A Limited Liability Company (Limited Şirket) is the most common and practical business structure in Turkey for foreign entrepreneurs. It is particularly suitable for small and medium-sized businesses.
A company can be established by a single individual or legal entity. A foreigner may act as both the sole shareholder and director without the need for a local partner. However, to manage and work within the company, a foreign national must obtain a work permit (çalışma izni). There is no legal requirement to involve a Turkish citizen in the company structure.
As of 2026, the minimum share capital is 50,000 Turkish lira. The law does not require full payment of this amount at the time of registration; it may be contributed in installments within a specified period. In practice, however, banks often expect companies to demonstrate a higher level of available funds when opening an account (it is advisable to have at least USD 10,000).
The company registration process includes obtaining a tax number (Vergi Numarası), selecting the business activity and company name, preparing incorporation documents, registering with the Trade Registry, opening a corporate bank account, and registering with the tax authorities. On average, the process takes 2–3 weeks. A legal address is mandatory, and the company must operate from this address. Additionally, engaging a licensed accountant (Serbest Muhasebeci Mali Müşavir) is required.
The tax burden includes corporate tax at a rate of 20–25% on profits, value-added tax (KDV) ranging from 1% to 18% depending on the type of activity, and a 15% withholding tax on dividends distributed to shareholders. Payroll is also subject to social security contributions, averaging around 20.5%. Companies are required to submit both monthly and annual reports, and accounting must be maintained in compliance with electronic reporting systems.
A residence permit in Turkey is not required to register a company. However, to actively manage and work in the business, a foreigner must first obtain a residence permit (ikamet izni belgesi, typically for at least six months), followed by a work permit (çalışma izni). An important condition for obtaining a work permit is the employment of at least five Turkish citizens for each foreign employee. There are exceptions to this rule based on capital, turnover, or investor status. For example, if the foreign shareholder’s capital contribution exceeds USD 100,000 or the company’s annual turnover exceeds 50 million Turkish lira, the requirement to hire five employees may be waived.
The total cost of company registration typically ranges from USD 4,000 to 7,000, including registration, notary, and administrative fees. Additional ongoing monthly expenses include accounting services, legal address maintenance, taxes, and salaries with social contributions if employees are hired.
Turkey attracts foreign entrepreneurs due to its strategic location between Europe and Asia. It is a region of entrepreneurial energy, responsibility, access to international markets, and real opportunities for growth.
In challenging times for Ukraine, businesses seek stability, predictability, and trustworthy partners. These factors become decisive when entering new markets. For Ukrainian companies, Turkey can serve as a space of opportunity—provided there is a clear understanding of local business regulations and support from Ukrainian communities, public organizations, and business networks that help facilitate communication with Turkish authorities and partners.
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