Guide to Establishing a Limited Company in Turkey 2026 – For Foreigners

What You Need to Know About Establishing a Limited Company as a Foreigner in Turkey: Preparing for 2026

Turkey has long been a regional hub for foreign entrepreneurs due to its bridge position between Europe, the Middle East, and Central Asia, its young population, and the government’s investment incentives. Moreover, foreign investors can establish a 100% foreign capital company in Turkey; they can create their own structure without needing a Turkish partner.

The most preferred structure in this context is the Limited Company (Limited Liability Company – Ltd. Şti.) due to its flexibility and relatively low capital requirements. This guide clarifies the current legal framework, capital requirements, list of documents, and step-by-step establishment process for foreign entrepreneurs planning to enter the Turkish market in 2026.

Why Turkey and Why a Limited Company?

We can summarize the main factors that make Turkey and the Limited Company attractive for foreigners under two headings:

Advantages of Establishing a Company in Turkey for Foreigners

• Strategic location: Access to the European Union market, the Middle East, and Central Asia with a single production or logistics base.
• Large domestic market: A population of over 80 million, a growing e-commerce sector, and a dynamic SME ecosystem.
• Investment incentives: Tax reductions, social security premium supports, and investment incentive certificates in certain sectors and regions.
• Principle of equal treatment: Foreign investors can establish the same types of companies as Turkish investors and are subject to the same rights and obligations.
• 100% foreign capital opportunity: There is no requirement for a Turkish citizen partner in most sectors.

Why Limited Company, Not Joint Stock or Sole Proprietorship?

The most common choice for foreign investors is the Limited Company because:

• Limited liability: Partners generally only take risks up to the capital they contribute to the company.
• Minimum of 1 partner is sufficient: It can be established with a single person; the partner can be a real person or a legal entity (foreign company).
• Management flexibility: At least one director is sufficient; this director can be a foreign national.
• Capital and cost balance: Lower establishment and compliance costs compared to a joint-stock company.
• Safer than a sole proprietorship: In a sole proprietorship, the entrepreneur is responsible for all assets, whereas in a Limited Company, liability is limited to the capital.

Legal Framework: How Can Foreigners Establish a Company in Turkey?

The establishment of companies in Turkey is primarily based on the Turkish Commercial Code and relevant secondary legislation. Foreign capital investments are evaluated under the principle of equal treatment of foreign investors and domestic investors.

The main institutions that foreigners will encounter during the company establishment process are:

• Trade Registry Office: The authority where the company is registered and gains legal personality.
• Tax Office: Registration and tracking of corporate tax, VAT, and other tax obligations.
• Social Security Institution (SGK): Social security and premium notifications for employees.
• MERSİS: The central online trade registry system where company contracts are prepared and trade registry transactions are conducted.

For detailed information about the government’s approach to foreign investors and procedures, you can review the “Establishing a Business in Türkiye” guide from the Presidential Investment Office.

Key Features of Limited Companies from the Perspective of Foreigners

For foreigners planning to establish a Limited Company (Ltd. Şti.) in Turkey, the prominent technical features of the structure are:

• Limited liability: Partners are generally only liable for the debts up to the capital they have committed.
• Number of partners: There can be a minimum of 1 and a maximum of 50 partners. Partners can be real persons or legal entities (for example, foreign companies).
• Management / directorship: At least one director must be appointed. The director does not have to be a Turkish citizen; a foreign individual can take on the directorship.
• Establishment period: When documents are prepared completely, registration is generally completed within 1–2 weeks. Including the opening of a bank account, tax inspection, and other processes, a total of 2–4 weeks is realistic.
• Requirement for a registered address: A company address in Turkey is mandatory. This address can be an office held by a lease agreement, a home-office, or a virtual office that meets legal criteria.

Minimum Capital: What Changed from 2024 to 2026?

As of January 1, 2024, the minimum capital for Limited Companies is set at 50,000 TL. This means that the previously common practice of a minimum capital of 10,000 TL is no longer valid.

Some outdated blogs and forums may still mention 10,000 TL. However, current government guides and publications from reputable legal/accounting firms confirm that the minimum capital has been raised to 50,000 TL. Therefore, when planning to establish a company in 2026, this lower limit should be taken into account.

