Turkey Company Registration

Turkey serves as a strategic crossroads between Europe and the Middle East, boasting a large domestic market, vibrant economy, and pro-investment policies. Entrepreneurs benefit from clear legal frameworks, the ability to form 100% foreign-owned entities, and relatively quick registration procedures. Popular company structures include the Limited Şirket (LLC) and the Anonim Şirket (JSC), each offering limited liability and attractive market reach. Corporate tax rates can go up to 25%, and, depending on the sector or specific incentives, foreign investors may benefit from additional tax breaks or regional subsidies.

Types of Companies

1. Limited Şirket (LLC)
   
   • Requires a minimum share capital of 10,000 TRY.
   • Generally easier to set up and manage.
   • Ideal for small to mid-sized ventures.
2. Anonim Şirket (JSC)
   
   • Minimum share capital of 50,000 TRY.
   • Preferred by larger businesses or those planning to offer shares publicly.
   • Can have a single shareholder if desired.
3. Branch Office
   
   • Extension of a foreign parent company.
   • Must follow Turkish regulations for local operations and tax.
   • Not a separate legal entity but must register with relevant authorities.
     
     

Key Tax and Regulatory Considerations

• Corporate Income Tax: Up to 25% on net profits.
• Value Added Tax (VAT): Ranges from 1% to 18%, with 18% being the standard rate on most goods and services.
• Withholding Tax: May apply to dividends, royalties, and interest, often reduced under double-tax treaties.
• Full Foreign Ownership: 100% foreign-owned shareholding allowed, subject to certain sector-specific restrictions.
  
  

Registration Process and Requirements

1. Company Name Reservation: Verify and reserve a unique company name through the Central Registration System (MERSIS).
2. Draft Articles of Association: Clearly state the business scope, share capital, and governance structure.
3. Capital Deposit: Contribute at least 25% of the total share capital prior to registration, with the remainder typically payable within 24 months.
4. Notarization and Trade Registry Filing: File all corporate documents at the local Trade Registry Office.
5. Tax Office Registration: Obtain a tax identification number and register for VAT if applicable.
6. Social Security and Employment Registrations: If hiring local staff, register with the Social Security Institution (SGK) and comply with labor laws.
7. Banking and Operational Setup: Open a corporate bank account and begin official operations after receiving the company registration certificate.
   
   

Why Turkey?

• Strategic Location: Acts as a bridge between European and Middle Eastern markets.
• Large Consumer Base: Over 80 million residents with rising purchasing power.
• Strong Infrastructure: Well-developed transport, logistics, and telecommunications networks.
• Diverse Economy: Opportunities across manufacturing, technology, finance, tourism, and more.
• Investor Incentives: Tax breaks, subsidies, and regional supports for certain sectors or areas.
  
  

Ongoing Compliance

• Annual Financial Statements: Typically must be submitted to authorities; audits required above certain thresholds.
• Corporate Tax Filings: Annual returns to the tax office; quarterly advance tax may also apply.
• VAT Declarations: Monthly or quarterly, depending on your turnover or chosen scheme.
• Social Security & Employment Regulations: Maintain proper payroll records and ensure timely contributions.
• Governance Updates: Any changes to the Articles of Association, shareholding, or directorship must be registered with the Trade Registry.
  
  

Why Work With Us?
Our experienced team offers end-to-end support for Turkish company setup—guiding you through name registration, capital deposit, and trade registry filings. We also assist with tax structuring, employment compliance, and post-incorporation services so you can confidently harness Turkey’s robust economy and strategic geographic advantage.