Company Formation in Turkey

Foreign investors who have questions related to the company formation in Turkey may find below Q&A helpful. For any further inquiry or to hire our commercial team to represent you in company formation in Turkey, please drop an email to info@cosarakkaya.law

1) Can a foreigner incorporate a company in Turkey?

Foreigners can incorporate a company in Turkey without a requirement of having Turkish (local) shareholder or director by completing the necessary registration procedure before the Trade Registry.

2) What types of Company can foreigners incorporate?

Foreigners can incorporate a company in Turkey either as Limited Liability Company or Joint Stock Company

Limited Liability Company:

Limited Liability Company can be incorporated with minimum one shareholder (real person or legal entity) and the company’s shareholders are only responsible from the public debts and tax claims of the company. Apart from that, their responsibility is limited to their share ratio of the capital of the company and no private party can bring an enforcement action for the personal assets of Shareholders. Please note that a minimum capital of 10,000 TL are needed to establish a Limited Liability Company in Turkey. 1/4th of the minimum capital of 10,000 TL (2.500TL) should be paid before the registration while the remaining 3/4th should be paid within 2 years.

Joint Stock Company:

Joint Stock Company can be incorporated with minimum one shareholder (real person or legal entity) and the company’s shareholders are not responsible from the public debts and tax claims of the company as it happens in limited liability company. Their responsibility is only limited to their share ratio of the capital of the company and no private party can bring an enforcement action for the personal assets of Shareholders. Please note that a minimum capital of 50,000 TL are needed to establish a Joint Stock  Company in Turkey. 1/4 of the minimum capital of 50,000 TL (12.500TL) should be paid before the registration while the remaining 3/4 should be paid within 2 years.

3) What documents should a foreigner provide  in order to start a business in Turkey?

As CA Law Firm, we can get your Power of Attorney (PoA) in order to be able to register the Turkish company without a need of the client to be present.  CA Law Firm will send you the template PoA to be notarized and legalized in the home country. This PoA can also be certified at the Turkish Consulate in your home country.
If the shareholder will be yourself as real person, we will be able to incorporate a company with a valid passport and Power of Attorney.

If the shareholder will be legal entity we will require some further documents such as registration certificate, certificate of good standing and a Board Decision appointing a signatory in Turkey.

4) What type of residence permit will I get after incorporating a company?

In Turkey residence permit and work permit are regulated through different regimes.  If you want you can just get residence permit without incorporating a company. It will be valid for 1 year and can be renewed every year. However, in order to get a work permit the company must satisfy several conditions. If you will be the only shareholder as real person, you have to get work permit. However, there are some conditions that your company must satisfy.

5) How long will it take to incorporate a company in Turkey?

CA Law Firm will be able to incorporate a company within 4-5 days after the required documents are ready.

6) What is the current corporate tax liability of Limited Liability Company and Joint Stock company.

Currently the corporate tax is 22% in Turkey.