Recruit
Turkey Company Registration
-
Drew Donnelly
- Published
- August 17, 2026
- Foreign investors typically choose between a Limited Şirket (limited liability company), an Anonim Şirket (joint stock company), a branch office, or a liaison office, with the LLC structure remaining the default choice for foreign-owned SMEs entering the Turkish market.
- Company registration runs through the Turkish Trade Registry under the Union of Chambers and Commodity Exchanges of Turkey (TOBB), using the online MERSIS system, with tax office and Social Security Institution (SGK) registration following automatically once the Trade Registry notifies both bodies.
- Turkey's economy ranks among the world's twenty largest, anchored by a customs union with the European Union, a population of over 85 million where more than half are under 34, and a technology and manufacturing base that continues to attract foreign direct investment despite currency volatility.
- Between notarization requirements, apostille rules for foreign shareholders, and a tax and social security system that shifts with annual inflation adjustments, choosing the right local partner from day one is often the difference between a smooth market entry and months of administrative delay.
- 5 ★ on G2
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Why Register a Company in Turkey?
Turkey occupies a rare position at the crossroads of Europe, the Middle East, and Central Asia, giving companies that incorporate there direct access to a domestic market of over 85 million consumers alongside a customs union arrangement with the European Union that has underpinned decades of trade integration. The country’s nominal GDP has climbed past 1.6 trillion US dollars, placing it among the world’s largest economies, with growth forecasts running in the 3 to 4 percent range for 2026 as the services, manufacturing, and technology sectors expand. Government investment promotion agencies have also streamlined the incorporation process into a same-day, one-stop-shop model at Trade Registry Directorates, reducing a historically bureaucratic process into something far more workable for first-time investors than it was a decade ago.
Turkey’s workforce is a genuine competitive advantage: a young, increasingly urban population supports deep talent pools in software engineering, manufacturing, textiles, logistics, and financial services, with Istanbul alone functioning as a talent hub comparable to major European cities. The country’s long-standing EU Customs Union membership continues to shape its regulatory trajectory, pushing corporate governance, product standards, and labor protections closer to European norms even without full EU accession. Reform-minded initiatives such as the Medium-Term Economic Program and continued liberalization of foreign direct investment rules signal a government keen to keep foreign capital flowing in, which has translated into fewer restrictions on foreign ownership and generous tax incentives in priority sectors like renewable energy and technology.
The practical risks are real and worth planning for. The Turkish lira has depreciated substantially against major currencies over the past several years, and while inflation is gradually easing from above 30 percent toward the high teens or low twenties by some 2026 forecasts, it remains a significant factor in payroll planning, contract pricing, and financial reporting. Bureaucratic requirements around notarization, apostille certification for foreign documents, and Turkish-language contracts add friction, particularly for companies without existing local relationships. None of this is disqualifying, but it does mean budgeting extra time and expert support into any Turkey market entry plan rather than assuming a purely digital, self-service registration process.
Comparison of Common Business Structures in Turkey
| Structure | Best For | Setup Time | Key Requirement |
|---|---|---|---|
| Limited Şirket (LLC) | Foreign-owned SMEs, single founders, service and trading companies | 2-4 weeks (longer with foreign apostille/translation) | Minimum TRY 10,000 share capital; at least one shareholder |
| Anonim Şirket (JSC) | Larger operations, companies planning to raise capital or go public | 3-5 weeks | Minimum TRY 50,000 share capital; board of directors required |
| Branch Office | Foreign companies extending existing operations without a new legal entity | 3-4 weeks | No minimum capital; parent company remains liable for branch debts |
| Liaison Office | Market research and representation before committing to commercial activity | 4-8 weeks | Ministry of Industry and Technology license; no commercial activity permitted |
Step-by-Step Process to Set Up a Company in Turkey
1
Reserve Your Company Name and draft Founding Documents
Check name availability and begin the registration record through MERSIS (Central Registry Record System), where the memorandum and articles of association are prepared and uploaded electronically.
2
Notarize and Apostille Founding Documents
All founders, or their representatives under power of attorney, sign the articles of association before a Turkish notary; documents originating outside Turkey must be apostilled or consular-certified and officially translated by a sworn Turkish translator.
3
Obtain Tax Identification Numbers
The company applies to the local tax office for potential tax identity numbers for non-Turkish shareholders and board members, a prerequisite for opening the bank account used to deposit share capital.
4
At least 25 percent of subscribed capital is deposited in a Turkish bank account (the remainder is payable within two years), and 0.04 percent of capital is paid to the Competition Authority via the Trade Registry Directorate.
5
Register with the Trade Registry Directorate
Once all documents and payment confirmations are submitted, the company is officially established, often within the same day, and the incorporation is published in the Trade Registry Gazette within roughly ten days.
6
Complete Tax Office and SGK Registration
The Trade Registry Directorate automatically notifies the local tax office and the Social Security Institution of the new company; the business then obtains its tax registration certificate and an SGK employer number before registering individual employees.
