Company Formation in Türkiye for Foreign Investors in 2025
As of 2025, Türkiye offers a highly accessible and investor-friendly environment for foreign entrepreneurs seeking to establish a business. Under the provisions of Law No. 4875 on Foreign Direct Investment, foreign real and legal persons are entitled to equal treatment with local investors. Foreigners can establish all forms of companies permitted by the Turkish Commercial Code, including limited liability, joint-stock, collective, and commandite companies.
Company Formation Requirements
Minimum Capital Requirements
- limited liability companies: minimum paid-in capital of 100,000 TRY is required
- joint-stock companies: a minimum capital of 50,000 TRY must be committed
- 100% foreign-owned structures: no restrictions on ownership or capital origin
Work Permit and Employment Regulations
For foreign shareholders and managers to reside and work in Türkiye legally, several employment and capital requirements apply:
- employment requirement: each foreign shareholder needs to ensure employment of at least five Turkish citizens
- alternative capital/income conditions: either 500,000 TRY of paid-in capital or 8,000,000 TRY in projected gross sales
- exception for major investors: partners contributing over 100,000 USD in capital are exempt from the minimum employment rule
Step-by-Step Incorporation Process
Foreign entrepreneurs must follow a clear legal procedure to establish a company in Türkiye. Below is a breakdown of the main steps:
- Document preparation: apostille-certified passport or corporate registration documents, plus notarized signature declarations
- Commercial registration: application to the local Chamber of Commerce and acquisition of a Turkish tax identification number
- Capital payment: initial capital must be transferred to a Turkish bank account, either in TRY or foreign currency
- Work permit application: submitted after fulfilling employment and capital criteria
Tax and Legal Obligations
Businesses in Türkiye, including foreign-owned companies, are subject to the national tax framework and reporting requirements:
- corporate tax: fixed at 23% as of 2025
- VAT filing: monthly declarations required for VAT-registered companies
- language requirements: financial records kept in a foreign language must be translated into Turkish
Timeline and Compliance Tips
The average company formation process can be completed within 7 to 10 business days, depending on the completeness and correctness of the submitted documents. It is crucial for foreign investors to align their capital structure, shareholder setup, and employment plan with local legal standards.