Start Your Business in Turkey: An Entrepreneur’s Guide

Published on October 4, 2025 and written by Cyril Jarnias

Relocating to Turkey to develop one’s own business is a dream cherished by many expatriates, drawn by its beautiful landscapes, rich culture, and dynamic market. However, bringing this project to life requires navigating through sometimes complex local legislation and understanding the country’s socio-economic specificities.

This entrepreneurial guide will accompany you step by step, providing practical advice and effective strategies to ensure your successful establishment. From administrative procedures to the particularities of the Turkish market, discover the keys to transforming your entrepreneurial project into a success in this land of opportunity.

Understanding Legal Structures for Doing Business in Turkey

Legal Structure	Main Characteristics	Advantages	Disadvantages	Establishment Conditions	Tax Regulation	Implications for Expatriates
Limited Liability Company (LLC / Limited Şirket)	– Minimum 1, maximum 50 partners – Liability limited to the amount of contributions – Minimum share capital: 50,000 TRY – Natural or legal persons, Turkish or foreign	– Simpler procedure than JSC – Moderate capital – Limited liability for partners	– Less suitable for fundraising – Limited number of partners	– Drafting and signing of articles of association – Deposit of share capital (release within 24 months) – Registration in the trade registry (MERSİS system) – Publication in the Official Gazette	Corporate Tax (CT) – Annual declaration – VAT, social security contributions	– No obstacles for foreigners – Obtaining a Turkish tax number – No nationality restrictions for partners
Joint Stock Company (JSC / Anonim Şirket)	– Minimum 1 shareholder – Liability limited to the amount of shares – Minimum share capital: 250,000 TRY – No limit on shareholders	– Suitable for large companies – Ability to raise funds on markets – Flexible structure for investors	– More complex formalities – Higher establishment and management costs	– Drafting of articles of association – Deposit of share capital – Registration in the trade registry – Publication in the Official Gazette – Mandatory general assembly and board of directors meetings	Corporate Tax (CT) – Annual declaration – VAT, social security contributions	– Foreign shareholders admitted without restrictions – Obtaining a Turkish tax number – Work permit required if physically present
Sole Proprietorship	– Single entrepreneur – Unlimited liability – No minimum capital required	– Simplicity of establishment – Total control by the entrepreneur	– Personal liability on all assets – Less credible for partners	– Activity declaration – Registration in the trade registry – Personal tax number	Income Tax (IT) – VAT if applicable	– Possible for foreigners – Obtaining a Turkish tax number – Work permit required if operating on-site

Main Steps for Business Creation in Turkey:

• Choosing the company name (unique and compliant with Turkish standards)
• Drafting and signing the articles of association (mandatory for LLC and JSC)
• Depositing the share capital in a Turkish bank account
• Registration in the trade registry (MERSİS system)
• Publication of the establishment in the Official Gazette
• Obtaining a tax number (yabancı kimlik no for foreigners)
• Submission of official documents (certificate of incorporation, accounting books, etc.)

Specific Requirements and Regulations:

The articles of association must be notarized and include mandatory clauses (legal form, duration, name, headquarters, business purpose, capital distribution, legal representative).

Certain activities (banks, insurance, etc.) require specific authorizations.

Companies are subject to corporate tax (CT), VAT, social security contributions, and maintaining accounting records compliant with Turkish standards.

Sole proprietorships fall under income tax.

Specificities for Expatriates:

Foreign nationals can be partners, shareholders, or sole proprietors without distinction of nationality.

Obtaining a Turkish tax identification number is mandatory.

A work permit is required if the expatriate holds an operational position in the company in Turkey.

No obligation for a local partnership, except in certain regulated sectors.

Note: LLC and JSC structures protect the personal assets of partners/shareholders, whereas a sole proprietorship exposes the entrepreneur to unlimited liability.

The minimum share capital is significantly higher for a JSC than for an LLC.

Registration procedures are centralized via the MERSİS system and are open to foreigners without major restrictions.

Essential Administrative Procedures for Expatriates

Overview of Preliminary Steps for Obtaining Visa and Residence Permit

To settle and start a business in Turkey, it is essential to obtain an appropriate visa (generally a business or work visa).

After arrival, one must apply for a residence permit (ikamet) from the Directorate General of Migration Management. This permit is essential for opening a business.

Common documents to provide include a valid passport, identity photos, health insurance, proof of address in Turkey, and proof of financial resources.

It is advisable to submit the residence permit application immediately upon arrival in Turkey, as this document is required for most subsequent administrative procedures.

