Establishing Your Business in Türkiye: A Practical Step-by-Step Guide for Foreign Entrepreneurs

Türkiye presents a stabilizing macroeconomic environment marked by cooling inflation, high interest rates, robust foreign currency purchasing power, and strategic trade positioning between Europe, Asia, and the Middle East. For international entrepreneurs looking to tap into this dynamic market, Turkish commercial law offers a welcoming framework: foreigners can own 100% of a local company without requiring a local partner.

Whether you choose to launch your operations remotely from your home country or fly in to manage the process on the ground, this guide breaks down everything you need to know about company structures, capital requirements, timelines, and step-by-step registration.

Choosing the Right Corporate Structure

Foreign investors typically choose between two primary corporate entities under the Turkish Commercial Code:

• Limited Liability Company (Limited Şirketi – Ltd. Şti.):

  • Ideal for small to medium-sized businesses, agencies, consultants, and e-commerce ventures.

  • Managed by one or more directors (shareholders can also act as directors).

  • Liability is limited to the subscribed capital.

• Joint Stock Company (Anonim Şirketi – A.Ş.):

  • Best suited for larger operations, capital-intensive projects, or businesses planning future public offerings.

  • Requires a Board of Directors and a minimum capital threshold that is higher than an Ltd. Şti.

Capital Requirements and Payment Rules

Turkish law sets clear baseline capital minimums depending on the corporate form you select:

• Limited Liability Company (Ltd. Şti.):

  • Minimum Capital: TRY 50,000.

  • Payment Rule: No upfront cash deposit is required before registration. You have a full 24 months following company incorporation to pay the subscribed capital.

• Joint Stock Company (A.Ş.):

  • Minimum Capital: TRY 250,000.

  • Payment Rule: At least 25% of the subscribed cash capital (TRY 62,500) must be deposited into a temporary bank account in the company’s formation name and blocked before official trade registry filing. The remaining balance can be paid within 24 months.

Remote Setup vs. In-Person Setup: Which is Right for You?

You do not necessarily need to board a flight to get started. Türkiye allows complete remote incorporation via legal representation, but traveling offers a faster, face-to-face approach.

Option A: Setting Up Remotely (From Abroad)

If you prefer to manage the process from your home country, you can authorize a local professional (such as a qualified lawyer or corporate advisor) to act on your behalf.

1. Issue a Special Power of Attorney (PoA): Sign a PoA at a Turkish Consulate in your home country, or before a local notary public. If signed locally, the document must be Apostilled (for Hague Convention countries) or consular-legalized.

2. Obtain a Foreigner Tax ID: Your legal representative will use your PoA to acquire your Turkish Tax Identification Number.

3. Draft & Submit via MERSİS: Your advisor drafts your Articles of Association and submits them through MERSİS (Turkey’s central online registry system) to reserve your trade name.

4. Prepare Corporate Documents: If the shareholder is an individual, you’ll need a notarized Turkish translation of your passport. If it is a foreign corporate entity, its Certificate of Incorporation and Board Resolution must be apostilled and translated.

5. Trade Registry and Tax Activation: Your representative files the application with the Chamber of Commerce. Once approved, the company is officially incorporated, and a tax officer verifies your corporate address.

Option B: Setting Up In Person (3 to 7 Days on the Ground)

Being physically present accelerates the timeline by bypassing international shipping and notarization delays.

• Day 1: Visit a local tax office with your original passport to get your Tax ID instantly. Meet with a sworn translator and local notary to notarize your passport translation.

• Day 2: Work with your Certified Public Accountant (CPA) to finalize your data in MERSİS and lock in your company name.

• Days 3–5: Submit your official formation file to the Chamber of Commerce. Upon review, your company gains legal status and appears in the Trade Registry Gazette.

• Days 6–7: Issue your official signature circular (imza sirküleri) at the registry. The tax office completes activation following an address inspection.

Essential Post-Incorporation Steps

Once your legal entity is registered, two crucial operational requirements remain:

1. Appoint a Certified Public Accountant (Mali Müşavir): By Turkish law, every company must retain a licensed local CPA to manage mandatory monthly accounting, tax filings, and legal compliance.

2. Open a Corporate Bank Account: While your company can be legally formed, activating a corporate bank account involves strict anti-money laundering (AML) and KYC compliance. Depending on the bank, you may need to complete video verification or visit a branch in person to unlock full online banking capabilities.

Planning your market entry or need help structuring your business model for the Turkish market? Reach out to our team at STARTINFORUM to streamline your cross-border expansion.

List of Documents Required to Establish a Company in Türkiye

1. General Documents (For All Setups)

• Valid Passport: Original passport (plus photocopies).

• Potential Tax Identification Number: Issued instantly at any local tax office using your passport.

• Articles of Association (Ana Sözleşme): Digitally drafted and submitted through the MERSİS online system.

• Chamber of Commerce Registration Forms: Completed and signed application petitions.

• Competition Authority Receipt: Proof of payment for the mandatory formation contribution (0.04% of the capital paid via the registry office).

• Registered Business Address Proof: A signed lease agreement for your physical office or virtual office space.

2. If the Shareholder is an Individual (Real Person)

• Notarized Passport Translation: A Turkish sworn translation of your passport, notarized by a Turkish notary public (or validated via consulate if executing remotely).

• Signature Declaration (İmza Beyannamesi): Official signature specimens executed before registry authorities or a notary.

• Passport-sized Photos: Usually 2 to 3 recent photographs of the managers/directors.

3. If the Shareholder is a Foreign Corporate Entity (Another Company)

If your parent company abroad is opening the Turkish entity, additional cross-border documentation is required:

• Certificate of Activity / Good Standing: Issued by the relevant registry authority in the home country, confirming active corporate status and authorized signatories. Must be Apostilled (or consular-legalized) and translated into Turkish by a sworn translator.

• Corporate Resolution: A formal Board Resolution or shareholder decision authorizing the expansion, the establishment of the Turkish company, and the appointment of representatives. Must be Apostilled and translated.

• Parent Company Articles of Association: The foundational charter of the parent entity.

4. Special Requirements for Remote Setup or Capital Type

• Special Power of Attorney (PoA): Required if you are not traveling to Türkiye and a legal representative is acting on your behalf. Must be executed at a Turkish Consulate or via a local notary with an Apostille and sworn Turkish translation.

• Bank Deposit Receipt (For Joint Stock Companies – A.Ş.): A formal bank letter and receipt proving that at least 25% of the subscribed cash capital has been deposited into a temporary corporate account prior to registration. (Note: Not required upfront for Limited Liability Companies – Ltd. Şti.)

Frequently Asked Questions