How Foreigners Can Legally Start a Business in Turkey
The Republic of Turkey has long since moved beyond being just a tourist destination. Today, it offers a dynamic and fast-growing business environment that attracts entrepreneurs from around the world. Its strategic location at the crossroads of Europe and Asia, modern transport and logistics infrastructure, and a large domestic market create favorable conditions for launching commercial projects. In this article, we examine which business structures are available to foreigners and how to register a company in Turkey while avoiding legal risks.
Which Business Structures Are Suitable for Foreigners
Turkish legislation allows foreign nationals to engage in entrepreneurial activity almost on the same terms as local residents. However, the choice of legal form directly affects taxation, liability, and the scale of operations. For this reason, many international investors prefer to begin with guidance from experienced legal professionals — for example, specialists at Tuncay & Barcın Law Office. You can request a consultation via the website tuncaybarcinlawoffice.com.
The most common registration options include:
- Limited Liability Company (LLC) — requires at least one shareholder and a minimum share capital of TRY 10,000. The liability of participants is limited to their capital contribution, reducing personal financial risk.
- Joint-Stock Company (JSC) — best suited for large projects and joint ventures with local partners. The minimum capital requirement is TRY 50,000.
- Branches and representative offices of foreign companies — allow operations in the Turkish market without establishing a new legal entity.
- Sole proprietorship — features simplified accounting and minimal formal requirements. Registration is carried out by a single individual.
Stages of Opening a Company in Turkey
Starting a business in Turkey requires strict compliance with the established procedure. Missing deadlines or errors in documentation may result in administrative penalties and financial losses. The standard registration process for a foreign entrepreneur includes the following steps:
- Obtaining a tax identification number (Vergi Kimlik Numarası). This number is essential for all subsequent actions, from company registration to opening a bank account.
- Preparation of incorporation documents. All documents must be prepared in Turkish and notarized. The foreign founder’s signature must also be certified by a notary.
- Registration with the Chamber of Commerce. The company is entered into the Trade Registry (Ticaret Sicil Gazetesi) and receives an official registration number confirming its legal status.
- Opening a corporate bank account. This requires the registration documents, the founder’s passport, and the tax number. The share capital is deposited into the account, and the bank issues confirmation needed to complete the registration.
- Tax registration. The company is registered with the local tax office and declares its applicable tax obligations, including VAT, corporate income tax, and employee contributions.
- Appointment of an accountant. Having a licensed accountant is mandatory in Turkey. Signing an agreement with a certified professional helps avoid reporting errors and penalties.
- Obtaining permits and licenses. Certain sectors — such as food service, alcohol sales, construction, and others — require additional licenses and regulatory approvals.
Key Challenges and Risks for Foreign-Owned Businesses
Despite Turkey’s open investment policy, its legal system has specific nuances that may pose challenges for unprepared entrepreneurs. The main risks include:
- Immigration issues. To legally reside and work in Turkey, a residence permit and work permit are required. The process can be lengthy and demands strict compliance with formalities; otherwise, delays or refusals are possible.
- Contractual and partnership risks. Errors in agreements, vague terms, or insufficient legal protection can lead to disputes with partners and investors.
- Financial management. Poor allocation of funds, lack of strategy, and inadequate control can undermine business stability, especially at the early stages.
- Legal disputes and interaction with government authorities. Conflicts with partners, intellectual property issues, or inspections by state bodies require professional legal support.
To minimize risks and establish a business in Turkey in full compliance with the law, it is advisable to seek assistance from experienced legal professionals. Tuncay&Barcın Law Office supports foreign entrepreneurs at every stage — from choosing the appropriate business structure to obtaining licenses and completing tax registration. This approach saves time, prevents mistakes, and provides a solid legal foundation for successful business development in Turkey.
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