Comprehensive Guide to Company Registration in Türkiye (2025)

Turkey, with its unique strategic position at the crossroads of Europe and Asia, has always been recognized as a major hub for trade and investment. In 2025, with its dynamic economy, large domestic market, and relatively flexible business laws, the country presents attractive opportunities for entrepreneurs and investors. Registering a company in Turkey is not only a path to enter this exciting market but can also be a significant step toward expanding international operations and benefiting from numerous economic and residential advantages. This comprehensive guide will serve as your roadmap for 2025, detailing all aspects of company registration in Turkey, from choosing the right company type to legal procedures and tax considerations.

Types of Companies Available for Registration in Turkey: Which Option is Best for You?

The first and most critical decision in starting a business in Turkey is choosing the appropriate legal structure. Turkish Commercial Code provides for various company types, but for foreign investors, three types are the most practical and popular:

Limited Liability Company (Limited Şirket - Ltd. Şti.): The Popular Choice

The Limited Liability Company is the most common and preferred type of company among foreign investors in Turkey. The reasons for its popularity include:

• Limited Liability of Partners: Each partner's liability is limited to the capital they have invested in the company, protecting their personal assets from company debts.
• Reasonable Minimum Capital: As of 2025, the minimum nominal capital for establishing this type of company is 50,000 Turkish Lira (Note: this amount may change, so checking official sources is essential).
• Number of Partners: It can be established with a minimum of one and a maximum of 50 partners (natural or legal persons).
• Relatively Simpler Process: Compared to a Joint-Stock Company, its registration process is simpler.

Registering an LLC in Turkey is suitable for a wide range of commercial, service, trade, and even small to medium-sized manufacturing activities.

Joint-Stock Company (Anonim Şirket - A.Ş.): For Large-Scale and Visionary Businesses

A Joint-Stock Company has a more complex structure and is suitable for larger businesses, projects requiring public capital raising, and companies planning to go public.

• Types: It can be a Closely-Held (Private) JSC, where shares are not offered to the public, or a Publicly-Held JSC, whose shares can be traded on the stock exchange.
• Minimum Capital: For a private JSC, the minimum initial capital is 250,000 TRY as of 2025.
• Management: Its management structure (Board of Directors, auditors) is subject to stricter regulations.

Sole Proprietorship (Şahıs Şirketi): A Simple Solution for Small Beginnings

This is essentially a one-person business established and run by a natural person.

• Simplicity: The registration and dissolution processes are much simpler and less costly.
• Unlimited Liability: Its most significant feature and biggest risk is the owner's unlimited liability for all company debts.
• Lower Credibility: It generally has less credibility for large transactions and international partnerships.

Expert Advice: For most foreign investors aiming for serious commercial, trade, or service activities in Turkey, the Limited Liability Company (Ltd. Şti.) is the better option due to its excellent balance of relative simplicity, limited liability, and business credibility.

Strategic Choices: Registering a Company in Turkey Based on Your Field of Activity

Although the main registration process is similar for most activities, being aware of some sector-specific points is beneficial:

• Trading Companies (Import/Export): After registration, these companies need to obtain a customs identification number to handle customs procedures.
• Software and IT Companies: This sector has high growth potential and offers the possibility of benefiting from Technopark advantages (tax discounts and government support).
• Tourism Companies and TÜRSAB License Requirement: Travel agencies must obtain a license from the Association of Turkish Travel Agencies (TÜRSAB) after company registration to operate legally.
• Notes for Service, Manufacturing, and Construction Companies: Depending on the product, manufacturing companies may need standard, health, and environmental permits. Similarly, construction companies must meet specific qualifications.

Conditions and Required Documents for Company Registration in Turkey (2025 Update)

To register a company in Turkey as a foreign national, certain conditions and documents are required:

General Conditions for Foreign Investors

• Be at least 18 years old.
• Hold a valid passport (with at least six months of validity).
• Have no legal prohibitions against establishing a business.

Complete List of Required Documents For each partner (natural person):

1. Original Passport and its official Turkish translation: The translation must be done by a sworn translator in Turkey and notarized.
2. Recent Passport-sized Photos.
3. Potential Tax Identification Number (Vergi Numarası): Obtained from the Tax Office.
4. Power of Attorney (if not present): If a partner cannot be present, they must grant a formal power of attorney to their representative.

Rules for Choosing a Company Name

• The name must be unique and not registered by another company.
• It must not be misleading or contrary to public order.
• Using certain words like "Türk," "Türkiye," or "Milli" requires special permission.
• The name must include the company type (e.g., "Limited Şirket").

Legal Address: Physical Office or Virtual Office (Sanal Ofis)? Every company must have a legal address. The options are a physical office (rented or owned) or a virtual office, which provides a legal address and mail-handling services at a lower cost and is a popular choice for startups.

