Complete Guide to Foreign Ownership Rules & Regulations in Türkiye 2026

Foreign investors considering expanding their operations into Türkiye face a remarkably welcoming legal landscape. Since Türkiye’s ambitious economic liberalization reforms, the country has positioned itself as one of the most accessible markets for international business ownership in the region. Understanding the nuanced regulatory framework governing foreign ownership is essential for successful market entry and long-term operational success.

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Türkiye has long positioned itself as a strategic bridge between Europe, Asia, and the Middle East, offering foreign investors access to diversified markets, a robust manufacturing base, and a dynamic consumer economy.

As of 2026, Türkiye continues to maintain a largely liberal foreign investment regime, allowing foreign nationals and foreign-owned entities to establish and operate companies under conditions almost identical to those applicable to Turkish citizens.

At Finlexia Turkish Accounting Firm, a full-service company formation and governance firm based in Istanbul since 2017, we regularly advise international investors on navigating Turkish corporate law, regulatory compliance, and governance frameworks.

Our corporate lawyers team provides a detailed, up-to-date overview of foreign ownership rules and regulations in Türkiye, with a focus on practical, legal, and strategic considerations.

Legal Framework Governing Foreign Ownership in Türkiye

Foreign ownership in Türkiye is primarily governed by the Foreign Direct Investment Law No. 4875. This legislation enshrines the principles of equal treatment and freedom of investment, meaning foreign investors enjoy the same rights and obligations as domestic investors unless otherwise restricted by sector-specific regulations.

Foreign investors may establish companies, acquire shares, open branches, or participate in partnerships under the Turkish Commercial Code (TCC). In most sectors, there is no minimum capital contribution requirement specific to foreign shareholders, nor is prior government approval required.

For investors at the entry stage, professional guidance during company formation in Türkiye is critical to ensure compliance with corporate, tax, and regulatory requirements from the outset.

Permitted Company Types for Foreign Investors

Foreign nationals and foreign legal entities may establish or acquire ownership in several corporate structures under Turkish law. The most commonly preferred entities are:

Joint-Stock Companies (A.Ş.)

A joint-stock company is often favored for large-scale investments, regulated industries, or businesses planning to raise capital. Shares may be freely transferred, and public offerings are permitted under capital markets legislation.

Foreign investors commonly choose joint-stock company formation when seeking scalability, strong corporate governance mechanisms, or investor-friendly exit options.

Limited Liability Companies (LTD. ŞTİ.)

Limited liability companies are widely used by small to medium-sized enterprises and foreign entrepreneurs entering the Turkish market for operational activities. They offer flexibility, lower capital requirements, and simplified management structures.

Limited liability company formation remains the most popular route for foreign-owned startups, subsidiaries, and family-owned enterprises.

Foreign Ownership Ratios and Sectoral Restrictions

In principle, foreign investors may own up to 100% of a Turkish company’s shares. However, certain strategic or regulated sectors are subject to ownership limitations, licensing requirements, or approval processes. These sectors may include:

• Broadcasting and media
• Civil aviation
• Maritime transportation
• Energy and mining
• Financial services
• Education and healthcare

Additionally, companies owning real estate in restricted zones or operating in security-sensitive areas may be subject to additional scrutiny.

Due diligence prior to investment is essential to determine whether sector-specific caps or compliance obligations apply.

Capital Contribution and Shareholding Structure

Foreign shareholders may contribute capital in cash, in-kind assets, intellectual property, or receivables, provided valuation and registration rules are followed. Capital contributions may be made in foreign currency and converted through Turkish banks in compliance with foreign exchange regulations.

Shareholding structures must be clearly defined in the articles of association, including voting rights, dividend distribution, and transfer restrictions. Well-drafted shareholder agreements are strongly recommended to protect minority rights, regulate exit mechanisms, and prevent future disputes.

Management, Directors, and Representation

Turkish law does not require directors or managers to be Turkish nationals. Foreign individuals may serve as board members, directors, or company managers. However, if foreign managers are actively involved in day-to-day operations in Türkiye, work permit obligations may arise.

Companies must appoint at least one authorized signatory, and all appointments must be registered with the Trade Registry. Representation powers, signature limits, and internal controls should be aligned with the company’s operational risk profile.

Corporate Governance and Compliance Obligations

Sound governance is not only a legal requirement but also a key risk-management tool for foreign-owned companies. Under the Turkish Commercial Code, companies must comply with bookkeeping standards, annual general meetings, board resolutions, and financial reporting obligations.

Strong corporate governance frameworks enhance transparency, investor confidence, and regulatory compliance, particularly for joint ventures and multi-shareholder structures.

Failure to comply with governance obligations may result in administrative fines, invalid corporate actions, or shareholder disputes.

Taxation and Regulatory Considerations

Foreign-owned companies are subject to the same tax regime as domestic entities. Corporate income tax, VAT, withholding tax, and stamp tax obligations apply based on business activities and transactions.

Türkiye maintains an extensive network of double taxation treaties, allowing foreign investors to mitigate tax exposure through proper structuring. Advance tax planning is especially important for dividend distributions, management fees, and intra-group transactions.

Dispute Resolution and Company Litigation

Despite careful planning, disputes may arise between shareholders, directors, or business partners. Turkish law provides various remedies, including court proceedings, arbitration, and mediation.

Effective handling of company litigation requires a thorough understanding of procedural law, evidentiary standards, and commercial practice. Preventive legal structuring significantly reduces litigation risks.

Exit Strategies and Company Liquidation

Foreign investors should plan exit strategies at the investment stage. Exit options may include share transfers, mergers, acquisitions, or voluntary liquidation.

In cases where operations cease or objectives are met, company liquidation must be conducted in strict compliance with Turkish law to avoid future liabilities for shareholders and directors.

Why Legal Guidance Is Essential for Foreign Ownership in Türkiye

While Türkiye offers a highly liberal and investor-friendly environment, foreign ownership still requires careful legal navigation. Regulatory compliance, corporate governance, tax efficiency, and dispute prevention all depend on proper legal structuring.

Since 2017, Finlexia Turkish Accounting Firm has advised foreign investors from across the globe on company formation, governance, and strategic investments in Türkiye. Our multilingual team provides end-to-end legal support tailored to international standards and local regulations.

If you are considering investing in Türkiye or already operate a foreign-owned company, we invite you to contact Finlexia Turkish Accounting Firm. Our experienced corporate lawyers in Istanbul will provide strategic, practical, and legally sound guidance to protect your investment and ensure long-term success in the Turkish market.

Contact us for Foreign Ownership Rules & Regulations in Türkiye

Navigating foreign ownership regulations requires experienced legal guidance to ensure full compliance and optimal corporate structuring. At Finlexia Turkish Accounting Firm, we have been providing comprehensive company formation and governance services in Istanbul since 2017.

Our multilingual team of legal professionals specializes in guiding international investors through every stage of business establishment in Türkiye, from initial regulatory assessment through ongoing corporate compliance.

Whether you’re considering a limited liability company, joint-stock corporation, or branch office, our years of experience ensure your Turkish business entity is properly structured, fully compliant, and positioned for success. Contact Finlexia Turkish Accounting Firm today to discuss your investment plans and discover how we can transform Turkish market entry from complex challenge into streamlined reality.