Metropol CPA Ensures Smooth, Compliant Turkey Company Formation

Turkey company formation has become a top choice for international entrepreneurs and investors seeking to expand into new markets. Positioned at the crossroads of Europe, Asia, and the Middle East, Turkey is more than just a geographic bridge — it is a thriving hub for global trade, manufacturing, tourism, logistics, and technology. In recent years, the country has attracted consistent foreign direct investment thanks to its strategic location connecting major global markets, strong economic growth and diverse industrial base, skilled and youthful workforce with competitive labor costs, and government incentives for investors in key industries.

Whether your goal is to tap into Turkey’s domestic market or use the country as a base for exports, establishing a company here can be a highly strategic move. However, while the opportunities are substantial, the process involves specific legal, regulatory, and administrative steps that must be followed correctly to avoid delays or penalties. At Metropol CPA, we specialize in making the entire company formation process simple, fast, and compliant — guiding you from the very first consultation to post-incorporation support. Read more on how we help you.

Understanding the Challenges of Turkey Company Formation

While some investors attempt to set up their companies independently, most find the process time-consuming, bureaucratic, and risky. The laws in Turkey can be complex, with different requirements depending on the type of business, the sector, and the ownership structure. Highly regulated industries such as finance, energy, pharmaceuticals, and food production often require multiple layers of approval from different government bodies, each with its own procedures and timelines.

Language barriers can make official forms, regulations, and government correspondence difficult to interpret accurately, while frequent legal and tax updates mean investors must constantly monitor changes to stay compliant. Cultural differences in business practices, such as how contracts are negotiated or how public offices operate, can also create delays for those unfamiliar with the local environment. Even seemingly minor mistakes in documentation — like using the wrong legal terminology in the Articles of Association, submitting an incomplete translation, or missing a required notarization — can result in rejections, fines, or months of wasted time.

Another major challenge in Turkey company formation is coordinating multiple steps across various institutions simultaneously. For example, registering with the Trade Registry Office, the Tax Office, and the Social Security Institution must often be done in sequence, but certain banks may require proof of registration before opening a corporate account. Delays in one stage can easily cause a domino effect, holding up the entire process. These overlapping procedures can make timelines unpredictable and planning difficult, especially for businesses that need to launch quickly to capture market opportunities.

For foreign investors, there is also the challenge of ensuring post-incorporation compliance. Meeting the initial requirements is only the beginning — companies must maintain proper accounting records, submit tax returns on time, renew business licenses, and follow labor laws when hiring staff. Without an experienced partner, missing even a single filing deadline or failing to update company records after a change in shareholders or directors can result in penalties or, in extreme cases, suspension of business operations. This is why partnering with Metropol CPA is not just about speeding up incorporation; it’s about having an ongoing safeguard that ensures your company remains compliant, efficient, and positioned for growth from day one.

Types of Companies in Turkey

When planning a Turkey company formation, choosing the right business entity is one of the most important decisions you will make. Your choice will affect your tax obligations, legal liability, operational flexibility, and even your ability to attract investors. Below is an in-depth look at the main company structures available to foreign and domestic investors:

1. Limited Liability Company (LLC)

The Limited Liability Company (LLC) is the most common form of company in Turkey, chosen by both local entrepreneurs and foreign investors for its simplicity and cost-effectiveness. One of the main advantages of this company type is its simple structure and lower setup costs compared to other legal entities, making it accessible for both local and foreign entrepreneurs. This type of company is ideal for small to medium-sized businesses, trading companies, consulting firms, service providers, and startups seeking a straightforward entry into the Turkish market.

• Shareholders: Requires a minimum of 1 shareholder, who can be an individual or a legal entity. The shareholder can be Turkish or foreign, and there is no requirement for a Turkish partner.

• Capital Requirement: The minimum share capital is 10,000 TRY, and at least 25% of it must be paid before registration (with the remainder payable within 24 months).

• Management: Managed by one or more directors, who may also be shareholders. Directors do not have to reside in Turkey, although having a local representative can simplify compliance.

2. Joint Stock Company (JSC)

The Joint Stock Company (JSC) is a more complex legal entity, often used by larger companies or those aiming to attract significant investment. The Joint Stock Company offers several advantages, including the ability to issue shares and bonds, which makes it easier to raise capital for growth and expansion. This structure is particularly ideal for large-scale operations, manufacturing companies, infrastructure projects, multinational corporations, and businesses aiming to attract significant investment or eventually become publicly traded entities.

• Shareholders: Requires a minimum of 1 shareholder, who can be an individual or a legal entity, domestic or foreign.

