Setting Up a Company in Türkiye: A Foreign Investor's Primer

Türkiye's position at the crossroads of Europe, Asia, and the Middle East, combined with a large domestic market and a legal framework that treats foreign and domestic investors equally, makes it a practical base for foreign entrepreneurs and companies expanding into the region. Setting up correctly from the start avoids the compliance issues that are far more expensive to fix later.

Choosing a Company Structure

Most foreign investors incorporate as a Limited Liability Company (LLC), which requires only one shareholder and one manager, limits liability to the company's capital, and can be foreign-owned outright with no local partner requirement in most sectors. A Joint Stock Company is the alternative for larger operations, particularly those planning to raise capital from multiple investors or eventually list publicly.

What Incorporation Actually Requires

• A registered legal address in Türkiye
• Notarized and translated founding documents for any foreign shareholder
• A minimum capital contribution, held in a Turkish bank account
• Registration with the relevant Trade Registry and Chamber of Commerce
• Tax office registration and an employer registration if hiring staff

The paperwork of incorporation is straightforward on its own — the part that actually determines long-term success is whether the company's structure, shareholding, and tax position were designed correctly before day one.

After Incorporation

A newly formed company also takes on ongoing obligations: monthly and annual tax filings, mandatory accounting records kept in Turkish, and, if the company sponsors work permits for foreign staff, compliance with Türkiye's foreign employment quotas. None of these are difficult in isolation, but missing one creates complications that compound over time.

How POA Helps

We handle incorporation end-to-end — drafting the articles of association, coordinating notarization and registration, opening the corporate bank account, and structuring shareholding in a way that reflects the investor's actual goals, whether that's an eventual work permit, a future investment-based residence application, or simply a compliant vehicle for doing business in Türkiye.

A company built on a solid legal foundation is one that can grow without having to be rebuilt later.