Company Formation FAQs in Türkiye: Ultimate FAQ Guide 2026

Türkiye remains a premier jurisdiction for foreign direct investment in 2026, combining a strategic geographic position, a dynamic domestic market, and a modernized commercial legal framework. The Turkish Commercial Code, Foreign Direct Investment Law, and updated tax regulations provide foreign investors with legal certainty, equal treatment, and operational flexibility. This 2026 guide answers company formation FAQs in Türkiye, covering everything from required documents and costs to timelines and taxation.

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As Akkas CPA & Turkish Accounting Firm, a full-service company formation and corporate governance accounting firm headquartered in Istanbul and advising international investors since 2017, we have prepared this comprehensive FAQ guide to address the most critical legal, tax, and operational questions related to company formation in Türkiye.

Company Formation FAQs in Türkiye

1. Why should I work with Turkish company formation lawyers?

Turkish company formation lawyers provide strategic legal guidance beyond basic incorporation. They ensure compliance with Turkish Commercial Code requirements, foreign investment regulations, tax legislation, and sector-specific licensing rules. Experienced legal counsel also structures shareholder relations, corporate governance frameworks, and tax-efficient ownership models, significantly reducing regulatory risk and long-term exposure.

2. What does company formation in Türkiye involve?

Company formation in Türkiye is a structured legal process involving entity selection, drafting and notarization of articles of association, Trade Registry registration, tax registration, social security enrollment, and corporate bank account opening. For foreign-owned companies, additional steps such as document legalization, apostille, and translation are required.

3. What is joint-stock company formation in Türkiye?

Joint-stock company formation is suitable for large-scale operations, foreign investment projects, and regulated sectors such as energy, finance, and manufacturing. JSCs allow multiple share classes, easier share transfers, and public offerings. They are subject to stricter governance and audit requirements but offer superior scalability and credibility.

4. How does limited liability company formation work?

Limited liability company formation is the most commonly preferred structure for SMEs and foreign entrepreneurs. LLCs provide operational flexibility, limited shareholder liability, and lower capital requirements. Management can be centralized, and compliance obligations are less burdensome than joint-stock companies.

5. What are shareholder agreements and why are they important?

Shareholder agreements regulate internal company relations, including voting rights, dividend distribution, share transfers, pre-emption rights, and dispute resolution mechanisms. Although not mandatory, they are essential for protecting minority shareholders and preventing future conflicts, particularly in foreign-invested companies.

6. What does corporate governance mean in Türkiye?

Corporate governance in Türkiye refers to transparent management, board accountability, internal control mechanisms, and compliance with statutory duties. Strong governance frameworks reduce director liability, increase investor confidence, and are often required for financing, joint ventures, and multinational operations.

7. How does company liquidation operate in Türkiye?

Company liquidation is a formal legal process that includes appointing liquidators, settling debts, collecting receivables, distributing remaining assets, and deregistering from tax and Trade Registry authorities. Improper liquidation can result in director or shareholder liability, making legal supervision critical.

8. What types of company litigation are common?

Company litigation in Türkiye commonly involves shareholder disputes, director liability claims, unfair competition, breach of commercial contracts, and corporate governance violations. Specialized commercial courts handle these disputes, and early legal intervention often prevents escalation.

9. What is the purpose of a JSC formation page?

A JSC formation page provides structured legal guidance on joint-stock company incorporation, governance obligations, capital requirements, board structures, and regulatory compliance. It serves as a roadmap for investors planning complex or large-scale investments.

10. What documents are required for company formation?

Company formation required documents typically include shareholder and director identification, notarized signatures, articles of association, powers of attorney, proof of address, and capital declarations. Foreign documents must be apostilled and officially translated into Turkish.

11. What are the costs of company formation in Türkiye?

Costs of company formation include Trade Registry fees, notary and translation expenses, legal fees, capital deposits, and post-incorporation compliance costs. The total amount varies based on company type, number of shareholders, and foreign ownership structure.

12. How is corporate bank account opening handled?

Bank account opening requires completion of KYC and AML procedures. Banks review company documents, beneficial ownership details, and business activities. In many cases, physical presence of directors or authorized signatories is required due to regulatory compliance.

13. Are directors or shareholders required to reside in Türkiye?

There is no residency requirement for shareholders or directors under Turkish law. Foreign nationals may fully own and manage Turkish companies. However, directors actively involved in operations may require work permits.

14. Is a work permit required for foreign directors?

Foreign directors performing executive or managerial functions must obtain a work permit. Non-executive board members who do not engage in daily operations are generally exempt, depending on their level of involvement.

15. How does corporate taxation apply to Turkish companies?

Corporate taxation in Türkiye includes corporate income tax, VAT, withholding taxes, stamp duty, and transfer pricing rules. Türkiye offers participation exemptions, double tax treaties, and investment incentives that can significantly reduce tax exposure when properly structured.

16. What is the timeline for company formation?

The timeline for company formation is typically 3–7 business days after submission of complete documentation. Bank account opening, tax inspections, and sectoral licenses may extend the overall setup period.

17. What are the most common company formation FAQs?

Common company formation FAQs include ownership restrictions, minimum capital, tax obligations, profit repatriation, work permits, and compliance requirements for foreign investors.

18. What is holding company formation in Türkiye?

Holding company formation allows centralized ownership of subsidiaries and investments. Türkiye offers favorable tax treatment on dividends and capital gains, making it an attractive jurisdiction for regional holding structures.

19. What is subsidiary formation?

Subsidiary formation creates an independent legal entity owned by a foreign parent company. Subsidiaries offer limited liability, local market access, and operational autonomy, making them preferable to branch offices.

20. What is a liaison office?

A liaison office allows foreign companies to conduct non-commercial activities such as market research and representation. It cannot generate income and operates under Ministry approval.

21. What documents are required for liaison offices?

Required documents include parent company certificates, financial statements, authorization letters, and activity plans. Extensions require proof of compliance and non-commercial operations.

22. What is tax registration?

Tax registration involves obtaining corporate tax and VAT numbers and completing tax office inspections. This step is mandatory before commencing operations.

23. What is payroll registration?

Payroll registration requires enrollment with the Social Security Institution and compliance with Turkish labor and employment laws, including monthly reporting obligations.

24. What is a branch office?

A branch office is an extension of a foreign company without separate legal personality. The parent company remains fully liable for branch activities conducted in Türkiye.

25. What are liaison office extension rules?

Liaison offices are granted for limited periods and extended based on compliance, foreign currency inflows, and permitted activity scope.

26. What are the costs and timeline for branches and liaison offices?

Costs and timelines depend on Ministry approvals, documentation, and operational complexity. Branches typically require longer setup periods than subsidiaries.

Contact Akkas CPA & Turkish Accounting Firm

Company formation in Türkiye requires precise legal planning, tax structuring, and regulatory compliance. Akkas CPA & Turkish Accounting Firm, with over 8 years of experience advising international investors, provides end-to-end company formation, governance, and corporate advisory services in multiple languages.

We invite you to contact our Istanbul office to discuss your investment strategy in Türkiye.