The Complete Guide to Limited Liability Company Formation in Türkiye: 2026 Edition

Türkiye remains one of the most attractive jurisdictions for foreign entrepreneurs seeking efficient company formation, a strategic geographic position, and investor-friendly commercial laws. Among all legal entity types, the limited liability company (LLC) continues to be the most preferred structure for both local and international investors due to its flexible governance rules, straightforward formation process, and cost-effective operational model.

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Limited liability companies represent the most preferred business structure for foreign investors and entrepreneurs entering the Turkish market. As a full-service company formation firm with over three years of experience, Finlexia Turkish Accounting Firm has guided thousands of international clients through the strategic process of company formation in Türkiye since 2017.

Understanding Limited Liability Companies in Türkiye

A limited liability company (Turkish: Limited Şirket or Ltd. Şti.) offers entrepreneurs an optimal balance between operational flexibility and legal protection. This corporate structure limits shareholder liability to their capital contributions while providing streamlined governance requirements compared to larger corporate entities.

The Turkish Commercial Code defines limited liability companies as separate legal entities where shareholders bear responsibility only up to the amount of their committed capital. This fundamental protection makes the structure particularly attractive for small to medium-sized enterprises and foreign investors seeking controlled market entry.

Key Advantages of Limited Liability Structure

Limited liability companies provide several strategic advantages for business owners. The structure requires a minimum of one shareholder with no maximum limit, allowing complete foreign ownership without Turkish partnership requirements. Unlike a joint stock company formation, limited liability companies demand lower minimum capital and simplified governance procedures.

Shareholders enjoy complete protection of personal assets from business debts and liabilities. The company maintains perpetual existence independent of ownership changes, ensuring business continuity through succession planning. Additionally, the structure offers significant flexibility in profit distribution and internal organization.

Why Choose a Limited Liability Company

A Turkish limited liability company offers several structural and operational benefits:

• Fast incorporation with minimal capital requirements.
• Limited liability protection, with shareholders responsible only up to their capital commitments.
• Flexible share transfer rules compared to other types of companies.
• Eligibility for work permits and residency for foreign shareholders and directors.
• Strong international banking infrastructure supporting foreign-owned companies.
• Tax benefits and incentives, especially for companies operating in free zones.

Minimum Requirements for LLC Formation in Türkiye

To establish an LLC, investors must meet the basic statutory requirements prescribed by the Turkish Commercial Code:

• Minimum Share Capital: 50,000 TRY
• Shareholders: 1 to 50 (individuals or legal entities)
• Director: At least one manager is required (can be foreign or Turkish)
• Registered Address: Mandatory for incorporation
• Articles of Association: Must be drafted and notarized in compliance with Turkish law

For more information on documentation needs, visit our dedicated page on required documents for company formation.

Step-by-Step Process for Limited Liability Company Formation

The process of forming an LLC in Türkiye involves several meticulously managed stages, requiring expert legal coordination to ensure compliance and speed.

Step 1: Document Preparation and Planning

The first and most crucial step is gathering and preparing the necessary legal documentation. Our team works closely with you to finalize:

• Articles of Association: The foundational document detailing the company’s name, purpose, registered address, capital structure, and management.
• Shareholders’ Documents: Depending on the shareholder’s nationality and residency, this may include notarized and apostilled passport copies, powers of attorney, and, for corporate shareholders, trade registry excerpts.

Step 2: Trade Registry Application

All applications are now filed through the Turkish Trade Registry Information System (MERSİS).

• MERSİS Application: We create a MERSİS number, which serves as the preliminary tax ID and social security registration for the company.
• Drafting and Notarization: The Articles of Association are officially drafted and signed before a Notary Public.
• Competition Authority Fee: A small percentage of the company capital (0.004%) is paid to the Turkish Competition Authority.

Step 3: Registration and Capital Deposit

• Trade Registry Filing: The application is submitted to the relevant Trade Registry Directorate.
• Capital Deposit (Optional but Recommended): While you have up to 24 months, depositing at least 25% of the capital prior to registration can streamline certain post-formation activities, such as [corporate bank account opening].
• Registration Certificate: Upon successful review, the LLC is officially registered, and the registration certificate is issued. The company is now a legal entity.

