

Therefore, foreign shareholders should determine whether:

• they need an ordinary work permit;
• they qualify for a documented work permit exemption;
• or their activities fall entirely outside work activity.

Does Company Ownership Automatically Create Residence Rights?

No.

Company ownership and immigration residence rights should also be separated.

A foreigner does not automatically receive a Turkish residence permit merely because they:

• establish a limited company;
• buy company shares;
• become a director;
• or invest capital.

However, a valid ordinary Turkish work permit generally provides both:

• the right to work;
• and a residence right during the permit’s validity.

Law No. 6735 defines a work permit as an official document giving a foreigner the right to work and reside in Türkiye during its validity period, and the Ministry confirms that ordinary work permits generally operate as residence permits.

Therefore:

company → no automatic residence right

but:

approved work permit → generally work + residence right during validity.

What Are the 2026 Work Permit Criteria for a Foreign Company Shareholder?

This is where the issue becomes especially important.

Türkiye applies specific evaluation criteria to foreign company shareholders applying for work permits.

Under the current Ministry criteria applicable to balance-sheet-basis enterprises, a foreigner who establishes a new workplace or becomes a shareholder of an existing business generally must satisfy the following shareholder-specific financial conditions:

• the company’s paid-in capital must be at least TRY 500,000;
• the foreigner’s own capital amount must be at least TRY 500,000;
• and the foreigner’s shareholding must be at least 20%.

These are evaluation criteria for shareholder work permit applications; they should not be confused with the basic corporate-law minimum capital required simply to incorporate a company.

This distinction is crucial.

A company may be legally established under company law, yet the foreign shareholder’s work permit application may fail to satisfy the separate Ministry of Labour criteria.

Is 20% Shareholding Required?

Under the current shareholder-specific evaluation criteria, the foreign shareholder generally must hold at least 20% of the company while also meeting the applicable capital requirements.

For example:

A foreign founder invests TRY 500,000 but holds only 10% of the company.

The application may fail the standard shareholder-specific criterion even though the investment amount itself reaches TRY 500,000.

Likewise:

A foreigner holds 50% of the company but has only TRY 200,000 of capital allocated to the shareholding.

Again, the financial criterion may not be satisfied.

The Ministry assesses these conditions together.

Is There a Five-Turkish-Employee Requirement?

Yes, under the ordinary shareholder-specific criteria.

Current Ministry rules state that where a foreigner:

• establishes a new workplace;
• or becomes a shareholder,

the workplace must employ at least five Turkish citizens.

However, there is an important startup-style transition.

For the first work permit of the company-owning or shareholder foreigner, the permit can be issued subject to this condition, and the requirement to continuously employ at least five Turkish citizens begins from the start of the seventh month of the first work permit period.

This is a very important practical rule for newly created businesses.

It means the new foreign founder is not necessarily expected to have five Turkish employees on the first day of a newly established company.

But starting with the seventh month, the business must ordinarily satisfy the five-Turkish-employee requirement each month under the standard shareholder criteria.

Example: Foreign Founder Establishes a Startup

Suppose a Canadian entrepreneur establishes a technology company in Istanbul.

The founder:

• owns 70% of the shares;
• contributes TRY 1,000,000;
• becomes the company manager;
• and wants to personally operate the startup in Türkiye.

Company incorporation itself does not grant the founder a work permit.

The founder must separately apply.

Under the ordinary foreign-shareholder evaluation framework:

• company paid-in capital requirement;
• founder capital contribution;
• minimum 20% share requirement;
• and employment requirements

must be examined.

If approved, the first permit can allow the business time before the five-Turkish-employee requirement becomes operational from the beginning of the seventh month.

Is There an Exception for Foreigners Investing at Least USD 100,000?

Yes.

This is one of the most important current investment-friendly rules.

The Ministry’s shareholder criteria provide that where a foreign partner has a capital share of USD 100,000 or more, the ordinary shareholder criteria concerning:

• the TRY 500,000 capital/share threshold;
• the 20% shareholding requirement;
• and the five-Turkish-employee requirement

under that specific shareholder subsection are not applied.

