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Registration of a company (limited liability company) in Turkey. Service offer

The principal forms of business organization in Turkey. One of the most common options is the limited liability company (Limited şirket). Company registration procedure. Subsequent administration of a company.

Turkey has a civil law system which has been wholly integrated with the continental European system. For instance, the Turkish civil law has been modified by incorporating elements of the Swiss Civil Code and the Code of Obligations, as well as the German Commercial Code. The administrative law bears similarities with the French counterpart and the penal code with the Italian counterpart.

The principal forms of business organization in Turkey are:

sole proprietorship;


limited liability company;

joint-stock company;

сommandite company;

cooperative company.
One of the most common options is the limited liability company (Limited Şirket).

A limited liability company can be formed with one member and one director. Both directors and members of a company can be foreign individuals (a company can be wholly owned by foreigners). In accordance with Turkish law, the signatory to the bank account must be one of the directors.

Company name

Every company in Turkey must have a name. The requirements for a company name are as follows:

  • it must be distinct from the names of all other existing companies;
  • the name must contain a suffix indicating the type of legal entity: Limited Şirket / LS; if a company name contains the first name and surname of an individual, the phrasing that indicates the type of legal entity cannot be abbreviated;
  • the name must contain a wording to indicate the business activity of the company (main activity) – in Turkish;
  • it cannot contain words Turkey or Turkish.
  • the presence of foreign words in a company name is permitted unless such words contradict the law, national and the cultural and historical heritage of Turkey and where the name or brand promoting the goods or services constituting the business activity is in a foreign language or the investment is made by foreign members.

Company structure


A Turkish limited liability company is managed by a director. The first director is appointed by the founder. If a company has more than one director, the Board of Directors is formed.

The director may be a resident of another country.

At least one of the directors must be a member of the company. If the company has only one director, he is chosen from among the members.

The Board of Directors decides all business matters other than those reserved to the general meeting of founders by the company’s Articles of Association or the law.

It should also be noted that the director of the company is liable to the government for the company’s debts.

A foreign individual holding office of director in a limited liability company needs a local work visa (work permit). To apply for such a visa, the company must employ at least 5 Turkish residents (per foreigner). If this requirement is not met, the company may be subject to penalties (down to the forced striking off of such a company from the Turkish Trade Registry).


A member can be an individual or a legal entity. There are no residency requirements.

The liability of members is limited to the capital commitment. However, the members are liable with their own assets for amounts owed by the company to government authorities that cannot be collected from the company itself, including taxes, administrative fines and social security premiums.

Members are publicly listed in the Trade Registry.

Members must annually hold a general meeting to approve financial statements for the previous year.

The number of members in a company cannot be more than 50.

Share Capital and Shares:

The minimum capital of a Turkish limited liability company is TRY 10 000 (Turkish lira).

25% of the capital must be deposited in a company’s account (temporary account created prior to filing a company formation application with the Chamber of Commerce). The funds in this account can be freely used for company expenses after the company is formed.

The remaining 75% must be paid in within 24 months.

If the company has decided to apply for work visas for foreign individuals, the share capital of that company must be at least TRY 100 000.

If an application for a visa (work permit) is submitted by a member of the company, his share in the capital must be at least 20%, but not less than TRY 40 000.
IMPORTANT: from 1 October 2024, the minimum share capital for registering a limited liability company will increase from TRY 10 000 to TRY 50 000.

Company registration procedure

Description of the company registration procedure (with personal visit):

  1. company name check;
  2. entering the territory of Turkey;
  3. obtaining a Turkish TIN (can be obtained remotely, after entering Turkey);
  4. depositing 25% of the capital in a temporary bank account (payment can be made from the founder’s account / in cash at the bank);
  5. having the documents of the founder and director translated and certified at a local notary;
  6. issuing a power of attorney to a representative to perform the registration;
  7. signing a lease agreement for the company’s office;
  8. submitting the company registration documents to the Chamber of Commerce;
  9. signing an agreement and a power of attorney for provision of accounting services to the company.

After the electronic documents on company registration are received, one can proceed with opening a bank account at a local bank. To start the procedure, the director must personally visit the bank.

Documents and information required for registration of a limited liability company*:

  • Notarized and apostilled copy of the founder’s international passport;
  • Notarized copy of the founder’s proof of address (utility bill / national passport / ID card);
  • 4 photos of the founder in electronic form or on paper;
  • Email;
  • Telephone;
  • Full name of the founder’s mother and father;
  • Name of the future company;
  • Types of business activities (up to 5 activities can be specified);
  • Lease agreement for the company’s office.

*This list is made for the simplest case when a company is registered with a single founder who will also be the company’s director. If there are several founders, the list of required documents and information will grow accordingly.

If not all the founders can be present at the registration of the company with several founders, at least the founder who will be appointed as director of the company is required to be present. The other founders will need to provide an apostilled set of documents (passport, proof of address, power of attorney and resolution to establish the company).

Documents and information required for registration of a company with a legal entity as founder:

  • Notarized and apostilled articles of association of the founding company (if the founding company’s country of registration is not party to the Hague Apostille Convention of 1961, consular legalization of the articles will be required);
  • Resolution of the directors of the founding company to form a company in Turkey;
  • Resolution on appointment of a director in a new company;
  • Consent of the individual who will be appointed as director of the company;
  • Power of attorney for a representative;
  • Company name;
  • Types of business activities (up to 5 activities can be specified);
  • Lease agreement for the company’s office;
  • TINs of the founder and of the director;
  • Notarized and apostilled copy of the director’s international passport;
  • Notarized copy of the director’s proof of address (utility bill/national passport/ID card);
  • 4 photos of the director in electronic form or on paper;
  • Email of the director;
  • Telephone of the director.
Please note that additional documents and information may be required in the course of company registration (including those requested by a local notary or government authorities).

