Türkiye offers an investor-friendly environment where foreign and domestic investors enjoy equal rights. The Turkish Commercial Code (TCC) supports modern corporate governance, aligns with EU legislation, and ensures transparency.

Company Types in Türkiye

Corporate Forms:

• Joint Stock Company (JSC): Ideal for larger businesses seeking flexibility in shareholding and limited liability.
• Limited Liability Company (LLC): Popular for SMEs, offering limited liability and simpler structure.

Non-Corporate Forms:

• General Partnership
• Limited Partnership
• Partnership Limited by Shares

Despite several legal types, JSC and LLC are the most commonly preferred.

How to Establish a Company

To register a company:

1. Submit articles of association via MERSIS (online system).
2. Notarize required documents.
3. Obtain potential tax ID number.
4. Deposit capital share to Competition Authority.
5. Deposit 25% of capital in a bank.
6. Apply at the Trade Registry Office.
7. Certify legal books.
8. Notify tax office post-registration.
9. Obtain signature circular.
10. Transition certain documents to digital systems like E-TUYS.

Joint Ventures

Joint ventures are often structured as commercial companies under Turkish law. JSCs are typically preferred due to flexible shareholding and limited liability. Although not governed by a separate law, joint ventures operate under general company regulations. Shareholder agreements are commonly used to define roles and responsibilities. There are no nationality restrictions for shareholders or managers, except in regulated sectors like media and aviation.

Branch Office

A branch office operates as an extension of the parent company and has no separate legal identity. It shares the same scope of business and is valid only as long as the parent company exists. Though no capital is legally required, a working budget is advisable.

Key Notes:

• No shareholders.
• Cannot operate beyond the parent company's scope.
• Profits can be repatriated but are subject to 15% withholding tax (subject to treaties).

Required Documents Include:

• Petition and board resolution.
• Articles of association (notarized).
• Certificate of activity.
• Power of attorney for the local representative.
• Signature declarations and notarized ID/passport.
• Chamber registry and commitment forms.

Foreign documents must be apostilled or consular-certified and officially translated into Turkish.

Liaison Office

Foreign companies can establish liaison offices in Türkiye strictly for non-commercial activities, such as market research or representation. A license from the Ministry of Industry and Technology is required. Licenses are initially valid for up to 3 years and may be extended depending on activities.

Conditions:

• Cannot engage in commercial transactions.
• License is activity-specific and limited in duration.

Documents Needed:

• Application and non-commercial activity statement.
• Certificate of activity (apostilled or consular-verified).
• Financials or equivalent documentation.
• Authorization of office representative.
• Tax registration and lease must be submitted within one month of approval.

Liaison offices must report any changes in representative or address within a month. No funds may be transferred except remaining balances upon closure. In regulated sectors, additional permissions may be required from relevant authorities.

Türkiye has one of the most competitive corporate tax systems among OECD countries. The tax legislation is aligned with international standards and is organized under three main categories:

Income Taxes

• Income Tax (Individuals)

Individuals are taxed on their annual income derived from various sources such as wages, business profits, rent, investment income, and self-employment activities. Turkey applies a progressive income tax system, ranging from 15% to 40% depending on income level.

• Minimum wage income is exempt from income tax and stamp duty.

Corporate Income Tax

Corporate entities, cooperatives, and public enterprises are subject to tax on their profits.

• The general corporate tax rate is 25%.
• For financial institutions such as banks and insurance companies, the rate is 30%.
• Export-related profits may benefit from a reduced 20% rate (a 5 percentage-point discount) if certain conditions are met.

Expenditure-Based Taxes

• VAT (Value Added Tax): Most goods and services are subject to VAT. Rates are 1%, 10%, or 20%.
• SCT (Special Consumption Tax): Applied to specific product groups such as fuel, motor vehicles, tobacco, alcoholic beverages, and luxury goods.
• BITT (Banking and Insurance Transactions Tax): Financial transactions by banks and insurance companies are exempt from VAT and instead subject to BITT.
  • The rate on consumer loans is 15%.
  • For general banking and insurance transactions, the rate is typically 5%.
  • The rate on foreign exchange (FX) sales is set at 0.2%.
• Stamp Duty: Applies to documents such as contracts, payrolls, and guarantees, with rates between 0.189% and 0.948%, or as fixed amounts depending on the document type.

Wealth Taxes

Property Tax: Levied on immovable properties at rates between 0.1% and 0.6%, depending on location and municipality.
Motor Vehicle Tax (MVT): Annual fixed amounts based on engine size, age, and type of vehicle.
Inheritance and Gift Tax: Applies to assets transferred through inheritance or gifts, at rates ranging from 1% to 30%.