Business Registration Process

Main Steps:

• Choice of legal structure:

Form	Min. Capital (2024)	Main Particularities
LLC	50,000 TL	Most common, simple to manage
JSC	250,000 TL	Recommended for large-scale projects
Branch	according to parent company	Depends on a foreign parent company
Liaison Office	–	No lucrative activity authorized

• Drafting of articles of association and memorandum on the MERSİS electronic platform.
• Obtaining a tax number for each foreign partner.
• Deposit of the required share capital (at least 25% at opening for joint stock companies).
• Registration in the trade registry (via the local Chamber of Commerce).
• Opening a professional bank account.
• Submission of legalized documents (articles of association, identification papers, proof of address, business plan, certificate of incorporation…).
• All foreign documents must be notarized, apostilled, then translated into Turkish and certified by a Turkish notary.
• Obtaining the registration number and automatic notification to tax and social security administrations.
• Timeline: registration can be obtained within a few days if the file is complete.

Tax and Social Obligations

• Registration with the Turkish tax administration to obtain a tax identification number.
• Regular declaration of VAT, corporate tax, and applicable local taxes.
• Certifying legal books with a notary.
• Automatic enrollment in the Turkish Social Security Institution (SGK) upon business registration.
• Payment of social security contributions for all employees, including the expatriate manager if receiving a salary.

Regulations for Hiring Local or Foreign Staff

• Hiring local staff does not require specific additional procedures, but they must be declared to the SGK.
• To hire expatriates, the employer must apply for a work permit from the Ministry of Labor and Social Security.
• Conditions often include proof that no local candidate can fill the position, or a minimum quota of Turkish employees in the company.
• The work permit can be applied for simultaneously with the residence permit or after company registration.

Practical Tips: Translators, Lawyers, Support

• It is highly recommended to use a local specialized lawyer for drafting the articles of association, verifying legal compliance, and registration.
• The help of a sworn translator is often indispensable for translating and certifying official documents.
• Specialized firms and expatriate support centers offer comprehensive support to secure the procedures.

Specific Regulations for Certain Sectors

Certain sectors (finance, energy, health, education, security, telecommunications) are subject to specific regulations, licenses, or authorizations.

It is essential to check the requirements with the relevant sectoral authorities before any procedure.

Useful Resources and Practical Contacts

• Local Chamber of Commerce (Istanbul, Ankara, Izmir Chamber of Commerce, etc.): one-stop shop for business registration.
• MERSİS Platform: online procedures for registration.
• Invest in Turkey: official portal for foreign investor assistance.
• Embassies and Consulates: advice on visa and settlement procedures.
• Expatriate Support Centers: practical information, support, and translation services.

Additional Practical Tips

• Prepare all documents in advance and verify their compliance (apostille, translation).
• Anticipate booking a legal headquarters address (office rental or purchase).
• Inquire about investment aids or regional tax incentives, available in certain sectors or economic zones.
• Rely on local professional networks to facilitate integration and access to information.

Tax Considerations and Access to Financing in Turkey

Essential Tax Aspects for Foreign Entrepreneurs in Turkey

Tax	Rates/Modalities (2025)	Main Observations
Corporate Tax	33% (30% + 10% of the amount collected for the defense fund)	Any company, including those owned by foreigners and registered in Turkey, is considered a tax resident and taxed on its global income.
Withholding Tax on Dividends	15%	Applies when distributing dividends to shareholders.
Personal Income Tax	Progressive scale	Applies to expatriate entrepreneurs with Turkish tax resident status. Non-residents are taxed only on their Turkish income.
VAT (KDV)	Standard rate: 18%	Mandatory for most commercial activities; impacts price and competitiveness.

• Tax obligations include:
  • Quarterly or annual declaration depending on status
  • Timely payment under penalty of fines
• Tax residents (stay >183 days/year or economic center of interests in Turkey) are taxed on their worldwide income.
• Obtaining a tax number (“Vergi Numarası”) is indispensable for all administrative procedures.
• Self-employed individuals must also register with the BAĞ-KUR regime and pay monthly social security contributions.

Tax Declaration and Payment

• Declaration is generally done via the Turkish tax administration’s electronic portal.
• Tax must be paid before the deadline set each year to avoid any penalty.
• For companies, there is an advance tax payment system based on quarterly results.

Tax Incentives and Support for Foreign Investment

The Turkish government offers various tax incentives to encourage foreign investment:

• Partial or total tax exemptions in certain industrial zones, technoparks, or free zones
• Reduction of the effective tax rate depending on project size or geographical location
• Specific support for priority sectors (technology, export)

It is recommended to check if your activity can benefit from a preferential regime before establishment.

