Company Formation in Türkiye: A Comprehensive Guide for 2026

As Finlexia Turkish Accounting Firm, a leading full-service corporate law practice based in Istanbul since 2017, we provide strategic, end-to-end legal support for foreign and domestic investors in company formation in Türkiye.

With years of experience in Turkish company formation and corporate governance, we offer a streamlined, compliant, and efficient formation process tailored to the needs of entrepreneurs, multinational companies, SMEs, and investors entering the Turkish market.

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Türkiye continues to attract global investors due to its strategic location, dynamic economy, and robust legal infrastructure supporting foreign investment. Our company formation lawyers provide an in-depth overview of company formation in Türkiye for 2026, including available company types, step-by-step procedures, required documentation, taxes, banking, labor requirements, and post-incorporation obligations.

Why Form a Company in Türkiye?

Türkiye serves as a regional hub bridging Europe, Asia, and the Middle East. Investors benefit from:

• Access to a large domestic market of 85+ million consumers
• Customs union with the EU and extensive free trade agreements
• A young, educated, and competitive workforce
• Welcoming regulations for foreign-owned companies
• Streamlined formation procedures and modern legislation

Whether you plan to establish a trading company, a manufacturing entity, a service provider, or a regional headquarters, Türkiye offers strong operational advantages and a pro-business regulatory environment.

Step-by-Step Company Formation in Türkiye

Step 1: Choosing the Right Legal Entity

The first and most critical decision is selecting the appropriate company type. The Turkish Commercial Code (TCC) offers several options, but the two most common for foreign investors are the Limited Liability Company (LLC) and the Joint Stock Company (JSC).

• Limited Liability Company (LLC / Limited Şirket):
  • This is the most popular choice, favored by small to medium-sized enterprises (SMEs).
  • Requires a minimum share capital of TRY 50,000.
  • Shareholders’ liability is limited to their committed capital. However, unlike a JSC, shareholders are jointly and severally liable for public debts (e.g., taxes, social security premiums) that cannot be collected from the company.
  • Learn more about limited liability company formation.
• Joint Stock Company (JSC / Anonim Şirket):
  • This structure is generally preferred by larger enterprises, those seeking public offering potential, or those aiming to attract international venture capital/private equity.
  • Requires a higher minimum share capital of TRY 250,000.
  • Offers stricter separation of ownership and management, and shareholders’ liability is strictly limited to their capital commitment.
  • Explore joint stock company formation for large-scale operations.

Other specialized structures may be suitable depending on your business goals:

• Branch office formation: For foreign companies wishing to establish a direct, dependent presence without creating a separate legal entity.
• Liaison office formation: For market research, representation, and non-commercial activities, offering certain tax advantages.
• Free zone company formation: For export-oriented businesses seeking significant tax incentives, customs duty exemptions, and streamlined logistics.
• Foreign subsidiary formation: This typically refers to establishing a Turkish Limited or Joint Stock Company, with the foreign parent company as the sole shareholder.

Step 2: Preparing the Foundational Documents

Once the entity type is selected, the necessary documentation must be prepared, drafted, and notarized. This is where legal expertise is essential to ensure full compliance with the TCC.

Key documents include:

• The notarized Articles of Association (Memorandum of Association).
• Passport copies and signed Power of Attorney from each founder/shareholder, notarized and apostilled (if prepared outside of Türkiye).
• Obtaining a potential tax identification number for all founders/shareholders.

A detailed checklist of required documents for company formation is crucial for a fast-track process.

Step 3: Drafting and Notarizing the Articles of Association

The Articles of Association (AoA) must be prepared in Turkish and include mandatory elements such as the company name, registered address, purpose and scope of activity, capital structure, and the identities of the founders.

The AoA must then be notarized. This process legally certifies the founding document and ensures its compliance before submission to the Trade Registry.

Step 4: Depositing the Minimum Capital and Competition Authority Fee

The mandated minimum capital must be deposited into a restricted company bank account during the establishment process.

• JSC: A minimum of 25% of the committed cash capital must be paid before registration.
• LLC: The full amount can be paid within 24 months of registration (though paying it upfront is often recommended).

Additionally, a small percentage of the capital must be paid to the account of the Turkish Competition Authority. For detailed information on financial requirements, consult the costs of company formation guide.