This does not mean that a USD 100,000 investment produces an automatic work permit.

That distinction is essential.

The exemption concerns specific evaluation criteria.

The foreigner must still:

• make an application;
• satisfy other applicable legal conditions;
• submit the required documentation;
• and receive approval from the Ministry.

In other words:

USD 100,000 investment can remove certain evaluation hurdles, but it does not automatically generate a work permit.

Does Meeting All the Criteria Guarantee Approval?

No.

Work permit evaluation is an administrative process.

The fact that a foreigner meets:

• capital;
• shareholding;
• employment;
• or other published thresholds

does not automatically create an unconditional statutory right to approval.

The Ministry expressly states, even in relation to categories exempt from evaluation criteria, that being within an exemption category does not itself create an absolute entitlement to a work permit.

Applications can also be affected by:

• international labour policy;
• profession;
• sector;
• public order;
• documentary deficiencies;
• immigration status;
• legally restricted professions;
• and other statutory considerations.

Are There Other Exceptions to the Standard Work Permit Criteria?

Yes.

Current 2026 evaluation criteria contain several exceptions.

An especially important rule entered into force on 3 August 2026.

Under the new framework, qualifying foreigners who, during the previous three years, have legally remained in Türkiye for at least one year under specified:

• work permit;
• residence permit;
• or international protection statuses

may benefit in qualifying domestic applications from non-application of certain ordinary employment and financial criteria, up to defined limits.

There are also categories of foreigners for whom employment, financial and salary criteria are not ordinarily applied, including certain:

• parents or children of Turkish citizens;
• humanitarian residence permit holders;
• long-term residence permit holders;
• persons married to a Turkish citizen for at least three years;
• foreigners with qualifying long-term lawful residence histories;
• and other listed categories.

However, these exceptions should not be casually combined with shareholder criteria without analysing the exact application category.

Each case should be examined individually.

What Is an Independent Work Permit?

Law No. 6735 also recognises the independent work permit (bağımsız çalışma izni).

The Ministry defines this as a work permit allowing the foreigner to work in Türkiye:

in their own name and on their own account, without being dependent on an employer.

Independent work permits are issued for a limited period.

When deciding such applications, the Ministry may consider factors including:

• education;
• professional experience;
• contribution to science and technology;
• effect of the activity or investment on the Turkish economy;
• impact on employment;
• and, where the applicant is a foreign company partner, the foreigner’s capital share.

However, a foreign shareholder should not automatically assume that every company-owner application must be filed as an independent work permit.

The Ministry expressly states that workplace owners and company partners may receive a fixed-term work permit, and municipalities should not require a separate independent work permit document from a foreign owner or partner who already possesses the relevant fixed-term work permit.

The correct application category depends on the legal structure and activity.

Can a Foreigner Open the Business First and Obtain the Work Permit Later?

The company establishment procedure can generally be completed first.

Indeed, Ministry guidance specifically instructs foreigners wishing to establish their own workplace to:

1. complete the establishment procedures;
2. obtain the required trade registry/tax records;
3. then apply for the work permit;
4. and obtain permission before beginning work.

Therefore, the correct sequence is:

Company formation → Work permit application → Approval → Start active work

not:

Company formation → Begin operating personally → Apply months later

This is one of the most important compliance points for foreign founders.

Can the Company Begin Commercial Activity Before the Foreign Founder Receives a Work Permit?

The company itself is a separate legal person.

Its commercial operation may be carried out by legally authorised persons.

Therefore, a Turkish company does not necessarily have to remain economically inactive merely because one foreign shareholder’s work permit is pending.

However, the foreign shareholder personally should not perform activities that constitute unauthorised work.

For example, the company may have:

• a Turkish manager;
• Turkish employees;
• or another legally authorised representative

conducting its operations while the foreigner’s work authorisation is processed.