7
Certify Statutory Books and Finalize Banking
Trade Registry personnel certify the company’s legal books (journal, ledger, inventory book, and share ledger), after which the company finalizes its operating bank account and registers for VAT with the tax office.
Hiring and Managing Employees
Companies that only need to hire one or two people in Turkey, rather than establish a full commercial presence, often start with an Employer of Record instead of incorporating outright. An Employer of Record already holds a registered Turkish entity and legally employs staff on a client’s behalf, handling contracts, payroll, tax withholding, and SGK registration, which lets a business test the market or hire a single specialist without the multi-week incorporation process described above.
Whichever route a company takes, Turkish labor law sets clear statutory baselines. The gross minimum wage for 2026 is TRY 33,030 per month (roughly TRY 28,075.50 net), a figure revised annually and sometimes mid-year given persistent inflation. Employees are entitled to annual leave starting at 14 days after one year of service, rising to 20 days between five and fifteen years and 26 days beyond that, plus 14 paid public holidays, maternity and paternity leave, and severance pay for qualifying terminations. Social security contributions fund most of this: employers generally pay around 20.75 to 22.5 percent of gross salary to SGK (covering pension, unemployment, and health insurance), while employees contribute close to 15 percent, though manufacturing employers and those filing on time can access reduced rates.
Hiring a foreign national adds an additional layer: the employee typically applies at a Turkish consulate for a reference number, and the Turkish employer then files the formal work permit application through the Ministry of Labor and Social Security’s e-Permit system within ten working days, with review taking up to 30 days. Employers must also maintain a ratio of at least five Turkish employees for every foreign worker sponsored. Because Turkey’s talent pool is deep but competitive in sectors like technology and finance, many companies pair their hiring plan with local recruitment support to identify candidates who match both the role and the compensation expectations of Istanbul, Ankara, or Izmir’s labor markets.
Tips for Recruiting and Retaining Local Talent
- Review payroll every January (and mid-year if inflation runs hot) since the minimum wage and social security contribution ceilings are revised annually and sometimes more often.
- Register every employee with SGK before their first working day; retroactive registration and misclassification of staff as contractors both carry significant back-payment penalties.
- Keep employment contracts and statutory books in Turkish, with certified translations available for foreign shareholders, directors, and headquarters staff.
- Secure work permits before any foreign employee starts work, and track the mandatory five-to-one ratio of Turkish to foreign staff.
- Budget for severance pay (up to 30 days’ wages per year of service) and statutory notice periods when planning workforce changes or restructuring.
- Work with a local accountant or law firm that tracks GİB and SGK filing deadlines, or partner with an Employer of Record to remove that compliance burden entirely.
Why Now is the Right Time to Register a Company in Turkey
Turkey occupies a different but equally distinct position in the region: a stable, established EU-adjacent economy with a legal and corporate framework foreign investors have relied on for decades, paired with a strategic geography that bridges European, Middle Eastern, and Central Asian markets from a single base. For companies weighing where in the region to build lasting operations, Turkey offers a large and youthful domestic market, competitive labor costs relative to Western Europe, and a company registration process that, while requiring patience with document legalization for foreign founders, follows well-trodden, predictable procedures through MERSIS and local trade registries.
Choosing between an LLC, JSC, branch, or liaison office in Turkey ultimately comes down to how much capital a company is prepared to commit and how directly it intends to trade. Founders testing the market can start with a liaison office and scale into a full trading entity once local demand is proven, while those ready to hire, invoice, and operate from day one will find the Limited Şirket the more practical route for most SME-scale ventures.
As with any cross-border expansion, the paperwork is only the starting point. Companies still need to navigate Turkish tax registration, social security obligations, and sector-specific licensing before they can operate with full confidence.
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Frequently Asked Questions
No, non-residents can register and be a shareholder or director of a Turkish company without living in the country, though foreign documents typically need to be apostilled and officially translated into Turkish before submission. This document legalization step is often the main source of delay for foreign founders, more so than the registration process itself.
MERSIS (Central Registry Record System) is Turkey's centralized online platform for company registration, used to reserve company names, draft articles of association, and submit incorporation documents to the local trade registry. Nearly all new company registrations in Turkey are processed through MERSIS, making it the first practical step once documents are ready.
No, a Turkish bank account is typically required to deposit the minimum share capital as part of the incorporation process itself, meaning company formation and initial banking steps are closely intertwined rather than sequential. Foreign founders should expect to work with a Turkish bank early in the process, and some banks may require in-person presence or a local representative to open the account.
Registered companies must obtain a tax number from the local tax office, register with the Social Security Institution (SGK) before hiring any employees, and file corporate tax returns annually regardless of profitability. Missing SGK registration before a first hire is a common compliance misstep for foreign companies new to the Turkish system.
Yes, while most sectors are open to full foreign ownership, certain industries such as broadcasting, aviation, and some financial services carry ownership caps or require additional regulatory approval. It's worth checking current sector-specific foreign investment rules with a local advisor, since thresholds and requirements can be adjusted by government decree.
