Turkey (Türkiye) is a large and well-connected market, but setting up there involves a sequence of legal, tax, employment and regulatory steps that differ in important ways from those in the UK, the EU or the United States. This guide series is written for foreign companies preparing that move: manufacturers building or sourcing production, exporters and distributors selling into Turkey, service providers opening a local presence, and international employers who want to hire people on the ground.
Each guide answers the questions foreign businesses most often ask, in the order they usually arise. This overview explains how the pieces fit together and where to start.
Key points
- Foreign investors are generally treated in the same way as Turkish investors under the Foreign Direct Investment Law (No. 4875), and most sectors do not require prior approval to set up a company.
- The main options are a subsidiary (usually a limited company or a joint stock company), a branch, a liaison office, or working through a local partner, distributor or employer of record.
- Most practical delays come from documents: apostilles, sworn translations, tax numbers for foreign shareholders and bank onboarding.
- Employment, tax and customs rules are detailed and change often. Plan for compliance from day one rather than after the first hire or the first shipment.
- Timings and costs in these guides are indicative only. Requirements depend on the sector, the structure and the facts.
Why foreign companies look at Turkey
Turkey combines a domestic market of more than 85 million people with a manufacturing base, a young workforce and a location between Europe, the Middle East, the Caucasus and Central Asia. Several features matter in practice:
- The Customs Union with the European Union. Since 1996 most industrial goods in free circulation have moved between Turkey and the EU without customs duties, using the A.TR movement certificate. Basic agricultural products, coal and steel (covered by a separate agreement), services and public procurement are outside the Customs Union. See our guide to customs, import and export.
- A network of free trade agreements, including the UK–Turkey agreement in force since 2021, which can reduce duties for goods of qualifying origin.
- Equal treatment of foreign investors. The Foreign Direct Investment Law allows foreign investors to set up or acquire companies on the same terms as Turkish investors, subject to sector-specific rules (for example in banking, energy, media, aviation and some property acquisitions).
- Investment and tax incentives, including incentive certificates for qualifying investments, technology development zones, free zones and the 2026 measures introduced by Law No. 7582. These are covered in the tax guide and the manufacturing guide.
None of this removes the need for careful planning. Turkish corporate, employment and tax law is codified, formal and document-driven, and many obligations attach automatically once a company is registered or the first employee starts work.
Which guide should you start with?
| If you are… | Typical first questions | Start with |
|---|---|---|
| A manufacturer building or acquiring production | Where to locate, which permits, which incentives | Setting up manufacturing |
| An exporter or brand selling goods into Turkey | Importing, customs duties, product rules, distributors | Customs, import and export |
| A service provider opening a local presence | Subsidiary or branch, invoicing, tax registration | Choosing a business structure |
| An employer who wants staff in Turkey | Employing directly, employer of record, payroll | Hiring employees |
| An investor buying into a Turkish business | Share purchase, joint venture, due diligence | Acquisitions and joint ventures |
| A retailer or consumer brand | Store leases, licences, consumer law | Opening a retail store |
The market-entry roadmap
Most market entries follow the same broad sequence, although the steps overlap and not every business needs every step.
- Define the activity. Decide what the business will actually do in Turkey: sell, manufacture, provide services, employ, or only research the market. The answer drives the structure, the licences and the tax position.
- Choose the structure. Compare a subsidiary, a branch, a liaison office and indirect models such as distributors, agents or an employer of record. See choosing a business structure.
- Prepare the documents. Parent company documents, board resolutions and powers of attorney usually need to be notarised, apostilled (or legalised) and translated into Turkish by a sworn translator. Foreign shareholders, and usually foreign directors, also need Turkish tax numbers.
- Register the entity. Incorporate a company through the MERSİS system and the trade registry, or register a branch or apply for a liaison office permit. See setting up a company and branches and liaison offices.
- Open bank accounts and complete tax set-up. Corporate bank account, tax office registration, statutory books, electronic invoicing and an accountant (mali müşavir). See opening a corporate bank account and the tax guide.
- Secure premises and licences. Lease an office, warehouse, shop or factory and obtain the workplace opening and operating licence and any sector permits. See leasing offices and warehouses.
- Hire and onboard staff. Register the workplace with the Social Security Institution (SGK), put compliant contracts in place, and obtain work permits for foreign staff. See hiring employees, work permits and onboarding.
- Operate and stay compliant. Corporate governance, tax filings, customs, data protection and, when needed, compliant termination and offboarding.
Indicative timeline
The table below shows how long the main steps often take once the required documents are ready. It is a planning aid, not a commitment: timings vary with the authority, the city, the bank, the sector and the completeness of the file.
| Step | Often takes | What usually drives the timing |
|---|---|---|
| Preparing and apostilling foreign documents | 1–4 weeks | Notary and apostille appointments abroad, translation |
| Tax numbers for foreign shareholders and directors | A few days | Tax office practice, availability of documents |
| Company incorporation at the trade registry | 1–2 weeks | Completeness of articles, signatures, registry workload |
| Corporate bank account | 1–4 weeks | The bank's know-your-customer review of the foreign group |
| Liaison office permit | Several weeks | Ministry review of the application |
| Workplace licence for an office | Days to weeks | Municipality, zoning and fire-safety checks |
| Work permit for a foreign employee | Around 1–3 months | Ministry review, employer criteria, completeness of the file |
| Factory permits and licences | Several months or more | Zoning, environmental assessment, building works |
Key authorities and terms
You will meet the following institutions and terms throughout the process. Knowing the Turkish names helps when reading official documents.