Is a Turkish Partner Required? (The Definitive Answer) No. According to Turkish foreign investment laws, there is no requirement to have a Turkish partner. Foreign nationals can own 100% of a company.

Step-by-Step Guide to Registering a Company in Turkey

It is highly recommended to follow these steps with the help of a certified public accountant (Mali Müşavir).

1. Initial Consultation: Discuss your business goals and choose the right company type with your advisor.
2. Prepare and Translate Documents: Gather all necessary documents and have them officially translated and notarized.
3. Obtain Tax IDs for Partners.
4. Draft the Articles of Association (Ana Sözleşme): This vital document will be drafted by your advisor according to Turkish law and your business objectives.
5. Online Registration via MERSİS: The company information is submitted to the Central Registration System (MERSİS).
6. Notarization of the Articles of Association: The partners (or their representatives) must sign the document before a notary public.
7. Deposit a Portion of the Capital (if required).
8. Final Registration at the Chamber of Commerce (Ticaret Odası).
9. Publication in the Trade Registry Gazette (Ticaret Sicil Gazetesi).
10. Registration at the Tax Office to obtain the company's tax plate (Vergi Levhası).
11. Notarization of Legal Books.

The Crucial Role of the Certified Public Accountant (Mali Müşavir): Hiring a CPA is mandatory for all companies in Turkey. Their responsibilities include handling the registration process, bookkeeping, preparing and submitting all tax declarations, and providing ongoing financial consultancy.

Estimating the Costs of Company Registration and Maintenance in Turkey (Approx. 2025 Figures)

Understanding the costs is a key part of planning. They fall into two categories: initial setup costs and ongoing maintenance costs.

• Initial Setup Costs: These include notary and translation fees, Chamber of Commerce fees, gazette publication, and the initial fee for your financial advisor. The total can range roughly from 24,000 to 54,000 TRY, excluding the share capital and office rent.
• Ongoing Maintenance Costs: These are recurring monthly/annual expenses, including the CPA's monthly fee, office rent (physical or virtual), the director's social security (Bağ-Kur) premiums, withholding tax on rent, and annual chamber fees.

The Turkish Tax System for Companies: What Every Manager Should Know

A basic understanding of the Turkish tax system is essential.

• Corporate Income Tax (Kurumlar Vergisi): This is the main tax on a company's net profit. The standard rate was 25% in 2024 (this rate is subject to change).
• Value Added Tax (KDV/VAT): Applied to the sale of goods and services at rates of 1%, 10%, or 20%.
• Withholding Tax (Stopaj): A tax deducted at the source from certain payments, such as rent, employee salaries, and freelance service payments.
• Social Security Premiums (SGK): Monthly contributions for all employees.

Opening a Corporate Bank Account in Turkey for Foreigners: Challenges and Solutions

A corporate bank account is mandatory for all business transactions. However, foreign investors may face challenges, such as banks requesting a residence permit or a significant security deposit. The solution is often to work with experienced consultants who are familiar with banks that have more cooperative policies toward foreign-owned companies. Using a personal account for business transactions is illegal and can lead to serious tax penalties.

Pros and Cons of Registering a Company in Turkey (A Comprehensive Analysis)

Advantages:

• Access to Turkey's large and dynamic market.
• Strategic location as a bridge between continents.
• Ability to trade freely with the world.
• Customs Union agreement with the EU.
• Possibility of obtaining a residence permit for the director and their family.
• Potential path to Turkish citizenship.

Disadvantages:

• Administrative bureaucracy can be time-consuming.
• Registration and maintenance costs.
• A complex tax system.
• High competition in some markets.
• Fluctuations in the Turkish Lira exchange rate.
• Language and cultural barriers.

Obtaining Residency and a Work Permit Through Company Registration (2025 Conditions)

After the company is legally registered, the company director can apply for a short-term residence permit for themselves, their spouse, and children under 18. This permit is typically valid for one year and is renewable as long as the company remains active.

To legally work in their own company, the foreign director needs a Work Permit (Çalışma İzni). The main condition is that for every work permit issued to a foreigner, the company must employ at least five Turkish citizens. However, the company director is exempt from this rule for their first year of application.

Conclusion

Registering a company in Turkey in 2025, despite its complexities, can be a gateway to unparalleled economic and commercial opportunities. Success on this path requires careful planning, full awareness of the laws and regulations, securing the necessary financial resources, and most importantly, utilizing professional and honest consultancy.

This guide aimed to be your beacon. However, every business has unique circumstances, and a small mistake in legal or financial processes can be costly. Therefore, to ensure every step is taken correctly and legally, our strong recommendation is to rely on the knowledge and experience of experts. The legal team at istanbullawyer.info, with extensive experience in company registration and providing legal services to foreign nationals, can guide you through this complex path and protect your interests.

Frequently Asked Questions