Company Establishment and Tax Guide in Turkey for Foreigners – Updated 2026

Establishing a Company in Turkey as a Foreigner: What Has Changed in 2026, What Should You Plan Correctly?

Turkey remains one of the most attractive markets in the region due to its location providing access to Europe, the Middle East, and Africa, its young population, and relatively fast company establishment processes.
One of the most critical advantages for foreign investors is the possibility of establishing a 100% foreign-owned company and the flexibility to complete this process remotely, without coming to Turkey.

However, in practice, if issues such as trade registry procedures, tax obligations, opening a bank account, and residence/work permits are not managed correctly, costs increase, timelines extend, and sometimes serious problems arise regarding visas/banks/taxes.

In this guide, with the updated framework of 2026, we will go step by step through the types of companies in Turkey for foreigners, establishment steps, tax regime, and common mistakes.
You will also see examples of how Corpenza provides end-to-end solutions in these processes.

1. Legal Framework: Equal Treatment for Foreign Investors and 100% Foreign Partnership

The fundamental principle for foreign investors in Turkey is the “equal treatment with local investors” principle.
In this framework:

• A 100% foreign-owned company can be established. There is no obligation to find a Turkish partner.
• It is not necessary to have a residence permit for the foreign partner or manager. If you want to reside and work in Turkey, a residence and work permit is additionally required.
• Remote establishment is possible. A notarized and apostilled power of attorney allows a lawyer or financial advisor to carry out the entire establishment process on your behalf.
• Only some sectors (strategic areas like defense, energy) have additional permits and restrictions.

This structure makes Turkey, especially for entrepreneurs from Europe, the Middle East, and CIS countries, a flexible center in terms of operations, tax, and residence planning.

2. Suitable Company Types for Foreigners: Which Structure Makes Sense When?

Although there are many commercial structures theoretically available in Turkey, four main options stand out in practice for foreigners:

2.1. Limited Company (Ltd. Şti.)

The most frequently preferred model by foreign investors is the Limited Company. The reasons are:

• Can be established with 1 real or legal person as a partner.
• The liability of the partners is limited to the capital they contribute.
• The management structure is flexible; a single director is sufficient, and the director can be a foreigner.
• It is ideal for small and medium-sized enterprises, e-commerce, consultancy, software, and agency services.

As of 2026, the minimum capital amount may vary according to updates in the law, so the official lower limit should be checked additionally.
In English sources:

• In some guides, 10,000 TL,
• In many legal and accounting firms’ guides, 50,000 TL

is listed as the minimum capital limit.
In practice, especially to be perceived as more “serious” in terms of banks and visa/work permit/tenders, at least 100,000 TL or more capital is recommended.

2.2. Joint Stock Company (A.Ş.)

Joint Stock Company is suitable for larger-scale investments, opening to multiple partners, or projects aiming for future public offerings/corporate investors.

• Can be established with 1 real person or company partner.
• A board of directors is mandatory; corporate governance rules are more detailed.
• Minimum capital, depending on resources:
  • For general A.Ş.s, at least 50,000 TL,
  • For some investment and public offering plans, 250,000 TL or more
• A certain portion (usually 25%) must be deposited in the bank at establishment.

Foreign institutional investors prefer the A.Ş. structure because it makes investment legally more predictable and transferable in large-scale projects.

2.3. Branch Office

Instead of establishing a new legal entity in Turkey, you can open a branch on behalf of your parent company abroad:

• A branch is not a separate legal entity; all responsibility belongs to the parent company.
• Only taxed on income sourced from Turkey.
• There is no minimum capital requirement; however, sufficient capital must be practically transferred for operations.
• The parent company’s trade registry documents, decisions, and authorization documents must go through translation and apostille processes.

International companies typically choose the branch model to test the Turkish market in terms of size or to directly control local operations to the extent permitted by their main contracts.

2.4. Liaison Office

If you are not yet ready to commercially enter the Turkish market, you can open a liaison office for activities such as market research, promotion, supplier/customer communication:

• Cannot issue invoices, generate income, or conduct commercial activities.
• Generally granted for a period of 3 years, can be extended based on the activity report.
• No capital requirement, the parent company abroad funds it.

Many foreign groups first test the market with a liaison office; when potential is confirmed, they transition to a Limited or Joint Stock Company.

3. Capital Requirements and Payment Timing

In 2026, the minimum capital figures for company establishment and when to pay how much of the capital is one of the most critical details of the practice.

• Limited Company: Minimum 10,000 – 50,000 TL according to resources;
  to stand stronger with banks and official authorities, at least 100,000 TL or more capital is recommended.
• Joint Stock Company: At least 50,000 TL; in some cases, capital of 250,000 TL and above may be required.
• Branch: There is no legal minimum capital requirement, but operating capital is practically necessary.

As a general rule:

• In Limited and Joint Stock Companies, at least 25% of the committed capital is blocked and deposited in the bank before establishment.
• The remaining amount can be paid in installments of up to 24 months under the Turkish Commercial Code.

