Can Foreign Nationals Set Up a Sole Proprietorship in Türkiye?

Published: 14 September 2026 · Reading time approximately 8 minutes

Under Turkish law a foreign investor is, as a rule, subject to treatment equal to that of a Turkish investor . The Foreign Direct Investment Law sets out this principle expressly. The short answer to the question is therefore clear: yes, a foreign national can set up a sole proprietorship in Türkiye just as they can a limited or a joint-stock company. The real issue is which of them best fits the person's status in Türkiye and commercial objective best.

Three structures, three different outcomes

Sole proprietorship (commercial enterprise of a natural person)

There is no legal entity; the business is the owner themselves. It is the quickest and least costly route to set up and no capital requirement applies. On the other hand, liability is unlimited: the person is liable for the debts of the business with their entire assets. Taxation is through income tax and on a progressive basis.

Limited liability company

This is the structure most preferred by foreign investors. It has legal personality and the shareholders' liability is limited to the capital share they contribute. It can be set up with a single shareholder. It is mandatory to have at least one manager authorised to represent the company, and this manager may be one of the shareholders.

Joint-stock company

A more corporate structure; share transfer is straightforward and it is suitable for going public and for large-scale partnerships. Its formation and operating obligations are heavier than those of a limited liability company.

The critical point: setting up a company does not grant a work permit

This is the misunderstanding that proves most expensive in practice. Setting up a company, or becoming a shareholder in one, does not on its own give rise to a right to work in Türkiye. A foreign national:

• If they will actually serve in a limited liability company as a manager or in a joint-stock company as a board member , they must obtain a work permit.
• If they are simply a shareholder who contributes capital and takes no part in management, a work permit may not be required; this distinction is assessed according to the company's representation structure.
• In a sole proprietorship , by contrast, the owner of the business is the person who carries it on personally. For that reason the sole proprietorship route is narrower ground than the limited liability company route as far as the work permit is concerned.

For foreign nationals who want both to start a business in Türkiye and to reside there on a work permit, the most workable structure in practice is therefore usually the limited liability company. For how a work permit application is assessed and the grounds for refusal, our article on why a work permit application is refused will help you.

Formation steps

1. 1

   Tax identification number

   A potential tax identification number is obtained for the foreign shareholders and managers. Those who have a foreigner identification number use that number.

2. 2

   Translation of the documents

   A notarised translation of the passport is mandatory. If a legal entity based abroad is to be a shareholder, its certificate of activity and the resolution of its authorised body must be apostilled, and a notarised translation is required.

3. 3

   MERSİS application and articles of association

   The company's articles of association are prepared through MERSİS; the field of activity and the powers of representation are settled here.

4. 4

   Notary procedures

   A signature declaration is drawn up. If the foreign party does not speak Turkish, a sworn interpreter must be present before the notary.

5. 5

   Trade registry registration

   The file is submitted to the relevant trade registry directorate; with registration and announcement the company acquires legal personality.

6. 6

   Tax office, accounting and, where applicable, the work permit

   The tax liability is opened and the books are certified; for a foreign national who will take part in management, the work permit application is planned at this stage.

Because minimum capital amounts, official fees and notary charges are updated every year, we do not give figures on this page. We calculate the current cost specific to your structure together with you at the consultation.

Do not confuse this with a branch or a liaison office

For investors who already have a company abroad there are three separate options in Türkiye: setting up a new company , opening a branch of the existing company, or setting up a non-trading a liaison office . The tax and legal consequences of the three differ greatly from one another; for a detailed comparison our article on the difference between a liaison office, a branch and a company is ready for you.

Which structure should you choose?

• Small-scale, one-person, low-risk activity and where the person already has a valid residence or work status: a sole proprietorship can be a quick start.
• If the aim is to reside in Türkiye on a work permit: a limited liability company should be designed together with its management structure.
• A structure with several shareholders, that will take investment or where share transfers are planned: a joint-stock company should be considered.
• Market research and representation only: a liaison office may be sufficient; it should not be forgotten that no commercial income can be earned.

For the choice of structure, the translation of the formation documents and the whole registration process, see our consultancy for company formation by foreign nationals page.