Establishing a Business in Turkey: Guide for Foreign Investors

Turkey's position bridging Europe and Asia creates compelling business opportunities. With approximately 80 million population, half under age 30, growing consumer sophistication, and improved infrastructure, the country attracts substantial foreign entrepreneurial interest.

Why Consider Turkish Business Operations

Market Advantages

Government Incentives

Business Structure Options

Limited Liability Company (LLC)

Most popular structure for small and medium enterprises. Characteristics:

Minimum capital requirement: 50,000 Turkish Lira.

Joint Stock Company (JSC)

Suitable for larger enterprises seeking capital market access or operating in competitive markets:

Establishment typically requires one to three working days.

Alternative Structures

Registration Procedures

Step 1: Articles of Association Preparation

Draft founding documents incorporating company name with "limited" designation. Specify founders' nationalities, names, addresses, and trading addresses. Notarize and translate documents.

Step 2: Capital Deposit

Deposit minimum share capital into company-named bank account.

Step 3: Commercial Registry Registration

Submit registration application with required documents:

Registration certificate issuance and Turkish Gazette publication follow.

Step 4: Tax Registration

Register for VAT with appropriate tax authority.

Essential Documentation

Corporate Banking Requirements

Corporate accounts enable:

Select banks matching service requirements, fee structures, and currency handling capabilities.

Tax Obligations

Corporate Income Tax

Standard rate: 23% (reduced rates apply to selected sectors).

Value Added Tax (VAT)

Standard rate: 20%

Reduced rates: 1-10% for specific goods and services

Registration Requirements

All operating entities must register with tax authorities. Audited financial statements require regular filing.

Social Security Registration

Businesses register with Social Security Administration regardless of employee count. This registration provides employer identification and workplace safety verification.

Professional Accountant Requirement

Turkish regulations mandate Certified Public Accountant engagement for tax declaration management and financial compliance.

Post-Registration Obligations

Industry-Specific Considerations

Certain sectors require specific licensing:

Foreign nationals managing Turkish businesses require work permits for legal operational authority.

Citizenship Through Investment

A property purchase of at least $400,000, confirmed by a valuation report, can be the basis of a citizenship application. Alternative investment pathways include:

Professional Assistance

Company formation agents operate throughout Turkey. Research credentials and track records before engagement.

Sun and Sky Real Estate connects foreign investors with qualified legal and accounting professionals experienced in Turkish business establishment. Contact our team for guidance navigating business formation appropriate to your entrepreneurial objectives.