Starting a Business in Türkiye as a Foreign National: Key Legal Aspects and Procedures for 2026

Foreign nationals have the right to establish a business in Türkiye. However, this process consists of three distinct and sequential stages: company registration, obtaining a business license, and securing a work permit. Each stage involves specific legal requirements that must be completed in order.

Legal Framework and Principles of Equal Treatment

Foreign investors in Türkiye are entitled to make direct investments and enjoy equal treatment with local entrepreneurs. Nevertheless, the procedural and operational aspects of company establishment differ for non-citizens. Foreign individuals must obtain prior work authorization from the Ministry of Labour and Social Security before they can operate or work in their own business. This step comes after the company registration stage.

Step-by-Step Guide to Company Registration in Türkiye

Company registration is the first formal step in setting up a business as a foreign national. The process includes several essential phases:

1. Preparation and Documentation

Foreign partners must determine the type of company (such as a Limited Liability Company or Joint Stock Company) before filing the registration application. Limited Liability Companies (LLC) require a minimum capital of 50,000 TL. The company’s Articles of Association must be drafted, signed by all shareholders, and notarized. If the documents are issued outside Türkiye, they must carry an apostille certificate and be certified by consular authorities or public notaries.

2. Tax and Competition Authority Requirements

Before registration with the Trade Registry Office, each company must obtain a potential tax identification number from the relevant tax office. The payment obligations include:

• for LLCs: a contribution equal to 0.04% of the company’s capital to the Competition Authority
• for Joint Stock Companies: a minimum of 25% of the subscribed capital must be deposited in a corporate bank account

3. Capital Deposit and Documentation

Part of the subscribed capital must be deposited into a bank account under the company’s name and proven with a bank receipt. For Joint Stock Companies, one-quarter of the capital must be blocked in the account prior to registration.

4. Registration with the Trade Registry

Founders must complete their application using the MERSIS (Central Registration System) and submit all required documentation, including notarized Articles of Association, proof of tax number, and bank receipts, to the Trade Registry Office. During registration, the following corporate ledgers will be certified by the registry office: journal, inventory, share ledger, and minutes books.

Once registered, the company gains legal personality and is published in the Turkish Trade Registry Gazette. A notarized signature circular must then be issued.

Business Operating License: Post-Registration Stage

After completing company registration, businesses must apply separately for a business and operating license, which is issued by the respective municipality. A valid work permit is a prerequisite for the issuance of this license to foreign nationals.

For self-employed foreigners, the work permit application is made after completing the registration procedures (publication in the Trade Registry Gazette and tax number acquisition). Municipalities must take the validity period of the temporary work permit into consideration when issuing the business license.

Financial Requirements: Company Registration vs. Work Permit

The financial criteria vary between company registration and obtaining a work permit for company partners:

To qualify for a work permit as a company shareholder, the company’s paid-in capital must be at least 500,000 TL, with the foreign partner holding a minimum 20% share amounting to at least 500,000 TL in capital value.

Obtaining a Work Permit: The Final Stage

The work permit is a separate application made after the company has been officially registered. To obtain approval, the business must employ at least five Turkish citizens for each foreign partner. When multiple foreign partners apply for permits, five Turkish employees must be hired per additional foreign shareholder.

If the foreign applicant already holds a residence permit valid for at least six months, the application for a work permit can be made directly to the Ministry. Otherwise, it must be submitted to the nearest Turkish Embassy or Consulate in the applicant’s home country.

Practical Considerations and Strategic Insights

Timeline and Planning

Since company registration, business licensing, and work permit acquisition are separate but interdependent processes, strategic time management is essential. A work permit must be secured before the municipality can issue the operating license, making the sequence of actions critical for international investors.

Documentation and Translation

All documents belonging to foreign shareholders must be apostilled and officially translated into Turkish by a sworn translator. This requirement has a direct impact on application duration and approval timelines.

Capital Lock Requirement

For Joint Stock Companies, one-fourth of the subscribed capital must be blocked prior to registration. This rule does not apply to Limited Liability Companies, which gives investors greater flexibility during the establishment phase.

Employment Obligation

When calculating operational costs, foreign investors should account for the legal requirement to employ at least five Turkish citizens as a precondition for obtaining a work permit. This obligation significantly influences staffing and budgeting decisions.

By approaching each stage systematically and ensuring full compliance with Turkish corporate, municipal, and labor regulations, foreign entrepreneurs can successfully establish and operate a business in Türkiye.