Step 5: Registration with the Trade Registry Office (Turob)

The completed, notarized documents, along with proof of capital deposit, are submitted to the Trade Registry Office (Turob) via the Central Registration System (MERSİS). Upon approval, the company is legally registered and granted a Trade Registry Number.

• Our experienced team at Finlexia CPA can finalize registration and acquire the Trade Registry Certificate and the “Signature Circular” (an authorized signature card) often within a swift timeline for formation, sometimes as fast as 1-2 working days if all documents are perfectly prepared.

Step 6: Post-Registration Compliance and Tax Setup

The company achieves legal personality upon registration. Following this, the firm must be registered with the Tax Office and the Social Security Institution (SGK). The Tax Office will assign a Tax ID number and officially register the company’s tax liabilities. Understanding your obligations is key; refer to our corporate taxation guide for a comprehensive overview of Turkish tax law, including the standard 25% Corporate Tax rate.

Step 7: Corporate Bank Account Opening and Business Setup

A crucial final step is the successful corporate bank account opening, which can often be complicated for foreign-owned entities. Our firm assists in this process, ensuring all necessary compliance documentation is provided to Turkish banks, facilitating quick access to your operating capital.

Furthermore, foreign business owners who plan to manage their Turkish operations should consider the relevant steps for residency for business owners and obtaining a work permit for company owners, which is essential for legal employment in the country.

Summary of Company Formation Procedure in Türkiye

1. Determining company structure and shareholding scheme
2. Drafting the Articles of Association compliant with the Turkish Commercial Code
3. Obtaining potential tax number for foreign shareholders
4. Notarization of corporate documents and preparation of signature declarations
5. Submitting the application to the Turkish Trade Registry
6. Registration with the tax office
7. Company address registration through the Turkish address system
8. Opening corporate bank account
9. Commencing commercial operations upon issuance of registration documents

Each step requires careful compliance with regulatory and documentation standards. We ensure a smooth and accurate incorporation process with full legal oversight.

Costs of Company Formation

Formation expenses vary depending on company type, number of shareholders, industry licensing needs, and additional services such as bank account opening or obtaining residency permits.

Corporate Taxation in Türkiye

Türkiye provides competitive corporate taxation policies supported by incentive schemes for technology, export, manufacturing, and free zone operations. Key taxes include:

• Corporate Income Tax
• VAT
• Withholding Tax
• Stamp Tax
• Social Security Premiums

Opening a Corporate Bank Account

All Turkish companies must maintain at least one active corporate bank account. Banks require KYC documentation, corporate registry records, shareholder identity documents, and additional compliance checks.

Residency for Business Owners in Türkiye

Foreign shareholders and directors may obtain Turkish residency permits based on company ownership or investment. Residency provides long-term living rights and facilitates business management in Türkiye.

Work Permit for Company Owners

Foreign shareholders or directors wishing to work actively in the company must obtain a Turkish work permit. The process includes labor quota assessments, capital requirements, and Ministry of Labor approvals.

Why Choose Finlexia Turkish Accounting Firm?

With more than 9 years of experience, Finlexia Turkish Accounting Firm provides turnkey and fully compliant Turkish company formation services, from preparing documentation to bank account setup, tax registration, residency permits, and long-term governance support. Our multilingual corporate lawyers ensure that each investor receives tailored, up-to-date, and practical guidance throughout every stage of the establishment process.

Contact us for Company Formation in Türkiye

Establishing your business in Türkiye represents an exciting opportunity to access one of the world’s most dynamic markets. However, navigating the legal complexities, regulatory requirements, and administrative procedures requires expert guidance to ensure a smooth, efficient formation process.

At Finlexia Turkish Accounting Firm, we have spent over 9+ years helping international clients successfully establish and grow their businesses in Türkiye. Our multilingual team of corporate lawyers provides end-to-end company formation services, from initial consultation and entity selection through final registration and ongoing compliance support.

Contact Finlexia Turkish Accounting Firm today to schedule a consultation with our experienced corporate attorneys. Let us put our 9+ years of expertise to work for your business success in Türkiye. Reach out to our Istanbul office to discuss your company formation needs and discover how we can help you establish a strong legal foundation for your Turkish business venture.