Upated Date:
Company formation in Turkey is open to foreign nationals and foreign companies on the same terms as Turkish citizens. Law No. 4875 on Foreign Direct Investment removed the need for prior permission. A UK resident can therefore own a Turkish company outright.
The process is governed by company law in Turkey, chiefly the Turkish Commercial Code No. 6102. Registration takes place at the trade registry through MERSİS, the central online registry system. Most UK-based founders complete it without travelling, through a power of attorney given to a lawyer in Turkey.
Which Company Types Can Foreigners Establish in Turkey?
Foreigners can establish every company type recognised by the Turkish Commercial Code, but four structures cover almost all cross-border cases.
Limited Liability Company (Limited Şirket, Ltd. Şti.): The most common choice for small and medium businesses. Minimum capital is 50,000 TL, with one to fifty shareholders.
Joint Stock Company (Anonim Şirket, A.Ş.): Suited to larger ventures and businesses expecting investors or frequent share transfers. Minimum capital is 250,000 TL, with no limit on shareholders.
Branch Office: An extension of a UK company rather than a separate entity. The parent remains fully liable for the branch's debts.
Liaison Office: Permitted only for market research and representation, with approval from the Ministry of Industry and Technology. It cannot trade.
Sole proprietorships require a residence and work permit, which rules them out for most UK-based founders.
What Are the Requirements to Register a Company in Turkey?
Four things are required: a registered address in Turkey, a compliant company name, Turkish articles of association and identity documents. None of them depends on Turkish nationality or residence.
Each foreign shareholder and manager first obtains a potential tax number from the Turkish tax office. It is issued against a passport copy, and the passport itself needs a sworn Turkish translation certified by a notary.
A UK corporate shareholder also submits its certificate of incorporation, a good standing certificate and a board resolution. These carry an apostille, the UK-issued certificate that validates a document for use abroad under the Hague Convention.
The address can be a leased office or, at most registries, a virtual office contract. The company name must include the field of activity in Turkish and the legal form, such as "Limited Şirketi".
How to Register a Company in Turkey from the UK, Step by Step
Registering from the UK follows the same legal path as registering in person. A power of attorney replaces the founder's physical presence at each step.
Choose the Structure and Name: The company type, capital and shareholding are decided, and the name is checked on MERSİS.
Issue a Power of Attorney: The founder authorises a lawyer in Turkey through a power of attorney from the UK for Turkey. It is signed at the Turkish Consulate in London, or before a UK notary and then apostilled.
Legalise the Documents: Passports, corporate documents and the power of attorney are translated by a sworn translator and notarised in Turkey. Tax numbers are requested at the same stage.
File the Articles of Association: The attorney enters the articles on MERSİS and signs them before the trade registry officer. Registry fees and the Competition Authority contribution of 0.04% of capital are paid here.
Registration and Announcement: The registry approves the file, usually within a few working days. The company is then announced in the Trade Registry Gazette.
Post-Registration Setup: The tax office registers the company and inspects the address. Statutory books are certified and a bank account is opened.
From start to finish the process usually takes four to six weeks when the documents are in order. Most of that time goes into the power of attorney, apostille and translations.
Limited Company vs Joint Stock Company in Turkey: What Is the Difference?
A joint stock company offers stronger shareholder protection and easier share transfers. A limited company is cheaper to set up and simpler to run.
Feature | Limited Company (Ltd. Şti.) | Joint Stock Company (A.Ş.) |
|---|---|---|
Minimum capital | 50,000 TL | 250,000 TL |
Capital payment | Within 24 months | 25% before registration, rest within 24 months |
Shareholders | 1 to 50 | 1 or more, no limit |
Management | At least one shareholder as manager | Board; members need not be shareholders |
Share transfer | Notarised agreement plus registry entry | Endorsement of share certificates |
Tax and social security debts | Shareholders liable pro rata | Shareholders not liable |
Contracted lawyer | Not required | Required from 1,250,000 TL capital |
The liability row most often decides the question. Limited company shareholders can be pursued personally for the company's unpaid taxes and social security premiums. In a joint stock company that risk sits with the board, not the shareholders.
How to Choose the Right Company Structure in Turkey
Three questions decide the structure: available capital, the likelihood of outside investors and the personal risk the founder accepts. A single founder opening a trading, consultancy or e-commerce business usually chooses a limited company. A venture planning to bring in partners, raise funds or transfer shares is better served by a joint stock company.
What Are the Obligations After Company Formation in Turkey?
Registration creates immediate and recurring obligations, most of which start in the first month. Missing them leads to administrative fines and, in serious cases, to the company being struck off.
Bookkeeping and Returns: Accounts are kept by a certified public accountant. VAT and withholding returns are filed monthly, provisional corporate tax quarterly.
Corporate Tax: Profits are taxed at 25% and declared annually.
Social Security: An employer file is opened with SGK before the first hire, and foreign staff need work permits.
General Assembly: The annual meeting is held within three months of the financial year end.
Beneficial Ownership: The ultimate beneficial owners are declared to the tax authority and updated when they change.
Day-to-day operations bring a second layer of legal work. Office leases, distributor agreements and employment contracts are governed by contract law in Turkey. Where a bilingual contract is signed, the Turkish text prevails in a dispute.
Company formation in Turkey rewards preparation more than speed. Settling the structure early, legalising documents in the right order and planning first-year compliance keeps the timeline to weeks. That predictability is what makes remote formation from the UK workable.
How much does company formation in Turkey cost?
The cost has three parts: share capital, official fees and professional fees. Capital starts at 50,000 TL for a limited company and 250,000 TL for a joint stock company. Official fees cover the trade registry, notary, sworn translations and the Competition Authority contribution of 0.04% of capital. Professional fees depend on the structure chosen.
