Let us call you
Company Formation for Foreigners in Turkey: Global Capital and Legal Compliance
With its geopolitical position, incentive systems and dynamic market structure, Turkey continues to be an attractive trading base for global capital. For investors wishing to enter this potential market with legal assurance and solid foundations Company formation for foreigners in Turkey, is the most strategic step, where domestic legislation and international law intersect. Thanks to the guarantees of the Foreign Direct Investment Law’s provisions (Law No. 4875), foreign-capital enterprises are subject to exactly the same rights and obligations as domestic companies. At Akal CPA, with our operational strength in Ankara’s bureaucratic center, we manage all registration, tax and legal infrastructure processes of foreign investors on a zero-error principle, transparently and quickly.
Foreign Direct Investment Law and the Principle of Equality
Turkish commercial legislation has adopted the principle of “equal treatment” to ensure global integration. In line with this principle, in order for foreign natural or legal persons to establish a company in Turkey no Turkish citizen partner is required. In the limited liability or joint stock company to be established, a foreign investor can be the 100% sole shareholder and can manage the company alone. Investors' profit transfers, dividend distributions and the repatriation of liquidation balances abroad are fully guaranteed by law. To properly analyze double taxation avoidance agreements in this process, our tax consulting and planning department provides investors with a strategic roadmap.
Remote Company Registration without Physically Coming to Turkey
To minimize global investors’ time costs, company registration procedures in Turkey can also be carried out remotely. Without the investor having to travel to Turkey, using the investor’s apostilled powers of attorney and passport translations obtained from the competent authorities (or Turkish Consulates) in their home country, the entire process is carried out by our expert team in Turkey’s capital, Ankara. The legal notification address required for company formation is provided, in full compliance with the legislation, through our virtual office and legal address service, which eliminates physical office costs.
Documents and Procedures to be Obtained Before Establishment
In order to register a company with a foreign partner before the Trade Registry Directorates, some basic steps must be completed:
- Obtaining a Potential Tax Number: In order for foreign partners and officials to be registered in the MERSIS system and to open bank accounts, a potential tax identification number is first obtained from the tax authorities.
- Translation and Notarization: For foreign real persons, passport translations; for legal entity (foreign company) partners, apostilled and sworn translation certified copies of the certificate of activity and establishment decisions taken from the registry of that country are prepared.
- Announcement of the Articles of Association: NACE codes that determine the commercial boundaries of the business and IFRS-compliant capital structure are planned and the company's articles of association are prepared.
Your Strategic Business Partner for Your Processes in the Turkish Market
For flawless compliance with foreign investor legislation and IFRS reporting processes, turn to Akal CPA's Ankara-based operational powerhouse.
Work Permit and Residence in Foreign Capital Companies
A foreign investor’s status as merely a company partner (shareholder) in Turkey does not automatically grant a work or residence permit to that investor. However, foreign officials who will actually serve as managers of a limited liability company or as board members of a joint stock company are legally required to obtain a work permit. In this process, your company must meet certain capital and employment criteria (e.g. the obligation to employ 5 Turkish citizens). All legal and bureaucratic applications before the relevant ministries are meticulously handled by our work permit consultancy department, while the payroll, SGK and personnel file processes of your Turkish and foreign staff are secured by our payroll services experts.
Shareholding Structure Comparison for Foreign Investors
The type of partnership (Real Person vs. Legal Entity/Corporate Partnership) preferred by foreign capital when entering Turkey differs in terms of tax legislation and bureaucratic processes. You can examine which structure is more suitable for your operation in the table below:
| Criteria / Feature | Foreign Real Person (Individual) Partnership | Foreign Legal Entity (Company) Partnership |
|---|---|---|
| Establishment Documents | Only a passport translation and potential tax number is sufficient. The process is much faster. | Foreign registry records, certificate of activity and board decisions must be apostilled. |
| Double Taxation Advantage | Individual tax treaties come into play. Dividend withholding rates are assessed according to personal status. | Thanks to international tax treaties, inter-corporate tax exemptions can be applied for profit transfers to the parent company (abroad). |
| Corporate Representation | The person acts directly on his or her own behalf and manages the company. | The parent company has to appoint a legal representative (natural person) to represent the established company in Turkey. |
| IFRS and Consolidation | Since it is an individual partnership, local Tax Procedure Law (TPL) reporting is generally considered sufficient. | As they need to be combined with the parent company financial statements (consolidation) Reporting under IFRS standards is mandatory. |
International Financial Reporting (IFRS) and Corporate Reputation
For foreign investors, the greatest need after company formation is to have financial data reported in a language their head office (or global investors) can understand and in line with international standards. Valuation differences between Turkey’s local accounting standards and IFRS directly affect company profitability. In this regard, in addition to keeping your commercial transactions complete within the scope of our general accounting services , we offer, so that your financial statements can be audited by independent authorities, our independent audit services . In addition, your integration with the Revenue Administration’s (GİB) e-document requirements is provided by our technical team through our e-transformation and e-invoicing services in a secure manner.
Akal CPA: Your Ankara Based Operation Power
For foreign investors stepping into the Turkish market, bureaucracy may seem like a difficult barrier to overcome. However, Akal CPA, located in the center of the capital Ankara, removes these barriers completely with its strong operational experience with public institutions, ministries and registry offices. From company incorporation to intra-group transfer pricing analysis (transfer pricing) we are ready to be your legal guardian, acting with a global vision in all your financial and legal processes.
Frequently Asked Questions
No, there is absolutely no such requirement. Under the principle of equal treatment in the Foreign Direct Investment Law, foreign investors may on their own hold 100% of the shares of the Limited Liability Company or Joint Stock Company to be established and may manage the company entirely by themselves, without needing a Turkish partner.
Yes, company formation is possible without you having to travel to Turkey. All formation, tax and registration procedures are carried out on your behalf by our expert team using apostilled powers of attorney and passport certifications obtained from the Turkish Consulate in your country or from notaries in countries party to the Hague Convention.
Once your company is legally registered as a legal entity and the company tax certificate is approved, you can open a commercial account with Turkish banks. However, due to international anti-money laundering (AML) rules, banks may require the physical presence of the company official (manager/board member) at the bank branch during account opening.
Simply being a company partner (shareholder) does not automatically entitle you to a residence or work permit. However, if you appoint yourself as "Company Manager" or "Board Member" in the company you have established, a work permit can be obtained on your behalf if you meet certain legal criteria, such as the company having a minimum paid-in capital of 100,000 TL and employing at least 5 Turkish citizens.
Foreign real or legal persons who do not have an official residence or Turkish ID Number in Turkey are required to obtain a temporary identification number from the Turkish Tax Authorities in order to be registered in the trade registry, to be included in the articles of association and to make bank transactions for capital blockage. This number is called "Potential Tax Number" and is the first step of the establishment phase.
Turkish 
English 
German 
Spanish 
Russian 
French