Company Formation in Turkey: Updated Guide for Foreign Investors (2025)

Turkey’s Foreign Direct Investment Law is based on the principle of “equal treatment,” granting international investors the same rights and obligations as local ones. Accordingly, company formation and share transfer procedures are identical for both foreign and domestic investors.

With reforms that streamline bureaucracy, all company registration steps are now handled through a “one-stop shop” at the Trade Registry Offices within Chambers of Commerce, often completed on the same day. The legal framework is set by the modern, investor-friendly Turkish Commercial Code (TCC), aligned with EU standards.

Company Types under the TCC

1. Capital Companies (with legal personality)
   • Joint Stock Company (A.Ş.): Suitable for large projects and potential IPOs; requires a minimum capital and a board of directors.
   • Limited Liability Company (Ltd. Şti.): Most popular for SMEs; lower capital requirement, more flexible structure.
   • Partnerships Limited by Shares: A hybrid model combining features of capital and personal companies.
2. Personal Companies (with limited or no legal personality)
   • General Partnership
   • Limited Partnership
     Note: “Ordinary Partnership” is regulated under the Turkish Code of Obligations, has no legal personality, and is typically used for project-based collaborations.

Thanks to this flexible legal system, foreign investors can establish the most suitable company structure and quickly start operations in Turkey.