How to Establish a Company in Turkey 2025?

As of 2025, Turkey’s company formation process has benefited from digitalization and streamlined procedures. To address How to Establish a Company in Turkey 2025?, entrepreneurs must follow updated legal steps, ensure compliance with the latest Turkish Commercial Code amendments, and leverage online registration portals (MERSIS). The basic roadmap includes: selecting an appropriate entity type, checking name availability, drafting Articles of Association, registering with trade registry, obtaining tax registration, opening a corporate bank account, and securing necessary licenses or permits.

In 2025, Turkey continues to embrace e-signatures and online notary services for certain documents, reducing the need for physical presence. However, some steps still require notarization or in-person approvals, especially for foreign founders. Understanding platform updates in MERSIS and integration with e-government services (e-Devlet) helps accelerate the process. It is critical to keep abreast of regulatory changes that affect minimum capital thresholds, shareholder composition rules, or sectoral licensing requirements.

Overview of the 2025 Company Formation Ecosystem

The Turkish government has focused on encouraging foreign direct investment. In 2025, online company registration systems allow preliminary filings remotely, but foreign investors often engage local legal counsel to prepare documents, arrange apostille and sworn translations, and manage in-person formalities. The digital infrastructure facilitates initial name reservation and trade registry submission, but certain approvals (e.g., for regulated sectors) may require visits to ministries or municipal offices.

Can Foreigners Establish a Company in Turkey 2025?

A frequent concern is Can Foreigners Establish a Company in Turkey 2025? The answer is generally yes: Turkey permits foreign individuals and legal entities to establish companies, subject to certain conditions. The reciprocity principle applies: nationals of countries granting Turkish citizens similar rights can typically acquire real estate or start businesses. However, many countries have reciprocity agreements, and in 2025 this list is regularly updated. Foreigners can be 100% shareholders in most sectors, though some strategic or regulated industries may impose shareholding limits or require local partner participation.

Foreign investors must comply with national security regulations if operating in critical sectors (defense, telecommunication, energy). For most commercial activities—IT, trading, consultancy, manufacturing—foreign ownership is allowed. It is essential to verify if your specific nationality is on the permitted list at the time of application.

Eligibility and Reciprocity Principle

When asking Can Foreigners Establish a Company in Turkey 2025?, check the current reciprocity announcements published by the Ministry of Environment and Urbanization (for property) and Ministry of Trade (for business). Even if property reciprocity affects real estate acquisition, business establishment typically relies on trade regulations. Most nationalities face minimal restrictions. Always confirm with a local lawyer that your country’s citizens enjoy rights to establish companies.

Can Foreigners Establish All Their Companies in Turkey?

Another question arises: Can Foreigners Establish All Their Companies in Turkey? In principle, foreigners may establish multiple companies in Turkey, subject to legal compliance, capital requirements, and sector-specific regulations. There is no general limit on the number of companies a foreign individual or entity can register, provided each company meets statutory requirements: minimum share capital, local address, appointed managers, and registration fees.

However, each company must be independently registered, maintain separate accounts and fulfill tax and reporting obligations. Foreign investors often create holding structures or separate legal entities for different ventures: e-commerce, real estate management, consultancy, or import-export. Each entity must comply with Turkish Commercial Code and relevant sector regulations.

Practical Considerations for Multiple Company Establishments

When considering Can Foreigners Establish All Their Companies in Turkey?, keep in mind: administrative workload multiplies with each entity—trade registry filings, annual financial reporting, tax filings, social security obligations for employees, and maintaining separate corporate governance. Engaging a local accounting firm and legal advisor ensures each company remains compliant. Structuring multiple companies under a holding entity can centralize management, but requires careful planning of corporate governance and tax optimization.

What Kind of Companies and Corporate Forms Can Foreigners Establish in Turkey?

A critical question: What Kind of Companies and Corporate Forms Can Foreigners Establish in Turkey? Turkish law provides several legal entity options for foreigners:

Limited Liability Company (LLC / Limited Şirket)

The most common form for SMEs. An LLC requires at least one shareholder (individual or legal entity), limited liability up to capital contribution, and modest minimum capital requirements (often a nominal amount, though advisable to deposit sufficient funds for business operations). Foreigners can hold 100% of shares. Management by one or more managers (resident or non-resident). Ideal for small to medium businesses, startups, and service firms.

Joint Stock Company (JSC / Anonim Şirket)

Suitable for larger ventures, capital markets, or enterprises seeking external investors. Requires higher minimum capital, issuance of shares, board of directors, stricter governance, and potential auditing obligations if thresholds exceeded. Foreign shareholders may own all shares. Used for manufacturing, large-scale projects, or companies planning capital increases or public offerings.

