Foreigners Can Own a Company in Turkey?

You heard right. Foreigners can own a company if they meet the legal requirements. Turkish law grants foreigners full ownership rights. The rights are clarified by the Turkish Commercial Code and the Foreign Direct Investment Law. Also, they can own a company without a local partner.

Turkish law actively supports foreign investors and simplifies registration processes as much as possible. You can establish a 100% foreign-owned company in Turkey without any problems. This applies to all types of businesses, regardless of whether they are limited liability companies or joint-stock companies.

Why Do Foreign Investors Choose Turkey?

Are you considering starting a business in Turkey? Thanks to supportive laws, incentives, and a developing market, foreigners can own a company in Turkey while maintaining full control. Because of the opportunities it offers, Turkey is an attractive destination for many international investors.

• Turkey is situated between three different critical regions. It is an important trade and transportation hub. For this reason, company formation in Turkey is highly sought after by foreigners.
• Turkey has long-term potential in the manufacturing, energy, and technology sectors. If you are interested in these sectors, starting a business in Turkey as a foreigner is an important step.
• As a highly populated country, it offers local demand in many sectors. Cross-border investment regulations are straightforward, and companies are supported with investment incentives.
• Thanks to its modern infrastructure, Turkey offers many different opportunities to various sectors. Companies can quickly begin operations after the company incorporation process is completed.
• With its young and skilled workforce, it is among the preferred choices of entrepreneurs. Continuous support for innovation and productivity makes it ideal for foreign direct investment.
• Turkish company ownership laws and other legislation support foreign investments. For many startups and investors, legal requirements for foreign investors are not restrictive.

All these advantages are the main reasons why Turkey attracts international investment. Thanks to strong legal protections, foreigners can own a company with the same rights as residents. The Foreign Direct Investment Law ensures fair treatment, while the business registration process is investor-friendly.

Can Foreigners Own a Company in Turkey?

Yes, foreigners can own companies in Turkey. Normally, there are no restrictions on this. All legal rights of foreigners are protected by the Turkish Commercial Code and the Foreign Direct Investment Law. Turkish corporate law is designed to support investors and entrepreneurs.

• The Turkish Commercial Code regulates how companies are established and operated in Turkey. Turkish and foreign shareholders have equal status and full ownership rights.
• The Foreign Direct Investment Law offers equal treatment for foreign investors. It protects the rights of foreign investors and encourages investments through the principle of transparency.

The rules for foreign ownership in Turkey are clear. Both individuals and foreign companies can own businesses. You do not need special permission from the government simply because you are a foreigner. You only need to comply with additional rules set by the Ministry of Trade for specific sectors.

Are There Any Restrictions About on Foreign Ownership in Turkey?

In many cases, it is possible to have a 100% foreign-owned company in Turkey without restrictions. Foreign ownership is permitted to encourage international investment. However, there are restrictions in certain sectors. You should pay attention to this during the process of company formation in Turkey.

Foreigners can own a company in the defense, military industry, aviation, media, maritime, and energy sectors. However, special government approval is required. Various laws and regulations may also apply. If you require further assistance regarding your company’s status, please contact us.

Foreigners Can Own a Company Without Work or Residence Permit?

No, a residence and work permit is not required for foreign ownership in Turkey. Foreigners can own a company even if they do not reside in Turkey. However, you should first review the legal requirements for foreign investors. You should thoroughly review the rules contained in Turkish corporate law.

Owning a company in Turkey and working for your company in Turkey are not the same thing. If you want to be a director and work at your company, a work permit is required. Turkish company ownership laws are not complicated. You can contact us to find out if you meet the requirements.

What Types of Companies Can Foreigners Open?

Looking for a growing market? The good news is that foreigners can own a company in Turkey. Before starting the company incorporation process, it’s necessary to learn about different company options, such as a limited liability company and a joint stock company. Each has different requirements.

• Limited Liability Company: The limited liability company is a popular option for both locals and foreigners. It is preferred by those who want to establish small and medium-sized enterprises.
• Joint Stock Company: The joint stock company is preferred by entrepreneurs who want to attract future investors. It is a more suitable choice for large-scale businesses and tech companies.
• Sole Proprietorship: A sole proprietorship is a business managed by a single person. It’s the simplest option, but a residence permit for investors is required during the establishment.

Do you want to build your future by starting a company? For this purpose, foreigners can own a company in Turkey. If you are starting a business in Turkey as a foreigner, it’s important to know your options. This way, you can minimize risks and benefit from investment incentives.

What Are the Taxes for Foreign-Owned Companies?

The Turkish tax system is designed to treat domestic and foreign capital equally. If you are looking to establish a company in Turkey, it is important to know that foreigners can own a company. Another crucial point is that every company will have its own tax identification number when it is established.

• SGK Contributions: Foreigners can own a company in Turkey, but if they employ workers, social security payments are required. Generally, this is around 22% of the employee’s salary.
• Stamp Duty: The stamp duty applies to official documents and contracts. Rates are quite variable but generally range from 0.189 to 0.948 depending on the type of document.
• Standard VAT: The standard VAT rate in is 20%. However, discounts are applied to certain goods and services. Every business is required to report its VAT to its local tax office on a monthly basis.
• Withholding Tax: This tax applies to companies that make certain payments, such as interest and rent. Generally, the rate is 15%. The tax deducted at the time of payment is reported to the tax office.
• Corporate Tax: Companies in Turkey pay taxes on their profits. The standard corporate tax rate is 25%. However, this rate can constantly fluctuate depending on specific government decisions.
• Municipal Tax: There are local taxes collected by the municipality. These include the environmental cleaning tax and property use tax. Rates vary depending on location and type of business.

Foreigners can own a company in Turkey and must be aware of their tax responsibilities. To successfully operate a company in Turkey, you must understand the Turkish tax system. You can follow a series of processes, from obtaining a tax identification number to filing corporate tax.

How to Start a Company in Turkey as a Foreigner?

Foreigners can own a company without going through difficult processes. The law grants you 100% ownership rights and allows you to make your own decisions, including capital contributions. With the right steps taken for company formation, foreigners can legally and independently own a company.

• Step 1: Examine legal texts such as cross-border investment regulations and the Foreign Direct Investment Law. Learn everything, including capital contribution.
• Step 2: Determine the company name, business address, shareholders, and director details for your company. Also, have the minimum capital requirement ready.
• Step 3: Prepare all the necessary documents for the business registration process and have them translated into Turkish. Use an official and certified translator for this.
• Step 4: Go to the MERSIS website, create an account, and prepare the Articles of Association document. Ensure that the Articles of Association are signed by all shareholders.
• Step 5: Take the necessary documents for company formation to the Trade Registry Office and the Chamber of Commerce to complete your company registration.

Turkey offers unique opportunities for foreign entrepreneurs. Foreigners can own and manage a company according to their own decisions. It also opens doors to getting a residence permit for investors. Foreigners can own a company, but a work permit is required to actively manage it.

How Long Does Company Formation Take?

Setting up a company in Turkey generally takes 14-21 business days. This can be reduced to 7-14 days with consultancy. In addition to details such as minimum capital requirements, you should also consider the procedures to be completed at the Chamber of Commerce and the Trade Registry Office.

Foreigners can own a company in Turkey through a streamlined business registration process. This process is overseen by the Ministry of Trade. With proper guidance, you can complete your company registration very quickly and without any problems. Contact us and find out what we can do for you.

Frequently Asked Questions