The precise management authority should be arranged through corporate documents.

Can the Foreigner Sign Company Formation Documents Without a Work Permit?

Company formation and investment functions should not automatically be equated with ongoing employment.

Foreign persons are permitted to establish companies under the investment regime, and the official incorporation guidance expressly contemplates foreign natural persons signing and submitting incorporation documents.

However, once the company is established, continuous performance of management and operational functions in Türkiye can trigger the work permit requirement.

Thus:

signing incorporation documents ≠ automatically working

but:

daily management of the operating company may constitute work.

Does Being Registered as Company Manager Automatically Give Work Rights?

No.

Corporate authority under the Turkish Commercial Code does not replace work authorisation under Law No. 6735.

A foreigner can be listed in corporate documents as:

• manager;
• board member;
• authorised representative;

but still need to satisfy the international labour-force rules before personally performing work in Türkiye.

This is an important example of two legal regimes operating simultaneously:

Turkish Commercial Code

Determines who can represent and manage the company.

International Labour Force Law

Determines whether the foreign individual is authorised to work in Türkiye.

Compliance with one does not automatically establish compliance with the other.

Does a Turkish Tax Number Give a Foreign Founder the Right to Work?

No.

A tax identification number is an administrative/tax identifier.

Foreign founders commonly obtain a potential Turkish tax number as part of the company establishment process.

Official investment guidance confirms that foreign shareholders and foreign board members may need tax identification numbers during incorporation procedures.

However:

tax number ≠ work permit.

Likewise:

• MERSİS registration;
• Trade Registry registration;
• company bank account;
• tax office registration;
• shareholder certificate

do not individually or collectively replace work authorisation.

Does a Company Bank Account Give Work Rights?

No.

The company may legally open and operate banking relationships as part of its corporate existence.

This says nothing about whether a particular foreign shareholder is personally authorised to work.

Corporate compliance and immigration compliance remain separate.

Does Paying Company Taxes Give the Foreigner a Work Permit?

No.

A company can:

• pay VAT;
• corporate tax;
• payroll taxes;
• social security premiums;

without the foreign shareholder automatically gaining work rights.

The work permit must be separately granted under Law No. 6735.

Is a Residence Permit Enough for a Foreign Company Owner to Work?

Generally, no.

A Turkish residence permit primarily gives the foreign national a right to reside.

It does not automatically provide a general right to work.

The Ministry’s work permit guidance states that foreigners within the scope of Law No. 6735 must obtain a valid work permit or recognised exemption before working.

Therefore, a foreign founder who has:

• property-based residence;
• family residence;
• student residence;
• or another residence status

should still examine the work permit requirement before actively managing the company.

Can the Work Permit Application Be Filed from Inside Türkiye?

Potentially.

The Ministry’s current general framework states that a domestic work permit application can ordinarily be made where the foreigner has a valid residence permit issued for at least six months and that residence permit remains valid on the application date.

Applications are submitted electronically through the Ministry’s e-İzin system.

There are specific exceptions and special statuses.

Where a domestic application is not available, the foreigner generally initiates the work permit process through the relevant Turkish diplomatic mission abroad.

Does Owning 100% of the Company Make the Application Easier?

Ownership percentage can be relevant, but 100% ownership does not automatically guarantee approval.

Under the ordinary shareholder criteria, a foreign shareholder must satisfy the published minimum share and capital rules.

A 100% owner clearly exceeds the ordinary minimum 20% share requirement.

However, the application still needs to consider:

• capital;
• employment;
• company activity;
• application type;
• immigration status;
• and other evaluation criteria.

Thus:

100% ownership may satisfy one aspect of the criteria, but it does not itself equal a work permit.

Can a Foreigner Create a One-Person Company and Work Alone?

A foreigner can potentially establish a company with a sole shareholder structure where permitted by Turkish company law.

But the work permit analysis remains separate.

Under current shareholder criteria, the five-Turkish-employee requirement becomes important from the beginning of the seventh month of the first work permit period under the standard rule.

