Establishing a business in Turkey continues to offer significant advantages for foreign investors in 2026, thanks to its strategic location and robust incentive system. The company formation process in Istanbul typically takes 3 to 5 working days, provided all documents are prepared correctly. As of 2026, the minimum capital requirement remains at 50,000 TL for a Limited Liability Company (LLC) and 250,000 TL for a Joint Stock Company (JSC).
According to the Turkish Commercial Code (TTK), foreign investors have the same rights as Turkish citizens. The two most common structures are:
1. Limited Liability Company (Limited Şirket – Ltd. Şti.)
This is the most popular type for small and medium-sized enterprises. It requires a minimum capital of 50,000 TL. Shareholders are liable for public debts (taxes, SGK premiums) in proportion to their share capital, even if the company assets are insufficient.
2. Sole Proprietorship vs. LLC
Many foreigners ask about “Sole Proprietorship” (Şahıs Şirketi). While it is cheaper to set up, it is generally not recommended for foreigners unless they already have a work permit. An LLC provides a more prestigious corporate image and facilitates the work permit application process for shareholders.
Required Documents for Foreigners
To start the process, the following documents must be prepared:
Passport: Notarized translation of the passport.
Potential Tax ID: Obtained from the tax office or online.
Biometric Photos: For official forms.
Proof of Address: If the shareholder lives outside Turkey, a utility bill or bank statement showing their foreign address is required.
How to Open a Company in Istanbul? (Step-by-Step)
The formation process is centralized through the Trade Registry System (MERSIS).
Obtain a Potential Tax Number for non-resident shareholders from the Tax Office or Interactive Tax Office (IVD).
Prepare the Articles of Association and have them signed by all shareholders via MERSIS system.
Deposit 0.04% of the capital to the Competition Authority account (handled during registration). Note: For LLCs, the capital deposit is not required regarding the blocking of the bank account before registration; it can be paid within 24 months.
Apply to the Istanbul Chamber of Commerce (ITO) with notarized documents for official registration.
Complete the signature circular at the Notary Public after the company is officially registered in the Trade Gazette.
📌 Professional Note: Although physical presence is preferred, you can establish a company without coming to Turkey by issuing a specific Power of Attorney (PoA) to a qualified CPA (Mali Müşavir) via a Turkish Consulate in your country.
Tax Obligations for Non-Residents (2026 Outlook)
Once your company is established, it becomes a Turkish tax resident. Key obligations include:
Corporate Income Tax: Standard rate is 25% on net profits.
VAT (KDV): Generally 20%, filed monthly.
Withholding Tax (Stopaj): Applicable on rent, professional services, and employee salaries.
Electronic Ledger (e-Defter): Mandatory for most companies in 2026.
Sıkça Sorulan Sorular (FAQ)
Can I open a company in Turkey without a residence permit?
Yes, foreigners can establish a company in Turkey without having a residence permit. You only need a valid passport and a potential tax number. However, managing the company effectively may require visiting Turkey.
Do I need a Turkish partner to open a company?
No, according to the Foreign Direct Investment Law, you can own 100% of the company shares. A Turkish partner is not legally required.
How long does the company formation process take?
The official registration with the Chamber of Commerce typically takes 3 to 5 business days after all documents are prepared. Including notary procedures and bank account opening, the entire process takes about one week.
Professional Support in Istanbul
Navigating Turkish tax laws and bureaucracy can be complex for foreign investors. Incorrect filing or missing documents may lead to penalties or delays in obtaining a tax plate. Vergi Merkezi | Mali Müşavirlik provides end-to-end company formation services, tax planning, and English-speaking accounting support.
📍 Service Areas: Istanbul (Beyoğlu, Sisli, Besiktas, Maslak), Ankara, Izmir, and remote support for international clients.
For Online Services and Information Contact Us
Ready to establish or grow your business in Turkey? Contact Vergi Merkezi | Mali Müşavirlik today for a consultation with our expert accountants.
T.C. Resmi Gazete (Official Gazette) Title: Turkish Commercial Code No. 6102 (Türk Ticaret Kanunu) Subject: Company Establishment Procedures and Capital Limits
Presidency of The Republic of Turkey Investment Office Document: Guide to Establishing a Business in Turkey (2025-2026)
Destekleyici Kaynaklar
Istanbul Chamber of Commerce (ITO) Subject: Registration Procedures for Foreigners
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