Turkey Company Formation
Turkey Company Formation: Your Gateway to Eurasian Business Expansion Main Characteristics and the basic rules of Company registration in Turkey
Strategically bridging Europe and Asia, Turkey is a thriving business hub known for its dynamic economy, strong infrastructure, and investor-friendly environment. With its unique location, growing market, and modern regulatory framework, Turkey company formation offers international investors an opportunity to access both Western and Eastern markets seamlessly.
Why Choose Turkey for Company Formation
Turkey has rapidly evolved into a global trade and investment center. Its government encourages foreign direct investment, offering flexible company laws and attractive tax incentives.
Key Advantages:
- Gateway between Europe, Asia, and the Middle East
- Full foreign ownership allowed for most business types
- Customs Union agreement with the EU
- Large, young, and skilled workforce
- Competitive corporate tax rates
- Modern financial and legal infrastructure
Types of Companies in Turkey for Non-Residents
|
Entity Type |
Description |
Minimum Capital |
Ideal For |
|
Limited Liability Company (LLC) |
Most common and flexible structure |
TRY 50,000 |
SMEs and trading firms |
|
Joint Stock Company (JSC) |
Allows share transfer and public offering |
TRY 250,000 |
Large or multinational corporations |
|
Branch Office |
Extension of a foreign company |
N/A |
Foreign companies expanding to Turkey |
|
Liaison Office |
For representation and non-commercial activities |
N/A |
Market research or promotion purposes |
Note: The LLC (Limited Liability Company) is the most popular structure for foreign investors due to its simplicity and limited liability protection.
Advantages of Turkey Company Formation
|
Benefit |
Explanation |
|
Strategic Location |
Access to markets in Europe, Central Asia, and the Middle East |
|
Competitive Labor Costs |
Cost-effective compared to Western Europe |
|
Double Taxation Treaties |
Over 85 agreements to reduce tax burdens |
|
Skilled Workforce |
Young, educated population supporting innovation and growth |
|
Modern Infrastructure |
Advanced transportation, ports, and telecommunication networks |
|
Business Incentives |
Government-backed programs to attract FDI and support startups |
Disadvantages of Company Formation in Turkey
While Turkey offers numerous advantages, foreign investors should be aware of certain challenges:
- Bureaucratic processes can occasionally delay registration or permits.
- Language barrier – most official documents must be in Turkish.
- Economic fluctuations may impact exchange rates.
- Local representation is required for certain legal processes.
Requirements for Company Registration in Turkey
|
Requirement |
Description |
|
Company Name |
Must be unique and approved by the Trade Registry |
|
Registered Office |
A local physical address in Turkey |
|
Shareholders |
Minimum one shareholder (can be a foreigner) |
|
Director(s) |
At least one director; no nationality restriction |
|
Articles of Association |
Must be prepared and notarized in Turkish |
|
Bank Account |
Required for depositing share capital |
|
Tax Registration |
Mandatory registration for corporate tax and VAT |
Note: All corporate documents must be notarized and translated into Turkish by a sworn translator.
Procedure for Company Formation in Turkey
- Choose Business Structure – Select LLC, JSC, or other suitable form.
- Reserve Company Name – Apply to the Central Registry Record System (MERSIS).
- Draft and Notarize Articles of Association.
- Deposit Share Capital – Paid into a Turkish bank before registration.
- Register with Trade Registry – Obtain a registration certificate.
- Tax Office Registration – Secure a tax identification number.
- Social Security Registration – If hiring employees.
- Apply for Licenses (if applicable) – Certain industries require additional permits.
Timeframe for Company Formation in Turkey
|
Stage |
Estimated Duration |
|
Name reservation |
1–2 days |
|
Document preparation and notarization |
2–3 days |
|
Bank account and capital deposit |
2–4 days |
|
Registration with Trade Registry |
3–5 days |
|
Tax and social security registration |
1–2 days |
Total Estimated Time: 7–14 working days for full company incorporation.
Corporate Tax System in Turkey
|
Tax Type |
Rate (2025) |
Notes |
|
Corporate Income Tax |
25% |
Standard rate for resident companies |
|
Withholding Tax (Dividends) |
10% |
May be reduced under DTT |
|
VAT (Value Added Tax) |
1%, 8%, or 20% |
Depends on goods/services |
|
Capital Gains Tax |
0–25% |
Exemptions for long-term holdings |
Note: Turkey maintains over 85 double taxation treaties, allowing tax relief for international investors.
How We Can Help You with Turkey Company Formation
Setting up a company in Turkey involves multiple legal and procedural steps. Our team of professionals ensures a smooth, compliant, and efficient formation process, providing end-to-end support.
Our Services Include:
- Business structure consulting and planning
- Company name reservation and documentation
- Assistance with bank account opening
- Notarization and translation services
- Trade Registry and tax registration
- Accounting, legal, and VAT advisory
- Ongoing corporate compliance support
Start Your North Macedonia Company Formation with Confidence
Forming a company in Turkey provides unparalleled access to international markets, a cost-efficient workforce, and a business-friendly legal system. Whether you aim to serve local customers or expand globally, Turkey’s strategic positionoffers the perfect base for growth.
Contact us today to begin your incorporation journey in Turkey — your gateway to a thriving and strategic Asian – European market.
Questions & Answers
1. What is Corporation Tax in Turkey?
Corporation Tax in Turkey is levied on the profits of companies operating in the country. As of 2023, the corporate tax rate is 25%. Companies must file their tax returns by April 30th of the following year, with payment due by May 31st. Exceptions may apply for certain sectors such as banking and insurance, which may have different rates.
