Company Formation Turkey Guide to Forming a Turkish Limited Company (LTD) or Joint-stock Company (A.Ş.)

Turkey sits at the crossroads of Europe and Asia, commanding a strategic position that draws thousands of foreign entrepreneurs and investors each year. Company formation in Turkey has become faster and more accessible than ever, thanks to expanded digital registration through the MERSİS platform, competitive operating costs, and a legal framework that allows 100 % foreign ownership across most sectors. Whether you are a sole founder launching a tech start-up or a multinational structuring a regional subsidiary, Turkey offers a compelling combination of geography, demographics, and incentive programmes that few jurisdictions can match.

• Speed: With complete documentation, trade-registry registration can be finalised in as few as 3–7 business days via MERSİS.
• Cost efficiency: Turkey’s operating costs remain significantly lower than most EU markets, while proximity to the European single market and Middle Eastern and Central Asian economies creates export advantages.
• Regulatory modernisation: New minimum-capital thresholds, mobile-app MERSİS access, and ongoing digital integrations continue to lower barriers for remote founders.

This guide covers everything you need to know: entity choice (LTD vs A.Ş.), step-by-step registration, eligibility for foreign founders, realistic costs and timelines, 2026 regulatory highlights, and a practical remote-formation case study. It is current as at 7 August 2026; readers should verify the latest official-gazette announcements before acting.

Why Turkey?

Turkey’s appeal to foreign businesses rests on several structural advantages. Geographically, the country bridges Europe, Asia, the Middle East, and North Africa, providing direct access to a consumer market of over 85 million people and customs-union alignment with the EU for industrial goods. The Invest in Türkiye agency highlights a network of free-trade agreements, organised industrial zones, and technology development zones that offer reduced tax rates and subsidised land for qualifying sectors.

From a registration standpoint, the Ministry of Trade’s MERSİS (Central Registration System) is now the mandatory digital gateway for company registration in Turkey. The platform’s mobile application and expanded e-registration modules allow founders including non-residents to initiate and track formation without physically travelling to Turkey. Industry observers expect continued integration between MERSİS and free-zone platforms, further streamlining cross-border company setup.

Turkey is particularly well-suited to SMEs and scale-ups in technology, manufacturing, logistics, and professional services that want to serve EU, MENA, and Turkic-state markets from a single operational base. Government incentives targeting R&D, export-oriented production, and strategic investments add financial appeal on top of the structural benefits.

Quick Comparison: Turkish Limited Company (Ltd.) vs Joint-Stock Company (A.Ş.)

The two most common entity types for foreign founders are the limited şirket (Ltd. Şti. equivalent to an LLC) and the anonim şirket (A.Ş. joint-stock company). Each serves different capital, governance, and strategic needs. The table below summarises the key differences under the rules applicable following the amendments introduced by Law No. 7511, which raised minimum-capital thresholds and set a transitional compliance (intibak) deadline of 31 December 2026 for existing companies.

Which Entity Should You Choose?

For most foreign entrepreneurs forming a single-project or service-based business, the Turkish limited company (Ltd. Şti.) offers lower capital requirements and simpler governance. The A.Ş. becomes the better choice when you anticipate raising external equity, listing on Borsa Istanbul, or operating in sectors that mandate a joint-stock structure (such as banking, insurance, or certain energy licences). Founders planning a detailed comparison of these structures can refer to the forthcoming Turkey company types compared: LTD vs A.Ş. guide for a deeper analysis.

Who Can Form a Company? Eligibility and Foreign Investors

Turkey imposes no nationality or residency restrictions on company shareholders. A single foreign individual or corporate entity may hold 100 % of the shares in either a Ltd. Şti. or an A.Ş. According to the Invest in Türkiye investment guide, foreigners company Turkey rules are among the most liberal in the region, with equal treatment for domestic and foreign investors under the Foreign Direct Investment Law (No. 4875).

• Non-resident shareholders: May form and own a company without obtaining Turkish residency. A notarised and apostilled power of attorney (POA) allows the entire process to be handled by a local legal representative.
• Corporate shareholders: A foreign company can be a shareholder. Required documents typically include a certified copy of the corporate registry extract, board resolution approving the investment, and apostilled/legalised copies.
• Branch and liaison offices: Foreign companies that prefer not to establish a separate legal entity may open a branch office (registered with the trade registry) or a liaison office (permitted for market research and coordination only, with no commercial activity).
• Work permits: Forming a company does not automatically grant a work or residence permit. Foreign directors and employees must apply separately through the Ministry of Labour. Founders planning to relocate should review the Turkey immigration and work permits guidance (forthcoming).

How to Set Up a Company in Turkey Step-by-Step Formation Checklist

The company registration Turkey process follows a logical sequence. With well-prepared documentation, total elapsed time from initial planning to trade-registry inscription is typically 3–10 business days, depending on entity type, notarisation requirements, and bank processing times.

