Establishing a Company in Turkey 2026: Types, Capital, and Steps
The Two Most Common Company Types and Required Capital
| Type | Minimum Capital | Management | Suitable For |
|---|---|---|---|
| Limited Company (Limited Şirket) | 50,000 Turkish lira | One or more managers | Small and medium-sized enterprises |
| Joint Stock Company (Anonim Şirket) | 250,000 Turkish lira | Board of directors | Larger businesses and those planning to bring in investors or transfer shares |
Both types can be established with only one shareholder. For a joint stock company using the registered capital system, the minimum capital is 500,000 Turkish lira.
The Step That Comes Before Everything Else: The Tax Identification Number
Before taking any action, every foreign shareholder and every foreign manager must obtain a Turkish tax identification number from the local tax office. Without it, it is not even possible to create an account on the MERSIS system, which delays the application from the very first step.
Establishment Steps in Order
- Obtain a tax identification number for each foreign shareholder and manager from the tax office.
- Creating an account on the electronic MERSIS system.
- Preparing the articles of association and reserving the company name within the system.
- Generating the registration application and signing the required declarations before a notary public or directly at the trade registry.
- Registering the company with the trade registry of the province where its headquarters will be located.
Why Do Many People Choose a Limited Company?
The difference between 50,000 and 250,000 lira in capital is not a minor detail for someone just starting out. A limited company is simpler to manage, as it is managed by one director instead of a board of directors, which reduces the administrative burden. However, for those planning to bring in investors later or transfer shares more flexibly, a joint stock company is more suitable despite its higher cost.
How Much Does It Cost to Establish a Company in Turkey?
The required capital is one thing, while the establishment costs are something entirely different. These are the main estimated expenses:
| Item | Approximate Cost |
|---|---|
| Legal and notary fees (signature certification and document preparation) | 10,000 – 12,500 Turkish lira |
| Trade registry registration fees | 7,500 – 10,000 Turkish lira |
| Standard registration fees including the Competition Authority contribution (0.04% of the capital) | 12,500 – 15,000 Turkish lira |
| Registration with the Chamber of Commerce and publication of the announcement in the Trade Registry Gazette | 2,000 – 3,500 Turkish lira |
Estimates vary depending on the province, the size of the capital, and the law or accounting firm you work with.
The Cost Everyone Forgets: The Monthly Accountant
Turkish law requires every operating company to hire a certified public accountant (SMMM), and maintaining monthly accounting records is mandatory, not optional.
Monthly fees start at around 5,000 Turkish lira for small companies and increase with the size of the business. This is an ongoing obligation that begins in the first month after incorporation and continues as long as the company remains active — meaning it is not an incorporation cost but a fixed operating expense that must be included in your calculations before making a decision.
Corporate Taxes
- Corporate income tax: 25% on net profits.
- Value-added tax (VAT): It applies to goods and services at rates that vary according to the sector and category. These rates have been amended in recent years — check the rate currently applicable to your specific business activity with your accountant, and do not rely on outdated figures published online.
How Long Does the Incorporation Process Take?
Trade Registry Directorates are designed to operate as a “one-stop shop,” where registration can theoretically be completed on the same day. In practice, the usual timeframe ranges from several days to two weeks, and it may take two to four weeks for joint-stock companies or when the shareholders are foreigners and their documents require translation and certification.
The biggest cause of delays is not the Trade Registry itself, but preparing the foreign shareholders’ documents: obtaining tax identification numbers, translating and certifying passports, and obtaining certification or an apostille for documents issued outside Turkey. Start these steps early because they are the critical path in the timeline.
Frequently Asked Questions
Does Establishing a Company Grant Me Residency?
Establishing a company by itself does not automatically grant residency, but it opens a pathway to short-term residency based on commercial ties and may later allow you to obtain a work permit. These are separate pathways with their own requirements.
Do I Need a Physical Office?
Yes, the company needs a registered address in Turkey, and in most cases, a mailing address alone is not sufficient.
Can the Company Be Established Remotely?
It is possible through a duly notarized and certified legal power of attorney, but some steps may require your presence or additional notarization at the Turkish Embassy in your country.
Note: General informational content reflecting the rules announced at the time of the update; this is not legal or investment advice. The Turkish Ministry of Trade and the Trade Registry are the final authorities, and the financial thresholds in Turkey have changed more than once in recent years. Verify the information before making any financial commitment.
This article is part of the comprehensive Turkey guide for Arabs.
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