Turkey — Business: Company Formation

Why this matters

Relocating entrepreneurs should be aware of Turkey's company formation requirements to successfully establish a business.

Key facts

• Joint stock (A.S.) and limited (LTD) companies both permit 100% foreign ownership.
• Minimum capital is TRY 250,000 for an A.S. (25%, TRY 62,500, deposited before incorporation, the rest within 24 months) and TRY 50,000 for an LTD (payable over 24 months).
• Steps: notarized and translated documents (apostilled investment decision for foreign corporate shareholders), Articles of Association via the online trade registry, chamber of commerce registration, notarized books and tax registration.
• A tax-authority on-site inspection is typically required before operations begin.
• Timeline and costs were not stated; Turkish banks often require in-person KYC for foreign investors.

Steps

1. Step 1: Choose a Business Structure — Select between Limited Liability Company (LLC) and Joint Stock Company (JSC) based on business needs.
2. Step 2: Register the Business — Submit the required documents to the Turkish Trade Registry and Index System (TURKSTAT) or the relevant Municipality.
3. Step 3: Obtain Licenses and Permits — Acquire necessary licenses and permits from relevant authorities, depending on the business type and industry.
4. Step 4: Register with Tax Authorities — Register with the Turkish Revenue Administration to obtain a Tax Number and start paying taxes.
5. Step 5: Open a Bank Account — Open a corporate bank account to manage business finances and facilitate transactions.