Accordingly, a business model based on:

“I will create a company and permanently be the only person working there”

may face difficulties under the standard foreign-shareholder work permit criteria unless:

• an applicable exception exists;
• the USD 100,000 capital-share exception applies;
• another evaluation exemption applies;
• or the activity falls into another special category.

This should be analysed before incorporation.

Example: One-Person Consulting Company

A U.S. consultant establishes a Turkish limited company.

The foreigner:

• owns 100%;
• wants to live in Istanbul;
• personally delivers consulting services;
• has no Turkish employees.

Company establishment is legally possible.

But that does not automatically authorise the founder to personally work.

The founder should assess:

• foreign shareholder criteria;
• independent/fixed-term work permit route;
• applicable exemptions;
• and whether the chosen company structure is compatible with the work permit strategy.

The mistake would be to incorporate first and assume immigration permission follows automatically.

Example: USD 150,000 Foreign Investment

A foreign investor owns 60% of a Turkish company and the investor’s capital share exceeds USD 100,000.

Under the Ministry’s current shareholder criteria, the ordinary capital/share and five-Turkish-employee requirements in that subsection are not applied to a foreign shareholder with at least USD 100,000 of capital share.

However, the investor must still submit and receive approval of the appropriate work permit application.

The correct statement is:

certain evaluation criteria are waived

not:

work permit is automatically granted.

Example: Passive Minority Investor

A foreigner acquires 15% of a Turkish manufacturing company.

The person:

• lives outside Türkiye;
• does not manage the company;
• does not work at its facilities;
• receives dividends.

This is primarily an investment relationship.

The Ministry’s framework recognises non-manager shareholders within the work permit exemption system rather than requiring every passive investor to obtain an ordinary employee-type work permit.

The specific exemption/document requirements should nevertheless be checked before the person carries out business activities in Türkiye.

Example: Foreign Shareholder Becomes Limited Company Manager

A foreign investor initially owns 40% of a limited company but has no management authority.

Later, the shareholders appoint the foreigner as manager.

The person’s role has changed materially.

The Ministry expressly identifies a foreign shareholder-manager of a limited company as a person who may work through a work permit.

The foreigner should therefore review work authorisation before actively taking over management.

Example: Non-Resident Foreign A.Ş. Board Member

A British executive sits on the board of a Turkish joint stock subsidiary but resides permanently in the United Kingdom.

The Ministry states that an A.Ş. board member who does not reside in Türkiye falls within the work permit exemption framework.

This can make the structure substantially different from appointing the same person as a resident executive who works daily from the Turkish office.

What Happens If a Foreign Company Owner Works Without a Permit?

Unauthorised work can create significant administrative consequences.

For 2026, the Ministry publishes the following fines:

• TRY 40,977 for a foreigner working dependently without a work permit;
• TRY 82,010 for a foreigner working independently without a work permit;
• TRY 102,503 per foreign worker for an employer employing a foreigner without authorisation.

Repeated violations are subject to a one-fold increase.

Which category applies to a particular founder or shareholder depends on the factual legal relationship.

A foreign company owner should therefore not assume that the corporate registration protects them from international labour-force sanctions.

Can Working Without a Permit Affect Immigration Status?

Yes.

A valid work permit generally provides both work and residence rights.

Conversely, working without required authorisation can create immigration consequences separate from the labour fine.

The work permit issue should therefore be coordinated with:

• residence status;
• visa status;
• immigration history;
• and, where relevant, deportation risk.

Obtaining a company registration after beginning unauthorised work does not automatically cure the earlier period of violation.

Does a Work Permit Automatically Lead to Turkish Citizenship?

No.

Company ownership does not automatically produce:

• work permit;
• permanent residence;
• or Turkish citizenship.

Likewise, receiving a work permit does not automatically make the person a Turkish citizen.

Each regime has different statutory requirements.

Foreign investment, work authorisation, residence and citizenship should be planned separately rather than treated as a single procedure.