Keeping the capital very low here may seem like a short-term tax advantage; however, it may create a disadvantage in terms of reputation regarding opening a bank account, credit, incentives, work permit applications, and corporate clients.
Corpenza plans the ideal capital level both legally and strategically with you according to the scale of the company, its sector, and your immigration goals.

4. Steps for Establishing a Company in Turkey for Foreigners (MERSIS, Trade Registry, and After)

4.1. Preparation Phase: Determining the Structure, Address, and Title

In the first phase, you need to make a few strategic decisions:

• What type of company (Ltd. / A.Ş. / Branch / Liaison Office)?
• Are the partners real persons or legal entities? Is it a single partner or multiple partners?
• What will the director/board structure be like, who will have signing authority?
• What will the company’s activity subject (NACE codes) be?
• What will the official company address be? (a rental contract or virtual office agreement is required)
• Title: You should choose a unique name that has not been used before and contains “Ltd. Şti.” or “A.Ş.”.

Mistakes made during this planning phase (incorrect NACE selection, insufficient address documentation, incorrectly structured signing authorities) can lead to risks such as tax audits, bank rejections, or restrictions in the field of activity later on.
Corpenza evaluates both the legal and tax and mobility dimensions during the planning phase and suggests the most suitable structure for you.

4.2. Preparation of Required Documents

Typically, the following documents are required for foreign real person partners and managers:

• Passport photocopy
  • Must be notarized,
  • Must carry an apostille (for Hague Convention countries),
  • Must be translated into Turkish by a sworn translator.
• Address confirmation (bank statement, bill, etc. from the last 3 months)
• Tax identification number (VKN or foreign T.C. tax number)
  • A separate VKN is obtained for each foreign partner/manager.
• Power of Attorney
  • Mandatory if a lawyer or financial advisor is conducting the company establishment,
  • Must be notarized and apostilled,
  • Must be translated into Turkish and notarized.
• Articles of Association
  • Prepared in accordance with the Turkish Commercial Code,
  • Includes all critical elements such as the company’s title, address, activity subject, capital, and share distribution,
  • Entered into the system electronically via MERSIS.
• Rental contract or virtual office agreement (for the official address)

4.3. MERSIS Application and Trade Registry Registration

After the documents are prepared, the process works as follows:

• The Articles of Association and partnership structure are electronically registered via MERSIS (Central Registry System).
• Application is made to the relevant province’s Trade Registry Office with the necessary documents according to the type of company.
• Partners or the person they have authorized prepare a signature declaration at the notary.
• A bank letter confirming that at least 25% of the committed capital has been deposited in the bank is submitted.

When the application is approved:

• The company is registered in the trade registry and gains legal personality.
• The Trade Registry automatically transmits most information to the tax office and social security institution.

If the documents are prepared correctly, the trade registry approval is usually completed within 24–72 hours in most cities.
With the preparation, notary, and banking processes, it is typically possible to make the company fully operational for foreign investors within 7–14 business days.

4.4. After Establishment: Bank, E-Invoice, Accounting, and SGK

Steps that should not be overlooked after registration:

• Tax plate and tax office inspection
  • Your tax number and activity subject are defined in the system,
  • An address inspection may be conducted; it is important to have an authorized person present at the office.
• Signature circulars
  • The director or board members prepare the signature circulars at the notary,
  • This document proves who will represent the company in banks and contracts.
• Opening a corporate bank account
  • Company documents, signature circulars, and partners’ identification documents are required,
  • Some banks apply additional compliance checks for foreign partners, which may prolong the process.
• Transition to e-invoice, e-archive, and e-book systems (depending on turnover and sector limits)
• Social Security Institution (SGK) registrations and personnel notifications
• Establishment of accounting and payroll systems

Corpenza, alongside company establishment in Turkey, provides an integrated solution for companies wishing to expand not only in Turkey but also in multiple countries by structuring international accounting, payroll (payroll/EOR), and posted worker models under one roof.

5. Tax Regime as of 2026: What Taxes Should You Plan When Establishing Your Company?

5.1. Corporate Tax

Companies based in Turkey (Ltd. / A.Ş. etc.) are generally:

• Subject to Corporate Tax on worldwide earnings.
• Branches and limited tax entities are only taxed on income sourced from Turkey.

As of 2025, the corporate tax rate is reported to be around 25% in many sources.
For 2026, since the rate and possible temporary tax regulations are announced with the annual budget and tax packages, it is necessary to check GİB and Official Gazette updates before implementing the article.

General principles:

• Real commercial expenses (rent, personnel, marketing, depreciation, etc.) can be deducted from corporate income.
• Thanks to double taxation treaties, withholding rates on dividend distributions can be reduced according to agreement rates with many countries.
• Corporate tax paid abroad can be offset in Turkey when conditions are met.

