Setting Up a Company in Turkey as a Foreign Investor

September 23, 2026 · Commercial and Corporate Law · 6 min read · Author: Attorney Aysel Atlı

Setting up a company in Turkey foreign investor plans generally begin with two decisions: which legal structure to use, and how to complete the formal registration steps required to bring that structure into existence. Foreign ownership of a Turkish company is permitted as a general rule, and most sectors place no special restriction on it, though a limited number of regulated industries carry sector-specific conditions that should be checked before proceeding. This article gives a general overview of the common company structures, the typical formation process, and why the Fethiye region in particular attracts foreign investment in tourism, hospitality and marine-related business.

Can a Foreign National or Foreign Company Own a Business in Turkey?

As a general rule, yes. Turkish law permits foreign natural persons and foreign legal entities to establish and fully own a Turkish company under broadly the same conditions that apply to Turkish nationals. That said, certain regulated sectors — such as those touching on national security, media, or specific licensed activities — carry additional conditions or restrictions on foreign ownership, so a sector-specific check is a sensible first step for any investor before committing to a particular business line.

Limited Liability Company or Joint-Stock Company?

The two structures most commonly used by foreign investors setting up in Turkey are the limited liability company (limited şirket) and the joint-stock company (anonim şirket). The limited liability company generally suits smaller or single-investor businesses, with a simpler management structure and lower ongoing formalities, while the joint-stock company is often preferred for larger operations, businesses planning to bring in outside investors, or those that may eventually seek a public listing. Both structures limit shareholder liability to the capital contributed, but they differ in governance requirements and in how shares can be transferred.

Minimum Capital Requirements

Both structures require the founders to commit a minimum amount of share capital, and a minimum capital requirement applies to each structure under Turkish company law; the exact figure should be confirmed at the time of formation, since minimum capital thresholds are set by law and can be updated. Rather than relying on an older figure found online, an investor should check the current requirement as one of the first practical steps in planning a formation.

The General Formation Process

Once a structure is chosen, the process generally involves drafting the articles of association (setting out the company's name, purpose, registered address, capital and management structure), registering the company with the relevant Trade Registry Directorate, and obtaining a tax number from the tax office. After registration, further steps typically follow, such as opening a corporate bank account and depositing any required capital, registering for social security purposes if the company will have employees, and putting in place the commercial books the company is required to keep. The precise sequence and any additional requirements can vary depending on the sector and the specific structure chosen.

Foreign Shareholders and Foreign Directors

A Turkish company can generally have entirely foreign shareholders, and a foreign national can generally serve as a director or manager, subject to the company's own governance rules and any sector-specific conditions. Where a foreign shareholder is itself a legal entity established abroad, additional documentation about that entity (such as a notarised and, where applicable, apostilled certificate of activity) is typically required as part of the formation file.

Ongoing Compliance After Formation

Once formed, a Turkish company is subject to ongoing obligations, including maintaining its statutory commercial books, filing periodic tax returns, and holding general assembly meetings where required by law. Foreign investors setting up a company for the first time in Turkey often benefit from arranging local accounting and legal support from the outset, so that these ongoing obligations are met on schedule rather than becoming an issue later.

Local Context

Fethiye's economy is built substantially around tourism, hospitality and the marine and yachting sector, and these industries are common areas of interest for foreign investors setting up a business in the region — from small hospitality ventures to charter and marina-related operations. A business plan built around a seasonal, tourism-driven local economy benefits from formation choices (such as the company structure and its governance arrangements) that are suited to that specific business model from the outset, rather than adjusted after the fact.

Frequently Asked Questions

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This article is for general information only and does not constitute legal advice; you should consult a lawyer about the specific facts of your situation.