How Is a Company With a Foreign Shareholder Set Up, Step by Step?

Published: 16 September 2026 · Reading time approximately 8 minutes

In Türkiye foreign natural or legal persons can set up a company under the same procedure as Turkish citizens. Law No. 4875 recognises the principle of equal treatment for the foreign investor; there is no separate investment permit and no minimum capital requirement tied to being a foreigner. What makes the work difficult in practice is the order in which the documents are to be prepared and which certification each one needs.

1. Choosing the type of company

In practice the great majority of formations with a foreign shareholder are carried out as a limited liability company — its formation and management are simpler. A joint stock company, on the other hand, is advantageous in terms of share transfers, taking on investors and certain fields of activity. A sole proprietorship is also possible but is not suited to a structure with partners.

2. Obtaining a tax identification number

The foreign shareholder — and, where there is a foreign legal person shareholder, that entity as well — must have a tax identification number in Türkiye. Without this number a MERSIS record cannot be opened. The number is obtained with the passport, from the tax office or through the interactive tax office.

3. The translation and certification chain for the documents

For a foreign natural person shareholder a notarised translation of the passport is required. If a foreign company is to be a shareholder, a longer chain arises: the company's certificate of activity, its registry record and the decision of its authorised body are apostilled in its own country or certified at the Turkish mission, after which a sworn translation is made in Türkiye and certified before a notary.

Files that skip this step come back from the trade registry. Because apostille and certification periods can take weeks depending on the country, the formation timetable has to be built around this step.

4. The articles of association and MERSIS

The articles of association are prepared through the MERSIS system. Choosing the field of activity correctly matters: some activities require a separate permit, licence or statutory minimum capital, and in a few sectors the foreign capital share is limited. The amount of capital, the distribution of shares and the authority to represent the company are also determined at this stage.

5. Registration with the trade registry

An application is made to the trade registry office with the signature declarations and the formation documents. On registration the company acquires legal personality and its tax certificate and registry record are created. The foreign shareholder does not have to be in Türkiye; they can be represented by a power of attorney drawn up in due form.

6. After formation: bank account and books

After registration a bank account is opened in the company's name, the accounting record begins and any capital payment is made. For companies with foreign capital the obligation to make periodic notifications to the Ministry also arises on formation.

7. Does a shareholder need a work permit?

Setting up a company does not on its own confer the right to work or to reside in Türkiye. If the foreign shareholder is actually going to work in the company, a work permit must be obtained; in an application made as a company shareholder, conditions such as the share of capital, the number of insured employees and the paid-up capital are assessed. Structuring the formation with this objective in mind is far easier than changing the structure afterwards.

How do we manage the process?

At the preliminary meeting we clarify your objective — investment, trade, a work permit or residence — and choose the type of company and the field of activity accordingly. The tax number, the apostille and translation chain, the articles of association, registration and the steps after formation all run in a single file. We also compare the branch and liaison office alternatives in the same meeting.