Establishing a Limited Company in Türkiye for Foreigners in 2025
As of 2025, establishing a limited company (LTD) in Türkiye is a streamlined process for foreign investors, thanks to a transparent legal system that ensures equal rights with local entrepreneurs. Foreign individuals or legal entities can fully own a company in Türkiye, and the entire business setup process can be completed remotely through a power of attorney.
Legal Framework and Key Requirements
- Legal Basis: The Foreign Direct Investment Law No. 4875 grants foreign investors the right to own 100% of a Turkish company and provides equal treatment with Turkish citizens.
- Company Type Flexibility: In addition to the limited company (LTD), foreign investors can establish joint-stock companies (AS), general partnerships, or sole proprietorships.
- Capital Requirements:
- Minimum paid-in capital of 100,000 TRY must be fully deposited at the time of incorporation.
- To apply for a work permit as a partner, at least 40% of the company shares must be owned by foreign nationals.
Step-by-Step Incorporation Process and Required Documents
1. Power of Attorney (PoA) Preparation
- The PoA must be notarized and translated into Turkish by a sworn translator.
- If issued in a country that is part of the Hague Apostille Convention, it must include an apostille.
- If the country is not a party to the Convention, Turkish consular legalization is required.
2. Information and Documentation for Shareholders
- For individual shareholders: notarized passport copy and official sworn translation into Turkish.
- For corporate shareholders: apostilled and translated trade registry certificate from the country of origin.
3. Additional Required Documents
- Four biometric photographs of each shareholder or appointed representative.
- Chamber of Commerce registration form with signature and photo.
Estimated Costs in 2025
| Item | Estimated Range (TRY) |
|---|---|
| Trade Registry Fees | 13,000 – 16,500 |
| Notary Fees | Variable |
| Translation and Apostille Services | 500 – 2,000 |
Note: Actual costs may vary based on the company’s capital structure and the province of registration.
Key Considerations for Foreign Investors
- Employment Requirements: There is no obligation to employ Turkish citizens during the first 6 months after company formation.
- Taxation: Corporate income tax is charged at a standard rate of 23%. VAT and withholding taxes apply in accordance with national tax regulations.
- Capital Increase: Any post-establishment capital increase requires additional legal procedures and documentation.
Once incorporation is complete and the company is registered with the tax office, foreign entrepreneurs can proceed with opening a Turkish business bank account, applying for work and residency permits, and conducting international operations.
For more information on taxation, work permits, or company operations, please refer to relevant Turkish government portals.