Company Formation in Turkey: A Founder’s Guide to Procedures (2025 Update)

Thinking about setting up a business in Turkey? It’s a fantastic move with a lot of potential, but I know firsthand that the initial paperwork and procedures—what we call company formation procedures—can feel like a maze. My goal here is to walk you through it all, step-by-step, so you can get started on the right foot.

We’ll cover why Turkey is such a great place to launch a company and break down the different legal structures you can choose from.

Why Turkey Is Such a Strategic Choice for Entrepreneurs

Turkey’s position is genuinely unique, sitting right at the crossroads of Europe and Asia. This isn’t just a point on a map; it’s a massive advantage for international trade and investment. You get access to a huge domestic market, a growing economy, and a government that’s actively courting foreign investors. It all adds up to a very business-friendly atmosphere.

The entrepreneurial energy here is palpable. Just look at the numbers: World Bank data shows that in 2022 alone, Turkey saw 142,220 new business registrations. The vast majority of these were limited liability companies, which are really the engine of the Turkish economy. This isn’t just a blip; it shows real, sustained confidence in the market.

LLC vs. Joint Stock Company: Choosing the Right Structure

Key Advantages of Establishing a Business in Turkey

The benefits run deeper than just geography. Before we get into the nitty-gritty of the process, let’s talk about what really makes Turkey stand out.

• Unbeatable Market Access: From your base in Turkey, you’re perfectly placed to do business with Europe, the Middle East, North Africa, and Central Asia.
• A Talented Workforce: The country has a young, highly-educated, and ambitious labour pool that can help drive your business forward.
• A Welcoming Investment Climate: The legal framework and various incentives are specifically designed to attract and protect foreign capital.
• First-Class Infrastructure: With modern airports, seaports, and logistics networks, moving goods and managing your supply chain is straightforward.

Understanding the Main Legal Structures

Your very first major decision in the company formation procedures process is picking the right legal structure for your company. This choice has long-term implications for everything from your personal liability and tax obligations to how you can raise money down the road.

Simplify your business setup with Workon’s all-in-one company registration service in Turkey.

For most people setting up shop here, the choice comes down to a Limited Liability Company (LTD) or a Joint Stock Company (A.Ş.). If you’re a solo operator, a Sole Proprietorship is also a simple, viable option. While the specifics vary by country, the core concepts of starting a business are universal; you might find this general guide on how to start a business useful for broader context.

Choosing the right company type isn’t just a legal formality; it’s a strategic decision that defines your company’s future flexibility and growth potential. An LTD offers simplicity for SMEs, while an A.Ş. provides the structure needed for large-scale operations and public offerings.

Comparing Common Company Types in Turkey

To help you decide which one suits your needs, I’ve put together a clear comparison of the most common business structures in Turkey. Each one has different rules when it comes to capital, liability, and how it’s run.

This table gives you a snapshot, but making the right choice is crucial. Our detailed article on the different https://workon.com.tr/en/types-of-companies-in-turkey/ offers much deeper insights to guide your decision. With this foundational knowledge, you’re in a much better position to tackle the next stages of setting up your company.

Getting Your Ducks in a Row: The Pre-Registration Checklist

Before you even think about official paperwork, there’s some critical groundwork to lay for a smooth company formation process. Think of this as drawing up the blueprint before pouring the foundation. Getting these initial details right will save you from costly delays and set you up for a much stronger start.

Essential steps and documents before registering your Turkish business

Your first practical job is picking a unique and legally compliant company name. This is far more than a creative branding exercise. Your chosen name can’t step on any existing trademarks, and for some business types, it has to accurately reflect what you do. I’ve seen too many entrepreneurs get emotionally attached to a name before checking its availability, only to face disappointment and a last-minute scramble for alternatives.

Reserving Your Company Name with MERSIS

Once you’ve got a few solid name ideas, your very next stop is the Central Registration System (MERSIS). This online portal is the digital heart of company registration in Turkey; you simply can’t move forward without it.

Through the MERSIS system, you can search the trade name database instantly. If your top choice is free, you can reserve it online—a crucial step before you start drafting any legal documents. This reservation basically puts a hold on the name, ensuring no one else snaps it up while you’re getting your Articles of Association sorted.

And speaking of branding, don’t just stop at the legal name. As you’re planning, it’s a great time to consult a comprehensive guide to branding for startup companies to make sure you’re building a strong identity from day one.

