Turkey continues to be an attractive investment destination for foreign investors thanks to its strategic location, growing economy, and competitive tax system.
As of 2026, the company formation process in Turkey is fast, transparent, and structured within a clear legal framework. This guide explains company types, capital requirements, taxation, and the step-by-step incorporation process.
Why Invest in Turkey?
Strategic Location
Turkey acts as a bridge between Europe, Asia, and the Middle East, making it a strategic hub for international trade and business operations.
Customs Union with the European Union
Turkey’s Customs Union agreement with the EU provides significant advantages for the trade of industrial goods.
Competitive Corporate Tax System
The corporate tax rate in Turkey is competitive compared to many European countries.
Young and Dynamic Workforce
Turkey has a young, skilled, and cost-competitive workforce, making it attractive for international companies.
Types of Companies in Turkey
Foreign investors can establish the same types of companies as Turkish citizens.
Limited Liability Company (Ltd.)
- Minimum of 1 shareholder
- 100% foreign ownership is allowed
- Minimum capital requirement: 50,000 TRY
- Shareholders’ liability is limited to their capital contribution
This structure is the most common choice for small and medium-sized businesses.
Joint Stock Company (JSC)
- Minimum capital requirement: 250,000 TRY
- More corporate governance structure
- Suitable for larger investments
- Mandatory in certain regulated sectors
Company Formation Process in Turkey
The company formation process usually takes approximately 5–15 business days.
- Preparation of the articles of association through the MERSIS system
- Registration at the Trade Registry Office
- Tax office registration
- Social security registration (if employees will be hired)
- Opening a corporate bank account
Taxation in Turkey (2026)
Corporate Tax
The general corporate tax rate is approximately 25% (may change annually depending on regulations).
Value Added Tax (VAT)
The standard VAT rate is currently 20%.
Withholding Tax
Withholding tax may apply to dividends, rent payments, and certain service payments.
Advance Corporate Tax
Companies must declare advance tax on a quarterly basis.
Can Foreign Investors Own 100% of a Company?
Yes. Turkish legislation allows 100% foreign ownership.
Except for a few regulated sectors, there is no requirement for a local Turkish partner.
Post-Incorporation Obligations
After the company is established, several compliance obligations must be fulfilled:
- Monthly accounting records
- VAT declarations
- Social security declarations (SGK)
- Quarterly advance tax returns
- Annual corporate tax return
Failure to comply with these obligations may result in administrative penalties.
Estimated Company Formation Costs
The cost of establishing a company in Turkey may vary depending on capital requirements, translation needs, and the selected company structure.
Typical expenses include:
- Notary and sworn translation fees
- Trade Registry registration costs
- Chamber of Commerce registration fees
- Accounting service fees
- Virtual or physical office rental costs
Receiving professional advisory support can help prevent delays and unnecessary costs.
Common Mistakes Made by Foreign Investors
- Choosing the wrong company structure
- Underestimating tax obligations
- Ignoring payroll and social security costs
- Failing to plan proper cash flow
Establishing the correct structure from the beginning helps avoid costly adjustments later.
How Sunrise CPA Can Support You
At Sunrise CPA, we provide professional support in the following areas:
- Company formation services
- Accounting and bookkeeping services
- Tax advisory
- Payroll and HR administration
- Regulatory compliance and reporting
- Financial planning and CFO-level advisory
We help foreign investors establish and manage their operations in Turkey efficiently and in full compliance with local regulations.
Conclusion
Starting a company in Turkey in 2026 can be a fast and efficient process when supported by proper planning and professional guidance.
Choosing the right company structure and complying with local regulations are key factors for ensuring a successful and sustainable investment in Turkey.