The rules for capital payment can be summarized as follows:

• Minimum capital: 50,000 TL (in effect after 2024).
• At least 25% must be deposited as a blocked amount in a bank account to be opened in the name of the company before registration.
• The remaining capital amount can be paid within 24 months.
• Capital can be cash or non-cash (movable/immovable assets, intellectual property rights, etc.); additional procedures such as expert reports and court approvals exist for non-cash capital.

Capital amounts in Turkey are updated from time to time. Since a new increase may come after 2026, be sure to confirm the current figures from official sources and expert consultants before establishing a company.

Required Documents for Foreign Entrepreneurs

The following lists summarize the main documents required in a typical Limited Company establishment. In practice, additional documents or different formats may be requested; therefore, working with a local legal/accounting team is critically important.

Required Documents for Foreign Individual Partners

• Passport photocopy: Must be translated into Turkish by a notary public and sworn translator.
• Tax identification number (potential tax number): The foreign partner is registered with this number obtained from the tax office in MERSİS and uses it for all official transactions.
• Residence address: Although a resident address in Turkey is not always required, a declaration of an address is practically necessary for the bank, tax office, and notification processes.
• Signature declaration: Notarized signature declaration for partners and/or directors.
• Company establishment contract (Articles of Association): Prepared and signed in Turkish via MERSİS.
• Document regarding the registered address: Lease agreement or another document showing the right of use.
• Capital payment receipt / bank letter: Document showing that at least 25% of the capital has been deposited.
• Competition Authority fee payment document: A small but mandatory contribution fee paid during registration.

Additional Documents for Foreign Legal Entity Partners

• Certificate of Activity / Good Standing: Document obtained from the trade registry of the parent company in its own country, apostilled and translated into Turkish.
• Board Resolution: Decision regarding the establishment of a company in Turkey and, if applicable, the appointment of a representative; apostilled and translated.
• Articles of Association of the parent company: Apostilled and translated copy.

Step by Step: Limited Company Establishment Process for 2026

You can plan the establishment of a foreign capital Limited Company in Turkey practically with the following main headings:

Step 1 – Strategic Planning and Company Type Selection

You first need to clarify your business model and goal. The basic options are:

• Limited Company (Ltd. Şti.)
• Joint Stock Company (A.Ş.)
• Branch (branch of an existing foreign company in Turkey)
• Representative office (office that does not engage in commercial activity)

For most SMEs and start-ups, the Limited Company is the most suitable model in terms of cost, flexibility, and liability balance. However, if you plan to operate in sectors subject to special regulations such as finance, education, health, and energy, you need to research the licensing requirements of the relevant ministries and institutions in advance.

Step 2 – Tax Number and MERSİS Registration

• First, a potential tax identification number is obtained for foreign individual or legal partners.
• This number is used to register in the MERSİS system; the type of company establishment is selected through the system, and a draft of the Articles of Association is created.
• The language of the Articles of Association is Turkish as required by legislation; if necessary, a foreign language translation can be prepared for informational purposes, but the legally binding text is the Turkish version.

Step 3 – Preparation of Trade Name and Articles of Association

At this stage:

• A unique company name is determined. The name must end with “Limited Company” or the abbreviated form “Ltd. Şti.”.
• The following matters are clearly stated in the Articles of Association:
  • The subject and areas of activity of the company (as clearly and comprehensively as possible),
  • Capital amount and share distribution,
  • Identification and address information of the partners,
  • Director or board of directors and their authorities,
  • Registered address,
  • Profit distribution, general assembly, transfer and exit provisions, etc.

Step 4 – Notary Transactions

• The Articles of Association prepared in MERSİS are signed by authorized persons and notarized (or signed by a representative with a notarized power of attorney).
• The signature declarations of the company directors are prepared in the presence of a notary.
• Foreign documents (passport, certificate of activity, etc.) must have gone through the apostille and Turkish translation processes beforehand.

Step 5 – Capital Block and Banking Transactions

• A temporary account is opened in the selected bank in the name of the company.
• At least 25% of the minimum capital is deposited into this account, and a bank letter is obtained indicating that the amount has been blocked.
• After the trade registry registration, the block is lifted, and the company starts to actively use the bank account.

Step 6 – Trade Registry Registration

• An application is made to the relevant Trade Registry Office with all documents (the application is conducted through MERSİS, and documents are submitted physically or electronically).
• When the registration occurs, the company gains legal personality and a trade registry number and registration certificate are issued.
• In the same process, the establishment of the company is announced in the Trade Registry Gazette.