Drafting the Articles of Association (Ana Sözleşme)

With your company name secured, it’s time to tackle the most important document in the entire setup: the Articles of Association (Ana Sözleşme). This is your company’s constitution, the legal document that defines its core purpose, structure, and rules of engagement.

This document has to spell out several key things with absolute clarity:

• Company Objectives: A detailed, comprehensive description of your planned business activities. Be specific, but leave a little room for future growth.
• Share Capital: The total capital investment, the value of each share, and how it’s divided among the founders.
• Management: Who’s in charge, what powers they have, and the process for making major decisions.
• Founder Details: Full names, addresses, and identification for every single founding partner.

A poorly drafted Articles of Association is one of the top reasons for rejection at the Trade Registry. Any vague language or missing information will send you straight back to square one.

Expert Tip: Don’t just download a generic template and fill in the blanks. A document customised to your specific business will not only ensure compliance but can also prevent a world of pain down the road, especially when it comes to disputes between partners over roles and responsibilities.

For instance, a software startup would be wise to include specific clauses about intellectual property rights. A trading company, on the other hand, will need detailed clauses covering import and export activities. These details really do matter.

Extra Steps for International Founders

If you’re an international founder, you’ve got a couple of extra, non-negotiable items for your checklist. These have to be done before you can even think about submitting your application.

First and foremost is getting a potential tax identification number. This unique number is mandatory for any foreign individual who will be a shareholder or board member in a Turkish company. It’s a fairly straightforward process—you can apply at any local tax office with your passport.

The other critical task is getting key personal documents professionally translated and notarised.

• Passport: Needs to be translated into Turkish and certified by a notary.
• Power of Attorney: If you’re using a local advisor to manage the process for you (which is highly recommended), you’ll need a notarised Power of Attorney.

Trying to cut corners with unofficial translations or skipping the notary step is a guaranteed way to get your application denied. The small cost of certified services is a worthwhile investment to ensure your company formation procedures goes off without a hitch. By working through this checklist diligently, you’ll turn a potentially confusing ordeal into a series of clear, manageable steps.

Navigating the Official Registration Process

With your pre-registration checklist ticked off, you’re now at the most critical stage: making your business an official, legal entity in Turkey. This is where all that careful preparation pays off, and your idea truly starts to become a reality. The starting gun fires the moment your notarised documents are ready to go to the local Trade Registry Office.

Thankfully, this part of the journey is much smoother than it used to be, largely thanks to the MERSIS platform. Think of it as your central command hub for submitting the application and keeping an eye on its progress. It adds a welcome dose of transparency and efficiency to what can otherwise feel like a bureaucratic maze.

The timeline for these core registration steps can be surprisingly quick, as this chart illustrates.

From notarizing articles to receiving your registration certificate

As you can see, if all your paperwork is perfectly in order, the active registration phase can often be wrapped up in less than a business week.

Submitting Your Application to the Trade Registry

Once you have the notarised Articles of Association and your other key documents in hand, it’s time to formally submit them to the Trade Registry Office in your company’s city. This is the moment of truth.

An officer will go through your application with a fine-tooth comb. They’re checking for absolute consistency, legal compliance, and completeness. I’ve seen applications get kicked back for the smallest things—a misspelled name or a slightly ambiguous clause in the Articles. Any error, no matter how minor, can force you to amend your documents and start the submission all over again. This is exactly where having professional guidance really proves its worth.

For a broader look at the entire process from start to finish, our guide on https://workon.com.tr/en/how-to-establish-a-company-in-turkey/ offers some great additional context.

The Critical Step of Depositing Share Capital

While your application is being reviewed, there’s another vital task you need to handle: depositing the initial share capital. This isn’t just a tick-box exercise; it’s a legal requirement that proves your company is financially sound from day one.

Before the registration can be finalised, at least 25% of the total committed share capital must be paid into a temporary corporate bank account. Once you’ve done this, the bank provides an official proof of deposit letter. You absolutely need this document, as it must be submitted to the Trade Registry Office as evidence.

Real-World Scenario: Let’s say you’re setting up a Limited Liability Company (LTD) with the minimum required capital of 50,000 TRY. You would need to deposit at least 12,500 TRY (which is 25%) into the new company bank account before registration is complete. The remaining 37,500 TRY can then be paid in over the next 24 months.

This system gives new founders some breathing room by ensuring the company is properly capitalised without demanding the full amount right away.

Final Approval and Receiving Your Official Certificates

Once the Trade Registry Office has verified all your documents and confirmed the capital deposit, they’ll give you the final green light. At this point, congratulations are in order—your company is officially established and recognised as a legal entity in Turkey!