Does Incorporating a Company Automatically Qualify the Foreigner for an Investor Residence Permit?

Company establishment alone does not automatically produce an unrestricted residence right.

The foreigner must identify a specific residence or work-authorisation basis.

A common practical strategy for active founders is therefore to structure:

1. company establishment;
2. work permit;
3. residence compliance;
4. tax and social security registration;

as interconnected but legally separate processes.

Does a Foreign Company’s Turkish Branch Change the Analysis?

A foreign corporation can also establish a Turkish branch.

The foreign managers or representatives who personally work in Türkiye may still need to satisfy work authorisation requirements.

The underlying foreign company’s legal status does not by itself create personal labour-market access for the foreign executives.

Large or qualifying direct foreign investment structures may benefit from special rules, particularly concerning key personnel.

The Ministry states that where an enterprise qualifies as a special direct foreign investment, the first foreigner classified as key personnel may be exempt from the ordinary five-Turkish-employee employment criterion during work permit evaluation.

These rules are designed for specific qualifying investment structures and should be analysed separately.

Are Foreign Investors Treated Differently from Turkish Investors When Establishing the Company?

As a corporate law principle, Türkiye’s foreign direct investment regime is based on equal treatment.

Official investment guidance states that foreign investors generally have the same rights and obligations as domestic investors in company formation and share transfers.

But equal corporate treatment does not mean equal immigration status.

A Turkish citizen does not need immigration work authorisation.

A foreign citizen ordinarily does.

Therefore, foreign founders have an additional personal regulatory layer:

international labour and immigration law.

Can a Foreign Founder Hire Employees Before Receiving Their Own Work Permit?

The company, as a legal entity, can conduct lawful corporate activities through persons who are themselves legally authorised.

The foreign founder’s lack of personal work authorisation does not necessarily prevent the company from:

• hiring Turkish employees;
• renting premises;
• opening accounts;
• entering commercial arrangements through authorised representatives.

The key is that the foreign founder should avoid personally engaging in unauthorised work before approval.

This makes corporate governance planning important during the startup phase.

Does the Company Need Five Turkish Employees Before the First Work Permit Application?

Under the ordinary foreign-shareholder criteria, the Ministry creates an initial transition period.

The five-Turkish-employee requirement is associated with the first work permit through a special annotation, and from the beginning of the seventh month the workplace must employ at least five Turkish citizens each month.

Therefore, it is inaccurate to say:

“Every new foreign founder must already employ five Turks before filing the first shareholder work permit application.”

The current shareholder-specific rule gives an initial period before that employment threshold becomes ongoing.

However, the exact application and company circumstances should still be reviewed carefully.

What Documents Are Commonly Needed?

The exact documentation depends on the application category, but company-founder applications commonly require evidence relating to:

• passport;
• immigration status;
• company Trade Registry records;
• Trade Registry Gazette;
• shareholding;
• company capital;
• manager/board appointment;
• tax registration;
• financial statements where applicable;
• employment information;
• and electronic application documents.

The Ministry conducts work permit applications through the e-İzin system.

The foreigner should ensure that corporate records accurately show:

• share percentage;
• capital amount;
• managerial capacity;
• and authority.

Incorrect Trade Registry information can directly affect the work permit evaluation.

Does a Foreign Founder Need an Employment Contract with Their Own Company?

The required documentation and legal structure vary according to whether the applicant is:

• employee;
• company shareholder;
• manager;
• independent worker;
• or another category.

Ordinary employee applications require an employment contract, and the Ministry publishes specific documents for work permit applications.

Shareholder-manager applications should be structured in accordance with the specific company-partner category rather than artificially treating every founder as an ordinary employee.

Frequently Asked Questions

Does establishing a company automatically give a foreigner a Turkish work permit?

No.

Company establishment and work authorisation are separate legal procedures.

Can a foreigner establish a company without already having a work permit?

Generally yes. Foreign investors may establish Turkish companies under the corporate investment framework.