Financing Options Available for Expatriate Entrepreneurs

1. Local Banks
   • Grant professional loans provided that:
     • The company is registered in Turkey,
     • The founder holds a local bank account,
     • A solid financial file is presented.
2. Present International Financial Institutions
   • Some foreign banks have subsidiaries in Turkey that can facilitate access to credit with bilingual/dual culture analysis.
3. Public Programs/Specific SME Support
   • State programs such as KOSGEB offering grants/low-interest loans mainly intended for innovative SMEs created by legal residents.
   • Public-private incubators sometimes providing financial support from the pre-establishment phase.
4. Other Possibilities:
   • Local/international business angels
   • Special funds dedicated to certain sectors

General Conditions Required to Access Financing:

• Detailed presentation of the business plan (clear economic model required)
• Regular legal status (company registration + valid residence/work permit)
• Personal/professional guarantees sometimes required by traditional banks

Important Cultural/Administrative Particularities:

• The personal relationship (“güven” – trust) plays a central role during bank negotiations
• Frequent need to use specialized accounting/tax services mastering English/French/Turkish
• Administrative procedures can be lengthy; anticipate sufficient time margins

Prior mastery of the local tax-administrative context optimizes your chances both with the tax authorities and in your banking procedures.

Resources and Cultural Differences in the Turkish Entrepreneurial Environment

Main Resources for Entrepreneurs in Turkey

• Government Grants: The KOSGEB program grants subsidies up to 150,000 TL for the creation of new businesses, with specific aids in free zones and for innovation. Companies can also benefit from reduced-rate loans and tax advantages, particularly in the R&D sector or by settling in certain industrial zones.
• Local Business Incubators and Accelerators:
  • Structures like 212v (accelerator) or Arya Women’s Investment Platform support startups through mentoring, initial funding, and tailored support.
  • Many incubators are based in Istanbul, Ankara, or Izmir.
• Investor Networks:
  • Platforms such as Galata Business Angels, Keiretsu Forum Turkey, or Boğaziçi Ventures connect innovative startups and private investors.
  • Venture capital funds (ACT Venture Partners, Diffusion Capital Partners…) play a key role in local technological development.
• Complementary Public and Private Initiatives:
  • Participation in pitch competitions.
  • Facilitated access to bank credit under conditions.
  • Membership in local chambers of commerce to expand professional networks.

Resource	Description	Concrete Example
KOSGEB Grant	Financial aid up to 150k TL for new projects	Creating a tech startup in Istanbul
Incubator/Accelerator	Strategic support + initial funding	Arya Women’s Investment Program
Business Angels Network	Connection with experienced investors	Galata Business Angels
Competitions/startup events	Increased visibility & networking opportunities	Participation in Startup Istanbul

Cultural Differences Impacting Management & Communication

• The importance of relationships (“networking”) is central: establishing mutual trust often comes before quickly closing a contract. Negotiations frequently begin over Turkish tea – this informal moment allows assessing the interlocutor on their human values as much as professional ones.
• Hierarchy remains marked: the final decision is generally expected to come from the main leader; it is therefore necessary to quickly identify who truly holds decision-making power during meetings.
• Indirect communication is favored: avoiding direct confrontation preserves social harmony. Criticisms must be formulated tactfully; humor sometimes plays a subtle role in de-escalating potential tensions.

Key Turkish Cultural Values Influencing Entrepreneurship

• Personal Reputation (« namus », « şeref »)
  Maintaining an honorable image takes precedence over any one-off business agreement. A verbal promise is strongly morally binding.
• Family Collectivism
  Many companies are still family-run; integrating these dynamics greatly facilitates any commercial negotiation.
• Hospitality
  Receiving at home or inviting to a restaurant is an integral part of the professional process – refusing can be misinterpreted.

Concrete Examples / Lived Anecdotes

A French entrepreneur recounts being surprised by the time spent during initial meetings without directly discussing the business project. It was only after several informal meetings (shared coffees, discussions about personal topics) that his Turkish partners showed openness to discussing numbers and concrete deadlines. This process allowed for better mutual understanding but required patience and particular cultural adaptation.

A German entrepreneur explains she almost lost an important contract after criticizing a technical proposal too directly in front of the entire local team; she later learned it was better to discreetly ask for advice from a key interlocutor before any sensitive remark.

Practical Tips for Successful Establishment

1. Actively invest in your local network via business events, professional associations, or bilateral chambers;
2. Take the necessary time for informal exchanges before each decisive discussion;
3. Adapt your communication: prioritize diplomacy & hierarchical respect during meetings;
4. Precisely inquire about unspoken expectations (implicit requirements related to sector/family/city);
5. Participate in public-private programs dedicated to foreign entrepreneurs to more easily access existing financing;
6. Engage a local advisor familiar with Turkish codes as soon as possible;

Genuinely immersing oneself in the Turkish entrepreneurial fabric—where human relationships often take precedence over strict contractual logic—is often the key to sustainably developing one’s business.