General Visa Information

Before Traveling to Turkey

Foreigners planning to visit Turkey should carefully review the visa regime that applies to the purpose of their trip. Different procedures apply to tourism and business visits compared to travel for work or study. In addition, Turkey’s visa policy varies by country and is generally based on the principle of reciprocity.

Some nationals are exempt from visas for tourism purposes, while others can obtain an electronic visa (e-Visa). However, for work and study visas, even though applications can be started online, applicants must also apply in person at Turkish diplomatic missions.

Up-to-date information on the visa regime applicable to each country is available at www.mfa.gov.tr.

Types of Visas

• Tourist visa: For holidays, business meetings, conferences, seminars, fairs, sports or cultural events.
• Transit visa: For traveling through Turkey by land or sea en route to another country.
• Airport transit visa: For passing through a Turkish airport without entering the country.
• Education visa: For study, internships, courses, or exchange programs.
• Work visa: For foreigners who will work in Turkey with a work permit.
• Official duty visa: For diplomats or official couriers.
• Other visas: For research, archaeological excavations, filming, medical treatment, family reunification, transportation, and other specific purposes.

Passport Validity Requirements

To enter Turkey, a passport must be valid for at least 60 days beyond the duration of the visa or residence permit.

• Example: 90-day visa → passport must be valid for at least 150 days.
• Example: 30-day visa → passport must be valid for at least 90 days.

Some Council of Europe member states’ nationals may enter with an ID card, and certain expired passports may be accepted within specific time limits.

General Rules

• Nationals not exempt from visa must apply via the e-Visa system (evisa.gov.tr) or at Turkish diplomatic missions.
• Applications should be made at least 1 month before the planned travel date.
• A visa does not guarantee entry into Turkey.
• Visa fees are non-refundable.
• Valid health insurance covering the duration of stay is mandatory.
• 90/180 rule: Foreigners may stay up to 90 days within a 180-day period.
• Dual passport holders cannot use separate passports to extend this period.
• For stays longer than 90 days, a residence permit must be obtained from the Provincial Directorate of Migration Management.
• Foreigners who remain outside Turkey for more than 120 days within one year will have their residence permits canceled.
• Applicants under 18 must provide parental consent.

Special Cases

• Students: Foreigners enrolled in a Turkish university or higher education institution must apply for a residence permit at the Migration Office after entry.
• Tourists arriving by sea: May stay up to 72 hours without a visa in port cities.
• Work visas: Applications are made through diplomatic missions; approval is granted by the Ministry of Labour and Social Security. Approved work permits also serve as residence permits.
• Work permit exemptions (Article 55): Certain short-term activities such as installation/maintenance work, athletes, artists, or interns are exempt.
• Press members: Those visiting short-term may enter with a tourist visa; a temporary press card may be issued.
• Tour operator representatives: Exempt from work permits for up to 8 months.
• Transport visas: One-year multiple-entry visas may be granted upon submission of required documents.
• Excavations, research, filming, documentaries: Require permission from the Ministry of Culture and Tourism and other relevant authorities.

Obtaining A Work Permit In Türkiye

• Foreigners must have a work permit (issued by the Ministry of Labor and Social Security) to work and reside in Türkiye. Working without it is illegal and penalized.

Permit Types

1. Temporary Work Permit
   • First grant: up to 1 year, tied to a specific employer/workplace/position (and not beyond the contract term).
2. Permanent Work Permit
   • Eligible if you have long-term residence or 8+ years of legal work permit history.
   • Grants most rights similar to Turkish citizens (within relevant legislation).
3. Independent Work Permit
   • For professionals meeting sectoral/legal conditions.
   • Assessment considers education, experience, sci/tech contribution, investment & employment impact, capital share, etc.

How to Apply

• All applications go through the E-Permit System: https://ecalismaizni.csgb.gov.tr/eizin
• Required in all cases: passport, photo, signed employment contract (uploads to the system).

1) Application Inside Türkiye

• Generally need ≥6 months residence permit (unless exempt by the Directorate General of International Labor Force).
• Employer submits the application.
• Uploads: contract, passport (+ sworn translation if not Latin alphabet), diploma (or school declaration for home services), Trade Registry Gazette (latest capital/partners), last year balance sheet & P/L (tax office or CPA certified).
• Note: Work permit cannot start earlier than 60 days before passport expiry (Law 6458 Art. 23).

2) Application From Abroad

• Apply at a Turkish embassy/consulate in country of citizenship/legal residence → receive 16-digit reference → complete online.
• No extra docs sent outside system for approval.
• After approval: must start working within 1 month of entry and within 6 months from the permit’s start date, otherwise permit is revoked.