Can the foreigner then immediately start working?

Not merely because the company has been registered. The required work authorisation should be obtained before beginning work.

Does a foreign limited-company manager need a work permit?

A foreign shareholder-manager of a limited company falls within the work permit framework.

Does every foreign shareholder need a work permit?

Not necessarily. Passive/non-manager shareholders may fall within the work permit exemption framework.

What about a non-resident board member of a joint stock company?

The Ministry states that a non-resident A.Ş. board member is evaluated under the work permit exemption framework.

Is a work permit exemption the same as having no procedure?

Not necessarily. Türkiye has a formal e-Muafiyet system and exemption documentation framework.

How much capital must a foreign company partner have for the ordinary work permit criteria?

Under the current shareholder evaluation criteria, the company’s paid-in capital must generally be at least TRY 500,000, the foreign partner’s capital amount at least TRY 500,000 and the partner’s share at least 20%.

Must the company employ five Turkish citizens?

Under the ordinary shareholder-specific rule, yes, but the requirement becomes operational from the beginning of the seventh month of the first work permit period.

What if the foreigner’s capital share is USD 100,000 or more?

The specific shareholder capital/share and five-employee criteria are not applied under the Ministry’s current USD 100,000 exception.

Does investing USD 100,000 guarantee the work permit?

No. It removes certain evaluation criteria; it does not create automatic approval.

Can a foreigner own 100% of a Turkish company?

Foreign investors can establish companies under the same general investment framework as domestic investors, subject to sector-specific laws where applicable.

Does 100% ownership automatically create a work permit?

No.

Does a Turkish tax number give work rights?

No.

Does a residence permit allow the founder to work?

Generally no. Residence and work authorisation are separate.

Does a work permit give residence rights?

Ordinary work permits generally give the foreigner both work and residence rights during their validity.

Can a work permit application be filed from inside Türkiye?

Generally, a domestic application can be made for foreigners holding a qualifying valid residence permit issued for at least six months, subject to applicable exceptions.

Is an independent work permit available?

Yes. It permits qualifying foreigners to work in their own name and account.

Does every company partner need an independent work permit?

No. The Ministry also issues fixed-term work permits to foreign company owners and partners and states that municipalities should not require a separate independent permit where the appropriate fixed-term permit has been granted.

Can I operate my company while my work permit application is pending?

The company may act through legally authorised persons, but the foreign founder should not personally begin unauthorised work merely because an application is pending.

What is the 2026 fine for unauthorised independent work?

TRY 82,010.

What is the 2026 employer fine for employing a foreigner without authorisation?

TRY 102,503 per unauthorised foreign worker.

Practical Checklist Before a Foreign Founder Establishes a Company in Türkiye

Before incorporation, determine:

1. Will the foreigner be only a shareholder?
2. Will the foreigner be a manager?
3. Will the person be a board member?
4. Will the foreigner reside in Türkiye?
5. Will the person work from the Turkish office?
6. Is the company a limited company or joint stock company?
7. Does a work permit exemption potentially apply?
8. Does the foreigner need an ordinary shareholder work permit?
9. What share percentage will the foreigner hold?
10. What will the foreigner’s capital share be?
11. Will the company satisfy the TRY 500,000 criteria?
12. Does the USD 100,000 exception apply?
13. Can the company employ five Turkish citizens from the seventh month?
14. Does the foreigner have another lawful immigration status?
15. Can a domestic application be filed?
16. Must the application begin through a Turkish consulate abroad?
17. Is the planned profession legally open to foreigners?
18. Does the activity require another regulatory licence?
19. Who will operate the company until the foreigner’s work permit becomes effective?
20. Have corporate and immigration planning been coordinated?

These questions should preferably be answered before the company structure is finalised.

The Biggest Mistake: Incorporating First and Planning Immigration Later

Foreign entrepreneurs often approach the process in the following order:

“First I will create a company. Then the company will automatically give me residence and a work permit.”

