Requirements for Foreign Entrepreneurs Establishing a Business in Türkiye (2026)

Foreign investors can establish limited liability, joint-stock, or free zone companies in Türkiye with 100% foreign capital. No residence or work permit is needed for company registration; however, appointing a local representative for active management is mandatory. Under the Foreign Direct Investment Law No. 4875, Türkiye provides freedom of investment, equality before the law, and legal protection for foreign entrepreneurs.

Establishment Conditions and Procedures

Physical Presence Requirement

Foreign investors are not required to be physically present in Türkiye to establish a company. All incorporation processes can be completed through a notarized power of attorney authorizing a lawyer or representative. This allows international entrepreneurs to manage the setup remotely.

Minimum Capital Requirements

The minimum paid-in capital is 10,000 TL for limited liability companies and 50,000 TL for joint-stock companies. If a foreign investor plans to apply for a work permit, the company must have at least 100,000 TL paid-in capital.

Required Documents and Identification Procedures

The key documents needed for foreign shareholders include:

• a valid passport and its notarized Turkish translation with an apostille
• a potential tax identification number (TIN) for each partner, obtained from the relevant tax office
• three biometric photos
• the notarized articles of association
• for corporate partners: certificate of activity and a board resolution approving participation in the Turkish entity

If a corporate entity is a shareholder, additional documentation for the person authorized to represent the foreign company must also be provided.

Representative and Management Structure

Foreign entrepreneurs who do not hold residence or work permits can establish and operate a company through a local representative. The representative is authorized to handle procedures before the trade registry, tax authorities, banks, and social security institutions.

Important limitation: a foreign shareholder without a work permit cannot hold an active managerial role and may only remain as a shareholder. The authority of the representative managing the company in Türkiye must be clearly defined in the articles of association.

Work Permit Requirements

Establishment Without a Work Permit

Foreigners may establish a company in Türkiye without holding a work permit. However, to actively participate in company operations, a work permit must be obtained after registration.

Conditions for Obtaining a Work Permit

To qualify for a work permit, foreign partners must meet several requirements:

• for each foreign partner, the company must employ at least five Turkish citizens full-time
• if more than one foreign partner applies for a permit, an additional five Turkish employees must be hired for each
• within the first six months after company establishment, this employment condition does not apply, but it must be met afterward
• the same employment ratio must be maintained for work permit renewal

Residence and Temporary Protection Status

If the applicant does not have a residence permit valid for at least six months in Türkiye, the work permit application must be initiated through Turkish embassies or consulates abroad. The applicant will receive a reference number to track the process.

Tax Identification and Financial Processes

Foreign shareholders must obtain a tax identification number (TIN) from the relevant tax office to carry out company-related transactions. The potential tax ID can be obtained personally or through a lawyer authorized by a notarized power of attorney.

It is mandatory to engage a certified public accountant (CPA). All accounting records and tax declarations must be prepared and submitted by a professional accountant in accordance with Turkish financial regulations.

Investor Residence Permit and Status Upgrade

Foreign business owners in Türkiye may apply for an investor residence permit. Approval depends on the company being operational and meeting the required investment thresholds. This serves as a legal pathway for entrepreneurs seeking long-term residence in Türkiye.

Government Incentives and Tax Advantages

Foreign investors can benefit from various incentives if they meet specific criteria, including:

• tax reductions
• allocation of investment land
• social security premium exemptions
• government grants and financial aids

Companies established in free zones may enjoy additional advantages such as customs duty exemptions, VAT exclusions, and lower corporate tax rates.

Capital inflow and profit repatriation rights are protected under Turkish law, ensuring that investors can legally transfer earnings abroad.

Strategic Overview

By 2026, Türkiye’s regulatory framework offers a robust, EU-aligned investment environment that merges legal stability with a strategic geographic position between Europe, Asia, and the Middle East. The representative mechanism allows remote investors to manage business operations efficiently through authorized agents, while the five-Turkish-employee rule supports local employment and sustainable growth. Free zones, in particular, provide significant advantages for export-oriented businesses due to favorable customs and tax conditions.