5.2. VAT (Value Added Tax)

The VAT system in Turkey operates similarly to that of EU countries:

• The standard rate is reported to be 20% in many sources.
• There are reduced rates for certain goods and services (e.g., food, accommodation, some basic products).
• The VAT rate for export deliveries is generally 0% (exempt), and the VAT paid can be refunded.
• In service exports (consultancy, software, etc. billed to foreign clients), if conditions are met, VAT exemption may apply.

VAT declarations are mostly submitted monthly electronically.
In foreign-owned companies, VAT refund processes and risk-based audits can be stricter, so it is crucial that invoices, contracts, and bank transactions are consistent and transparent.

5.3. Income Tax and Payroll: For Foreign Partners and Employees

In Turkey, wage incomes are subject to a progressive Income Tax scale.
For 2026, the brackets will likely follow a similar trajectory to the inflation-indexed updated brackets of 2025 (for example, a progressive system in the range of 15%–40%).

Important points:

• If a foreigner stays in Turkey for more than 183 days in a year, they are generally considered a full taxpayer (resident) and can be taxed on worldwide income (subject to exceptions and treaties).
• Employer and employee shares in social security premiums (SGK) together reach a total burden of approximately 34%.
• Thanks to social security agreements with some countries, it is possible to avoid double premium payments in certain temporary assignments.

Corpenza provides tax and social security optimization for both foreigners you will hire in Turkey and personnel you will send from Turkey to Europe with international payroll/EOR (employer of record) and posted worker solutions, thus minimizing tax and penalty risks that may arise from incorrect payroll.

5.4. Other Taxes: Withholding, Stamp, Property Tax

Other taxes you may encounter depending on your company’s field of activity:

• Withholding Tax: Applied at certain rates on rental payments, freelance payments, and dividends.
• Stamp Tax: Collected at rates varying in the thousandths on contracts, undertakings, and similar documents.
• Taxes such as Motor Vehicles Tax, Real Estate Tax apply to the vehicles and properties you own.

Some of these taxes may be overpaid in foreign-owned companies due to incorrect selection of contract types or insufficient accounting planning.
With the correct structuring, it is possible to achieve significant savings within the legal framework.

6. How Should You Integrate Your Residence, Work Permit, and Golden Visa Plans with Company Establishment?

Owning a company in Turkey does not automatically provide a residence permit or citizenship; however, when structured correctly, it can be an important part of your immigration strategy:

• You can apply for a work permit through the company (criteria such as the number of employees, capital, and turnover are important).
• Considering the company along with your living and business plans in Turkey, investment-based residence/long-term residence strategies can be structured.
• Your company in Turkey can also play a role in terms of cash flow and income proof when planning your investment flow to golden visa or residence programs in Europe.

Corpenza not only establishes your company in Turkey but also provides an integrated roadmap by addressing company establishment, golden visa, investment-based residence, international accounting, and payroll processes together, instead of fragmented consulting.

7. Common Mistakes and Corpenza’s Approach

We frequently encounter the following mistakes when foreigners establish companies in Turkey:

• Focusing only on short-term tax advantages without planning long-term banking, incentives, visa, and exit strategies.
• Proceeding with incorrect NACE codes and activity subjects, later encountering obstacles in license, permit, or incentive applications.
• Not taking the address, rental agreement, and actual office situation seriously, leading to problems in inspections and bank compliance processes.
• Postponing accounting and payroll with “we’ll look at it when necessary” and facing serious irregularity fines in the first year.
• Not designing the company structure in Turkey integrated with the global tax and mobility structure; encountering double taxation or unnecessarily high SGK/cost burdens.

As Corpenza, we provide integrated services in:

• Company establishment and restructuring,
• International accounting and payroll (payroll/EOR),
• Sending personnel with the posted worker model and tax optimization,
• Investment-based residence and golden visa programs

Our focus is not just to “establish” your company but to ensure that you build a sustainable structure aligned with your tax, mobility, and scaling goals.

Conclusion: Consider Strategy, Law, and Tax Together When Establishing a Company in Turkey

Turkey offers foreign investors 100% foreign partnership, remote establishment opportunities, and relatively fast processes.
However, to truly benefit from these advantages:

• You should choose the type of company (Ltd./A.Ş./Branch/Liaison Office) according to your strategy,
• Capital, activity subject, management structure, and address should be correctly structured from the beginning,
• Tax, VAT, payroll, and social security obligations should be planned during the establishment phase,
• You should think of your structure in Turkey integrated with your global tax and mobility plan.

In this context, obtaining professional support significantly reduces both establishment costs and medium-long term tax and compliance risks. Corpenza provides end-to-end guidance in company establishment, international accounting, payroll/EOR, personnel leasing, and investment-based residence programs in Turkey and Europe.

Important Warning / Disclaimer

This text has been prepared for general informational purposes and does not constitute legal, financial, or tax advice.
Tax rates, minimum capital amounts, permit and incentive conditions, among others, may change over time.
Before making any decisions, you should check the current regulations from official sources and obtain professional advice from qualified lawyers, financial advisors, or relevant experts.
Corpenza and the author cannot be held responsible for any consequences arising from decisions made based on this text.