| Term | What it is |
|---|---|
| MERSİS | The central online registration system used to incorporate companies and record changes |
| Trade registry (Ticaret Sicili Müdürlüğü) | Registers companies and branches, usually within the local chamber of commerce |
| Turkish Trade Registry Gazette | Official publication of registered company matters |
| Tax office (Vergi Dairesi) and Revenue Administration (GİB) | Tax registration, filings and electronic invoicing systems |
| Social Security Institution (SGK) | Workplace registration, employee notifications and social security contributions |
| Ministry of Labour and Social Security | Work permits for foreign nationals, through the e-İzin system |
| Ministry of Industry and Technology | Liaison office permits, foreign investment reporting, incentive certificates and industrial registry |
| Ministry of Trade | Customs administration, foreign trade and consumer protection |
| Personal Data Protection Authority (KVKK) | Data protection supervision and the VERBIS data controller registry |
| Competition Authority (Rekabet Kurumu) | Merger control and competition law |
| Mali müşavir | A licensed financial adviser who keeps statutory books and files tax and payroll returns |
| Gümrük müşaviri | A licensed customs broker who represents importers and exporters before customs |
| Noter | A notary public. Many corporate and transactional steps in Turkey require notarisation |
The complete guide series
Common mistakes foreign companies make
- Starting activity before registration is complete. Invoicing, hiring or signing leases in the name of an entity that does not yet exist creates tax and liability problems.
- Treating a liaison office as a sales office. A liaison office may not carry out commercial activity, and doing so risks the permit and tax exposure.
- Underestimating document preparation. A missing apostille or an inconsistency between the translated and original documents is one of the most common causes of delay.
- Hiring before the employment framework is ready. The SGK notification must be made before work starts, and payroll and occupational health and safety obligations apply from the first day.
- Assuming foreign templates work in Turkey. Employment contracts, leases and distribution agreements are subject to mandatory Turkish rules that can override contractual terms.
- Overlooking permanent establishment risk. Staff or agents working in Turkey for a foreign company can create a taxable presence even without a registered entity.
- Ignoring currency and payment rules. Turkish residents have for many years been restricted from agreeing certain contract prices in foreign currency, notably in leases and employment contracts. The legal basis of these rules was the subject of a Constitutional Court decision and legislative change in 2025–2026, so the current position should be checked before a contract is priced in foreign currency.
Frequently asked questions
Can a foreign company own 100% of a Turkish company?
Yes, in most sectors. The Foreign Direct Investment Law allows foreign individuals and companies to establish or acquire Turkish companies with full foreign ownership. Some regulated sectors, such as banking, insurance, broadcasting, energy and aviation, have licensing or ownership rules of their own, and acquisitions of real estate by foreign-capital companies are subject to a separate approval process.
Do I need a Turkish partner or a Turkish director?
Generally no. A Turkish company can have a single foreign shareholder, and its directors or managers do not have to be Turkish citizens or residents. In practice, many foreign-owned companies appoint at least one locally resident authorised signatory so that day-to-day matters, such as bank and tax office visits, can be handled without travel. A branch of a foreign company must have a representative resident in Turkey.
How long does it take to set up a business in Turkey?
For a standard company, registration itself often takes one to two weeks once the documents are ready. Preparing and apostilling foreign documents, obtaining tax numbers and opening a bank account usually add several weeks. Sector licences, work permits and factory permits take longer. All timings are indicative and depend on the circumstances.
What is the minimum capital for a company in Turkey?
Following an amendment that took effect at the start of 2024, the minimum capital is TRY 50,000 for a limited company and TRY 250,000 for a joint stock company (higher for joint stock companies using the registered capital system). Existing companies with lower capital must increase it within a transition period, which has been extended (most recently to 31 December 2027). Companies that do not comply risk being treated as dissolved, so existing companies should check the current deadline. Sector rules and work permit criteria can require more, so the right amount depends on the plan. See setting up a company.
Can I hire employees in Turkey without setting up a company?
It is possible through an employer of record, a local service provider or, in limited cases, directly by the foreign company. Each route has legal and tax implications, including the risk of creating a permanent establishment and the rules on worker leasing. See hiring employees in Turkey.
Which taxes will a Turkish subsidiary pay?
The main taxes are corporate income tax (a 25% standard rate at the time of writing, with reduced rates and deductions for certain activities), value added tax (KDV), withholding taxes, stamp duty and payroll-related taxes and contributions. See the tax guide.
Do foreign directors or shareholders need a residence or work permit?
A shareholder or board member who does not live or work in Turkey generally does not need a work permit. A foreign national who will be employed by, or actively manage, the Turkish business from within Turkey generally needs a work permit, which also serves as a residence permit. See work permits for foreign staff.
Is Turkish law used for contracts with Turkish companies?
Parties to international commercial contracts can often choose a foreign governing law and arbitration, but mandatory Turkish rules continue to apply in areas such as employment, leases of property in Turkey, consumer contracts, and company law matters. Enforcement in Turkey of foreign judgments and arbitral awards follows its own procedures.
Where can I find more detailed articles on specific topics?
Our Insights section contains articles on specific Turkish law topics, including establishing a business in Turkey, employment law for foreign employers and the 2026 tax incentives.
This guide is general information about Turkish law and practice at the date shown above. It is not legal, tax or customs advice and should not be relied on as such. Rules, thresholds and procedures in Türkiye change frequently and their application depends on the facts, so take advice on your own circumstances before acting. Advice on Turkish law is provided through lawyers qualified in Türkiye.