This assumption can create serious problems.

A better sequence is:

Step 1 — Decide the Business Structure

Determine whether the company will be:

• limited;
• joint stock;
• branch;
• or another structure.

Step 2 — Decide the Foreigner’s Role

Will the person be:

• passive shareholder;
• company manager;
• board member;
• independent entrepreneur;
• employee?

Step 3 — Design the Shareholding and Capital Structure

Check the current work permit evaluation criteria before deciding:

• percentage;
• capital contribution;
• managerial role.

Step 4 — Check the Immigration Route

Determine whether the application will be:

• domestic;
• foreign;
• ordinary work permit;
• independent work permit;
• or work permit exemption.

Step 5 — Complete Company Establishment

Register the Turkish corporate entity.

Step 6 — Submit the Correct Work Permit Application

Do not assume Trade Registry registration itself created work rights.

Step 7 — Begin Work Only Once Legally Authorised

This avoids:

• fines;
• immigration problems;
• and regulatory exposure.

Conclusion: Foreigners Can Freely Invest in Turkish Companies, but Investment and Work Authorisation Are Separate Legal Concepts

Türkiye is generally open to foreign investment.

Foreign investors may establish Turkish companies and acquire shares under the equal-treatment principle of the foreign direct investment regime.

However, this corporate freedom should never be confused with an automatic personal right to work.

The key legal distinction is:

A foreigner can own a Turkish company without automatically being authorised to work for that company.

A foreign entrepreneur who actively:

• manages;
• represents;
• operates;
• supervises;
• or personally performs services

may need a work permit.

The Ministry expressly requires foreigners who establish workplaces and intend to work personally to complete the company establishment process and then obtain the appropriate work authorisation before beginning work.

For limited companies, a foreign shareholder who is also a manager falls within the work permit framework.

For joint stock companies, foreign shareholder-board members may likewise require authorisation, while non-resident board members are treated under the exemption framework.

Other passive shareholders without managerial capacity may also fall under work permit exemption rules.

The distinction between:

shareholder

and

shareholder-manager

can therefore completely change the legal position.

The current 2026 evaluation criteria are especially important for founders.

Under the standard shareholder framework, the Ministry ordinarily requires:

• company paid-in capital of at least TRY 500,000;
• the foreign shareholder’s capital amount of at least TRY 500,000;
• at least 20% shareholding;
• and employment of at least five Turkish citizens from the beginning of the seventh month of the first work permit.

Foreign investors with a capital share of at least USD 100,000 benefit from an important exception: the specific shareholder capital, shareholding and five-Turkish-employee criteria under that subsection are not applied.

But even then:

USD 100,000 does not buy an automatic Turkish work permit.

The foreign investor must still apply and obtain approval.

The same principle applies to other exceptions.

Current Ministry criteria contain special rules for:

• certain foreigners with prior lawful residence in Türkiye;
• long-term residence permit holders;
• persons with qualifying Turkish family relationships;
• and various other groups.

But exemption from a particular evaluation criterion should not be confused with automatic work authorisation.

Likewise, a work permit exemption should not automatically be interpreted as “no administrative procedure.”

Türkiye operates a formal work permit exemption system through e-Muafiyet.

Foreign founders should also distinguish corporate registration documents from immigration documents.

None of the following automatically replaces a work permit:

• Turkish tax number;
• Trade Registry Gazette;
• MERSİS registration;
• company share certificate;
• company bank account;
• tax registration;
• registered manager status;
• commercial licence.

These documents establish the company or its corporate structure.

They do not, by themselves, establish the foreigner’s personal right to work in Türkiye.

A work permit is a separate administrative authorisation under Law No. 6735.

Once granted, ordinary work permits provide an important additional benefit: they generally serve as both work and residence authorisation during their validity period.

This can make a properly structured work permit strategy particularly attractive to active foreign entrepreneurs.

Failure to plan the issue, however, can become expensive.

