Conexio consulting

How to establish a company in Türkiye: documents and application process for foreign investors

There is an increasing government support for foreign investors to open businesses, establish companies and trade in Turkey. Turkey offers geopolitical advantages for trade to many parts of the world, with large production facilities and a large market. With its geographical location and extensive transportation network, Turkey is the center of attention for foreign investors with its labor force, technical means of production and trade infrastructure.

Foreign nationals can engage in commercial activities in Turkey through small, large or medium-sized investments. Foreigners who establish limited or joint stock companies in Turkey can benefit from many incentive applications. Foreign nationals who invest in Turkey can also obtain residence for their families and allow their children to receive their education in Turkish schools.

What are the Requirements for Foreigners to Establish a Company in Turkey?

Foreigners who wish to open a company in Turkey must apply to the Ministry of Labor and Social Security of the Republic of Turkey and obtain a work permit. The procedure for both local and foreigners to establish a company in Turkey is basically the same. However, we recommend that you work with experts who can help you on your company formation journey. Other than that, the documents required and the path to follow;

Notarized passport

Certificate of Activity (Current Status and Authorized Signatories)

Signature Declarations

Copies of the identity cards of the company directors

Petition for Registration Request

Articles of Association

Lease Agreement (mandatory for company address information)

Company establishment notification form

Notarized company articles of association

Publication of the workplace in the Chamber of Commerce/Chamber of Commerce registry newspaper

Obtaining Workplace Tax Number

As a result of the evaluation to be made by the Ministry of Labor and Social Security, foreigners whose request is approved and granted a work permit must apply to the municipality where the workplace is located with these permission documents and request a workplace opening and work license.

What Should Foreigners Opening a Company/Business in Turkey Pay Attention to?

Foreigners who want to open a company in Turkey should pay attention to the demographics of the employees within the foreign company established, while the people they want to employ must be subject to a work permit. In a foreign company established in Turkey, 100% foreigners cannot be employed. In the calculation of this ratio, since the priority is to employ Turkish citizens, companies can employ a maximum of 5/1 of the number of Turkish employees.

In a company established in Turkey, the company wishing to employ 1 foreign worker must employ at least 5 Turkish citizens. Other than that, the taxation procedures for a foreign company are the same as for domestic companies. It is very important to deal with the processes related to the Social Security Institution (SSI), to ensure that employees are subject to it and to ensure that insurance entries and exits are followed up.

Personal data protection is also very important in Turkey. The data obtained in business processes may have been obtained from other people or institutions. The protection of this data is protected under the Law on the Protection of Personal Data (KVKK). It is mandatory to record the data obtained in business development and commercial processes in the Verbis system. Otherwise, serious sanctions are applied.

For foreign companies established in Turkey, regardless of whether they are large, small or medium-sized, it is very important to follow the pre-accounting meticulously.