Doing Business in Turkey
A foreign company can do business in Turkey (Türkiye) through a limited liability company, a joint stock company, a branch or a liaison office, and can own 100% of a Turkish company. A limited liability company needs minimum capital of TRY 50,000 and a joint stock company TRY 250,000. Once the file is complete, registration takes one day. Profits are taxed at 25%, standard VAT is 20% and dividends paid abroad carry 15% withholding before treaty relief.
What does it cost to operate in Turkey?
Legal thresholds are set in Turkish lira. The calculator converts them to EUR, USD or GBP. Formation rules are published by Invest in Türkiye, the official investment office.
| Item | Figure | What it means for you |
|---|---|---|
| Minimum capital, LLC (Ltd. Şti.) | TRY 50,000 | Payable within 24 months of formation |
| Minimum capital, JSC (A.Ş.) | TRY 250,000 | 25% paid before registration, the rest within two years |
| Capital expected for work permits | TRY 500,000 | The practical minimum if you will post your own staff |
| Competition Authority contribution | 0.04% of capital | One-off, paid at formation |
| Local set-up costs, LLC | TRY 30,000 to 42,500 | Registry, chamber, notary, e-signature and accountant set-up. Published estimates for 2026, excluding capital and translations |
| Cheapest full-time employee, monthly employer cost | TRY 40,874.63 | Gross minimum wage of TRY 33,030 plus employer charges. In force since 1 January 2026; no mid-year increase |
| Corporate income tax | 25% | 30% for banks and financial institutions. A parallel 10% domestic minimum tax applies since 1 January 2025; the higher amount is payable |
| Standard VAT | 20% | Reduced rates of 10% and 1% for listed goods and services |
| Dividend withholding, non-resident | 15% | Your home country's tax treaty with Turkey can reduce it |
Which legal structure can a foreign company use in Turkey?
Pending lawyer reviewNot sure which fits? The structure selector gets you to an answer in three questions.
| Structure | What it is | Capital | Can it invoice? |
|---|---|---|---|
| Limited liability company | Separate legal entity with 1 to 50 shareholders and at least one manager. The usual choice for a wholly owned subsidiary. | TRY 50,000 | Yes |
| Joint stock company | Separate legal entity with shares and a board of at least one member. Required for licensed financial activities and preferred for outside investors. | TRY 250,000 | Yes |
| Branch | Not a separate legal entity. Must pursue the same purposes as the parent. | No requirement | Yes. Profit sent to the parent carries 15% withholding, subject to treaties |
| Liaison office | Ministry permit for up to three years. Decided in fifteen working days if the file is complete. | None | No. Commercial activity is not allowed |
How are profits and dividends taxed?
Pending lawyer reviewA Turkish company pays 25% corporate income tax on its profit, according to the official tax guide. When it distributes dividends to a foreign parent, Turkey withholds 15%. A tax treaty can lower that rate if the parent holds a qualifying stake. Treaty rates below are from PwC Tax Summaries, reviewed in September 2026.
| Parent company in | Dividend withholding, qualifying stake | Condition | Otherwise |
|---|---|---|---|
| Germany | 5% | Holding of at least 25% | 15% |
| Netherlands | 10% or 15% | Holding of at least 25%. 10% applies while the dividend is not taxed in the Netherlands | 15% |
| United Kingdom | 15% | Holding of at least 25% | 15% |
| United Arab Emirates | 10% | Holding of at least 25% | 12% |
| United States | 15% | Holding of at least 10% | 15% |
Royalties paid abroad carry 20% withholding, generally reduced to 10% by treaty. Interest carries 10%.
Can a foreign-owned company in Turkey employ foreign staff?