2. How is dividends tax structured in Turkey?
In Turkey, dividends distributed to shareholders are subject to a withholding tax. The standard rate is 15%, but it can be reduced under double tax treaties. This tax is typically withheld at the time of payment, and shareholders must disclose it in their tax returns.
3. What is the income tax rate in Turkey?
Income tax in Turkey is progressive, ranging from 15% to 40% depending on the individual’s income level. Tax brackets are updated annually. As of 2023, the brackets are as follows:
- 15% on income up to 32,000 TRY
- 20% on income between 32,001 and 70,000 TRY
- 27% on income between 70,001 and 250,000 TRY
- 35% on income between 250,001 and 880,000 TRY
- 40% on income exceeding 880,000 TRY
4. What is the VAT rate in Turkey?
Value Added Tax (VAT) in Turkey generally applies at a standard rate of 18%. Certain goods and services, such as basic food items and medical supplies, may attract reduced rates of 1% or 8%. Businesses must register for VAT and file returns on a monthly or quarterly basis, depending on their revenue.
5. Are there other notable taxes in Turkey?
Yes, Turkey imposes various other taxes, including:
- Property Tax: Levied on real estate owners annually, rates vary based on property type and location.
- Motor Vehicle Tax: Paid by vehicle owners annually, based on the vehicle’s age and engine power.
- Special Consumption Tax (SCT): Applied to specific goods like fuel, alcohol, and tobacco, with rates varying significantly.
For specific advice and compliance, it is advisable to consult with a tax professional experienced in Turkish taxation.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
What are the requirements for non-residents to form a company in Turkey?
To form a company in Turkey as a non-resident, you need to provide identification documents, establish a registered address in Turkey, and obtain a tax identification number. Additionally, it’s essential to have a bank account in Turkey for company transactions and to fulfil any capital requirements set by the type of company you wish to establish.
What types of companies can non-residents establish in Turkey?
Non-residents can establish several types of companies in Turkey, including limited liability companies (LLC), joint stock companies (JSC), and sole proprietorships. Each type has distinct legal implications and capital requirements, so it’s advisable to consult with legal experts to choose the right structure for your business.
How long does it take to register a company in Turkey?
The company registration process in Turkey typically takes about 1 to 2 weeks, assuming all documents are prepared correctly. This process includes reserving a company name, preparing the articles of association, and completing the necessary registrations with the relevant government authorities.
Are there any tax implications for non-resident company owners in Turkey?
Yes, non-resident company owners in Turkey are subject to corporate tax on the income generated within Turkey. The current corporate tax rate is around 20%, and additional taxes such as VAT may apply depending on the business activities. It is advisable to consult a tax professional to understand your obligations fully.
Can non-residents manage their companies in Turkey?
Yes, non-residents can manage their companies in Turkey. However, appointing a local representative or director is often beneficial for navigating local regulations and ensuring compliance with Turkish laws. This representative can assist with daily management and liaison with local authorities.
What legal assistance is needed for non-residents forming a company in Turkey?
Legal assistance is highly recommended for non-residents forming a company in
What are the requirements for non-residents to form a company in Turkey?
To form a company in Turkey as a non-resident, you need to provide identification documents, establish a registered address in Turkey, and obtain a tax identification number. Additionally, it’s essential to have a bank account in Turkey for company transactions and to fulfil any capital requirements set by the type of company you wish to establish.
What types of companies can non-residents establish in Turkey?
Non-residents can establish several types of companies in Turkey, including limited liability companies (LLC), joint stock companies (JSC), and sole proprietorships. Each type has distinct legal implications and capital requirements, so it’s advisable to consult with legal experts to choose the right structure for your business.
How long does it take to register a company in Turkey?
The company registration process in Turkey typically takes about 1 to 2 weeks, assuming all documents are prepared correctly. This process includes reserving a company name, preparing the articles of association, and completing the necessary registrations with the relevant government authorities.
Are there any tax implications for non-resident company owners in Turkey?
Yes, non-resident company owners in Turkey are subject to corporate tax on the income generated within Turkey. The current corporate tax rate is around 20%, and additional taxes such as VAT may apply depending on the business activities. It is advisable to consult a tax professional to understand your obligations fully.
Can non-residents manage their companies in Turkey?
Yes, non-residents can manage their companies in Turkey. However, appointing a local representative or director is often beneficial for navigating local regulations and ensuring compliance with Turkish laws. This representative can assist with daily management and liaison with local authorities.
What legal assistance is needed for non-residents forming a company in Turkey?
Legal assistance is highly recommended for non-residents forming a company in Turkey. A local attorney can help with drafting articles of association, ensuring compliance with Turkish business laws, and navigating the registration process. Additionally, they can provide support in understanding tax and legal implications specific to your business.
We can help with drafting articles of association, ensuring compliance with Turkish business laws, and navigating the registration process. Additionally, we can provide support in understanding tax and legal implications specific to your business.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Turkey
Capital: Ankara
Region: A transcontinental area straddling Southeast Europe and Western Asia.
Language: Turkish
Currency: Turkish lira
Time Zone: GMT+3
Dial Code: +90
Abbreviations: TR
Helping Your Company Thrive in Turkey With us, starting and running a business in Turkey will be easy and efficient!
- Full support of the company’s registration in Turkey: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Full support of the company’s registration in Malta: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.