Can Foreign Nationals Establish a Company in Türkiye?
Yes. Under Turkish legislation, foreign individuals and foreign-invested companies may establish companies in Türkiye under the same rights and obligations as Turkish citizens.
Pursuant to the principle of equal treatment adopted under the Foreign Direct Investment Law, foreign investors may establish a company in Türkiye, become shareholders of an existing company, or establish a wholly foreign-owned company without obtaining prior governmental approval.
Türkiye’s strategic location providing access to the European, Middle Eastern, and Asian markets, its advanced banking system, young workforce, and investment incentives offer significant advantages to foreign investors.
What Types of Companies Can Be Established in Türkiye?
Foreign investors may establish the following types of companies under the Turkish Commercial Code:
• Limited Liability Company (Ltd. Şti.)
• Joint Stock Company (A.Ş.)
• Branch Office
• Liaison Office (subject to certain conditions)
In practice, the Limited Liability Company is the most preferred company type due to its ease of management and the speed of the incorporation process.
Documents Required for Foreign Nationals to Establish a Company
Although the required documents may vary depending on the investor’s nationality and the shareholding structure, the following documents are generally required:
• Copy of passport
• Notarized Turkish translation of the passport
• Turkish Tax Identification Number
• Address information
• Articles of Association
• Shareholders’ resolutions (if there is a corporate shareholder)
• Apostilled incorporation documents (where the shareholder is a foreign legal entity)
• Certificate of Activity and Signature Circular (for legal entities)
Depending on the country where the documents are issued, apostille certification or consular legalization may also be required.
How Does the Company Formation Process Work?
- Obtaining a Tax Identification Number
2. Determining the company name
3. Preparation of the Articles of Association
4. Registration in the MERSİS system
5. Application to the Trade Registry
6. Tax Office procedures
7. Execution of signature declarations
8. Obtaining company registration documents
9. Opening a corporate bank account
10. Planning work and residence permit procedures, where applicable
If all documents are duly prepared, the incorporation process can generally be completed within a few business days.
Must the Foreign Shareholder Be Present in Türkiye?
No.
In many cases, the incorporation process may be completed by an attorney under a duly executed and notarized power of attorney.
Accordingly, investors may establish a company without travelling to Türkiye. However, personal attendance may be required for bank account opening procedures or certain sector-specific authorizations.
Can Foreign Companies Establish a Company in Türkiye?
Yes.
Foreign companies may establish a new company in Türkiye or become shareholders of an existing Turkish company.
In such cases, the following documents must be duly prepared:
• Trade Registry Records
• Certificate of Activity
• Board Resolution
• Authorization Documents
• Apostille or Consular Legalization
Procedures Following Company Formation
Following incorporation:
• Activation of tax registration
• Commencement of accounting services
• Planning e-Ledger and e-Invoice compliance
• Social Security Institution registrations
• Opening workplace registration files if employees will be hired
• Obtaining any required sector-specific licenses
Opening a Bank Account
Following incorporation, a corporate bank account must be opened to conduct commercial activities.
Banks may request additional documents based on the investor’s identity, incorporation documents, and business activities. As each bank has different internal compliance procedures, professional management of the account-opening process is recommended.
Why Is Legal Assistance Important?
The company formation process involves far more than registration with the Trade Registry. Particularly for foreign investors, apostille procedures, official translations, tax compliance, bank account opening, work and residence permits, preparation of corporate documents, and determination of the appropriate scope of business activities must all be managed together.
Errors or omissions during the incorporation stage may lead to significant legal and financial consequences in the future. Therefore, managing the process with experienced professionals provides substantial advantages for investors.