Step 1 Pre-Formation Planning

Before filing any documents, founders should determine their NACE activity code (available from the Turkish Statistical Institute classification), conduct a company-name availability check via MERSİS, decide on entity type (Ltd. or A.Ş.) and share-capital amount, and verify whether the intended activity requires a sector-specific licence (e.g., tourism, food production, private education). This planning stage typically takes 1–3 business days and prevents costly delays later.

Step 2 Prepare Required Documents

Core documents include:

• Founder identification: Passport copies (notarised and apostilled for foreign nationals) or Turkish ID card.
• Trade-name declaration form (obtained via MERSİS).
• Registered office address: Lease agreement or title-deed evidence for the company’s registered seat.
• Shareholder details: Full names, nationality, addresses, shareholding percentages and capital commitments.
• Power of attorney: Required if any shareholder or director will not be physically present in Turkey for signing. The POA must be notarised in the founder’s home country and apostilled (or consularly legalised if the country is not party to the Hague Apostille Convention).

Step 3 Draft the Articles of Association

The articles of association (ana sözleşme) define the company’s name, registered office, objects, capital, management structure, and profit-distribution rules. Turkey’s Turkish Commercial Code (No. 6102) prescribes mandatory content. Model templates are available through the trade-registry directorates, but professional legal review is strongly recommended to ensure clauses are enforceable and tailored to the founders’ commercial arrangements.

Step 4 Notarisation and Apostille

Documents executed outside Turkey especially the power of attorney, shareholder passport copies, and corporate resolutions must be notarised by a local notary in the country of origin and bear an apostille. For non-Hague countries, consular legalisation applies. Allow 3–7 business days for apostille processing, depending on the jurisdiction.

Step 5 MERSİS Filing and Company Registration

All company registrations must be initiated through the MERSİS platform. The steps are:

1. Obtain a MERSİS number for each founder (foreign nationals can apply via the system).
2. Complete the online application, attaching the articles of association, founder IDs, POA (if applicable), and registered-address evidence.
3. Submit the application to the relevant Trade Registry Directorate electronically.

MERSİS registration Turkey has been significantly enhanced with mobile-app access and expanded e-signature compatibility, making this step viable for remote founders.

Step 6 Trade Registry Inscription and Gazette Announcement

Once the Trade Registry Directorate approves the application, the company is officially inscribed (tescil). A summary of the registration is published in the Türkiye Ticaret Sicili Gazetesi (TTSG Turkish Trade Registry Gazette). From the date of inscription, the company has legal personality and may commence business. This step typically takes 1–3 business days after MERSİS approval.

Step 7 Bank Account Opening and Capital Deposit

Founders must open a corporate bank account at a Turkish bank. For an A.Ş., at least 25 % of the subscribed share capital must be deposited before registration and the remainder within 24 months. For a Ltd. Şti., the full share capital is committed at formation but may be paid in accordance with the articles of association. The bank will require the MERSİS number, trade-registry extract, board resolution (A.Ş.), and founder identification. Practical guidance on the bank-opening process will be available in the corporate bank account opening guide (forthcoming).

Step 8 Tax Office Registration

Upon trade-registry inscription, the tax office is automatically notified and a corporate tax number is assigned. Where VAT registration is required (mandatory for most commercial activities), the company must separately register with the local tax office and begin issuing e-invoices. The Turkish Revenue Administration (GİB) manages all tax-identification and filing processes.

Step 9 SGK Employer Registration

Any company that will employ staff must register with the Social Security Institution (SGK) as an employer. This must be done before the first employee’s start date. The employer notification (işyeri bildirimi) is submitted electronically via the e-SGK portal. Payroll obligations, contribution rates, and reporting requirements commence from the date of registration. Details on payroll and SGK compliance will be covered in the payroll and SGK registration guide (forthcoming).

Step 10 Post-Formation Compliance

Once incorporated, the company must maintain statutory books (journal, ledger, inventory book, and minutes book), prepare annual financial statements, and, where applicable, submit to independent audit. Licensed sectors (e.g., food, construction, private healthcare) require additional permits from the relevant regulatory authority. An annual compliance calendar covering corporate-tax returns, VAT declarations, SGK filings, and trade-registry annual confirmations should be established immediately.

Tax and Social Security Obligations

Newly formed companies in Turkey face several ongoing fiscal duties. The headline corporate tax rate is approximately 25 % under current GİB guidance, with quarterly advance payments and an annual declaration. Key obligations include:

• Corporate income tax: Filed annually; advance instalments due quarterly.
• Value-added tax (VAT): Standard rate of 20 %; monthly or quarterly declarations depending on turnover.
• Withholding taxes: Applicable to dividends, interest, royalties, and service payments to non-residents.
• SGK employer contributions: Social-security and unemployment-insurance premiums are shared between employer and employee; rates are set by SGK and updated periodically.

Founders should consult the forthcoming Turkey corporate tax guide for a full breakdown of rates, incentive zones, and transfer-pricing rules.

Costs and Timelines for Company Formation in Turkey

The table below provides illustrative cost bands for forming a Ltd. Şti. or A.Ş. in Turkey. All figures are estimates as at August 2026; actual costs vary by complexity, number of shareholders, and service-provider fees.

