Company Formation in 10 Steps in Türkiye

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In the last World Bank’s Ease of Doing Business report, Turkey ranks 34th out of 190 economies. This ranking reflects significant reforms implemented by Turkey to enhance its business environment, such as simplifying property registration, improving tax systems, and streamlining processes for obtaining construction permits and enforcing contracts. These efforts have made Turkey a more attractive destination for foreign investment and business operations.

Company formation in 10 steps in türkiye

For those considering establishing a company in Turkey, the process can be completed in 10 steps.

1. Choose the Type of Company

Decide on the Legal Structure: Foreigners can establish various types of companies under Turkish law, such as a Limited Liability Company (LLC), Joint-Stock Company (JSC), branch office, or liaison office. Each type has its own requirements, liabilities, and capital needs. An LLC is often the preferred choice due to its flexible structure and limited liability for shareholders  .

2. Select and Register a Unique Trade Name

Research and Reserve Your Trade Name: The trade name must be unique and comply with the Turkish Commercial Code. It should not mislead third parties about the business’s scope or financial status and should be in Turkish. Once selected, the name must be registered with the Turkish Trade Registry to ensure it is reserved for your use .

3. Secure a Business Location

Lease or Purchase Property: A physical address is required as the registered headquarters for your company. This can be an office, factory, or retail space, depending on your business type. The lease or purchase agreement must be submitted to the tax office and match the address on your registration documents .

4. Prepare the Articles of Association

Draft and Notarize the Articles: This document acts as the company’s constitution, detailing the business purpose, headquarters, capital structure, shareholder details, and management provisions. All foreign documents must be translated into Turkish, notarized, and, if necessary, apostilled .

5. Open a Corporate Bank Account

Deposit Initial Capital: Open a bank account in Turkey under the company’s name. The minimum capital (50,000 TRY for an LLC and 250,000 TRY for a JSC) must be deposited.For JSC, 25% of the capital must be paid before registration.

6. Obtain a Tax Identification Number (TIN)

Register with the Tax Authorities: The TIN is crucial for all financial activities, including paying taxes and opening bank accounts. You’ll need a notarized copy of your Articles of Association, proof of address, and other relevant documents to obtain the TIN from the local tax office .

7. Register Your Company with the Trade Registry

Complete the Registration Process: Submit all necessary documents, including the notarized Articles of Association, TIN, and proof of capital deposit, to the Trade Registry. The registration must be completed within a specific timeframe, and a company registration certificate will be issued upon successful registration  .

8. Obtain Required Permits and Licenses

Apply for Specific Approvals: Depending on your business activities, you might need additional permits or licenses from relevant Turkish authorities. This is essential for industries like finance, telecommunications, and transportation. Ensure all required permits are obtained before starting operations .

9. Register for Social Security

Comply with Employment Regulations: If you plan to hire employees, register the company with the Social Security Institution. This step is crucial for ensuring compliance with Turkish labor laws and securing employee benefits .

10. Certify Legal Books and Complete Post-Registration Requirements

Finalize Legal Formalities: Certify the company’s legal books (such as the journal, ledger, and inventory book) through the Trade Registry. Additionally, if required, transfer the necessary documents to the electronic format via the E-TUYS system (Electronic Incentive and Foreign Investment System) and obtain a signature circular to authorize company representatives  .

Following these steps ensures that your company is legally compliant and ready to operate within the Turkish business environment.

 T. Serkan BUDAK

Lawyer & Trademark Attorney

+90 553 023 07 27

info@budak-ip.com