H&CO
Türkiye

Can a foreigner own 100% of a company in Turkey without a local partner?

Yes. Under the Foreign Direct Investment (FDI) Law No. 4875, foreign individuals and legal entities can hold 100% ownership of a Turkish company without requiring a local partner, Turkish shareholder, or local director in standard commercial sectors.

• Equal Treatment: Foreign investors enjoy the exact same rights and protections as domestic investors.
• Full Control: Foreign founders can serve as sole shareholders and company directors.
• Exceptions: Highly regulated sectors, such as civil aviation, broadcasting, banking, and energy, may have specific regulatory licensing or foreign ownership caps.

What is the minimum capital required to start a company in Turkey? 

The minimum capital required depends on the legal entity type: 50,000 TRY for a Limited Liability Company (Ltd. Şti.) and 250,000 TRY for a Joint Stock Company (A.Ş.).

• Limited Liability Company (Ltd. Şti.): Capital payment can be deferred up to 24 months post-incorporation.
• Joint Stock Company (A.Ş.): At least 25% of the subscribed capital must be deposited into a Turkish bank account prior to commercial registration.
• Competition Authority Fee: A standard fee of 0.04% of total subscribed capital must be paid during setup.

How long does it take to register a company in Turkey? 

Commercial trade registry registration usually takes 1 to 3 business days once documentation is submitted. The end-to-end process, including apostilling, translation, and tax/SGK registration, typically takes 2 to 4 weeks.

• Preparation (1–2 weeks): Power of Attorney, passport sworn translations, and getting a potential tax ID number.
• Execution (1–3 days): Electronic drafting in MERSIS, notarization, and Trade Registry filing.
• Post-Registration (1–2 weeks): Corporate bank account setup, tax office physical inspection, and Social Security (SGK) registration.

Can I set up a business in Turkey remotely without traveling? 

Yes, company incorporation can be completed 100% remotely by issuing a notarized and apostilled Power of Attorney (POA) to a local legal representative or attorney.

• Remote Steps: Obtaining tax IDs, signing Articles of Association, MERSIS filings, and Trade Registry registration can all be done via POA.
• Bank Account Opening: While incorporation is remote, most commercial banks require the authorized signatory to appear in person at least once to finalize corporate bank account activation and digital banking credentials.

What is the difference between an LLC (Ltd. Şti.) and a Joint Stock Company (A.Ş.)?

A Limited Liability Company (Ltd. Şti.) is best for small-to-medium businesses and owner-managed entities, whereas a Joint Stock Company (A.Ş.) is built for large enterprises, multiple investors, institutional capital, and future public offerings or exits.

What are the main tax obligations for businesses operating in Turkey?

Businesses in Turkey are subject to Corporate Income Tax (CIT) on profits, Value Added Tax (VAT) on sales/services, Withholding Tax on cross-border payments, and Social Security (SGK) contributions for employees.

• Corporate Income Tax: Standard rate is 25% (20% for financial institutions; 1-point discount for exporting companies).
• Value Added Tax (VAT): Standard rate is 20%, with reduced rates (1% and 10%) for specific essential goods and services.
• Double Taxation Agreements: Turkey maintains tax treaties with over 80 countries (including the US and EU states) to eliminate double taxation on income, dividends, and royalties.

What investment incentives does Turkey offer to foreign companies? 

The Turkish government offers incentive packages managed by the Ministry of Industry and Technology, including Free Zones exemptions, regional tax cuts, R&D/tech-park subsidies, and VAT/customs duty waivers.

• Free Zones (Serbest Bölge): 100% corporate tax exemption for manufacturing units exporting over 85% of production, plus customs duty and VAT exemptions.
• Technology Development Zones (Teknopark): 100% exemption from corporate tax and personal income tax on software development and R&D activities.
• Regional Incentive Schemes: Turkey is split into 6 investment zones; lower-developed regions offer up to 90% tax reductions, land allocation, and employer social security support.