• Capital Requirement: Minimum share capital is 50,000 TRY, with at least 25% paid before registration. Publicly traded JSCs have higher capital requirements.

• Management: Managed by a board of directors. Corporate governance rules are more formal than for an LLC, including requirements for annual general meetings and stricter record-keeping.

3. Branch Office

A Branch Office allows a foreign company to operate in Turkey without creating a separate legal entity. A Branch Office offers several advantages for foreign companies, including a faster setup process compared to forming a new legal entity and no requirement to allocate share capital as in LLCs or JSCs. This structure is ideal for foreign businesses looking to test the Turkish market, maintain full oversight from their headquarters, and begin operations quickly without establishing a separate legal entity.

• Legal Status: Operates as an extension of the foreign parent company, using its name and legal identity.

• Capital Requirement: No minimum capital requirement, although working capital must be allocated for operational needs.

• Management: The branch must appoint a representative in Turkey who is authorized to act on behalf of the parent company.

4. Liaison Office

A Liaison Office (also called a representative office) is ideal for foreign companies that want a presence in Turkey without conducting direct commercial activities.

• Purpose: Primarily used for market research, promotional activities, networking, and establishing relationships with Turkish partners or clients.

• Capital Requirement: No capital requirement, but sufficient funds must be transferred from abroad to cover expenses.

• Management: Managed by a designated representative in Turkey, often with a small administrative team.

Step-by-Step Turkey Company Formation Process

Establishing a company in Turkey involves a structured process governed by the Turkish Commercial Code (TCC) and other relevant regulations. While the exact steps may vary depending on your chosen legal entity and industry, the general process follows these stages:

1. Decide on the Company Structure

The first step in any Turkey company formation is determining the most suitable legal entity for your business. Your choice will influence capital requirements, shareholder liability, tax obligations, and the complexity of your corporate governance. Consulting a professional early on can help you avoid costly restructuring later. Options include:

• Limited Liability Company (LLC) — best for small to medium-sized businesses with fewer regulatory requirements.

• Joint Stock Company (JSC) — ideal for larger companies seeking to raise capital or eventually go public.

• Branch Office — for foreign companies wishing to operate in Turkey under their existing name.

• Liaison Office — for market research and promotional purposes without engaging in trade.

2. Reserve Company Name

Your company name must be unique and comply with Turkish naming regulations. It cannot be identical or confusingly similar to an existing registered name, and it must reflect your business activity. The name reservation process is handled through the Central Registration System (MERSIS). The Example is If your business is in IT consulting, your name could include words like “Bilişim” (Information Technology in Turkish) or “Danışmanlık” (Consulting).

3. Prepare the Articles of Association

The Articles of Association is the founding document of your company. This document must be drafted in accordance with Turkish law and approved by a notary. Errors or omissions can delay registration, so professional review is strongly advised. It must outline:

• Company name and address

• Purpose and scope of activities

• Shareholding structure and capital

• Management structure (directors, board, etc.)

• Profit distribution policies

• Decision-making procedures

4. Deposit Share Capital

The bank will issue a deposit certificate, which is required for Trade Registry submission. The remaining capital must be paid within 24 months after incorporation. For LLCs and JSCs, a portion of the required share capital must be deposited into a temporary bank account before registration:

• LLC: Minimum 10,000 TRY capital — at least 25% paid before registration.

• JSC: Minimum 50,000 TRY capital — at least 25% paid before registration.

5. Register with the Trade Registry Office

Submit the incorporation documents — including the notarized Articles of Association, shareholder IDs, capital deposit certificate, and proof of address — to the Trade Registry Office in the province where your company will operate. Once approved, your company will be officially registered, and details will be published in the Turkish Trade Registry Gazette.

6. Tax Office Registration

After incorporation, your company must register with the local tax office to obtain a tax identification number. This step includes registering for Value Added Tax (VAT) if applicable to your business activities. The tax office will also arrange a tax plate inspection at your business premises to verify your address.

7. Social Security Registration

If you plan to hire employees, your company must register with the Social Security Institution (SGK). This ensures that all staff are covered under Turkey’s social insurance system, which includes pension, health, and unemployment benefits.

Employers are required to contribute a percentage of employee salaries to the SGK system, so this should be factored into your operational budget.

8. Open Permanent Bank Account

Once registration is complete, you can convert your temporary bank account into a permanent corporate account. At this stage, the deposited capital can be accessed for business operations. Your permanent account will also be used for tax payments, payroll, and other financial transactions.

Additional Steps for Certain Industries

Depending on your sector, you may need additional approvals or licenses. For example:

• Food production companies require permits from the Ministry of Agriculture and Forestry.