3) Extension

• Apply via system 60 days before expiry (latest: before expiry). Late submissions are rejected.
• Approval lengths: up to 2 years (first extension), then up to 3 years (subsequent), under the same employer.
• While pending, the foreigner may continue working up to 90 days from permit expiry (same job & workplace). New permit starts the day after the old one ends.

Processing Time

• Duly completed applications are reviewed within 30 days (clock starts at submission; or when requested additional info is uploaded).

Turquoise Card (Unlimited Work + Residence for Family)

• For qualified foreigners (academic merit, strategic fields, major contribution via exports/employment/investment).
• Issued with a 3-year transitional period; must apply to remove the note from 180 days before to no later than the end of the transition. Missed timing → card becomes invalid.
• Spouse and dependent children receive residence rights.

Useful Links

• E-Permit System: https://ecalismaizni.csgb.gov.tr/eizin
• Document guides (domestic/abroad): https://www.csgb.gov.tr/uigm/calisma-izni/basvuru-kilavuzlari/
• Process overview: https://www.csgb.gov.tr/uigm/belgeler/izin-degerlendirme-sureci/
• Legacy info hub: http://www.calismaizni.gov.tr/calisma-izni-hakkinda/calisma-izni-basvurusu/

Foreign nationals in Türkiye are required to obtain residence permits depending on the purpose and length of their stay. These permits are regulated and issued by the Presidency of Migration Management.

1. Short-Term Residence Permit

The most common type of residence permit, granted for various purposes such as research, property ownership, establishing business ties, in-service training, student exchange programs, tourism, or medical treatment.

• Duration: Generally up to 2 years, up to 5 years for investors and TRNC citizens.
• Requirements: Proof of purpose of stay, valid health insurance, address declaration, and other supporting documents.
• Rejection or cancellation: If conditions are not met, used for other purposes, or if a deportation order exists.

2. Family Residence Permit

Granted to the spouse and children of Turkish citizens or foreigners legally residing in Türkiye.

• Duration: Up to 3 years at a time, not exceeding the sponsor’s permit.
• Rights: Provides primary and secondary education rights up to age 18.
• Special cases: Transition to a short-term permit is possible in cases of divorce, death of the sponsor, or upon reaching adulthood.

3. Student Residence Permit

Applies to foreigners pursuing education from primary school to university.

• Duration: Limited to the length of the study program.
• Rights: Higher education students may work with a work permit; for undergraduate students, this right begins after the first year.

4. Long-Term Residence Permit

Available to foreigners who have resided in Türkiye continuously for at least 8 years.

• Duration:
• Rights: Provides most rights similar to Turkish citizens, except for military service, voting, and certain public duties.
• Cancellation: Possible if posing a threat to public order/security or staying abroad for long periods without valid reason.

5. Humanitarian Residence Permit

Issued in exceptional cases such as protecting the best interests of children, when deportation cannot be enforced, during emergencies, or for reasons of national interest.

• Duration: Determined with the approval of the Ministry and extendable.
• Conditions: Exempt from requirements applied to other residence permits.

6. Residence Permit for Victims of Human Trafficking

Provided to foreigners who are victims or potential victims of human trafficking.

• Duration: Initially 30 days, extendable in 6-month periods up to a maximum of 3 years.
• Conditions: Does not require the standard conditions of other residence permits.

Reliability and Regulation

Türkiye’s banking system operates within a strong regulatory framework aligned with national and international standards.

• Banking Regulation and Supervision Agency (BRSA): Regulates and supervises banking activities.
• Central Bank of the Republic of Türkiye (CBRT): Implements monetary policy, ensures price stability, and safeguards financial stability.
• Capital Markets Board (CMB): Regulates and supervises the capital markets.
• Borsa İstanbul (BIST): Provides an open platform for international investors with equities, bonds, and derivative products.

This institutional structure ensures transparency, legal assurance, and predictability for investors.

Diversity and Alternative Finance

Türkiye’s financial system is not limited to traditional banking.

• Participation banking (Islamic finance): Based on interest-free banking principles, offering investors alternative financing and investment instruments.
• Sukuk (lease certificates): Islamic bond-like instruments that provide diversified portfolio opportunities for both domestic and international investors.

This diversity makes Türkiye’s financial system more flexible and inclusive.

International Integration

Türkiye’s banking sector is strongly integrated into the global financial system.

• Foreign-owned banks are actively operating in Türkiye.
• Banks prepare reports in compliance with international auditing and accounting standards.
• Türkiye aligns with the financial transparency criteria of organizations such as the OECD, IMF, and World Bank.

Within this framework, investors find an environment in Türkiye’s banking sector that complies with international standards.