Date
Türkiye continues to attract foreign investors with its dynamic market, strategic location, and growing sectors such as real estate, technology, manufacturing, and tourism. Establishing a company in Türkiye can be a smooth process when supported by the right legal and administrative planning. This article outlines key company types, structuring considerations, and essential steps for foreign nationals looking to set up a business in Türkiye.
The most common legal forms for foreign investors are limited liability companies (Ltd. Şti.) and joint stock companies (A.Ş.). While both allow foreign ownership, limited companies are typically preferred for small and medium-sized enterprises due to their simpler structure and lower capital requirements. Joint stock companies, on the other hand, are more suitable for larger investments, institutional shareholders, or ventures planning to go public or issue shares.
Planning the shareholder structure is an important early step. Foreign investors should consider how ownership will be allocated, whether shares will be held individually or through another legal entity, and who will act as directors or authorized signatories. It is also important to ensure that corporate governance arrangements comply with Turkish Commercial Code requirements. Once the company structure is determined, several administrative steps must be completed: obtaining a potential tax number, opening a local bank account, registering the company with the Trade Registry, and providing a physical address. These steps are necessary regardless of the type of business and typically take between one to two weeks if documents are in order.
For investors who plan to apply for Turkish residency or citizenship, company formation can be integrated into a broader immigration or investment strategy. Establishing a business in Türkiye may support long-term stay permits, while investment in real estate or certain sectors may qualify the investor for the citizenship-by-investment program. Legal guidance is recommended to align company activity with immigration goals and ensure full compliance with application criteria.
Foreign investors occasionally make avoidable mistakes, such as using standard articles of association without adapting them to the business model, or appointing signatories without properly limiting their powers. Careful planning of company bylaws, internal control mechanisms, and capital structure can prevent complications later on and help the company operate more effectively from day one. At SKA Law, we assist foreign investors with the full process of establishing a company in Türkiye. This includes selecting the appropriate company type, structuring ownership, completing registration, and handling related steps such as tax registration and bank account opening. Where relevant, we also support clients in aligning their company setup with residence or citizenship applications. Our goal is to ensure the process is completed accurately and efficiently, so the company can start operating without unnecessary delays.
The most common legal forms for foreign investors are limited liability companies (Ltd. Şti.) and joint stock companies (A.Ş.). While both allow foreign ownership, limited companies are typically preferred for small and medium-sized enterprises due to their simpler structure and lower capital requirements. Joint stock companies, on the other hand, are more suitable for larger investments, institutional shareholders, or ventures planning to go public or issue shares.
Planning the shareholder structure is an important early step. Foreign investors should consider how ownership will be allocated, whether shares will be held individually or through another legal entity, and who will act as directors or authorized signatories. It is also important to ensure that corporate governance arrangements comply with Turkish Commercial Code requirements. Once the company structure is determined, several administrative steps must be completed: obtaining a potential tax number, opening a local bank account, registering the company with the Trade Registry, and providing a physical address. These steps are necessary regardless of the type of business and typically take between one to two weeks if documents are in order.
For investors who plan to apply for Turkish residency or citizenship, company formation can be integrated into a broader immigration or investment strategy. Establishing a business in Türkiye may support long-term stay permits, while investment in real estate or certain sectors may qualify the investor for the citizenship-by-investment program. Legal guidance is recommended to align company activity with immigration goals and ensure full compliance with application criteria.
Foreign investors occasionally make avoidable mistakes, such as using standard articles of association without adapting them to the business model, or appointing signatories without properly limiting their powers. Careful planning of company bylaws, internal control mechanisms, and capital structure can prevent complications later on and help the company operate more effectively from day one. At SKA Law, we assist foreign investors with the full process of establishing a company in Türkiye. This includes selecting the appropriate company type, structuring ownership, completing registration, and handling related steps such as tax registration and bank account opening. Where relevant, we also support clients in aligning their company setup with residence or citizenship applications. Our goal is to ensure the process is completed accurately and efficiently, so the company can start operating without unnecessary delays.
