A PRACTICAL GUIDE TO COMPANY ESTABLISHMENT IN TURKEY

A Practical Guide to Company Establishment in Turkey

A Practical Guide to Company Establishment in Turkey

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Turkey continues to attract investors from around the world thanks to its dynamic economy, young workforce, and strategic location. Whether you're a local entrepreneur or a foreign investor, company establishment in Turkey offers a promising gateway to regional and global markets.

Quick Overview of Legal Framework

Starting a business in Turkey is mainly governed by the Turkish Commercial Code (Law No. 6102). This law ensures that companies registered in Turkey become legal entities, independent from their owners. With strong protections for entrepreneurs, company formation in Turkey is a secure and straightforward process.

Foreign investors are treated equally with Turkish citizens under the Foreign Direct Investment Law. This has made company incorporation in Turkey not just possible but increasingly popular among international businesses.

Types of Companies

Turkey offers five main types of companies:


  • Joint-Stock Companies,

  • Limited Liability Companies,

  • Collective Companies,

  • Commandite Companies,

  • Cooperatives.


Most investors prefer setting up a Limited Liability Company (LLC) due to its simplicity and flexibility. Thanks to the MERSİS system, company registration is now completed electronically, cutting through red tape.

Main Steps for Company Formation

The steps for company formation in Turkey are quite practical:

  • Prepare the articles of association,

  • Notarize signatures,

  • Deposit required capital,

  • Submit all paperwork to the Trade Registry,

  • Obtain tax numbers and register with social security if hiring employees.


After completing these tasks, your company becomes fully operational.

Taxation and Governance

Corporate income tax in Turkey stands at 20%, and financial institutions pay 25%. Recent 2024 tax reforms may affect certain sectors, so consulting professionals is advised.

Good corporate governance is a must. Turkish law outlines clear rules for board structures and management practices to ensure businesses run efficiently and transparently.

Alternative Entry Strategies

If direct company incorporation in Turkey doesn’t suit your strategy, other options exist:

  • Acquire shares in an existing company,

  • Set up a liaison office,

  • Franchise a foreign brand into Turkey.


Each path offers unique benefits depending on the size and nature of your business.

Final Word

Turkey’s updated regulations, growing economy, and investor-friendly laws make it one of the best countries for business expansion. No matter which route you take, company establishment in Turkey opens doors to numerous opportunities across Europe, Asia, and beyond.

To explore the full details, check out the comprehensive guide here.

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