The Problem
You want to start a business in Turkey as a foreigner — perhaps opening a restaurant, import-export company, or tech startup. The most common business structure for foreigners is the Limited Liability Company (Limited Şirket or Ltd. Şti.), but the incorporation process involves multiple government agencies, Turkish-language documentation, and specific capital requirements that differ from most Western countries. Mistakes during formation can lead to tax penalties, permit denials, or even the inability to obtain a work permit.
How the Law Works in Turkey
Foreign company formation is governed by the Turkish Commercial Code (Türk Ticaret Kanunu, Law No. 6102) and the Foreign Direct Investment Law (Doğrudan Yabancı Yatırımlar Kanunu, Law No. 4875). Foreigners have the same rights as Turkish citizens to establish companies. An Ltd. Şti. requires minimum capital of 10,000 TL, at least one shareholder, articles of association notarized and registered with the Trade Registry (Ticaret Sicili), and registration with the tax office. Company establishment can be completed through the MERSIS online system. Work permits for foreign shareholders/managers are issued by the Ministry of Labor after company registration.
What the Tourist Should Do
Obtain a Turkish tax ID number and open a bank account. Define your company activities (NACE codes) and prepare articles of association. Deposit the minimum capital in a Turkish bank. Register through MERSIS and the local Trade Registry Office. Register with the tax office and the Social Security Institution (SGK). Apply for a work permit through the Ministry of Labor if you will be working in the company. Obtain any sector-specific permits or licenses required for your business activity.
The Risks
Starting a business without proper legal advice can result in choosing the wrong company type, incorrect NACE codes that prevent work permits, or tax classification errors. Foreign-owned companies face additional scrutiny during work permit applications. Shell companies without genuine activity may be dissolved by the Tax Inspection Board. Not paying SGK contributions for employees results in severe penalties and potential criminal liability.
LetFix Solution
LetFix provides full-service company formation for foreign entrepreneurs in Turkey. Our corporate lawyers handle registration, tax setup, work permits, and ongoing compliance to ensure your business operates legally from day one.
