KÜHEYLAN HUKUK
Establishing a Company by Foreigners in Türkiye: Company Types, Minimum Capital, Partnership and Work Permit Process Article 2, Article 3 of the Direct Foreign Investment Law No. 4875; Turkish Commercial Code No. 6102; International Labor Law No. 6735 art.10/5, art.13/7 was prepared based on the legislation in force as of 2026 and official sources dated October 2026.
Foreigners can establish a limited or joint stock company in Türkiye, become a partner in an existing company or open a branch on behalf of a foreign company. The Foreign Direct Investments Law regulates investment freedom and equal treatment with domestic investors. Establishing a company does not in itself create the right to reside or work; A work permit is required for the foreign partner to actually work in Türkiye, and a residence permit is required for the foreign partner to stay. This guide explains company types, minimum capital amounts and the work permit process for foreign partners.
Can Foreigners Establish a Company in Türkiye?
Yes. According to Article 3 of Law No. 4875, foreign investors are free to make direct investments in Türkiye, unless international agreements and special law provisions stipulate otherwise, and foreign investors are subject to equal treatment with domestic investors (Art. 3/a). Article 2 of the law defines foreign investors as real persons who have the citizenship of foreign countries and legal entities established in accordance with the laws of foreign countries. Foreign direct investment; It includes establishing a new company or opening a branch and becoming a partner in an existing company.
In some areas of activity, special laws may limit foreign partnerships. Sector-specific legislation in regulated areas such as banking, insurance, aviation and maritime should also be examined.
Which Company Types Are Preferred?
Limited company 50,000 TL It is common in small and medium-sized enterprises; Articles of association and partnership structure are flexible
Incorporated company 250,000 TL It has a broader partnership structure and board of directors structure
Joint stock company in the registered capital system 500,000 TL It is a system subject to Capital Markets Board regulation.
Minimum capital amounts have been determined by the Presidential Decree as 50,000 TL for limited companies, 250,000 TL for joint stock companies, and 500,000 TL for joint stock companies in the registered capital system, effective as of January 1, 2024. Since these amounts may change with subsequent regulations, the current decision must be checked before establishment. Foreign companies can also open branches in Türkiye; A permit is required to open a liaison office in Türkiye, provided that it does not engage in commercial activities (4875 art.3/h).
How Does a Foreign Partner Bring Capital?
Capital can be in cash or in kind. Valuation of non-cash capital is carried out within the framework of the provisions of the Turkish Commercial Code (4875 art.3/f). Convertible currency, company securities, machinery and equipment, and industrial and intellectual property rights brought from abroad are listed as foreign investments in the law (Article 2/b). Documentation of payments made through banks is important for subsequent profit transfers and possible tax audits.
According to the law, net profits, dividends, sales, liquidation and compensation amounts, as well as payments in return for licensing and management agreements, can be freely transferred abroad through banks or special financial institutions (Article 3/c).
What Stages Does Company Establishment Go Through?
Details of company formation vary depending on the company type and shareholding structure. The general framework is as follows:
Making the identity and authorization documents of foreign partners available in Türkiye (notary approval, apostille and sworn translation, if necessary),
Tax and social security records and bank account opening.
In organizations with foreign legal entities as partners, the preparation of the parent company's establishment and authorization documents abroad may extend the process. Preparing these documents completely and accurately reduces the risk of additional claims and delays in the trade registry.
Can a Foreign Partner Work in Türkiye?
Being a company partner and working in Türkiye are separate legal issues. In accordance with Article 6 of Law No. 6735, a work permit is required for foreigners to work. The fifth paragraph of Article 10 of the Law provides a special way for partners regarding work permits. Accordingly, it was established according to the Turkish Commercial Code:
Foreigners who are directors of limited companies who are company partners, board members who are company partners of joint-stock companies, and general partners who are managers of limited companies whose capital is divided into shares can work by obtaining a work permit. In other words, a work permit application can be made for a foreigner who, in addition to being a partner, also takes part in the management of the company.
The seventh paragraph of Article 13 of the law attracts attention in terms of work permit exemption. Accordingly, board members of joint stock companies who do not reside in Türkiye and partners of other companies who do not have a managerial capacity are considered within the scope of work permit exemption. However, exemption allows work provided that a work permit exemption is obtained (Art. 13/1), and periods spent with exemption are not taken into account in the calculation of legal work permit or residence permit periods (Art. 13/6).