This milestone is confirmed with the issuance of a few key documents. The most important of these are the announcement in the Trade Registry Gazette (Ticaret Sicil Gazetesi) and your official Certificate of Incorporation.

This certificate is the ultimate proof of your company’s existence. You’ll need it for just about everything that comes next, from signing client contracts to opening your permanent business bank account. With these in hand, you’re officially in business and ready to tackle the final post-registration tasks.

Getting Your New Company Up and Running

Getting your company officially registered is a huge step, but the work doesn’t stop there. Think of it as getting the keys to a new house—you still have to move in and get the utilities turned on. The next phase of your **şirket kuruluş işlemleri** is all about making your business fully operational and, crucially, compliant.

Taking care of these follow-up tasks right away will save you from some serious headaches and potential fines down the road. Let’s walk through what needs to happen next.

Making It Official with the Tax Office

Your first stop is the local tax office (Vergi Dairesi). Even though you received a potential tax number during the registration process, your company isn’t truly active in the tax system until you complete this step.

A tax officer will need to visit your registered business address to confirm that your company actually operates there. This is a standard verification check, but it’s absolutely vital. Without this confirmation, you can’t issue invoices or manage any financial transactions legally. It’s a simple but non-negotiable step.

Who’s Authorised to Sign?

With your tax registration sorted, you need to create a Signature Circular (İmza Sirküleri). This is a formal, notarised document that spells out exactly who can sign contracts and other binding documents on behalf of your company. It defines the signing authority of directors and managers, leaving no room for confusion.

Picture this: you’re out of the country, and a critical deal needs a signature right away. If your business partner is listed in the signature circular with the proper authority, they can sign the contract and keep things moving. Without it, you could miss the opportunity entirely. This document is the bedrock of your company’s day-to-day legal and financial operations.

To get a fuller sense of where these tasks fit into the broader legal landscape, it’s helpful to understand all the legal requirements to start a business in Turkey.

Next up is getting your official company books notarised. These aren’t just any notebooks; they are the legally mandated records for all your company’s financial dealings.

• Journal (Yevmiye Defteri): For logging all your transactions in chronological order.
• General Ledger (Defter-i Kebir): Where transactions are grouped by account type.
• Inventory Book (Envanter Defteri): A must-have if you’re holding any physical stock.

A notary must certify these books before you record a single transaction. Trying to use uncertified books is a red flag for tax auditors and can lead to hefty penalties. Getting this done properly from the start ensures your financial records are solid and credible.

Gearing Up to Hire Your First Employee

Even if you’re launching as a one-person operation, it’s smart to get your social security registration out of the way early on. You are legally required to register your company with the Social Security Institution (SGK) before you can hire anyone.

This registration is what allows you to manage employee contributions for health care, pensions, and unemployment. The process is straightforward—you just submit your company details to the local SGK office. By doing this now, you’ll be ready to bring someone on board the moment you find the right person, without any bureaucratic delays holding you back.

Ticking these post-registration boxes isn’t just about following rules; it’s about building a strong foundation for your business. Once these are handled, you can stop worrying about administrative details and start focusing on what really drives your success: building your brand, winning clients, and growing your company.

Understanding Turkey’s Business Climate for Foreign Investors

Going through the motions of company formation procedures is one thing, but actually building a business that lasts means getting to grips with the market you’re entering. Turkey’s economic environment is incredibly dynamic, and before you dive in, it’s worth understanding the unique blend of opportunities and challenges it presents to foreign investors.

Navigating Company Formation and Investment Opportunities

Sure, the country’s strategic location connecting Europe and Asia is its most obvious advantage. But the real story for investors today is in the current trends shaping the business landscape. We’re seeing a steady flow of foreign capital, especially from European and Middle Eastern investors who view Turkey as a high-potential, stable hub for their regional operations. This isn’t just about massive corporations, either; a significant number of small and medium-sized businesses are also putting down roots.

The numbers back this up. In just a single month this year, for instance, 568 foreign-invested companies were established. It’s also telling that the vast majority of these new ventures are opting for the limited liability (LTD) structure, which speaks volumes about its flexibility and appeal. You can dig into more recent business formation trends on turkishminute.com.

Sectors Attracting the Most Foreign Capital

While there’s opportunity almost everywhere you look, a few key sectors are acting as magnets for foreign investment. Knowing where the money is flowing gives you a strategic edge, whether you plan to operate directly in these industries or offer services to them.

