Doing business in Turkey offers significant opportunities for foreign investors, featuring a large, young population, strategic location, and 100% foreign ownership options.
Companies can be established in one day, with Limited Liability Companies (LLCs) requiring a 50,000 TRY minimum capital and a 25% corporate tax rate. Top sectors include manufacturing, technology, tourism, and construction, with opportunities for citizenship via investment.
Key Aspects of Doing Business in Turkey
Company Structures: The most popular for foreigners are Limited Liability Companies (LLC) and Joint Stock Companies (JSC).
Establishment Process: “One-stop-shop” procedures at Trade Registry Directorates allow company formation within one day.
Foreign Investment Rules: Turkey’s Foreign Direct Investment (FDI) Law ensures equal treatment, meaning foreign investors have the same rights and obligations as local ones.
Key Sectors: Strong investment potential exists in automotive, manufacturing, construction, electronics, agriculture, and tourism.
Taxation: A standard corporate tax rate of 25% applies, and a new minimum 10% tax rule applies from 2025.
Location Strategy: Istanbul is a major hub but highly competitive. Other regions may offer different advantages.
Steps to Set Up a Business
Draft Documents: Prepare Articles of Association, translating necessary documents (passports, etc.) into Turkish.
Tax Identification Number: Obtain a potential tax number from the tax office.
Capital Deposit: Deposit the required minimum capital (10,000–50,000+ TRY depending on structure).
Registration: Register with the local Trade Registry Directorate.
Notarization: Certify signature circulars and official books.
Work Permits: Required for foreign owners actively managing the company (not required for passive investors).
Investment Incentives
Citizenship: Real estate investment of $400,000 or more can grant citizenship.
Special Zones: Various incentives are available for investments in technology development zones and free zones.
It is highly recommended to engage local legal counsel for navigating regulatory requirements and ensuring compliance with the Turkish Commercial Code (TCC).
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