Foreign personnel to be employed within the company are also given a work permit (4875 m.3/g). Details of the work permit process are the subject of a separate guide.
Which Residence Permit Can a Foreigner Establishing a Company Obtain in Türkiye?
Subparagraph (c) of the first paragraph of Article 31 of Law No. 6458 regulates the issuance of short-term residence permits to foreigners who will establish commercial connections or establish a business in Türkiye. For foreigners who establish a company and plan to live in Türkiye, this permit is important in preparation for the work permit process. Company partnership alone does not create an automatic residence permit; The application must be made in accordance with the residence permit legislation.
What is Qualified Service Center Regulation?
Additional Article 1 added to Law No. 4875 by Law No. 7582 (entered into force on June 4, 2026) defined the qualified service center. Accordingly, capital companies that provide services to related companies or groups of companies that are active in at least three different countries and obtain at least 80 percent of their annual revenue from related companies abroad are evaluated within this scope. The article includes services such as financial consultancy, risk management, international accounting and compliance, and human resources. The procedures and principles of the application will be determined by the Ministry of Industry and Technology. For this reason, implementation regulations must be followed in multinational company groups' plans to establish headquarters in Türkiye.
Investment freedom Foreign investors are subject to equal treatment with domestic investors (Art.3/a)
Residence Short-term residence permit for commercial connection or business establishment (Art. 31/1-c)
Event Summary Form: Fictional example: A foreign entrepreneur living abroad wants to establish a limited company in Istanbul and live in Türkiye as the manager of the company. He establishes the company and registers it in the trade registry, but starts running the daily business of the company without applying for a work permit. Process: Since the company partnership does not grant the right to work, the actual work of the foreign manager may be considered unauthorized work. This situation may bring about residence permit, administrative fine and deportation processes. Conclusion: If the company structure, the manager's work permit application and the residence permit plan are designed together at the establishment stage, the process goes smoothly. It is essential to first obtain a work permit and then start working.
Can a foreign national establish a limited company alone?
Foreign investors are free to establish companies in Türkiye and are subject to equal treatment with domestic investors. The number of partners and body structure are determined according to the provisions of the Turkish Commercial Code; These provisions must be examined before establishment. Is a residence permit given to a foreigner who establishes a company? Short-term residence permit may be granted to foreigners who will establish commercial connections or start a business. Whether or not it will be granted depends on the application conditions and the evaluation of the administration.
Can a foreign partner be a director of the company?
A manager who is a partner of the company can work by obtaining a work permit. Actual work should not be started without obtaining a work permit.
Does establishing a company provide citizenship?
No. Establishing a company does not in itself create citizenship rights. Citizenship by investment is subject to separate conditions; For example, providing employment for at least fifty people is one of the paths to citizenship through investment.
Can profits be sent abroad?
The law states that net profit and dividends can be freely transferred abroad through banks.
Can commercial activities be carried out if a foreign company opens a liaison office in Türkiye?
No. A liaison office can be opened provided that it does not engage in commercial activities.
Failure to plan the company establishment and the work permit process of the foreign partner together.
Working actively in the management of the company without obtaining a work permit.
Failure to document the bringing of capital from abroad through banking.
Failure to prepare the identity and authorization documents of foreign partners in accordance with the trade registry.
Failure to investigate additional permits and foreign partnership restrictions specific to the field of activity.
It is legally free for foreigners to establish a company in Türkiye, but the right to work and residence are separate processes. Designing the company structure, capital, work permit and residence plan together reduces administrative and financial problems that may occur in the future. Küheylan Law Firm carries out the legal structuring of company establishment, preparation of partnership agreements and coordination of work and residence permit processes for foreign investors and entrepreneurs.
Important Legal Notice: The legal explanations contained in this guide have been prepared by Küheylan Law Firm for general information purposes and do not constitute legal advice. The unique conditions of each file may change the outcome. In order not to miss the application, objection and lawsuit deadlines, it is recommended to get legal support from a lawyer before the process begins. © 2026 Küheylan Law Firm. All rights reserved.
KÜHEYLAN HUKUK