Branch Office of a Foreign Company

Foreign corporations can establish a branch office to conduct business in Turkey under the parent company’s name. The parent remains fully liable for branch operations. Documents from abroad require apostille/legalization and Turkish translation. A branch is useful for extending an existing business, but involves liability considerations since parent company is responsible for debts.

Liaison Office (Representative Office)

A liaison office cannot carry out commercial activities or generate revenue; it may conduct market research and promotional work for the parent company. Useful as a preliminary presence to assess market conditions before establishing a legal entity for trading.

Partnerships (Collective or Commandite)

Less common for foreigners, as general partnerships involve unlimited liability for at least one partner. Limited partnerships (commandite) require at least one general partner with unlimited liability and at least one limited partner. Foreigners can participate but often prefer LLC or JSC forms due to limited liability protections.

Sole Proprietorship and Freelancer Registration

Foreign nationals with residence permits may register as sole proprietors or freelancers under certain conditions. Liability is unlimited, so this form suits low-risk activities. Requires proper business licensing and tax registration.

By understanding What Kind of Companies and Corporate Forms Can Foreigners Establish in Turkey?, investors choose the form that aligns with liability preferences, capital availability, governance complexity, and long-term strategic goals.

How to Establish a Company in Turkey? What Should Foreigners Do If They Want to Start a Business? What should foreigners who want to establish a company in Turkey do? What is Legal Procedure?

This comprehensive section addresses How to Establish a Company in Turkey? What Should Foreigners Do If They Want to Start a Business? What should foreigners who want to establish a company in Turkey do? What is Legal Procedure? We break down each stage of the legal procedure and practical steps required for foreign founders.

1. Preliminary Planning and Feasibility Study

Before incorporation, conduct market research and feasibility analysis: assess demand, competition, regulatory environment, and financial projections. Determine the most suitable corporate form from those above. Identify whether your nationality has any restrictions for your intended business activity. Engage a local consultant or legal advisor to gather up-to-date information on sector-specific licensing requirements or incentives.

2. Choose a Company Name and Get Approval

Propose several company names and check availability via MERSIS (Central Registration System). Names must be unique and include the legal suffix (e.g., “Limited Şirket”). Submit name reservation application online. Once approved, the reservation is valid for a limited period to prepare incorporation documents.

3. Drafting Articles of Association (AoA)

Draft Articles of Association in Turkish, reflecting the foreign shareholders’ agreements: company purpose, share capital, shareholder contributions, management structure, decision-making rules, profit distribution, transfer of shares, and dissolution procedures. Provide an English translation for foreign founders’ understanding. Include governance provisions aligned with investors’ expectations, such as capital increase mechanisms or exit strategies.

4. Legalization and Translation of Foreign Documents

If foreign individuals or parent companies are involved, obtain necessary documents: passport copies, certificate of incorporation, board resolutions or power of attorney authorizing Turkish establishment. These documents must be apostilled or consularly legalized in the country of origin and then translated into Turkish by a sworn translator, followed by notarization in Turkey.

5. Notary and MERSIS Registration

Sign AoA and other required declarations before a Turkish notary (either in Turkey or via Turkish consulate abroad, where available). Upload digitally signed incorporation documents and notarized translations to MERSIS. Pay registration fees. The trade registry office reviews submissions and may request clarifications; upon approval, issues the trade registry certificate and publishes in the Trade Registry Gazette.

6. Tax Office Registration and Corporate Tax ID

After trade registry registration, the company automatically obtains a tax identification number via integration with the tax office. Register for VAT if applicable based on activities. Submit preliminary tax declarations and register with the local tax authority for corporate income tax obligations.

7. Social Security Registration and Employment Setup

If hiring employees, register with the Social Security Institution (SGK). Draft Turkish-compliant employment contracts (provide English translations for expatriate staff). Handle work permits for foreign employees: apply via the Ministry of Labor and Social Security with legal assistance, demonstrating company establishment and fulfilling criteria for work visa issuance.

8. Open Bank Account for Your Company

To open a corporate bank account in Turkey, present trade registry excerpt, tax certificate, Articles of Association, signature circular or board resolution, and identification of authorized signatories. For foreign signatories, provide apostilled and translated documents. Banks perform KYC/AML checks; once approved, deposit capital (if not already paid) and set up multi-currency accounts if needed for import-export operations.

9. Obtain Licenses and Permits for Specific Activities

Depending on business scope, apply to relevant regulatory bodies: municipal permits for retail, health ministry approval for food services, BTK license for telecom services, Capital Markets Board approval for financial services, etc. Prepare technical dossiers, safety reports, or financial guarantees as required.

10. Accounting, Reporting, and Ongoing Compliance

Engage local accounting firms to maintain Turkish Financial Reporting Standards. File monthly VAT returns, payroll declarations, quarterly withholding tax filings, and annual corporate tax returns. Conduct audits if turnover or scale triggers audit thresholds. Keep proper corporate records: minutes of general meetings, updated shareholder ledger, and file any changes (address, management) promptly with trade registry.

