How to Start a Business in Turkey: Step-by-Step Guide for Foreign Investors

Turkey is a country with a rapidly growing economy, strategic location between Europe and Asia, and investor-friendly regulations. That's why more and more foreign entrepreneurs are choosing Turkey as the ideal place to start a business. In this guide, we’ll walk you through the full process of business registration in Turkey, key advantages, legal forms, and the opportunities available for international investors.

1. Why Start a Business in Turkey?

Turkey offers many advantages for entrepreneurs:

  • Fast registration process – Set up a company in just 3–5 business days.
  • Low taxes – Corporate income tax is only 20%.
  • Government incentives – Foreign investors can benefit from subsidies and exemptions.
  • Large and growing market – Over 85 million consumers and access to global exports.
  • Path to residency and citizenship – Business owners may qualify for long-term residency and citizenship through investment.

2. Choosing the Right Business Structure

Before registering your company, you must choose the appropriate legal form:

  • Sole Proprietorship (Şahıs Şirketi) – Ideal for small businesses, simple setup.
  • Limited Liability Company (Limited Şirketi / LTD) – Most popular among foreigners; requires at least one shareholder and a minimum capital of 10,000 TRY.
  • Joint Stock Company (Anonim Şirketi / A.Ş.) – Suitable for large-scale or investment-heavy businesses.

For most foreign investors, LTD or A.Ş. are the recommended options.

3. Step-by-Step Guide to Registering a Company in Turkey

Step 1: Prepare the Required Documents

  • Valid passport with notarized Turkish translation
  • Turkish tax identification number
  • Official business address (rental agreement or office ownership)
  • Articles of association (prepared with a lawyer or notary)
  • Registration fee payment

Step 2: Company Registration Process

  • The full process typically takes 3–5 working days and includes:
  • Submitting all documents to the Chamber of Commerce
  • Obtaining the company’s tax number
  • Opening a business bank account
  • Appointing a certified accountant (mandatory in Turkey)

Step 3: Open a Corporate Bank Account

To operate legally, you'll need a corporate bank account in a Turkish bank. Required documents include:

  • Company incorporation documents
  • Proof of business address
  • Turkish tax ID

Step 4: Apply for Licenses and Permits

Some industries require special permissions. For example:

  • Restaurants and cafés need health and safety permits
  • Construction companies require sector-specific licenses

4. Taxation and Business Expenses

Here are the main taxes and financial obligations for businesses in Turkey:

  • Corporate Tax: 20% on net profits
  • VAT (KDV): Standard rate is 18%, reduced rates apply to certain sectors
  • Dividend Tax: 10%
  • Social Security Contributions (SGK): 34.5% of employee wages

5. Residency and Citizenship Through Business

Registering a company allows you to obtain:

  • Work permit and residence permit
  • Eligibility for Turkish citizenship after 5 years

For citizenship by investment, the minimum capital investment is $500,000

6. Conclusion: Is Starting a Business in Turkey Worth It?

Opening a business in Turkey is a smart move for investors seeking growth opportunities in an emerging market. With low taxes, a large domestic market, and access to international trade, Turkey offers real potential. Plus, it’s a path to residency and even citizenship.

Need help registering your company, finding an office, or obtaining a residence permit?
Contact us – we’ll guide you through every step of the process!

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