Note: Exchange-rate equivalents are illustrative only and will fluctuate. The minimum capital amounts above reflect the thresholds under Law No. 7511; existing companies must comply by 31 December 2026.

As a general guide, the Ministry of Trade has reported that MERSİS digital improvements have shortened registration timelines, with remote formation via MERSİS achievable in as few as 3–7 business days when documentation is complete. In-person processes involving foreign-document legalisation typically extend the timeline to 2–4 weeks.

Illustrative Service Packages

The following bundles are for illustration only and do not represent fixed pricing:

• Minimal (DIY-assisted): Template articles of association review, MERSİS filing guidance, and tax-number obtainment turnaround approximately 5–7 business days.
• Standard: Full drafting of articles, notarisation coordination, MERSİS filing, trade-registry inscription, tax and SGK registration turnaround approximately 7–10 business days.
• Premium (full-service remote formation): All standard items plus POA coordination, apostille management, bank-account introduction, post-formation compliance setup, and dedicated project manager turnaround approximately 10–15 business days.

2026 Regulatory Highlights

Several regulatory developments between 2024 and 2026 directly affect company formation Turkey planning:

• Minimum capital increases (Law No. 7511): Amendments to the Turkish Commercial Code raised the minimum share capital for Ltd. Şti. companies to 50,000 TL and for A.Ş. companies to 250,000 TL. Existing companies that do not yet meet these thresholds must complete their compliance (intibak) by 31 December 2026.
• MERSİS digital expansion: The Ministry of Trade has reported that MERSİS active users have surpassed 3 million, with mobile-app downloads exceeding 68,000. Expected integrations with the free-zone (Serbest Bölge) platform should further streamline registrations for zone-based businesses.
• Corporate tax environment: The headline corporate tax rate remains approximately 25 % under current GİB guidance. Founders should monitor official-gazette announcements for any adjustments, particularly in incentive zones.

Editorial note: Regulatory parameters can change at short notice. Always check the official gazette and the relevant ministry pages before relying on the figures above.

Case Study: Remote Formation for a Non-Resident Founder

Profile: An EU-based technology entrepreneur sought to establish a Turkish limited company to serve clients across Turkey and the MENA region, without relocating to Turkey.

Process: The founder engaged a local law firm through the Global Law Experts network. The firm prepared the articles of association remotely and sent a tailored power of attorney to the founder’s country of residence for notarisation and apostille. The apostilled POA and notarised passport copies were couriered to Istanbul. Once received, the legal team completed the MERSİS filing, obtained the trade-registry inscription and TTSG publication within five business days, and coordinated the corporate bank-account opening (which required one additional week due to bank compliance checks).

Outcome: Total elapsed time from engagement to fully operational company (with tax number, SGK registration, and active bank account) was approximately 18 calendar days. Deliverables included the MERSİS registration certificate, trade-registry extract, tax-identification number, and a corporate bank account with online-banking access.

Key takeaways for non-resident founders:

• Apostille timing is the main variable: Some jurisdictions process apostilles in 24 hours; others take 7–10 business days. Plan accordingly.
• Bank account opening requires patience: Turkish banks’ enhanced due-diligence for foreign-owned companies can add 5–10 business days.
• Engage a regulated local law firm: The POA must be carefully drafted to cover all formation steps, including MERSİS filing and bank-account signatory authority.

Global Law Experts Local Partner Network and Trust Signals

Global Law Experts connects foreign founders with regulated, bar-registered law firms across Turkey’s key commercial centres Istanbul, Ankara, and Izmir. The network includes independent auditors, licensed accountants for ongoing bookkeeping and payroll, and banking-introduction relationships that accelerate the account-opening process.

All partner firms are regulated by their respective Turkish bar associations and hold professional-indemnity insurance. Partner accounting houses are licensed under Turkish legislation to provide statutory bookkeeping, SGK payroll processing, and annual-accounts preparation. Specific partner credentials, bar-registration numbers, and firm logos are verified and displayed by our operations team.

Downloadable Resources

To support your planning, the following resources are available for download:

• Turkey Company Formation Practical Checklist (PDF): A step-by-step document checklist covering all 10 formation stages, with tick-boxes and typical-timing estimates.
• Company Formation Timeline Worksheet Turkey (editable XLSX): An interactive spreadsheet for mapping your own formation timeline, tracking document preparation, and assigning responsibilities across your team and advisors.

Sources

• Republic of Turkey Ministry of Trade, MERSİS (Central Registration System)
• Invest in Türkiye Establishing a Business (Investment Guide)
• Turkish Revenue Administration (GİB) Corporate Tax Guidance
• Türkiye Büyük Millet Meclisi (TBMM) Law No. 7511 (Turkish Commercial Code Amendments)
• Social Security Institution (SGK) Employer Registration and Workplace Notification
• Ministry of Trade MERSİS Digital Infrastructure and Mobile App Adoption
• Turkish Commercial Code No. 6102 Consolidated Text (WIPO Lex)