Yes, foreigners can open a defense industry company in Turkey, but the answer only stays simple for about one sentence. The official Foreign Direct Investment Law No. 4875 says foreign investors are free to make direct investments in Turkey and are subject to equal treatment with domestic investors, unless international agreements or special laws say otherwise. That is the legal starting point.
The special-law part is where defense work changes the file. A normal company incorporation still runs through the trade registry system, MERSIS, and the ordinary company-law paperwork described by Invest in Türkiye. But if the planned activity moves into controlled weapons, ammunition, explosives, or other items on the official control list, incorporation alone is not enough. The business then enters the Ministry of National Defence security and production-permit framework. If you are shaping the commercial side at the same time, Corpenza's company formation team, manufacturing advisory page, audit and compliance team, and contact channel sit around the same workstream.
Can foreigners legally open a defense industry company in Turkey in 2026?
Yes. The official FDI law says foreign investors are free to invest in Turkey and receive equal treatment with domestic investors. The same law also says the system is notification-based rather than a classic pre-screening regime. But defense activity does not end with that baseline. Special laws and permits can still apply once the business touches controlled military production.
This distinction matters because founders often mix two separate questions. One question is whether a foreign shareholder may form or buy into a Turkish company at all. The official answer is broadly yes. The second question is whether the new company may actually produce controlled defense items, keep sensitive project material, or import controlled components for testing. That second answer depends on the defense-specific rulebook, not just on company law.
Does ordinary company incorporation authorize defense production?
No. Ordinary incorporation gives you a Turkish legal entity. It does not, by itself, authorize production of controlled defense items. The official Ministry of National Defence workflow page says that production of a material covered by the Kontrole Tabi Liste, the control list, requires a Production Permit from the Defence Industry National Security Authority.
This is where many projects lose time. Founders see the ordinary company-registration route and assume that once the company exists, the plant may start machining parts, handling controlled drawings, or moving straight into prototype work. The official materials point the other way. The registry step creates the company. The defense step authorizes the sensitive activity. Those two lanes must be planned together, but they are not the same approval.
| Layer | Main authority | What it does | What it does not do |
|---|---|---|---|
| FDI baseline | Law No. 4875 | Confirms foreigners may invest and receive equal treatment | Does not replace sector-specific defense permits |
| Company incorporation | Trade Registry + MERSIS | Creates the Turkish legal entity and registry record | Does not authorize controlled defense production |
| Defense production layer | Ministry of National Defence framework | Covers facility security, production permission, and controlled-list activity | Does not remove ordinary company-law and compliance duties |
| Controlled imports | Ministry of National Defence import workflow | Allows specific import activity after review | Does not act as a blanket customs shortcut for all future shipments |
Which defense-specific permits matter most for a foreign founder?
The key official layers are the establishment permission for a facility that will produce control-list items, the facility-security track, and the Production Permit Certificate. The 2007 regulation under Law No. 5201 says companies that will produce items on the control list are subject to permission. The 2010 defence-security regulation defines the Production Permit Certificate as the document issued after approval for production under the 5201 framework.
The details are worth reading slowly. In the 5201 regulation, "kurulus izni" is defined as the permission that must be obtained in advance so a facility for control-list production can be established outside military forbidden and security zones. The same regulation later says that, for production at the facility, a Production Permit Certificate is required. On the security side, the 5202-based regulation frames the wider protection of sensitive defense information, materials, services, and facilities. In practice, that means a founder needs to design the corporate structure, site, and sensitive-workflow model with security compliance in mind from day one.
What does the ordinary incorporation file still look like?
The ordinary incorporation file still matters because every defense venture needs a legal entity before it can run the sector-specific steps. Invest in Türkiye says trade-registration transactions must be fulfilled through MERSIS and describes Trade Registry Directorates as a one-stop shop. The same source also notes that the Trade Registry Directorate notifies the tax office and Social Security Institution ex officio after incorporation.
The operational checklist is plain, even if the project itself is not. You prepare the articles, sign and notarize the company documents, obtain potential tax identity numbers for non-Turkish shareholders and board members, pay the competition-authority fee shown on the official page, and move the filing through MERSIS and the registry. Invest in Türkiye also notes that 0.04 percent of the company's capital is paid to the Competition Authority via the Trade Registry Directorate pay office. That is a good example of why defense founders should not overlook the normal company-law file while they are busy with security approvals.