Remote company registration

It is possible to register a company without visiting Turkey – using an apostilled power of attorney issued to our employee.

The estimated time of company registration without a personal visit is 3-4 weeks.

Subsequent administration of a company

Taxation and Exchange Control

Corporate Income Tax

A company is a resident of Turkey if its registered office or place of management is located in Turkey. If both the registered office and the place of management are outside Turkey, this company is non-resident for tax purposes. Resident companies are taxed on their worldwide income, and non-resident companies – only on income received in Turkey.

The standard corporate income tax rate is 25%.

Value Added Tax (VAT)

Turkey has no difference in the criteria for registering a company for corporate income tax and for value added tax (VAT) purposes (many other countries require VAT registration if certain turnover thresholds are exceeded). Therefore, tax resident companies are by default obliged to pay all types of taxes and levies.

The standard VAT rate is 20%.

Withholding Tax

Dividends are subject to withholding tax at a rate of 10% (the rate used to be 15%). This rate applies to dividends paid by a resident company to an individual (wherever resident) and to a non-resident company. However, no withholding tax applies to dividends paid by a resident company to another Turkish resident company.

Royalties are subject to withholding tax at the rate of 20%.

Different tax rates apply to interest payments. For example, interest on bank loans granted by foreign banks is subject to 0% withholding tax, interest on other loans is taxed at the 10% rate, interest on deposits – at a rate from 0% to 18% depending on the currency and period of the deposit. The tax rates may be reduced under double tax treaties (DTAs).

Stamp Duty

Stamp duty applies to various documents, including agreements and financial statements, at the rates ranging from 0.189% to 0.948%. Stamp duty is normally levied on salaries at the rate of 0.759%. In some cases, fixed duties in Turkish lira are charged.

Exchange Control

Turkey has some restrictions on foreign exchange transactions. In particular, individuals are prohibited from attracting foreign-currency loans, and Turkish companies are restricted from attracting such loans. Transactions between residents must be made in Turkish lira. Turkey also has a special levy on borrowings from abroad. The rate depends on the loan currency and period. The highest rate for borrowings in foreign currency for a period up to a year is 3% of the loan amount. This levy does not apply to banks or other financial institutions.

Audit and Accounts

Financial Statements

Turkish companies are required to keep accounting records and prepare financial statements in accordance with Turkish Financial Reporting Standards, which are fully compliant with the International Financial Reporting Standards. Financial statements must be presented at the annual meeting of members and need not be submitted to any government authorities.


Limited liability companies are only subject to audit of their financial statements if they meet two of the following criteria in two consecutive financial periods:

  • total assets are or exceed TRY 35 000 000;
  • net annual sales are or exceed TRY 70 000 000;
  • number of employees is or exceeds 175.

Annual Return

There is no requirement to file the annual return for Turkish companies (in many jurisdictions, such a return contains corporate identification data and information about the structure of the company and is filed annually with government authorities such as the Registrar of Companies).

Tax Returns

As a general rule, the tax period for corporate income tax is the calendar year. The tax return is filed by the 30th day of the fourth month after the reporting period end-date (usually this is 30th April). Quarterly advance payments are made throughout the year. The final tax is paid on the tax return filing deadline date.


Fees (USD)
Registration of a Limited Liability Company
Ø Payment of fees to the Trade Registry;
Ø Registered agent services:
- registration of a company with one business activity;
- arranging of notarization of the Articles of Association in accordance with the Turkish Commercial Code;
- making of all necessary documents for submission to the Trade Registry;
- approval of the company’s legal books by the Istanbul Chamber of Commerce;
- preparation and notarization of the signature Circular for a company in Turkey.
Other options are available upon request.
6 900
Preparation of one apostilled copy of an individual’s passport (with UK notarial certification and apostille) – if necessary[2]
1 060
Making of one apostilled power of attorney (with UK notarial certification and apostille) – if necessary[3]
1 060
Notarized Turkish translation of one apostilled copy of passport
from 30
Notarized Turkish translation of one apostilled power of attorney
from 260
GSL fee for finding an office for a company and registering the lease agreement with government authorities
10% of the rent
(one-time fee)
Virtual registered office address
from 375 / year
+ 20% VAT
Assistance with opening a local bank account
2 850
Adding a new director to the company
Adding a new member to the company
Adding a new business activity
Compliance fee
Payable in the cases of:
- incorporation of a company;
- renewal of a company;
- liquidation of a company;
- transfer out of a company;
- issue of a power of attorney to a new attorney;
- change of director / member / beneficial owner;
- signing of documents.
350 (standard rate, includes the check of one individual)
+ 150 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL
+ 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL
450 (rate for high-risk companies, includes the check of one individual)
100 (signing of documents)
Keeping of the company’s accounting records, preparation of financial statements and audit of the statements (if necessary)
100 – 400 / hour[4]
(based on time spent; the rate depends on the type of work and qualification of a specialist involved)
Advising on legal, tax and accounting matters
300 / hour
Tax advice on VAT-related and other matters
400 / hour

[1] The fees are valid as of July 2024.

[2] An apostilled copy of the founder’s passport is required for the registration of a company (both remote and with a visit to Turkey), but the client can prepare it without our help.

[3] It is required in the case of remote company registration (without vising Turkey). The client can prepare an apostilled power of attorney and submit it to us (we will provide the required text of the power of attorney).

[4] The minimum fee for keeping accounting records and preparing financial statements for a Turkish company is USD 500 per month (this fee does not include the audit of financial statements).

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from USD 6900
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