Setting Up a Company in Türkiye as a Foreigner: A Plain-English Guide for 2026

Listen, I get it. You've decided to move to Turkey, or you're already here, and now someone's asked you "What's your company structure?" You have no idea what they're talking about. You've heard words like "Limited Şirket," "Anonim Şirket," and "Şahıs Şirketi" thrown around, and they all sound equally overwhelming. People keep telling you different things, and you're not sure if you need a Turkish partner, a huge capital deposit, or what.

I've been in Istanbul for 35 years. I am not a lawyer or accountant. This article is general orientation, not legal advice. For your specific situation, consult a Turkish avukat (lawyer) and a SMMM (certified public accountant) — together they're the right team. But I've watched dozens of foreigners incorporate here, and I can tell you: the confusion is real, and it's fixable.

Can a Foreigner Actually Own a Company in Türkiye?

Yes — and Turkey is quite open to foreign business ownership compared to many countries. You can own 100% of a Turkish company as a foreign national. There's no requirement for a Turkish partner or co-founder, no equity thresholds, no waiting period.

There are a few restricted sectors. You can't own a majority stake in media (broadcast or print), telecommunications, or defense-related industries without Turkish citizenship or residence. But for 95% of foreign entrepreneurs — SaaS, agency, consulting, e-commerce — these restrictions don't apply.

The real barriers aren't legal. They're practical: navigating Turkish bureaucracy, tax obligations, and corporate structures that work differently from the US or UK. But thousands of foreigners do it every year.

The Three Company Structures — And Which One You Actually Need

Turkey has three main structures, and most foreigners pick the wrong one because they don't understand the tradeoffs.

Şahıs Şirketi (Sole Proprietorship)

What it is: You as an individual, running a business under your name. Minimal bureaucracy, minimal cost.

Why foreigners rarely pick it: Unlimited personal liability. If your business gets sued or goes into debt, your personal assets are at risk.

When to use it: Solo freelancer testing the market, certain you'll stay micro (consulting, writing, tutoring). 1–2 weeks to register, ~$300–500 total, paperwork is minimal.

Limited Şirket (Ltd. Şti.)

What it is: A limited liability company. 1–50 partners. Minimum capital ~50,000 TL (about $1,600 USD; check current exchange rates). Personal assets protected; liability stops at company assets.

Why it's the most common: It's the sweet spot. Limited liability without corporate complexity. Tax-efficient. Scalable. Banks like it. It looks legitimate.

What you need: Notarized articles of association, capital deposit at a Turkish bank, tax registration, registration at the Trade Registry (Ticaret Sicil Müdürlüğü). Usually 2–3 weeks with a good lawyer; $1,500–2,500 all-in.

Who it's for: Almost every foreign SMB. If you're hiring employees, taking contracts, or raising capital, this is your structure.

Anonim Şirket (A.Ş. / Joint Stock Company)

What it is: A corporation. Minimum capital typically 250,000 TL (~$8,000 USD). You can issue stock, take institutional investors, scale significantly. Formal board structure, stricter compliance.

Why most foreigners don't pick it: Overkill for 95% of cases. Higher setup costs, more annual compliance, more accounting overhead. Unless you're raising venture capital or planning a public exit, skip it.

What You Actually Need to Incorporate (Limited Şirket Focus)

1. Pick a Company Name

Check availability via MERSİS (mersis.gtb.gov.tr) — Turkey's central business registry. Names must be unique. 10 minutes, free.

2. Prepare Your Articles of Association

A formal document (in Turkish), 3–5 pages, notarized. Outlines ownership, capital breakdown, governance, operations. Your lawyer drafts this. Cost: $200–400 from a lawyer; $50–100 at a noter with a template.

3. Deposit Capital at a Turkish Bank

Open a temporary business account, deposit your minimum capital (50,000 TL). The money stays yours, in a bank, in Turkey — you're proving you have the capital, not wiring it to the government. 1–2 days.

4. Register at the Tax Office (Vergi Dairesi)

Get your vergi numarası (tax number). Bring articles of association and ID. 1–2 hours, free. Lawyer typically charges $100–200.

5. Register at the Trade Registry (Ticaret Sicil Müdürlüğü)

Submit notarized articles, proof of tax number, proof of capital deposit, ID/residence permit. 3–5 business days. ~400–600 TL in registry fees ($13–20).

