The number of foreigners seeking to invest in Türkiye, conduct commercial activities, or establish a business is increasing every day. Under Turkish law, foreign individuals and legal entities are generally permitted to establish companies in Türkiye, and the company formation process is largely similar to the system applicable to Turkish citizens. However, additional matters must be considered when foreigners establish a company in Türkiye, including passports, tax identification numbers, documents relating to foreign shareholders, apostille and notarization procedures, and, where a foreign shareholder will actively work in Türkiye, work permit requirements. For this reason, before establishing a company, foreign investors should assess not only the type of company they intend to establish but also the required incorporation documents, capital structure, work permit requirements, residence status, and post-incorporation obligations as a whole.

 

In this article, we address the most frequently asked questions regarding company formation by foreigners in Türkiye, including how foreigners can establish a company in Türkiye, which documents are required for a company with foreign shareholders, whether foreigners can establish a limited liability company or joint-stock company, and whether a foreign shareholder is required to obtain a work permit.

 

Can Foreigners Establish a Company in Türkiye?

 

Yes. Foreign individuals and foreign legal entities may establish a company in Türkiye or become shareholders in an existing Turkish company. As a general rule, foreign investors are subject to the same fundamental company law rules as Turkish investors when establishing a company. However, additional procedures may be required to verify the identity of the foreign shareholder and to make documents issued abroad valid for use in Türkiye. In particular, the following procedures may be required:

• Turkish translation of the foreign individual's passport,
• Notarization,
• Apostille procedures where necessary,
• Obtaining a tax identification number,
• Preparation of company documents concerning a foreign legal entity shareholder,
• MERSİS procedures,
• Registration with the relevant Trade Registry Directorate.

The establishment of a company and a foreigner's right to work in Türkiye must be assessed separately.

 

How Is a Company Established by Foreigners in Türkiye?

 

The company formation process for a foreign investor may vary depending on the type of company to be established and whether the shareholder is an individual or a legal entity. In practice, the process generally proceeds as follows.

 

1. Determine the Company Type and Basic Structure

 

The first step is to determine the type of company to be established.

When selecting the company type, the amount of capital, number of shareholders, management structure, nature of the investment, business activity, and the foreign shareholder's role in the company should be considered together.

At the initial stage, the following matters should also be determined:

• Trade name,
• Registered office,
• Business activity,
• Amount of capital,
• Shareholding percentages,
• Managers or members of the board of directors.

2. Obtain a Tax Identification Number for the Foreign Shareholder

 

A foreign individual establishing a company in Türkiye may need to obtain a tax identification number to be used during the incorporation process. Tax identification number procedures may be carried out through the relevant tax administration or, where a duly executed power of attorney has been issued, through an authorized attorney.

When determining the foreign individual's address in Türkiye, their residence or work status may also need to be taken into consideration. Therefore, it is important to distinguish properly between company formation and obtaining a residence permit.

 

3. Prepare the Passport and Foreign Shareholder Documents

 

For a foreign individual shareholder, a Turkish translation of the passport copy and the relevant notarization procedures are important parts of the incorporation file.

If a foreign legal entity is a shareholder, the process is more comprehensive. For example, the following documents of the foreign company may be required:

• Trade registry records,
• Certificate of activity,
• Resolution of the authorized corporate body,
• Documents evidencing representation and signing authority.

For documents issued abroad, the applicable apostille and Turkish translation procedures must be assessed separately depending on the country in which the document was issued and the type of document concerned.

 

4. Submit the Company Application Through MERSİS

 

A significant part of the company incorporation process in Türkiye is carried out through the Central Registry Recording System (MERSİS).

The company's basic information is entered into the system, including:

• Trade name,
• Business activity,
• Registered office,
• Capital,
• Shareholders,
• Shareholding percentages,
• Management and representation structure.

Based on the information entered, the necessary procedures concerning the company's articles of association are completed and the incorporation file is prepared for submission to the Trade Registry Directorate.

 

5. Complete Notarization and Signature Procedures

 

The signatures of persons authorized to represent and bind the company must be completed.

If the foreign shareholder or foreign manager is located outside Türkiye, the procedures may in some circumstances be carried out through a power of attorney.

A power of attorney issued abroad may require procedures such as apostille, consular certification, and a notarized Turkish translation in order to be used in Türkiye.

 

6. Register the Company with the Trade Registry

 

The prepared incorporation file is reviewed by the relevant Trade Registry Directorate.