Step 4: Post-Registration Formalities

The formation is not complete until post-registration administrative requirements are met:

• Tax Office Registration: The company’s MERSİS number is officially converted into a Tax Identification Number (TIN). A tax officer will visit the company’s registered address for a brief inspection (Yoklama).
• Bookkeeping and Legal Books: All mandatory legal books (e.g., Share Ledger, General Ledger) must be notarized before use.
• Social Security Registration (SGK): Mandatory registration of all employees, including the managing director, with the Social Security Institution.

Corporate Banking and Financial Requirements

A corporate bank account is essential for operational activity, capital injection, payroll, and vendor payments. Banks require compliance checks, KYC documentation, and director presence in Türkiye. You can access our complete guide on corporate bank account opening for more details.

LLCs must also comply with local accounting and tax rules. Our firm provides ongoing support for corporate governance, bookkeeping, and statutory audits. Learn more from our corporate taxation guide.

Formation Costs in 2026

The total cost of forming an LLC in Türkiye varies depending on share capital level, notary fees, translation costs, governmental fees, and legal service requirements. Foreign investors can expect predictable and transparent expenses with our firm. A detailed breakdown is available on costs of company formation.

Formation Process and Timeline

The limited liability company formation process follows a structured sequence of administrative steps. After name approval and document preparation, founders must deposit the minimum capital into a blocked bank account at a Turkish financial institution. The timeline for formation typically spans two to four weeks, depending on documentation completeness and administrative processing times.

Following capital deposit, the notarized articles of association undergo registration with the Trade Registry. Upon registration, the company receives a tax identification number and completes registration with the Social Security Institution. The final steps include opening a corporate bank account opening and obtaining necessary sector-specific licenses.

Governance and Management Structure

Limited liability companies operate under a flexible management framework. The company may appoint one or multiple managers who need not be shareholders. Foreign managers commonly serve in Turkish limited liability companies, though understanding work permit for company owners requirements remains essential for non-Turkish nationals.

The general assembly of shareholders constitutes the supreme decision-making body, responsible for fundamental matters including amendments to articles of association, capital increases, and appointment or dismissal of managers. Regular general assembly meetings must occur annually, with extraordinary meetings convened as business needs dictate.

Foreign-Owned LLCs and Immigration Benefits

Owning an LLC in Türkiye can provide a pathway to Turkish residency and work permit eligibility.

• A foreign shareholder may apply for residency for business owners.
• Foreign directors or managers may apply for a work permit for company owners, provided the company meets certain staffing and capital requirements.

Our immigration team ensures full compliance with Turkish immigration law throughout this process.

Operating in Free Zones or Expanding Globally

Investors planning to benefit from customs exemptions, tax incentives, and export-oriented operations often choose to form entities in Turkey’s free zones. Learn about your options through our dedicated information page on free zone company formation.

Foreign parent companies may also set up Turkish subsidiaries or explore non-commercial structures like branch or liaison offices:

• branch office formation for operational presence tied directly to the parent company
• liaison office formation for non-commercial representation and market research
• foreign subsidiary formation for full operational autonomy and local management flexibility

Our company formation lawyers assist in selecting the most advantageous structure based on your business goals.

Compliance Obligations After Company Formation

After incorporation, LLCs must comply with ongoing regulatory requirements:

• Monthly tax filings
• Social security registrations
• Share transfer documentation
• Annual activity reports
• Maintenance of corporate books
• Proper handling of shareholder and manager resolutions

We provide end-to-end corporate governance services to ensure uninterrupted compliance.

For more guidance, explore our company formation FAQs.

Why Work with Finlexia Turkish Accounting Firm?

With more than three years of experience, we provide strategic, multilingual, and comprehensive support to foreign investors establishing companies in Türkiye. We handle the entire process from planning to post-formation operations, allowing clients to begin business activity efficiently and confidently.

Contact us for Limited Liability Company Formation in Türkiye

Ready to establish your limited liability company in Türkiye? Finlexia Turkish Accounting Firm stands ready to guide you through every step of the formation process with expertise earned over three years of service. Our multilingual team of corporate lawyers and business consultants provides personalized attention to ensure your Turkish business venture launches smoothly and efficiently.

Contact our Istanbul office today to schedule a consultation and discover how we can transform your business vision into a Turkish reality. Let our proven track record and comprehensive knowledge of Turkish commercial law work for your success.