Setting Up a Company in Türkiye: A Step-by-Step Guide for Foreigners

You do not need to be a Turkish citizen or a resident to set up a company in Türkiye. A foreign individual or a foreign company may form a Turkish company alone, holding one hundred per cent of the shares. In practice the most common form is the limited company; the joint stock company is used more often where there are many shareholders or the prospect of a public offering.

Property buyers usually ask about this for one of two reasons: to have rental income taxed through a company, or to hold several properties under one roof. Both are possible, and both come at a price; the comparison at the end of this guide is there for exactly that.

Limited company or sole trader?

A sole trader can be registered in a day, carries a light accounting burden and is easy to close. Against that, you are liable for the debts with your personal assets, and as earnings rise the income tax band climbs quickly. In a limited company your liability is capped at the capital you put in and corporation tax is charged at a flat rate, but formation and dissolution take longer and accounting is compulsory.

• You will declare the rent from a single property: you do not even need a sole trader registration — the income is declared as rental income.
• You have three to five properties and regular rental income: a limited company begins to justify the accounting cost.
• You will be letting short term (by the day): that is a commercial activity in any case, and registration is unavoidable.
• You are forming the company only to obtain citizenship: there is no need — the citizenship application is made by an individual.

What formation requires

1. 01Obtain a tax identification numberIssued by any tax office or through the online tax office on presentation of a passport. It is granted the same day and is free of charge. It is the precondition for every step that follows.
2. 02Prepare the articles of associationDrawn up through the Trade Registry's MERSIS system. The field of activity (NACE code) is chosen here; if you will be buying and selling property, the relevant code must appear in the articles — adding it later means a formal amendment.
3. 03Have the passport translated and notarisedDocuments issued abroad require an apostille. This step usually takes the longest; dealing with it in your own country before you travel cuts a week from the process.
4. 04Block the capitalThe minimum capital of a limited company is ₺50,000, and it need not be paid into the bank in full at formation; the payment schedule is set out in the articles. A levy for the Competition Authority, four ten-thousandths of the capital, is paid up front.
5. 05Register with the Trade RegistryIf the paperwork is complete, registration is usually concluded the same day. On registration the company acquires legal personality and is announced in the Trade Registry Gazette.
6. 06Open the tax office and social security registrationsAn inspector visits the registered address in person. If you use a virtual office, make sure your agreement is of a kind that will satisfy this inspection — it is the most common cause of delay.

The real cost

Formation itself is cheaper than most people expect; the real expense begins afterwards. A sensible budget for 2026 looks like this: notary and translation work ₺15,000–25,000, accountant's formation fee ₺20,000–35,000, registry and chamber dues ₺10,000–15,000. All of that is one-off.

The recurring item is accounting: monthly bookkeeping runs between ₺5,000 and ₺15,000 depending on the size of the company, and it is payable even if the company trades not at all. A dormant company is not a free company; returns continue to be filed.

Buying property in the company's name

Depreciation on property held by a company can be written off, renovation costs can be added to the base, and rental income is subject to corporation tax. For an investor in a high income tax band that can look attractive.

There are two important differences, however. First, the capital gains exemption an individual enjoys after holding a property for five years does not exist for companies; a gain on property sold by a company is corporate income in every case. Second, a citizenship application based on property investment is made by an individual — property bought in a company's name does not qualify for the programme.