Can Foreigners Own 100% of a Company in Türkiye? Ultimate 2026 Guide

Türkiye has become one of the most attractive destinations for foreign direct investment, thanks to its strategic location, young workforce, customs union with the EU, and investor-friendly legal framework. One of the most frequently asked questions by international entrepreneurs and multinational groups is straightforward yet critical: Can foreigners own 100% of a company in Türkiye?

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The short answer is yes. However, the legal, regulatory, and practical implications behind this answer deserve a detailed explanation.

In this comprehensive 2026 guide, our corporate lawyers team explains the legal basis, applicable company types, sectoral restrictions, procedural steps, and strategic considerations for foreign investors seeking full ownership in Türkiye.

Legal Basis for 100% Foreign Ownership in Türkiye

Foreign ownership in Türkiye is primarily governed by the Foreign Direct Investment Law No. 4875, which adopts the principles of equal treatment and investment freedom. Under this law:

• Foreign investors are treated the same as Turkish investors.
• Foreign individuals and foreign legal entities may establish companies or acquire shares in existing Turkish companies without prior governmental approval.
• There is no minimum local shareholding requirement for most sectors.

As a result, foreigners can legally own 100% of the shares in a Turkish company, whether newly established or acquired through share transfer.

This liberal regime positions Türkiye among the most accessible jurisdictions for foreign company formation in its region.

What Is Considered a “Foreign Investor” Under Turkish Law?

Turkish legislation defines foreign investors broadly. The following parties qualify as foreign investors:

• Foreign individuals (non-Turkish citizens)
• Foreign legal entities established under foreign laws
• International organizations

All these investors may establish and fully own Turkish companies, subject only to limited sector-specific regulations.

Types of Companies Foreigners Can Fully Own in Türkiye

Foreign investors may choose from several corporate forms under the Turkish Commercial Code (TCC). In practice, two company types dominate foreign investment.

Limited Liability Company (Ltd. Şti.)

The limited liability company is the most commonly preferred structure for small and medium-sized investments.

Key features include:

• Can be established with one shareholder
• Shareholder may be 100% foreign
• Minimum capital requirement is relatively low
• Flexible management structure
• Shareholders’ liability is limited to their capital contribution

This structure is particularly attractive for trading, consultancy, IT, and service-based businesses.

Joint-Stock Company (A.Ş.)

A joint-stock company is typically preferred for larger-scale investments, regulated sectors, or businesses planning to raise capital.

Key features include:

• May be established by a single shareholder (foreign or Turkish)
• Shareholder may own 100% of the shares
• More robust corporate governance framework
• Easier share transfer compared to limited companies
• Suitable for foreign holding structures and future exits

Many multinational investors prefer a joint-stock company due to its alignment with international corporate practices.

Sectoral Restrictions and Exceptions

Although the general rule allows 100% foreign ownership, there are limited sectoral restrictions imposed by special laws.

Examples include:

• Media and broadcasting: Foreign ownership is capped and subject to Radio and Television Supreme Council (RTÜK) rules.
• Aviation: Foreign shareholding ratios may be limited under civil aviation regulations.
• Maritime transportation: Certain cabotage rights are reserved for Turkish-owned companies.
• Energy and mining: Subject to licensing and regulatory approvals, but not outright ownership bans.

Importantly, these restrictions are exceptional, not the norm. The majority of commercial, industrial, and service activities are fully open to foreign investors.

Can Foreigners Be the Sole Shareholder and Director?

Yes. Turkish law allows:

• A single shareholder company
• A foreign shareholder to be the sole owner
• A foreign individual to act as director or board member

There is no legal requirement to appoint a Turkish partner or director solely due to foreign ownership. However, practical issues such as residence permits, work permits, and banking compliance must be managed carefully.

Company Formation Procedure for Foreign-Owned Companies

The company establishment process for foreigners is largely identical to that for Turkish citizens, with additional documentation requirements.

The main steps include:

1. Determining the company type and shareholding structure
2. Preparing and notarizing articles of association
3. Registering the company with the Trade Registry
4. Obtaining a tax number and opening corporate bank accounts
5. Registering with social security authorities (if applicable)

Professional guidance from experienced company formation lawyers ensures compliance, efficiency, and risk mitigation throughout this process.

Capital Requirements and Foreign Shareholders

There is no additional capital requirement solely because a company is foreign-owned.

Capital rules depend only on the company type:

• Limited liability companies: modest statutory minimum capital
• Joint-stock companies: higher statutory minimum capital

Foreign capital contributions may be made in cash or in kind, and funds may be transferred from abroad without restriction, provided that banking and reporting rules are followed.

Repatriation of Profits and Dividend Distribution

One of the strongest advantages of investing in Türkiye is the freedom to repatriate profits.

Foreign shareholders may freely transfer abroad:

• Dividends
• Sale proceeds from shares
• Liquidation proceeds
• Royalties and management fees

These transfers are subject only to standard tax compliance and banking regulations. There are no foreign exchange controls restricting lawful profit remittances.

Tax and Compliance Considerations for Foreign-Owned Companies

A Turkish company owned 100% by foreigners is treated as a Turkish resident company for tax purposes.

This means:

• Corporate income tax applies at standard rates
• VAT and withholding tax obligations apply where relevant
• Double taxation treaties may reduce withholding tax burdens for foreign shareholders

Proper structuring at the incorporation stage is critical to achieving tax efficiency and long-term compliance.

Acquisition of Existing Turkish Companies by Foreigners

Foreign investors may also acquire 100% of an existing Turkish company through share purchase agreements.

This route often requires:

• Legal due diligence
• Review of licenses and permits
• Share transfer approval and registration
• Post-acquisition compliance alignment

Experienced advisors are essential to identify liabilities and protect the investor’s position.

Strategic Advantages of 100% Foreign Ownership in Türkiye

Full ownership provides foreign investors with:

• Complete management control
• Simplified decision-making
• Strong IP and asset protection
• Ease of future restructuring or exit
• Compatibility with global holding structures

These advantages explain why Türkiye continues to attract investors seeking full operational and financial autonomy.

How Akkas CPA & Turkish Accounting Firm Supports Foreign Investors

Since 2017, Akkas CPA & Turkish Accounting Firm has advised foreign individuals, startups, and multinational corporations on company formation in Türkiye, corporate governance, and cross-border investment structuring.

Our services include:

• Company incorporation and structuring
• Shareholder agreements and governance frameworks
• Regulatory compliance and licensing
• Ongoing corporate secretarial support
• Strategic legal advisory for foreign investors

Whether you plan to establish a joint-stock company or a limited liability company, our multilingual legal team ensures a smooth, compliant, and strategic entry into the Turkish market.

Contact us for Establishing a Company in Türkiye

Choosing the right legal partner is the most critical decision you will make when entering the Turkish market. With over three years of experience, Akkas CPA & Turkish Accounting Firm provides the multilingual support and local expertise necessary to turn your business vision into a reality. From initial consultation to complex governance restructuring, we are committed to your success in Istanbul and beyond.

Would you like us to prepare a tailored incorporation plan for your specific business model? We invite you to contact Akkas CPA & Turkish Accounting Firm. Our Istanbul-based team provides tailored legal solutions that protect your investment and support your long-term business objectives in Türkiye.