A Guide to Setting Up a Company in Turkey for Foreign Investors — 2026

A Guide to Setting Up a Company in Turkey for Foreign Investors — 2026

Thanks to its geographic location, large domestic market, and customs union advantages, Turkey has long been an attractive investment hub for foreign investors. However, a foreign individual or legal entity wishing to set up a company in Turkey should understand both the scope of the principle of legal equality and the practical requirements of the incorporation process. This guide covers the principle of equal treatment granted to foreign investors, the company formation process carried out through MERSİS, the required documents, the link between company ownership/management and residence and work permits, and practical considerations, all within the framework of the Foreign Direct Investment Law No. 4875 and the Turkish Commercial Code No. 6102 (TTK).

What Is the Principle of Equal Treatment for Foreign Investors?

Under Article 3 of the Foreign Direct Investment Law No. 4875, foreign investors are subject to equal treatment with domestic investors unless otherwise provided by law. Under this principle, a foreign individual or legal entity can set up any type of company in Turkey under the same conditions as Turkish citizens; the most commonly chosen types are the limited liability company and the joint-stock company. The equal treatment principle ensures that foreign investors are not subjected to a separate permit regime or a more burdensome procedure when incorporating a company.

How Does the Company Formation Process Work?

Company incorporation in Turkey is carried out through the Central Registry Record System (MERSİS). The process begins with a preliminary application on MERSİS and the drafting of the company's articles (the "company contract" for a limited liability company, or the "articles of association" for a joint-stock company). For a joint-stock company, a portion of the committed capital, as required by law, may need to be blocked at the incorporation stage. Once the documents are completed, the company is registered with the trade registry directorate in the location of its head office, and the incorporation is announced in the Trade Registry Gazette. Finally, tax liability is established with the relevant tax office, initiating the company's tax obligations.

What Documents Are Required for Foreign Partners?

Valid identification/passport information for foreign individual partners, and documents issued abroad (such as authorization documents, or an activity certificate where a foreign legal entity is a partner), must bear a proper apostille and be accompanied by a notarized Turkish translation to be usable in Turkey. An apostille is a form of certification that allows documents issued in countries party to the Hague Convention to be recognized in Turkey without the need for further consular certification; for documents from non-party countries, consular certification is required instead.

The Link Between Company Ownership/Management and Residence and Work Permits

If a foreign national will personally work in or manage the company they have set up or hold a share in, a work permit may be required under the International Labor Force Law No. 6735. In addition, holding a company share or a managerial position can serve as a basis for the foreign national's residence permit application in Turkey. These two processes are distinct and must be assessed separately — setting up a company does not, by itself, automatically grant a work or residence permit; the relevant applications must be filed separately. Planning the residence permit process, and a possible future citizenship application, correctly from the outset can prevent problems down the line.

Sector Restrictions and Reporting Obligations

While the general rule for foreign capital in Turkey is equal treatment, certain restrictions on foreign ownership shares may apply in some sectors considered strategic or sensitive (for example, certain media areas, air transport, or coastal structures). For this reason, the sector-specific legislation applicable to the intended activity should always be reviewed before incorporation. In addition, companies with foreign capital may be required to fulfill certain reporting obligations following incorporation, such as an activity information form submitted to the Ministry of Industry and Technology; fulfilling these obligations fully and on time is important.

What Should You Pay Attention to When Setting Up a Company?

• Make sure all documents issued abroad fully meet the apostille and notarized translation requirements.
• Research in advance whether any special restriction on foreign capital applies to the sector of intended activity.
• If you will personally work at the company, plan for a work permit; if you will reside in Turkey, plan for a residence permit, as separate processes.
• Keep post-incorporation reporting obligations (such as the activity information form) on a calendar and fulfill them on time.

Frequently Asked Questions

Can a foreign individual set up a company alone in Turkey?

Yes. Under the equal treatment principle in Article 3 of Law No. 4875, foreign individuals or legal entities can set up a single-shareholder limited liability company or joint-stock company under the same conditions as Turkish citizens.

Does setting up a company automatically grant me a residence permit?

No. Holding a company share or a managerial position can serve as a basis for a residence permit application, but this requires a separate application process; incorporation alone does not automatically create a right of residence.

Is a translation of documents brought from abroad sufficient on its own?

No. The document must first bear an apostille (or undergo consular certification in countries not party to the Apostille Convention), and it must also be accompanied by a notarized Turkish translation.

Is there a restriction on foreign ownership shares in every sector?

No, the general rule is equal treatment. However, since special restrictions may apply in certain strategic or sensitive sectors, the legislation specific to the intended sector of activity should be reviewed before incorporation.

Source: Foreign Direct Investment Law No. 4875, Art. 3; Turkish Commercial Code No. 6102; International Labor Force Law No. 6735.

This content has been prepared for general informational purposes and does not constitute legal advice. We recommend consulting a law firm to evaluate the conditions specific to your company's incorporation and sector.