The 2026 administrative fine for a foreigner working independently without authorisation is TRY 82,010, while an employer employing an unauthorised foreigner can face TRY 102,503 per foreign employee.

Therefore, the correct question for a foreign founder should never be only:

“Can I establish a company in Türkiye?”

The better questions are:

Can I establish the company?

Can I own its shares?

Will I be a manager?

Will I personally work in Türkiye?

Which work permit category applies?

Do I satisfy the shareholder criteria?

Does an exemption apply?

Should the capital structure be adjusted before incorporation?

Will the company need five Turkish employees?

Does the USD 100,000 investment exception apply?

Can I file domestically or must I apply from abroad?

Who will manage the company until my permit becomes effective?

Once these questions are addressed together, foreign investors can structure both the company and their personal immigration status far more efficiently.

Legal Basis

Foreign Direct Investment Law No. 4875

Türkiye’s foreign investment framework is based on equal treatment, allowing foreign investors to establish Turkish companies and acquire shares generally under the same corporate framework applicable to domestic investors.

International Labour Force Law No. 6735

Work Permit

A work permit is an official document issued by the Ministry of Labour and Social Security that allows a foreigner to work and, in ordinary categories, reside in Türkiye during the permit’s validity.

Independent Work Permit

An independent work permit permits the foreigner to work in Türkiye in their own name and account.

Evaluation can consider:

• education;
• professional experience;
• economic contribution;
• employment effect;
• technology/science contribution;
• and capital share for foreign company partners.

Ministry of Labour — Foreign Company Shareholder Criteria

Under the current foreign-shareholder work permit evaluation criteria for qualifying balance-sheet enterprises:

• company paid-in capital: at least TRY 500,000;
• foreign partner’s capital amount: at least TRY 500,000;
• foreigner’s shareholding: at least 20%;
• at least five Turkish employees from the beginning of the seventh month of the first work permit period.

Where the foreign shareholder’s capital share is at least USD 100,000, these specific requirements do not apply.

Ministry of Labour — Company Managers and Shareholders

Current Ministry guidance distinguishes:

• foreign limited-company shareholder-managers;
• foreign joint-stock-company shareholder-board members;
• foreign managing partners of partnerships limited by shares;

from passive/non-resident categories.

A non-resident foreign board member of an A.Ş. and non-manager shareholders in other companies fall within the work permit exemption framework.

Final Checklist for Foreign Entrepreneurs

Before personally working through a Turkish company, check:

1. Is the company already registered?
2. What company type was chosen?
3. What percentage does the foreigner own?
4. What is the foreigner’s capital amount?
5. Does the company have at least TRY 500,000 paid-in capital?
6. Is the foreigner’s share at least 20%?
7. Is the foreigner’s capital share at least USD 100,000?
8. Does the USD 100,000 exception apply?
9. Is the foreigner formally a manager?
10. Is the foreigner a board member?
11. Does the foreigner reside in Türkiye?
12. Is the person only a passive shareholder?
13. Does a work permit exemption apply?
14. Has the exemption been formally documented where required?
15. Will the five-Turkish-employee requirement apply?
16. Can the business meet that requirement from month seven?
17. Does another special evaluation exception apply?
18. Can the application be submitted domestically?
19. Does the foreigner have a qualifying valid residence permit?
20. Must the process instead begin through a Turkish diplomatic mission?
21. Is an independent work permit more appropriate?
22. Is a fixed-term shareholder work permit more appropriate?
23. Is the proposed profession open to foreigners?
24. Has the founder begun working before approval?
25. Are tax, social security and workplace licence requirements separately satisfied?

Disclaimer: This article provides general legal information concerning foreign investors, company formation and work permits in Türkiye as of September 2026. It does not constitute individual legal advice. Work permit eligibility can differ according to company type, shareholder percentage, capital, immigration status, management authority, sector, profession, residence history, investment level and applicable exemptions. Current Ministry evaluation criteria should therefore be checked against the specific corporate structure before the foreign founder begins working.