If the documents and company information comply with the applicable legislation, the company is registered.

The company acquires legal personality upon registration with the trade registry.

Following registration, the necessary announcement procedures are also carried out through the Turkish Trade Registry Gazette.

 

7. Complete Tax, Banking and Social Security Procedures

 

The incorporation process does not completely end upon registration of the company.

Depending on the nature of the business, the following procedures may also be required:

• Tax office procedures,
• Opening a commercial bank account,
• Statutory books and records,
• Registration of the workplace with the Social Security Institution (SGK),
• E-invoice and e-ledger applications,
• Financial seal and electronic signature procedures.

If the company employs workers, employer obligations before the Social Security Institution must also be fulfilled.

 

What Is the Minimum Capital Required for a Company with Foreign Shareholders in 2026?

 

The minimum capital applicable to companies with foreign shareholders is determined primarily according to the type of company rather than whether the company has foreign shareholders.

As of 2026, the basic minimum capital requirements are as follows:

Company Type	Minimum Capital
Limited Liability Company	TRY 50,000
Joint-Stock Company	TRY 250,000
Non-public Joint-Stock Company – initial capital under the registered capital system	TRY 500,000

According to the Ministry of Trade, for joint-stock companies, one-quarter of the minimum capital may be paid before registration, while the remaining amount may be paid within 24 months following registration. For limited liability companies, the entire capital may be paid within 24 months following registration.

However, the minimum capital required to establish a company and the capital requirements applicable to a foreign shareholder for work permit purposes are different matters.

This distinction is particularly important for foreign investors.

 

Can a Foreign Shareholder Work in the Company?

 

The establishment of a company or becoming a shareholder in a company in Türkiye does not, by itself, grant a foreigner the right to work in Türkiye.

Accordingly, the distinction should be made as follows:

Being a shareholder ≠ automatic right to work

If a foreign national is merely a shareholder of a limited liability company and does not hold the position of manager, or if the foreign national is a non-resident board member of a joint-stock company, an exemption from the work permit requirement may arise subject to the conditions prescribed by law. The Ministry of Labour and Social Security also expressly distinguishes between these situations for foreign company shareholders.

On the other hand, if the foreign national will be a manager, executive, or an actual employee of the company, the work permit requirements must be assessed separately.

 

Does a Foreign Company Shareholder Need a Work Permit?

 

The answer depends directly on the foreign shareholder's position within the company.

Foreign nationals who will work in Türkiye as a manager who is also a shareholder of a limited liability company or as a board member who is also a shareholder of a joint-stock company may be required to obtain a work permit.

By contrast, non-resident board members of joint-stock companies and other company shareholders who do not have managerial authority may fall within the scope of a work permit exemption.

Therefore, before establishing the company, it should be determined whether the foreign shareholder:

• Will only act as an investor,
• Will serve as a manager or executive,
• Will actually work in Türkiye,
• Will reside in Türkiye.

What Are the Work Permit Criteria for a Foreign Company Shareholder?

 

The criteria applicable to work permit applications should be assessed separately in accordance with the regulations in force in 2026.

According to the current criteria of the Ministry of Labour and Social Security, in certain circumstances involving a foreign national who establishes a new workplace or becomes a shareholder in a business, the company may be required to have paid-in capital of at least TRY 500,000, while the foreigner's capital contribution may also need to be at least TRY 500,000, with the foreign shareholder holding at least 20% of the shares. The requirement to employ at least five Turkish citizens at the workplace is also an important consideration in the assessment of a work permit application.

However, certain assessment criteria do not apply to foreign shareholders whose capital contribution is USD 100,000 or more. There are also specific exemptions under the legislation for certain groups of foreign nationals.

Therefore, a foreign investor should not only ask, "Can I establish a company in Türkiye?", but also, at the company formation stage, "Can I work in the company I establish?"

 

Documents Required for Foreigners to Establish a Company in Türkiye

 

The documents required for establishing a company with foreign shareholders may vary depending on the type of company and the nature of the shareholder.

In practice, the principal documents may include:

• Copy of the foreign shareholder's passport,
• Notarized Turkish translation of the passport,
• Tax identification number or foreigner identification number,
• Company incorporation documents,
• Articles of association,
• Signature declaration,
• Lease agreement or document evidencing the right to use the company's registered office,
• Corporate activity and registry documents if there is a foreign legal entity shareholder,
• Resolutions of the authorized corporate bodies,
• Apostille and consular certifications where necessary.