This step is usually completed within a few business days if the documents are complete.

Step 7 – Tax, SGK, and Other Subsequent Transactions

• Tax office registration: The company is registered in the system for corporate tax, VAT, and other necessary taxes. A tax inspector conducts an address inspection.
• SGK registration: If employees will be employed, the company’s SGK workplace registration is completed.
• Bookkeeping approvals: Legal books such as the journal and inventory book are notarized.
• Seal and e-signature: E-signature and, if necessary, financial seal are obtained in the name of the company for official transactions and e-government/financial integration.

Establishment Duration: Realistic Timing for 2026

Average durations in practice are:

• Preparation (document collection, translation, apostille, power of attorney): 1–2 weeks
• MERSİS, notary, bank, and trade registry registration: 1–2 weeks
• Tax inspection, SGK registration, activation of the bank account: 1 week

In total, if the documents are prepared in advance, a 2–4 week timeline is considered reasonable for foreign entrepreneurs.

Tax and Ongoing Obligations

After establishing a Limited Company, you need to plan not only the establishment steps but also ongoing tax and compliance obligations:

• Corporate tax: Collected on the company’s profit; rates and exemptions may change periodically.
• VAT: VAT liability arises for most goods and services.
• Withholding taxes: Withholding may apply in transactions such as rent, freelance payments, and profit distributions.
• Monthly and annual declarations: VAT, withholding, SGK declarations, and annual corporate tax returns are submitted regularly.
• Financial reporting: Independent audits and stricter reporting provisions come into play for companies exceeding certain size criteria.

For detailed procedural steps and legislative updates, the Ministry of Trade’s English investment guide is a good reference point.

Why is Professional Support Critical in This Process? How Corpenza Can Help?

Although company establishment in Turkey seems to rely on a standard checklist, there are three main challenges that stand out for foreign investors in practice:

• Language and regulatory barrier: All official processes are conducted in Turkish. Incorrect translations or missing expressions can lead to registration rejections or future disputes.
• Bureaucratic details: Small mistakes in points such as tax number, bank procedures, apostille and notary chain, and virtual office selection can prolong the process for weeks.
• International tax and mobility dimension: Not only the establishment in Turkey but also tax obligations in the home country, employee status, and group structure must be correctly structured.

Corpenza steps in precisely at this point as a partner focused not only on “company establishment” but also on international business development and mobility:

• Establishment of foreign-partnered Limited and Joint Stock companies, branch and representative office structuring,
• International accounting and payroll (EOR) solutions,
• Tax and social security optimization with models for sending personnel abroad and posted worker,
• Designing residency permits, work permits, golden visa, and investment citizenship strategies in line with your company establishment plan.

If you aim to grow in Turkey in 2026 and beyond, the professional support you receive during the establishment phase directly affects both your establishment speed and your long-term tax and compliance costs.

Conclusion: What Should You Focus on When Establishing a Limited Company in Turkey in 2026?

Establishing a Limited Company in Turkey is an accessible and predictable process for foreign investors. In summary from a 2026 perspective:

• Foreign investors have the right to establish and manage companies on equal terms with Turkish investors.
• Limited Company stands out as the most rational choice for most SMEs and start-ups due to its liability limit, capital requirement, and flexible management structure.
• The minimum capital is 50,000 TL as of 2024, and it is expected that this base will continue in 2026; however, since figures can be updated, always check the current legislation.
• When steps such as passport, tax number, Articles of Association, capital block, and trade registry registration are carried out in the correct order, the process can generally be completed within 2–4 weeks.
• For long-term success, it is essential to plan not only the establishment but also the tax, accounting, payroll, international personnel mobility, and residency/work permits dimensions comprehensively.

Disclaimer

This text is a general information guide regarding the establishment of Limited Companies for foreign investors in Turkey in 2026. It does not constitute legal, financial, or tax consultancy and should not be used as the sole basis for any decision.

Legislation regarding company establishment and foreign investments can be frequently updated due to changes in laws, secondary regulations, and administrative practices. Therefore, before proceeding, be sure to:

• Review current official sources and announcements from relevant public institutions,
• Obtain professional legal and financial consultancy support familiar with the legislation in your country and Turkey.

Corpenza can provide a professional framework for you to create a comprehensive roadmap in international company establishment, tax, and mobility processes; however, concrete steps should always be taken based on individual situation analysis and current legislation.