6. Social Security Registration (SGK)

If you'll have employees, register with SGK. If it's just you as owner, you can skip initially but register as self-employed (esnaf) separately.

7. Total Timeline and Cost

Timeline: 1–3 weeks. Cost breakdown (rough 2026 ranges):

Always ask for fixed fees upfront, not hourly rates.

Do I Need a Turkish Partner?

No. You can own 100% of a Turkish company as a foreigner with no co-founder or Turkish partner. However: for day-to-day operations — opening a bank account, dealing with the tax office, signing contracts, managing SGK — it's much easier if someone with Turkish residency (or citizenship) is available. This doesn't have to be a business partner; could be a trusted employee, a colleague, or your spouse.

If you're staying abroad, you can still incorporate, but you'll need a power of attorney (vekaletname) from a notary, plus someone in Turkey to handle signing documents. Adds $300–500 and complexity. If you're planning to move anyway, wait until you arrive and get your residence permit squared away first.

Tax Obligations — The Cliff Notes

I am not a tax advisor. These are the broad categories. Get a SMMM for the specifics. For the deeper picture, read our expat tax guide.

• Corporate Tax: Currently around 20–25% on profits, but this changes. Verify with a Turkish accountant.
• VAT (KDV): Likely required; monthly or quarterly returns once you exceed turnover threshold.
• Withholding Tax (Stopaj): Applies when paying non-residents. Complex; your accountant handles it.
• Annual Filing: Annual corporate tax return by end of March. Monthly payroll filings if you have employees.
• You will need a SMMM (Serbest Muhasebeci Mali Müşavir — certified public accountant). Non-negotiable. ~$200–500/month for a small company. Budget it from day one.

Common Foreigner Mistakes

1. Picking Anonim Şirket "Because It Sounds More Professional". Stop. You'll waste $3,000+ and triple your annual compliance costs. Limited Şirket is the right answer.

2. Skipping the SMMM and trying to file taxes alone. Turkish tax authorities are increasingly digitized and automated. A SMMM is insurance, not luxury.

3. Missing MERSİS deadline registrations. Set calendar reminders or have your accountant track them.

4. Not opening a separate business bank account. Mixing personal and business money is a compliance nightmare and invites audit scrutiny. Open a business bank account immediately.

5. Confusing your residence permit with company representative status. Different things. Get clarity upfront on who the legal representative (müdür) is.

6. Missing quarterly or monthly filing deadlines. Penalties pile up fast.

When to Start the Process — Practical Timing

If you're moving to Turkey: Get your residence permit first (2–4 weeks). Then incorporate. Having residency makes opening bank accounts and dealing with tax offices infinitely easier.

If you're staying abroad: Possible, but expect to pay more (power of attorney fees, notarization, lawyer fees for remote coordination). Consider waiting until you visit or move.

Real talk: Don't try to incorporate in your first 30 days in Turkey. You'll be managing residence permit, housing, bank accounts, neighborhood registrations. Your business can wait six weeks.

How to Find a Good Turkish Lawyer + SMMM

Avoid: Lawyers who charge $5,000+ for a standard Ltd. Şti. (you can get quality for $1,200–1,500). "Tourist law firms" charging expat tax rates. Anyone who won't give you a fixed-fee quote.

Look for: Fixed-fee structure. Both Turkish and English documentation. References from other foreign business owners. A lawyer and accountant who work together. Plain language, not legal jargon.

Where to find them: LinkedIn expat groups, Reddit's r/Turkey, SettleIn referrals, your chamber of commerce (TOBB).

Should You Actually Incorporate at All?

If you're a freelancer with revenue under $10,000/year, a Şahıs Şirketi or even informal self-employment might be fine. The overhead of a Limited Şirket isn't worth it if your business is still hypothetical.

Wait until you have at least six months of consistent revenue, a clear capital deployment plan, an investor or partner involved, or a contract that requires you to be a registered company. Once one of these boxes is checked, incorporate. Not before.

The Bottom Line

Setting up a company in Turkey as a foreigner is absolutely doable. Limited Şirket for most of you. 2–3 weeks, $1,500–3,000. Real bureaucracy but manageable with a good lawyer and accountant.

Again: I am not a lawyer or accountant. For your specific situation, consult a Turkish avukat and a SMMM together. SettleIn can connect you with vetted Turkish lawyers and accountants who specialize in foreigner incorporation.