The nature and requirements of the documents should be examined separately in each individual case.

In particular, incorrect application of apostille, consular certification, and notarized translation procedures for documents issued abroad may cause delays in the company formation process.

 

Can a Foreign Investor Establish a Company Without Coming to Türkiye?

 

In some circumstances, it is not mandatory for the foreign investor to be physically present in Türkiye in order to complete the company incorporation procedures.

Provided that a duly executed power of attorney is issued, the incorporation procedures in Türkiye may be carried out through an attorney.

In this context, the process may involve:

• Preparation of the power of attorney,
• Obtaining an apostille or consular certification where required,
• Preparing a Turkish translation,
• Completing notarization procedures,
• Having the authorized representative carry out the incorporation procedures.

This method can provide a significant practical advantage, particularly for foreign investors who do not wish to travel to Türkiye on a regular basis.

 

Post-Incorporation Obligations of Foreign-Capital Companies

 

Although the incorporation process is completed upon registration with the trade registry, various legal and financial obligations arise once the company begins its operations.

These may include:

• Tax obligations,
• Accounting and statutory book-keeping obligations,
• Social security procedures for employees,
• Work permits,
• Licenses and permits depending on the company's field of activity,
• E-invoice and e-ledger obligations,
• Notifications concerning foreign capital.

It is particularly important for foreign investors to ensure that legal and financial processes continue to be managed in compliance with the applicable legislation after the company has been established.

 

Why Is Legal Advice Important When Foreigners Establish a Company in Türkiye?

 

For a foreign investor, establishing a company is not limited to registering the company with the Trade Registry Directorate.

Choosing the wrong company type, incorrectly structuring the shareholding percentages, failing to properly prepare documents issued abroad, or failing to meet work permit requirements after incorporation may result in both time and financial losses for the investor.

Therefore, before establishing a company, the following matters should be considered as a whole:

• Determining the appropriate company type,
• Planning the shareholding and capital structure,
• Preparing documents relating to the foreign shareholder,
• Managing the power of attorney process,
• Following MERSİS and trade registry procedures,
• Examining work permit requirements,
• Assessing residence and work status,
• Determining the permits and licenses required for the company's field of activity.

Frequently Asked Questions

 

Can a foreigner establish a company alone in Türkiye?

 

Yes. Foreign individuals may establish a single-shareholder limited liability company or joint-stock company in Türkiye, subject to the conditions prescribed by law.

 

Does a foreigner need a Turkish citizen as a shareholder to establish a company?

 

Generally, a foreign investor is not required to have a Turkish citizen as a shareholder. However, any specific legislation applicable to the company's field of activity should be examined separately.

 

Can a foreign company owner work in Türkiye?

 

Being a company owner does not, by itself, provide the right to work in Türkiye. The work permit or work permit exemption provisions must be assessed separately based on the foreigner's position within the company and whether they will actually work in Türkiye.

 

Can a foreign investor establish a company without coming to Türkiye?

 

If a duly executed power of attorney is issued, the incorporation procedures may be carried out through an authorized representative.

 

How much capital is required for a limited liability company with a foreign shareholder?

 

As of 2026, the statutory minimum capital requirement for a limited liability company is TRY 50,000. However, the capital and employment criteria that may apply to a foreign shareholder for work permit purposes may be different.

 

What is the minimum capital required for a joint-stock company with a foreign shareholder?

 

As of 2026, the minimum capital requirement for a joint-stock company is TRY 250,000.

 

Conclusion

 

For foreigners wishing to establish a company in Türkiye, the incorporation process can be carried out in a relatively systematic manner when properly planned. However, it should be remembered that establishing a company and obtaining the right to work and reside in Türkiye are separate legal processes.

In particular, matters such as company formation by foreigners in Türkiye, establishment of a limited liability company with foreign shareholders, establishment of a joint-stock company with foreign shareholders, work permits for foreign company shareholders, independent work permits, and conducting commercial activities in Türkiye by foreign investors should be legally assessed before the relevant procedures are initiated in order to prevent potential problems at a later stage.

As Uzunpınar & Tüfek Law Firm, we provide legal consultancy to foreign investors throughout the company formation process in Türkiye, including determining the appropriate company type and shareholding structure, preparing documents relating to foreign shareholders, handling power of attorney procedures, following trade registry processes, and providing the necessary legal assessments concerning work permits and Turkish immigration law.