Starting a Business in Turkey in 2026: Complete Guide for Foreigners
How to Start a Business in Turkey in 2026: A Complete Guide for Foreigners
Establishing a company in Turkey is a strategic move for many international entrepreneurs and investors. The process is clear, and the benefits are substantial. This guide provides a comprehensive overview for 2026.
Can a Foreigner Open a Business in Turkey?
The short and honest answer is: yes, it’s not only possible but also a streamlined process. Turkey remains one of the most straightforward jurisdictions for foreign entrepreneurship. Foreign nationals in Turkey have the right to:
- Register and legally own a company.
- Hold 100% of the business shares.
- Open a Turkish corporate bank account.
- Obtain a residence permit based on their business investment.
Important: A Turkish business is not merely a "formality for a residence permit." It is a fully legal entity with real commercial responsibilities, tax obligations, and reporting requirements.
Why Start a Business in Turkey?
The primary motivations for foreigners include:
- Legalizing and stabilizing residency status.
- Conducting real commercial activity in a growing market.
- Optimizing personal and corporate income structures.
- Serving Turkish and international clients effectively.
- Long-term investment and asset growth.
Most businesses are extensions of existing activities, such as consulting, IT services, e-commerce, trade, or property management.
Main Types of Businesses in Turkey (2026)
1. Limited Şirket (Ltd. Şti.) – The Recommended Standard
This is the Turkish equivalent of a Limited Liability Company (LLC).
- Suitable for over 99% of foreign entrepreneurs.
- Can be established by a single shareholder.
- Shareholders' liability is limited to their capital contribution.
- Features a simple management structure.
2. Anonim Şirket (A.Ş.) – For Larger Ventures
Similar to a joint-stock company. Consider this if:
- You plan for very high turnover or public offering.
- You are seeking significant external investment.
- You have a large number of partners.
For small and medium-sized businesses, an A.Ş. is often unnecessarily complex and costly to maintain.
3. Sole Proprietorship (Şahıs Şirketi)
While legally possible, it is not generally recommended for foreigners.
- It can complicate the residence permit process.
- The owner has unlimited personal liability for business debts.
Rarely used; only consider after expert consultation for specific cases.
Step-by-Step Guide to Company Formation
- Choose Type & Name: Select your company structure and reserve a unique name with the Trade Registry.
- Prepare Documents: Draft the company charter, define activities, legal address, director, and share distribution.
- Notarization: All founding documents must be notarized with an official Turkish translator if needed.
- Trade Registry Registration: The company is officially entered into the national registry via the relevant Chamber of Commerce.
- Obtain Tax Number: Apply for the company's unique tax identification number (Vergi No).
- Open a Corporate Bank Account: This is a mandatory step and involves proving the company's activity and source of capital.
Costs of Starting a Business in 2026
Typical expenses include notary fees, translation costs, registration charges, and professional accounting setup. Be cautious of offers that seem too good to be true.
Important: Cheap "1-day companies without documents" are a myth and represent a high-risk, non-compliant path.
Tax Overview for Businesses
The Turkish tax system is straightforward but demands compliance. Key taxes include:
- Corporate Tax (Profit Tax): Levied on net profits.
- Value Added Tax (KDV): Applied to most goods and services at varying rates.
- Withholding & Payroll Taxes: Applicable if you have employees.
Accounting and Reporting: A Legal Must
Hiring a licensed accountant is mandatory in Turkey. Regular financial reporting is required, and penalties for late or incorrect filings are strictly enforced. The "set and forget" approach will lead to legal and financial complications.
Residence Permit via Business: Reality Check
While company ownership is a valid basis for a residence permit, authorities look for legitimacy. The business must be active, have commercial logic, and fulfill its tax duties. A company with no turnover or activity will face scrutiny during renewal.
Payment Regulations (2025-2026 Focus)
Turkish financial regulations are stringent:
- All significant business transactions must be conducted through the corporate bank account.
- Proof of the origin of invested capital is required.
- Cryptocurrency may serve as a source of funds but must be officially converted into fiat currency through a licensed exchange and documented. Direct, untraceable payments in crypto or cash are not compliant.
Common Mistakes by Foreign Entrepreneurs
- Creating a shell company solely for a residence permit.
- Neglecting professional accounting and tax advice from day one.
- Misunderstanding or ignoring tax obligations.
- Attempting to use non-transparent "grey" financial schemes.
Most issues arise from unrealistic expectations, not from the Turkish system itself.
Popular Business Sectors for Foreigners
These sectors see consistent foreign engagement: IT & Digital Services, Consulting, Import/Export Trade, Real Estate & Property Management, Tourism & Hospitality, and E-commerce.
Why Professional Support is Critical
While the process is clear, it does not tolerate improvisation. Success depends on:
- Choosing the correct legal entity.
- Implementing compliant accounting from the start.
- Understanding all legal and tax implications.
- Aligning business activity with immigration goals.
Conclusion: Should You Start a Business in Turkey in 2026?
To summarize:
- Turkey offers a transparent and accessible environment for foreign business.
- A Turkish company is a powerful tool for residency, investment, and commerce when used correctly.
- Long-term success is built on thorough preparation, realistic planning, and professional guidance.
Start your business in Turkey consciously, with a clear plan, not on impulse.
