How Foreigners Can Own a Business in Türkiye in 2026?

Türkiye has emerged as one of the most attractive jurisdictions for foreign investors seeking to expand into Europe, the Middle East, and Central Asia. With its liberal foreign investment regime, young workforce, and strategic location, Türkiye allows foreigners to own businesses under conditions largely identical to those applicable to Turkish nationals.

As of 2026, the legal framework remains highly investor-friendly, provided that foreign entrepreneurs understand and comply with corporate, tax, and regulatory requirements.

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As Finlexia Turkish Accounting Firm, a full-service company formation and governance accounting firm based in Istanbul since 2017, we regularly advise international clients on how to lawfully and efficiently establish and own businesses in Türkiye. Our corporate lawyers team explains the legal basis, ownership structures, procedural steps, and key compliance considerations for foreign investors.

Can Foreigners Own a Business in Türkiye?

Yes. Under the Foreign Direct Investment Law No. 4875, foreign individuals and foreign legal entities are permitted to establish and own companies in Türkiye without requiring a local partner in most sectors. Foreign investors benefit from the principle of “equal treatment,” meaning they are subject to the same rights and obligations as Turkish investors.

In practical terms, this means that a foreigner can own 100% of a Turkish company, act as a shareholder and director, and freely repatriate profits, dividends, and liquidation proceeds, subject to tax compliance.

Legal Forms Available to Foreign Investors

Foreigners may choose from several corporate forms under the Turkish Commercial Code. However, in practice, two structures are overwhelmingly preferred due to flexibility, credibility, and investor protection.

Limited Liability Company (LLC)

A limited liability company is the most commonly used structure for small and medium-sized foreign investments. It requires a minimum of one shareholder and one director, who can be the same person and of any nationality.

Key features include:

• Minimum capital: TRY 50,000
• Shareholders’ liability limited to their capital contribution
• Flexible internal governance
• Suitable for trading, services, and holding activities

LLCs are often preferred by foreign entrepreneurs establishing subsidiaries or operating companies with modest capital requirements.

Joint-Stock Company (JSC)

A joint-stock company is generally chosen for larger investments, regulated sectors, or businesses planning future fundraising or share transfers. It offers enhanced corporate prestige and flexibility in capital structuring.

Key features include:

• Minimum capital: TRY 250,000
• One or more shareholders permitted
• Board of directors structure
• Easier share transfers compared to LLCs

JSCs are mandatory for certain sectors such as banking, financial leasing, and public offerings. For more complex projects, we typically recommend this structure after a strategic assessment.

Key Steps for Foreigners to Establish a Business in Türkiye

1. Determining the Business Structure

The first step is selecting the appropriate company type based on your investment objectives, sector, capital size, and governance preferences. This decision has long-term tax, compliance, and exit implications.

Engaging experienced company formation lawyers at this stage helps prevent structural mistakes that may be costly to correct later.

2. Preparing Corporate Documentation

Foreign shareholders must provide notarized and apostilled documents, including:

• Passport copies
• Articles of association
• Powers of attorney (if represented)

All foreign-language documents must be translated into Turkish by sworn translators and notarized in Türkiye.

3. Registration with Trade Registry

The company is formally established upon registration with the relevant Trade Registry Office. This step includes:

• Capital declaration
• Appointment of directors
• Registration of company address

Once registered, the company obtains legal personality.

4. Tax and Social Security Registration

Following incorporation, the company must be registered with:

• Tax Office
• Social Security Institution (SGK)

A corporate tax number is issued, enabling lawful business operations.

5. Opening a Corporate Bank Account

Turkish banks require extensive compliance documentation, especially for foreign-owned companies. Proper preparation significantly reduces delays in account activation.

Do Foreign Owners Need a Residence or Work Permit?

A common misconception is that owning a Turkish company automatically grants residence or work authorization. In reality:

• Shareholders do not need a residence permit solely for ownership
• Directors who actively manage the company generally require a work permit

Work permits are issued by the Ministry of Labor and are tied to the company’s operational and capital structure. Strategic planning is essential to avoid compliance issues.

Sectoral Restrictions and Special Permits

While most sectors are fully open to foreign ownership, some industries require additional permits or licenses, including:

• Energy
• Education
• Healthcare
• Tourism

Certain sensitive sectors may also impose shareholding or nationality restrictions. Legal due diligence before incorporation is critical.

Taxation of Foreign-Owned Companies

Foreign-owned companies are subject to the same tax regime as Turkish-owned entities, including:

• Corporate income tax
• Value-added tax (VAT)
• Withholding taxes

Türkiye has an extensive network of double taxation treaties, which may significantly reduce withholding tax exposure for foreign shareholders.

Proper tax structuring at the incorporation stage is essential for long-term efficiency and compliance.

Profit Repatriation and Capital Transfers

One of Türkiye’s strongest advantages is the freedom to transfer profits abroad. Dividends, royalty payments, management fees, and liquidation proceeds can be remitted in foreign currency, provided that:

• Taxes are duly paid
• Transactions are properly documented

There are no foreign exchange restrictions on lawful capital movements.

Corporate Governance and Ongoing Compliance

After incorporation, foreign-owned companies must comply with ongoing obligations, including:

• Annual financial statements
• General assembly meetings
• Bookkeeping and audits
• Trade Registry notifications

Failure to comply may result in administrative fines or director liability. Professional governance support ensures long-term legal security.

Why Professional Legal Support Matters

Although Türkiye’s company formation process is relatively fast, mistakes in documentation, capital structuring, or regulatory compliance can lead to serious delays and legal exposure.

As a firm specializing in company formation in Türkiye, Finlexia Turkish Accounting Firm provides end-to-end legal support, including:

• Strategic structuring
• Incorporation and licensing
• Work permits and immigration
• Corporate governance and compliance

Our multilingual team has advised foreign investors from over 40 countries since 2017.

Contact us to Start Your Business in Türkiye

Foreigners can fully and legally own businesses in Türkiye, benefiting from a liberal investment regime, strategic geography, and robust legal protections. However, success depends on choosing the right corporate structure, complying with regulatory requirements, and planning ahead.

If you are considering establishing or acquiring a business in Türkiye, we invite you to contact Finlexia Turkish Accounting Firm. Our experienced legal team will guide you through every stage of the process with precision, transparency, and strategic insight.