11. Business Operations and Growth

With the company legally established, focus on marketing, sales, partnerships, and growth strategies. Leverage local networks, attend industry events, and comply with local norms. Monitor legal and regulatory changes that may affect your sector, and update corporate governance or internal policies accordingly.

Do I have to be in Turkey to Establish a Company?

Many foreign founders ask: Do I have to be in Turkey to Establish a Company? In 2025, Turkey offers options to minimize physical presence, though some steps still benefit from in-country assistance.

Remote Registration via Power of Attorney

Foreign individuals can appoint a Turkish-based representative or legal counsel via a notarized power of attorney, legalized or apostilled and translated into Turkish. The representative handles notary visits, MERSIS filings, and trade registry interactions on behalf of the foreign founder. This allows remote incorporation without requiring the founder’s physical presence in Turkey.

Turkish Consulate Notarization Abroad

In some countries, Turkish consulates offer notarization of incorporation documents (e.g., Articles of Association, power of attorney). Founders can sign before the consular officer; documents then proceed to Turkey with apostille/legalization pre-checks, reducing travel needs.

Electronic Signatures and E-Government Services

Turkey’s e-government framework allows digital signature use for certain filings. If a foreign founder obtains a qualified electronic signature recognized by Turkish authorities, some documents may be signed digitally. However, not all documents can be executed electronically; in-person notarization is still required for some statements. Check current regulations for e-signature acceptance in 2025.

In-Person Requirements and Strategic Visits

Although many steps can be handled remotely, strategic in-person visits may expedite processes: meeting local partners, attending bank interviews, or obtaining certain permits personally. Planning a short trip to Turkey can help with establishing local relationships, understanding market nuances, and satisfying translations or notarization that cannot be done abroad.

Best Practices and Tips for Foreign Entrepreneurs

Engage Local Legal and Financial Advisors Early

Involve a qualified Turkish lawyer and accounting firm from the planning stage. They help navigate updates in 2025 regulations, draft documents correctly, and manage remote incorporation processes through power of attorney.

Plan Realistically for Timelines and Costs

Company formation can take from a few weeks to a couple of months depending on sector and complexity. Budget for legal fees, translation, legalization, registration fees, and initial working capital. Include contingency for unexpected delays in licensing or administrative approvals.

Stay Informed on Regulatory Changes

Turkish regulations evolve: tax incentives, sector-specific reforms, or changes in minimum capital requirements may occur. Regularly consult with advisors to seize incentives or comply with new obligations.

Utilize Digital Tools but Prepare for In-Person Steps

Leverage online MERSIS filings and e-Devlet services for tax and social security registrations. Yet, anticipate in-person notarization or meetings where digital alternatives are not yet accepted.

Consider Cultural and Language Aspects

Even with remote processes, understanding Turkish business culture, communication norms, and local etiquette improves relationships with partners, employees, and authorities. Consider hiring bilingual staff or interpreters if needed.

Structure for Growth and Compliance

Choose a corporate form that supports your growth plans: an LLC for small-scale ventures or a JSC for larger investments. Plan governance provisions in Articles of Association to allow future capital increases or new shareholders without major amendments.

Conclusion

Establishing a company in Turkey in 2025 offers promising opportunities for foreign entrepreneurs, provided they understand the legal framework, updated procedures, and practical considerations. We addressed How to Establish a Company in Turkey 2025? by outlining digital and in-person steps; confirmed Can Foreigners Establish a Company in Turkey 2025? and indicated that foreigners can establish multiple companies, answering Can Foreigners Establish All Their Companies in Turkey?. We explained What Kind of Companies and Corporate Forms Can Foreigners Establish in Turkey?, including LLCs, JSCs, branches, liaison offices, partnerships, and sole proprietorships. The detailed section on How to Establish a Company in Turkey? What Should Foreigners Do If They Want to Start a Business? What should foreigners who want to establish a company in Turkey do? What is Legal Procedure? provided step-by-step guidance from planning and drafting AoA to registration, tax, social security, bank account opening, licenses, and ongoing compliance. Finally, we covered Do I have to be in Turkey to Establish a Company? by explaining remote options via power of attorney, consular notarization, and e-signature, while acknowledging some benefits of strategic visits.

By following best practices—engaging local advisors early, planning timelines and budgets, staying informed on regulatory changes, leveraging digital tools, and respecting cultural norms—foreign entrepreneurs can navigate the company establishment process smoothly. Turkey’s evolving business environment in 2025 presents diverse sectors and incentives, making it an attractive jurisdiction for new ventures and expansions. With careful preparation and professional support, establishing and operating a company in Turkey can become a strategic asset for global growth.