Can Foreigners Set Up a Company in Turkey? What Are the Advantages?

Turkey’s geography and growing economy make it an appealing environment for foreign investors. Non-resident foreign individuals or legal entities have the right to set up a company here. The core legal framework governing this is Law No. 4875 on Foreign Direct Investment.

What Does Law No. 4875 Provide?

The core principle this law establishes is equal treatment for foreign investors alongside Turkish citizens. In practice, this means a foreigner setting up a company in Turkey isn’t subject to additional permits or restrictions beyond what a Turkish entrepreneur would face — with some sector-specific exceptions.

Which Company Types Can Be Chosen?

Non-resident foreigners have the right to form any company type defined under the Turkish Commercial Code: limited company, joint-stock company, collective company, commandite company, and cooperative. In practice, limited and joint-stock companies are the most commonly chosen, though the other structures can also be relevant depending on the partnership setup and line of business. The right choice depends on criteria such as capital size, number of partners, share transfer plans, and business activity (NACE code).

Why Professional Advisory Matters

Getting advisory support from a certified public accountant when choosing a company structure speeds up the process for foreign founders and investors, and prevents structural issues down the line. The main areas covered in this advisory typically include:

• Determining the capital amount and payment plan
• Choosing the right NACE code for the business activity
• Planning the ownership structure (single founder or multiple partners)
• Preparing the required documents (notarized passport translation, proof of residence, tax ID application, etc.)

Post-Formation Obligations

Once the company is formed, the following obligations apply — no different from a domestic company:

• Registering for tax with the tax office
• Keeping statutory books in line with regulations
• Filing monthly, quarterly and annual tax returns on time
• Social security filings (if employing staff)

Managing these obligations consistently keeps the company compliant with regulations and protected from potential penalties.

Conclusion

With its principle of legal equality, wide range of company structures, and growing market, Turkey offers a genuine opportunity for foreign investors. The most important step toward getting the process right is working with an accountant experienced in this area before formation begins.

How We Support This

When working with foreign investors, we manage the entire process end to end — from choosing the company type and tax office registration, to preparing the required documents and setting up the monthly bookkeeping process after formation.