Company Types in Türkiye: A Guide for International Entrepreneurs (2025)

As of 2025, Türkiye offers a variety of company types tailored to different investment needs. Understanding the legal framework and market trends can help international entrepreneurs select the most suitable business structure. Here, we break down the options and highlight the most advantageous choices for foreign investors.

Capital Companies

1. Limited Liability Company (LTD ŞTİ)

– Advantages:
– Low minimum capital requirement: 50,000 TL
– Limited liability: Partners are responsible only up to their capital share
– Single-shareholder incorporation allowed
– Fixed corporate tax rate: 20%
– Eligible for all types of commercial activities, including manufacturing, import/export, and services

– Ideal for:
– SMEs, e-commerce startups, and mid-sized enterprises
– Most preferred structure by foreign investors (82% market share)

2. Joint Stock Company (AŞ)

– Advantages:
– Ability to issue shares and go public
– Flexible stock transfer process
– Suitable for large-scale projects, with a minimum capital requirement of 250,000 TL

– Ideal for:
– Large corporations, fintech firms, and businesses planning an IPO
– Enterprises with more than 50 shareholders

Sole Proprietorships

1. General Partnership (Kollektif Şirket)

– Advantages:
– No capital requirement
– Quick decision-making

– Disadvantages:
– Unlimited personal liability for business debts

2. Limited Partnership (Komandit Şirket)

– Structure:
– Two types of partners:
– General partners (personally liable)
– Limited partners (liable only up to their capital contribution)
– Common in specialized project partnerships

Special Purpose Companies

Cooperatives

– Use Cases:
– Agricultural cooperatives, housing cooperatives, and consumer associations
– Typically operate as non-profit entities

Key Considerations for Foreign Investors

1. Equal Rights: Foreign investors enjoy the same legal rights as local investors.
2. Company Registration Timeframe: Companies can be registered within an hour at the Trade Registry Office.
3. Required Documents:
– Passport with notarized Turkish translation
– Capital declaration document
– Online registration via Türkiye’s MERSİS system

How to Choose the Right Company Type?

– Risk Tolerance: Investors seeking limited liability should opt for capital companies.
– Capital Investment:
– Less than 250,000 TL → Limited Liability Company
– More than 250,000 TL → Joint Stock Company
– Industry-Specific Requirements: Construction and finance sectors require a joint stock company setup.

For most international entrepreneurs, a Limited Liability Company (LTD ŞTİ) is the best option due to its low cost, straightforward setup, and operational flexibility. However, businesses planning an IPO or large-scale investments may find a Joint Stock Company (AŞ) more beneficial.

To ensure compliance with Türkiye’s Commercial Code, consulting a local legal expert and utilizing MERSİS for online application is highly recommended.