Company Formation in Turkey: Everything You Need to Know
Turkey is one of the most attractive countries for starting a business, with its strategic location bridging Europe and Asia, a young population of over 85 million, and a rapidly growing e-commerce market. The Turkish government actively encourages both domestic and foreign investment, offering streamlined incorporation processes and generous incentive programs through KOSGEB and Teknoloji Gelistirme Bolgeleri.
Types of Companies
Under the Turkish Commercial Code, the most common company types are:
- Limited Liability Company (Ltd. Sti.): The most popular choice, requiring minimum capital of 10,000 TL. It can have 1 to 50 shareholders, and partners are liable only up to their committed capital. Approximately 80% of all active companies in Turkey use this structure.
- Joint Stock Company (A.S.): Suitable for larger enterprises, requiring minimum capital of 50,000 TL. Can be listed on the stock exchange and requires at least 1 shareholder. Mandatory for certain regulated industries like banking and insurance.
- Sole Proprietorship (Sahis Sirketi): The simplest structure with no minimum capital requirement. Quick to set up but offers unlimited personal liability. Popular among small-scale e-commerce sellers starting on Trendyol or Hepsiburada.
- Cooperative (Kooperatif): For collective ventures where members share benefits equally.
Formation Process
Step 1 - MERSIS Registration: The Central Registry System (MERSIS) is the starting point for all company formations. The company name and articles of association are prepared online through this platform. The chosen company name must be unique and not previously registered.
Step 2 - Tax Number: A potential tax number is obtained from the tax office, which is required to open a bank account. At least 25% of the share capital must be deposited and blocked. The remaining 75% must be paid within 24 months of formation.
Step 3 - Notary Procedures: The articles of association and signature declarations are certified before a notary. The authorized signatories' signature circulars are also prepared at this stage. For foreign partners, apostilled passport translations are required.
Step 4 - Trade Registry (Ticaret Sicili): Application is made to the relevant Trade Registry Office for registration. The company gains legal personality upon registration and is published in the Trade Registry Gazette. Chamber of commerce membership is also completed at this stage.
Step 5 - Tax Office Registration: The company registers with its assigned tax office for tax obligations. Applications for e-fatura (e-invoice) and e-defter (e-ledger) systems are also submitted at this stage through the GIB portal.
Step 6 - Social Security (SGK): Workplace notification and employee registrations are made with the Social Security Institution within 10 days of commencing operations.
Timeline and Costs
An Ltd. Sti. formation typically takes 3 to 7 business days. Total costs including notary fees, duties and advisory fees range from approximately 5,000 to 15,000 TL. A.S. formation may take slightly longer with higher associated costs. New entrepreneurs can recover part of their formation costs through KOSGEB entrepreneurship support grants.
Zunapro guides entrepreneurs through every stage of company formation in Turkey, managing the bureaucratic processes so you can focus on building your business.