Which capital thresholds apply in 2026?
The current company-law capital thresholds are official and easy to verify. The Ministry of Trade notice published on 30 November 2023 says that, effective from 1 January 2024, the minimum capital for a limited company is TRY 50,000 and the minimum capital for a joint stock company is TRY 250,000. The same notice says a non-public joint stock company using the registered-capital system must start at at least TRY 500,000.
These numbers matter, but they do not tell the full budget story for a defense venture. A founder can satisfy the minimum company-law capital and still be far from operational readiness if the facility, security architecture, production-permit file, and import-control planning have not been built. That is why early budgeting should separate at least four lines: legal incorporation, facility setup, security compliance, and product-specific authorization. Treating the minimum capital figure as the whole project budget is the mistake that causes the first serious rework.
Why do shareholder changes matter after the permit stage?
Because the official 5201 regulation directly says so. It states that if shareholders change, if partnerships are formed with other companies, or if the company name changes, the authority may reassess the position and reissue the establishment permission under the new name or title. In a defense file, cap-table changes are not just a private corporate event.
That one clause has large practical consequences for foreign investors. If the original founder expects a later strategic investor, a procurement partner, a cross-border group restructuring, or even a simple post-closing name change, the defense-permit layer should already be mapped in the transaction documents. Otherwise the corporate team may think it is handling an ordinary share transfer while the security side is quietly waiting for a refreshed review. The rule does not mean change is impossible. It means change should be sequenced and disclosed with care.
What if the company needs to import controlled parts, weapons components, or ammunition for testing?
The official import workflow matters here. The Ministry of National Defence page says that when a temporary or final import request is reviewed and found appropriate, an Import Permit Certificate is approved and the applicant is granted the import permission for the relevant period. The same page also says that, for products on the control list imported under a project, the company must have a Facility Security Certificate and a Production Permit Certificate.
The page becomes even more specific for R&D and test activity. It says that for imports of weapons, weapon parts, and ammunition to be used in R&D, testing, and trial activities for products produced under Law No. 5201, the applicant must also submit a dedicated request form in addition to the main application. So an investor who plans to prototype, test-fire, or validate a controlled item should not frame imports as a routine purchasing step. The import-control workstream is part of the original launch plan.
What is the realistic timeline and risk map for a foreign defense-company setup?
The registry stage can be fast once the ordinary company file is ready. Invest in Türkiye even uses same-day wording for the registration process. But a foreign defense-company launch should not be sold internally as a same-day setup. The schedule is usually driven by facility readiness, security review, product classification, and permit sequencing, not by the trade-registry stamp alone.
There is another operational nuance hidden in the 5201 regulation. It says the control list is published every January in the Official Gazette. That means founders should confirm whether their product or subcomponent is in scope under the current list before signing a lease, buying specialized equipment, or promising an investor timeline. Add the broader sector context and the case for careful planning gets stronger. The official Invest in Türkiye defense and aerospace page describes the sector as one of the fastest developing in the world, which is commercially attractive, but growth does not remove compliance intensity. The cleaner approach is simple: form the company correctly, classify the activity correctly, and let the permit map drive the calendar.
FAQ: opening a defense industry company in Turkey as a foreigner
Can a foreign investor own 100 percent of the Turkish company?
The official FDI baseline verified in this run does not impose a general local-shareholder requirement. The real question is whether the planned activity triggers special defense rules and permits.
Is a normal LLC or JSC registration enough to start production?
No. The official defense workflow says production of control-list items requires a Production Permit. The company-registration step and the production-authorization step are separate.
Do shareholder changes matter after permits are in place?
Yes. The 5201 regulation says shareholder changes, partnerships with other companies, or a name change can lead to reassessment and reissuance of the establishment permission.
Can the company import controlled items for testing after incorporation?
Only through the relevant import-permit process. The official workflow page says additional documentation is required, and for project-based control-list imports the company must hold the required security and production permissions.
Does this article guarantee approval?
No. This is general information, not legal or tax advice. The competent Turkish authorities decide on the relevant permissions, and the right structure depends on the product, facility, shareholder profile, and security footprint.
This is general information, not legal or tax advice; rules change and depend on your situation.
