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canonical: "https://euincnow.com/company-formation-turkey"
dateModified: "2026-10-11"
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# Company Formation in Turkey: Types, Taxes and Costs

Forming a company in Turkey takes about 2 to 4 weeks and can be done entirely remotely through a power of attorney, with 100% foreign ownership and no local partner required. The most common vehicle is the Limited Sirket (LLC), which needs TRY 50,000 of capital (payable within 24 months, no upfront deposit), while the Anonim Sirket (JSC) needs TRY 250,000 with 25% paid before registration. Companies pay 25% corporate tax (30% for banks) and 20% VAT, with reductions for export, manufacturing and technology-zone activity.

## Turkey at a glance

- Turkey is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.

### Company types in Turkey

- Limited Sirket (limited liability company) The most common vehicle for foreign founders, similar to a GmbH or SARL: a single shareholder and director, limited liability, TRY 50,000 capital payable within 24 months with no upfront deposit.
- Anonim Sirket (joint-stock company) For larger operations or raising investment, and mandatory in regulated sectors. TRY 250,000 capital, 25% deposited before registration.

* Company formation in Turkey: key facts (last reviewed July 2026)

- Corporate tax

  Standard corporate tax is 25% for 2025-2026 (30% for the financial sector), with a 5-point reduction for qualifying export, manufacturing and technology-zone income. A domestic minimum tax (generally at least 10%) applies from 2025, and free zones and technology development zones offer significant exemptions.

- VAT rate

  Standard VAT (KDV) is 20%, raised from 18% in mid-2023, with reduced rates of 10% and 1% and 0% on exports. Returns are filed monthly.

- Dividends & payroll taxes

  Dividends carry withholding of around 10%. Personal income tax climbs to 40%, employer social security adds roughly 22.5% within ceilings, and mandatory e-invoicing keeps every flow visible; lira volatility does the rest.

- Minimum share capital

  Limited Sirket: TRY 50,000 (about USD 1,400), raised from 10,000 in 2024, payable within 24 months with no upfront bank deposit. Anonim Sirket: TRY 250,000, with 25% deposited before registration. Companies under the old thresholds must top up by 31 December 2026.

- Setup time

  Typically 2 to 4 weeks with complete, translated documents. The trade-registry filing itself can clear in 3 to 10 business days; notarisation, sworn translations, tax numbers and bank account opening extend the practical timeline.

- Remote setup

  Yes. With a notarised, apostilled power of attorney to a local attorney, name reservation, tax numbers, MERSIS and trade-registry filing and the capital deposit can all be handled without travelling. Foreign investors get 100% ownership with no local partner.

- Director / residency

  No residency requirement: a single foreign, non-resident shareholder and director suffice, and 100% foreign ownership is permitted under the Foreign Direct Investment Law. Forming a company does not by itself grant residency but can support a work-permit application.

- Banking options

  A Turkish corporate account is required (mandatory for the JSC capital deposit). Foreigners can open accounts at Garanti BBVA, Isbank, Ziraat, Yapi Kredi and Akbank; a tax number and proof of address help, and some banks want an in-person visit or use a local representative under PoA.

* Turkey is not an EU member; it is an official EU candidate (since 1999, talks stalled) outside the EEA and EFTA, but it has a Customs Union with the EU (since 1995) giving tariff-free access for many industrial goods. It is transcontinental, with a market of more than 85 million, 100% foreign ownership, 80+ tax treaties, and free zones offering tax and VAT exemptions attractive to exporters and tech firms. The currency is the Turkish lira.

## How to register a company in Turkey

- Step by step, this is how a Turkey formation actually runs:

1. **Prepare MERSIS filing and documents.** The limited şirket's articles are drafted in the MERSIS system; foreign founders add notarised, apostilled passports and a power of attorney.
2. **Get tax numbers.** Each foreign shareholder obtains a Turkish tax number, doable online or through the attorney.
3. **Sign at the Trade Registry.** The attorney signs the incorporation before the Trade Registry Directorate under the power of attorney.
4. **Deposit capital.** The TRY 50,000 minimum for a limited şirket does not have to be pre-deposited; it is payable within 24 months of registration.
5. **Tax office registration and e-systems.** The tax office activates the company, and the mandatory sworn accountant (SMMM) sets up e-invoice and e-declaration systems.

## What company formation in Turkey costs

- Registry, notary and translation costs for a remote setup commonly total EUR 300 to 700, with figures in lira moving with inflation. The mandatory monthly accountant typically costs the equivalent of EUR 80 to 200. The TRY 50,000 capital (roughly EUR 1,100 at recent rates) is payable within two years, easing the day-one outlay.

## Who can form a company in Turkey

- Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Turkey. The director and residency information above identifies the main formation conditions to review.
- Turkey fits founders serving its large domestic market or bridging Europe and the Middle East, with the customs union easing goods trade with the EU. Lira volatility and monthly compliance argue for pricing in hard currency and keeping a dependable local accountant.

## After registration: what Turkey expects each year

- Corporate tax (25%) is filed annually with quarterly advance returns, VAT and withholding declarations run monthly, and e-invoicing is standard. The accountant files everything electronically; expect meaningful compliance rhythm even for small companies. Statutory books are certified yearly.

## Turkey and the 28th Regime (EU Inc)

- EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. Turkey is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.

## Sources and review scope

- Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.
- No separate topic-level check date is recorded for this profile. Confirm the current requirements with the linked authority before proceeding.

### Reference links

- [taxsummaries.pwc.com][1]
- [invest.gov.tr][2]

## Frequently asked questions

### Can a foreigner open a company in Turkey?

- No residency requirement: a single foreign, non-resident shareholder and director suffice, and 100% foreign ownership is permitted under the Foreign Direct Investment Law. Forming a company does not by itself grant residency but can support a work-permit application.

### How long does company formation in Turkey take?

- Typically 2 to 4 weeks with complete, translated documents. The trade-registry filing itself can clear in 3 to 10 business days; notarisation, sworn translations, tax numbers and bank account opening extend the practical timeline.

### What corporate tax does a company in Turkey pay?

- The headline summary is 25% (30% financial), with standard VAT of 20%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.

### Can I form a company in Turkey remotely?

- Yes. With a notarised, apostilled power of attorney to a local attorney, name reservation, tax numbers, MERSIS and trade-registry filing and the capital deposit can all be handled without travelling. Foreign investors get 100% ownership with no local partner.

## Source URLs

[1]: https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income

[2]: https://www.invest.gov.tr/en/investmentguide/pages/establishing-a-business.aspx