How to Set Up an Entity in Turkey

Setting up a legal entity in Turkey remains a highly appealing option for investors and companies looking to access a dynamic consumer market, benefit from the country’s strategic geographical position, bridging Europe and Asia, and tap into growing trade and investment flows. Turkey’s evolving legal and digital infrastructure has made the process reasonably streamlined, though careful compliance with local regulations remains essential.

For foreign investors, the main challenges include navigating administrative procedures, preparing and translating required documents into Turkish, meeting minimum capital requirements, and ensuring compliance with tax and social-security obligations. The key benefits are the ability to own a company fully (in almost all sectors), operate under recognized corporate law, hire local staff, and exert full control over operations — offering flexibility, autonomy, and local market access.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Turkey?

Opening an entity in Turkey means formally registering a business under Turkish corporate law with the relevant authorities, granting it legal personality, a tax identity, and the ability to enter into contracts, hire employees, and transact commercially. Most foreign investments take the form of a locally incorporated company (rather than a foreign branch), either as a Limited Liability Company (LLC / Ltd. Şti.) or a Joint-Stock Company (JSC / A.Ş.)

Entity overview in Turkey

Here is a summary of the typical process, the main entity types, and how they compare.

Step-by-step guide: How to open an entity in Turkey

Step 1: Choose the right structure

Most foreign investors choose between an LLC (Ltd. Şti.) and a JSC (A.Ş.). An LLC is often the best choice for small or medium-sized operations, with simpler governance, fewer administrative burdens, and lower capital requirements. A JSC is more suitable for larger ventures, firms seeking external investors, or plans to raise capital broadly, but comes with stricter governance and higher initial capital requirements. Branch or liaison offices may also be used if you do not intend to incorporate a full company.

Step 2: Verify business name availability

You must check existing company names online. The name must be unique, not misleading or infringing on existing trademarks, and comply with Turkish naming rules. This step is performed through the MERSIS online portal before submission of incorporation documents.

Step 3: Prepare incorporation documents

Key documents typically required include:

• Articles of Association (Ana Sözleşme), drafted in Turkish
• Declaration of share capital (capital commitment document) indicating minimum capital contributions
• Identification documents for all shareholders and directors: passport copies for foreign individuals; for corporate shareholders, certified incorporation documents. Non-Turkish documents must be translated by a sworn translator and notarized
• Power of Attorney (PoA), if founders or directors will not be physically present in Turkey, allowing a local representative to sign on their behalf

Step 4: Register with MERSIS and the Trade Registry Office

Submit the incorporation documents via the MERSIS portal. Once electronically accepted, file the documents with the local Trade Registry Office. After registration, you receive the company’s registration certificate and Trade Registry number, which formally gives the company legal personality under Turkish law.

Step 5: Register for tax and social security

After incorporation, the company must register for a tax identification number (Vergi Kimlik Numarası) at the local Tax Office (Vergi Dairesi), which operates under the Turkish Revenue Administration (Gelir İdaresi Başkanlığı). If hiring staff, register with the social security authorities, the Sosyal Güvenlik Kurumu (SGK) (for employer contributions). The company may also need to register for VAT depending on its expected turnover or the nature of its services/products.

Step 6: Open a corporate bank account

Once the company is registered, you can open a corporate bank account at a Turkish bank. Banks will require the registration certificate, articles of association, signature circulars, identity documents of authorized signatories, and possibly proof of share capital deposit. Many international investors use a Power of Attorney to open the account remotely.

Step 7: Set up payroll and employment compliance

If you plan to hire employees, you must comply with Turkish labor and social-security regulations. This involves signing employment contracts, registering employees with the social-security institution, withholding payroll taxes/social contributions, and making employer social security contributions.

Discover how Elemental Enzymes accelerated regulatory approvals and market entry with Deel.

Post-registration obligations

After incorporation, companies in Turkey must remain compliant with several obligations. They need to file corporate income tax returns annually under the oversight of the Turkish tax authority, submit VAT returns (if applicable), and maintain financial accounting. Companies must keep updated records of shareholders, directors, and beneficial owners, and report any changes. They should maintain proper accounting, payroll, HR, and transaction records for the legally required retention period. If the business operates under any licenses or trade permits (depending on the sector), those must be renewed as per local regulations. Employment law compliance—including social security, labor rights, and data protection—must be maintained consistently.

Taxes and financial considerations

You're responsible for:

• Corporate income tax: The standard rate is 25% for most businesses. For financial institutions (banks, insurers, etc.), the rate is 30%
• VAT: Standard VAT is 20%. Reduced VAT rates of 1% or 10% may apply to certain goods or services
• Payroll / social contributions: Employers must make social security contributions for employees
• Accounting standards: Companies generally follow Turkish accounting law and standards for financial reporting; foreign or publicly listed companies may apply additional standards depending on circumstances.

Discover how Climate-KIC navigated complex restructuring with Deel.

Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Turkey?
It usually takes around 3–4 weeks end-to-end; official registry approval typically comes within 5–10 business days. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
50,000 TRY for an LLC; 250,000 TRY for a Joint-Stock Company (JSC).

Can foreign companies own 100% of an entity in Turkey?
Yes. Foreign investors can generally own 100% of a company in most sectors.

Do I need a local director or representative?
No. In most cases, there is no requirement for a Turkish resident director or local shareholder.

How much does it cost to register an entity?
Costs vary by professional fees (notary, legal translation, registration, etc.) rather than a fixed fee; typical expenses include translation, notarization, and registry charges. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. Employer registration, tax, and social security registration must be completed before legally hiring. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Turkey?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance — in Turkey.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.