Forming a company here is fast. The constraint is elsewhere: owning a company does not automatically entitle you to work in it.
Two separate things
Company formation — a foreigner can establish a company, and it can be done in a matter of days with the right documents. Foreign ownership is permitted in most sectors.
The right to work in it — requires a work permit, which is a separate application with its own conditions, including in many cases a requirement to employ a defined number of Turkish citizens per foreign employee and to meet a minimum capital level.
This catches people out repeatedly: the company exists, the owner is present on a residence permit, and they still cannot lawfully work in their own business.
The route that solves both
The investment-to-citizenship route sidesteps the problem entirely. A citizen needs no work permit, no employment ratios and no capital minimums to work in their own company.
For anyone who intends to operate a business here long term and has the capital, that comparison is worth making explicitly: the cost of the citizenship route against years of work permit renewals, ratios and restrictions.
Entity types
- Limited liability company — the standard vehicle; straightforward, limited liability
- Joint stock company — for larger operations, easier share transfers, more governance
- Branch or liaison office of a foreign company — a liaison office cannot trade, only represent
The liaison office is worth knowing about: it allows a presence and market research without trading, with a simpler footprint, though it cannot generate revenue.
Running costs to model
- Accounting — monthly obligations, more frequent than in many countries
- Social security contributions for employees, which are a significant addition to gross wages
- Office and registered address
- Annual filings and audits depending on size
- Work permit renewals for foreign staff
Five questions before starting
- Will revenue be in hard currency or local currency?
- Does the sector require a specific licence?
- Can you meet the employment ratio if you need work permits?
- How long can the business absorb losses under inflation?
- If it closes, what happens to your status?
Need a tailored roadmap?
Viking Global Group walks with you from paperwork to settlement. Call +849.219.219.88 or email [email protected] for a free consultation.
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Frequently asked questions
How do foreigners set up a company in Türkiye?
Foreigners can establish limited or joint stock companies with the trade registry, usually through a lawyer or accountant. Steps include preparing articles of association, notarising documents, obtaining a tax number, opening a bank account and registering with social security.
Can owning a company support residence?
Company owners and managers can apply for residence and work permits linked to their business if it meets requirements such as capital, employment of Turkish staff and genuine activity. Requirements should be checked with advisers.
What incentives exist for businesses in Türkiye?
Türkiye offers investment incentives including tax reductions, customs exemptions and social security support for qualifying projects, particularly in manufacturing, technology and less developed regions. Technology parks offer additional benefits.
What obligations do Turkish companies have?
Companies must keep accounting records, file tax returns including VAT and corporate tax, pay social security contributions, comply with labour laws and submit annual financial statements. A reliable accountant is essential.
What should founders consider before launching?
Founders should research the market, understand currency and inflation risks, plan for bureaucratic procedures, secure local partners if helpful, and consider language needs. Legal and tax advice helps avoid costly mistakes.
Information is for reference and may change under the latest official policy. Please contact us for current regulations.