Pending lawyer reviewYes, with a work permit, and the permit depends on the employer as much as the employee. Under the Ministry of Labour criteria the workplace must employ five Turkish citizens for each foreign employee. It must also have paid-in capital of at least TRY 500,000, or net sales of at least TRY 8,000,000, or exports of at least USD 150,000. The legal minimum capital is therefore rarely enough if you plan to post your own people.
| Role of the foreign employee | Minimum salary |
|---|---|
| Senior executives and pilots | 5 × minimum wage |
| Engineers and architects | 4 × minimum wage |
| Other managers | 3 × minimum wage |
| Jobs requiring expertise | 2 × minimum wage |
A foreign partner of the company needs a shareholding of at least 20% worth at least TRY 500,000. Evaluation typically takes 10 to 30 days once the file is complete.
How does a foreign-owned company open a bank account in Turkey?
Pending lawyer reviewThe company needs a Turkish bank account to receive its capital and to trade. A director does not have to be physically present in every case: a notarised and apostilled power of attorney with specific banking powers is generally accepted, and remote identification for companies has been available since June 2023. Practice varies by bank, so plan for one possible visit. With a foreign corporate shareholder the account typically takes 1 to 3 weeks because the bank reviews the ownership chain.
What does it cost to keep the company running?
Three recurring items matter in the first year. Bookkeeping by a certified accountant is mandatory; the official 2026 minimum tariff starts at about TRY 3,606 a month for a service-sector limited company with no employees. Each employee costs at least TRY 40,874.63 a month. And the company needs a registered address, which our formation package covers for the first 12 months.
Which activities need a licence?
Payment services and e-money
Central bank licence. Turkish joint stock company, minimum equity from TRY 20 million.
Read moreCrypto asset services
Capital Markets Board authorisation. Minimum capital TRY 250 million for platforms in 2026.
Read moreGetting paid by Turkish customers
What to do when an invoice is not paid, and what it costs.
Read moreGo deeper
Company types compared
LLC, joint stock company, branch and liaison office side by side.
ReadTax for foreign-owned companies
All rates, treaty table and a worked dividend example.
ReadWork permits and hiring
Employer tests, minimum salaries and the cost of the local team.
ReadBank account
Documents, beneficial owners, power of attorney and timelines.
ReadLegal costs
Official tariff, market rates and court fees.
ReadBy home country
Germany, Netherlands, United Kingdom, United Arab Emirates, United States.
ReadQuestions foreign companies ask first
Pending lawyer reviewHow long does it take to register a company in Turkey?
Registration at the Trade Registry is completed the same day once the file is complete. Including notarised, apostilled and translated documents from abroad, published estimates run from 2 to 8 weeks. A bank account typically adds 1 to 3 weeks.
Can a foreign company own 100% of a Turkish company?
Yes. International investors have the same rights and liabilities as local investors. A limited liability company needs one shareholder and can have up to 50. Restrictions apply in a few sectors such as broadcasting, maritime and civil aviation.
What is the corporate tax rate in Turkey in 2026?
25%, and 30% for banks and financial institutions. Exporters get a 5-point reduction on export income.
Can a liaison office sell or invoice in Turkey?
No. A liaison office cannot carry out commercial activity.
Do I need Turkish employees to get a work permit for a foreign manager?
As a rule, yes: five Turkish employees for each foreign employee, plus paid-in capital of TRY 500,000 or net sales of TRY 8,000,000 or exports of USD 150,000.
How much does bookkeeping cost for a small Turkish company?
Bookkeeping by a certified accountant is mandatory. The official 2026 minimum tariff starts at about TRY 3,606 a month for a service-sector limited company with no employees in the largest cities. Fees for foreign-owned companies are usually higher.
Related pages
Company types in Turkey compared
Compare Turkish company types for foreign investors: LLC, joint stock company, branch and liaison office. Capital, liability, tax and when each fits.
ReadCan a foreign-owned Turkish company open a bank account?
Can a foreign-owned Turkish company open a bank account? Documents, beneficial owner rules, power of attorney, timelines and foreign currency rules.
ReadHow to buy an existing Turkish company
Buying a Turkish company as a foreigner: share transfer rules, 2026 merger control thresholds, inherited tax liabilities, seller taxation and timeline.
ReadTurkey company cost calculator
Calculate capital, set-up costs, staffing rules and timeline for a company in Turkey, in EUR, USD or GBP. Includes a structure selector.
Read