• Tourism businesses may need a license from the Ministry of Culture and Tourism.

• Financial services require approval from the Banking Regulation and Supervision Agency (BRSA).

Metropol CPA Solution for Your Turkey Company Formation

Setting up a company in a foreign country is not just about filling out forms — it’s about making strategic decisions that will impact your operations, tax obligations, and growth potential for years to come. Our role is to help you make those decisions with clarity and confidence. Here’s how we can help:

1. Legal and Regulatory Compliance

When you establish a company in Turkey, the first and most important step is ensuring compliance with Turkish Commercial Code (TCC) and other relevant laws. Our legal team handles all paperwork and represents you during each step of the process, reducing the risk of mistakes. For example, if you are opening a manufacturing company, we ensure you meet environmental permits and zoning approvals, while a service company may require different licensing. This includes:

• Registering your business at the Trade Registry Office.

• Drafting and notarizing your Articles of Association.

• Securing a tax identification number for the company and shareholders.

• Ensuring sector-specific permits are obtained (e.g., for finance, food production, or import/export).

2. Corporate Structuring

Choosing the right legal entity is one of the most critical decisions in the company formation process. We assess your business model, investment size, industry, and long-term goals before recommending the structure that will serve you best. Your choice will determine:

• Ownership rules — how shares are held and transferred.

• Tax obligations — rates and reporting requirements.

• Liability — your personal protection against business debts.

• Capital requirements — the minimum investment needed.

In Turkey, the main options for foreign investors are:

• Limited Liability Company (LLC) – Flexible, lower capital requirements, ideal for SMEs.

• Joint Stock Company (JSC) – Best for large-scale operations and companies planning to go public.

• Branch Office – Suitable for foreign companies expanding directly into Turkey.

• Liaison Office – For market research or representation without commercial activity.

3. Tax Registration and Ongoing Compliance

Once your company is incorporated, you must register for:

• Corporate Income Tax (CIT) — currently 25% (subject to change by law).

• Value Added Tax (VAT) — typically 20%, with lower rates for certain goods and services.

• Social Security Contributions — for employees.

• Withholding Taxes — on certain payments like rent, royalties, or dividends.

Metropol CPA ensures that your company is not only registered for tax purposes but also set up with proper accounting systems from day one. We also help you take advantage of tax incentives available for foreign investors, such as:

• Reduced tax rates in free zones.

• Customs duty exemptions.

• Investment support programs for specific industries.

4. Bank Account Opening

A corporate bank account is essential for any business in Turkey — not just for financial transactions, but also for capital deposit requirements during incorporation. Opening a bank account as a foreign investor can be time-consuming due to anti-money laundering checks and documentation requirements. We assist you by:

• Preparing all required documents.

• Coordinating with banks that have experience with foreign-owned companies.

• Advising on the best bank for your business type, whether you need international transfer capabilities, low transaction fees, or online banking in multiple languages.

5. Immigration and Work Permits

If you or your employees are relocating to Turkey, you’ll need the appropriate work and residence permits. This process involves:

• Applying to the Ministry of Labor and Social Security.

• Providing proof of qualifications and employment contracts.

• Meeting minimum capital or employment requirements for foreign hires.

Simplifying Turkey Company Formation

At Metropol CPA, we provide a complete, start-to-finish solution for foreign investors seeking to establish their companies in Turkey. With over 10 years of experience in Turkish company formation, accounting, and cross-border business consulting, we have successfully assisted entrepreneurs, SMEs, and multinational corporations in navigating the country’s complex legal and regulatory environment. From the very first consultation to post-incorporation operational support, our team ensures that your business is legally compliant, financially optimized, and positioned for long-term growth.

We understand that every investor’s journey is unique. Whether you are a solo entrepreneur launching a boutique consultancy, an established SME looking to expand into new markets, or a global enterprise entering Turkey’s dynamic economy, our mission is to make your Turkey company formation process smooth, strategic, and risk-free. By combining local expertise with a deep understanding of international business practices, we help you avoid costly delays, maximize available incentives, and set up a structure that supports your future expansion.

Over the past decade, we have built a reputation for delivering reliable, transparent, and results-driven service. Our clients value our ability to handle everything — from legal registrations and tax compliance to corporate structuring, bank account opening, and work permits — under one roof. This integrated approach means you can focus on building your business while we handle the technical, administrative, and regulatory details. Begin your incorporation process and take the first step toward building a strong and sustainable business presence in Turkey. With our decade-long expertise and commitment to excellence, you can be confident that your venture is in the best hands from day one.

📞Contact us now and get your free consultation.