• Wholesale Trade: Turkey’s logistical muscle makes it a natural centre for import-export and distribution. International firms are using this to serve markets stretching from Europe to Asia and Africa.
• Software and Technology: With a young, tech-savvy population and a growing talent pool, Turkey is quickly making a name for itself in software development, IT consulting, and digital services.
• Real Estate and Construction: This has been a solid performer for foreign investment for years, fuelled by both large-scale commercial projects and strong residential demand in cities like Istanbul, Ankara, and Izmir.
• Consultancy and Professional Services: As more international companies arrive, the demand for top-tier legal, financial, and business consulting has shot up right alongside them.

This focus tells a story: foreign investors aren’t just dipping their toes in the Turkish market. They’re building foundational businesses that are deeply integrated with the local and regional economies.

The most compelling trend among new foreign-backed companies is their significant capital commitment. Recent figures show that foreign capital accounts for nearly 90% of the total investment in these new ventures. This isn’t pocket change; it signals strong confidence and a long-term strategic vision.

Why the Limited Liability Company (LTD) Reigns Supreme

As we’ve seen, the Limited Liability Company (LTD) is overwhelmingly the structure of choice for foreign investors. This isn’t by chance—it’s a calculated decision based on the LTD’s practical advantages for most businesses entering Turkey.

First off, its liability protection is a huge plus. It shields founders’ personal assets from business debts, which provides critical peace of mind when you’re starting out. Secondly, its operational structure is far less rigid than a Joint Stock Company (A.Ş.), making it perfect for SMEs that need to be nimble. And finally, the lower minimum capital requirement makes it a much more accessible entry point for a wider range of entrepreneurs.

By understanding these nuances—from hot sectors to the most popular legal structures—you can position your new venture for success right from the start. This kind of market intelligence moves you beyond the procedural checklist of the şirket kuruluş işlemleri and helps you make smarter, more informed decisions from day one.

Got Questions About Starting a Business in Turkey?

When you’re diving into the world of company formation procedures, it’s natural to have a lot of questions. This is especially true if you’re new to Turkey’s business environment. Getting straight answers to the common sticking points can save you a world of headaches and help you avoid simple missteps.

Most founders I talk to, particularly those coming from overseas, get the big picture but stumble on the practical details. Things like timelines, capital, and who can actually run the company are often top of mind. Let’s clear up some of the most frequent questions right now.

How Long Does This Whole Process Actually Take?

This is the big one, isn’t it? Everyone wants to know how quickly they can get up and running.

From my experience, once you have every single piece of paper perfectly in order, notarised, and ready to go, the actual registration with the Trade Registry Office usually takes about five to ten business days.

But—and this is a big “but”—that timeline doesn’t include the prep work. Drafting your Articles of Association, getting official translations, securing a potential tax ID, and opening the company bank account all happen before the clock starts on that 5-10 day window. The single best way to keep things moving quickly is to be meticulously organised from day one.

Do I Absolutely Need a Turkish Partner or Director?

This is a very common myth, so let’s bust it right here. You do not need a Turkish partner. The law is crystal clear: you can have 100% foreign ownership of a Limited Liability Company (LTD) or a Joint Stock Company (A.Ş.).

The same goes for directors. There’s no legal rule saying a Turkish resident has to manage your company. You can appoint yourself or another foreign national to run the show. That said, having someone on the ground who is a resident can sometimes make day-to-day dealings with banks or local officials a bit smoother.

It’s a strategic business decision, not a legal requirement. The freedom to maintain full control is a significant advantage for international entrepreneurs investing in Turkey, allowing them to structure their management team based on expertise rather than nationality.

What’s the Minimum Capital I Need to Put In?

Knowing the financial entry point is obviously critical for planning your company formation procedures. The amount of capital you need depends entirely on the type of company you’re setting up.

Here’s the breakdown based on the current regulations:

• Limited Liability Company (LTD): You’ll need a minimum share capital of 50,000 Turkish Lira.
• Joint Stock Company (A.Ş.): The bar is set quite a bit higher here, at 250,000 Turkish Lira.

For either structure, you have to deposit at least 25% of the total capital into a bank account before your registration is complete. You then have 24 months to pay in the remaining 75%.

Getting through the maze of company formation in Turkey is much easier with someone who knows the way. The team at Workon lives and breathes this stuff. We handle everything from the first document to your long-term compliance, so you can just focus on building your business. Find out how we can get you launched the right way by visiting Workon.