Limited company formation in Turkey
Quick answer
Information and guidance on the requirements and documents for forming a limited company in Istanbul, and the essential legal requirements.
Who can form a limited company in Turkey?
Foreigners in Turkey can form and own a limited company (Limited Şirket) at 100%, without needing a Turkish partner, under Foreign Direct Investment Law No. 4875, which is based on the principle of equal treatment between foreign investors and Turkish citizens, across all sectors not legally restricted.
A limited company can be formed with just one partner (a natural or legal person), up to a maximum of fifty partners. Nor is it required that the director or any of the partners reside in Turkey at the time of formation — a foreigner residing outside the country can be both a partner and a director at the same time. However, if this director takes on actual, ongoing management of the company from inside Turkey, that may require a work permit depending on the nature of the activity.
Documents and general requirements
| Document or requirement | Description |
|---|---|
| Articles of association (Şirket Sözleşmesi) | The founding document setting out the company's name, activity, capital, and partners, which must be registered through the MERSİS central registry system |
| Proof of identity for the partners | A valid passport for each foreign partner, along with official identity documents translated and notarized where required |
| Registered company address | A business address in Turkey used as the company's official registered office before the trade registry |
| Share capital | Meeting the statutory minimum capital set under Turkish Commercial Law, which was raised by a presidential decision that took effect in January 2024 |
| Appointment of a director or board of directors | At least one partner must be a member of the management body, per Turkish Commercial Law |
Key points to know
Partners' liability in a limited company is limited to the capital they committed, and does not extend to their personal assets, except in exceptional cases involving public debts (such as taxes and social security contributions), which may be claimed directly from management if they cannot be collected from the company.
The Turkish government raised the statutory minimum capital for limited and joint-stock companies by a presidential decision issued in late 2023, which took effect at the start of 2024, and required existing companies whose capital was below the new threshold to raise it within a set deadline ending at the end of 2026, on pain of being deemed dissolved.
Any material change afterward — such as changing partners, increasing capital, or amending the company's activity — requires formally amending the articles of association through the trade registry, not merely an internal decision among the partners.
Registering the company with the trade registry automatically triggers tax and insurance obligations, since a tax file is opened for the company as soon as it is formed, regardless of whether it has actually begun operating.
Frequently asked questions
Can a foreigner be the sole owner of a limited company in Turkey? Yes. Turkish law allows a foreigner to form a limited company with just one partner and retain 100% ownership, without needing any Turkish partner.
Is a Turkish partner required to form the company? No, there is no legal requirement for a Turkish partner, except for certain specific activities subject to special sector restrictions that differ from the general rule.
What is the main difference between a limited company and a joint-stock company (Anonim Şirket)? The core difference lies in management structure: a limited company is simpler to manage and better suited to most small and medium-sized projects, while a joint-stock company suits larger projects needing a more flexible capital structure, such as multiple share classes or offering shares to multiple investors — each has a different minimum capital and different governance requirements.
Has the minimum capital requirement changed recently? Yes, the Turkish government raised the statutory minimum capital for limited companies by a presidential decision that took effect at the start of 2024, and any company formed today must meet this new threshold.
How can Rafiq help with this service?
Rafiq coordinates Limited company formation through a partner. Send your needs for guidance on an appropriate next step.
Common questions and related topics
These are common topics customers research before starting. Requirements and final decisions depend on your situation and the relevant authorities or providers.
- how to register a limited company in Turkey
- documents needed to form a Turkish limited company
- requirements for foreigner limited company registration
- prepare articles of association for limited company
- limited company name reservation process in Istanbul
- appoint company directors and shareholders procedures
- tax registration after forming limited company
- open corporate bank account for new limited company
- trade registry filing for limited liability company
- notarize company signatures and incorporation documents
- choose accounting and bookkeeping setup for new company
- consult on share capital and ownership structure
- timeline to complete limited company registration steps
- costs involved in setting up a limited company
- translate incorporation documents into Turkish
- appointment with company formation specialist in Istanbul
- amend company articles after registration process
- register company tax office and social security
- prepare shareholder agreements for limited company
- follow-up support after company registration completion
Related services
Official sources
The information on this page follows what these official authorities publish; the final decision in every procedure is theirs: