Company Formation Turkey - Atlas Global Denetim

Company Formation in Turkey: A Gateway to Global Markets

The Principle of Equal Treatment

Turkey’s Foreign Direct Investment (FDI) Law is built on a foundation of equality. International investors enjoy the exact same rights, protections, and liabilities as local entrepreneurs. This “equal treatment” principle ensures a level playing field, making Turkey one of the most investor-friendly hubs in the region.

A Modern Legal Framework (TCC)

Whether you are launching a startup or a large-scale subsidiary, the Turkish Commercial Code (TCC) provides a robust and transparent structure. Aligned with European Union (EU) legislation and international corporate governance standards, the TCC:

Promotes transparency and accountability in management.
Facilitates private equity investments and public offerings.
Simplifies share transfers and business scaling.
Ensures a business environment compatible with global markets.

Streamlined Business Setup: The ‘One-Stop-Shop’ Model

Thanks to major regulatory reforms, starting a business in Turkey is faster and more cost-effective than ever. By eliminating bureaucratic “red tape,” the government has centralized the entire incorporation process.

Today, company formation is handled exclusively at Trade Registry Offices located within Chambers of Commerce. Operating as a “one-stop shop,” these offices allow investors to complete registration procedures quickly, minimizing both time and administrative costs.

Start Your Journey with Atlas Global Audit and Accounting LLP

Navigating the legal requirements of a new market can be complex. At Atlas Global Audit and Accounting LLP, we provide end-to-end support for company formation in Turkey, ensuring your business is set up for long-term success. Contact us today to take the first step.

TYPES OF COMPANY IN TURKEY

What is a Holding Company?

A holding company is a primary legal entity designed to own and manage the outstanding shares of other corporations. Unlike traditional operating businesses, holding companies generally do not engage in the direct production of goods or the delivery of services. Instead, they serve as a centralized hub for investment and strategic oversight.

The Purpose and Advantages

Large-scale enterprises and multi-sector organizations utilize holding structures to streamline their operations and enhance financial agility. The key benefits of establishing a holding company include:

Capital Mobility: Facilitating the seamless flow of capital between various subsidiaries.
Asset Protection: Minimizing risks by separating the ownership of assets from the operational risks of subsidiary companies.
Efficient Ownership Transfer: Simplifying the process of buying, selling, or transferring business units within the group.
Tax Optimization: Providing strategic advantages in consolidated financial reporting and dividend distributions.

Maximize Your Corporate Efficiency

Establishing a holding structure requires precise legal and financial planning. At Atlas Global Audit and Accounting LLP, we provide expert guidance on corporate restructuring, tax planning, and the legal framework of holding companies in Turkey. Let us help you build a solid foundation for your business empire.

Establishing a Joint Stock Company (JSC) in Turkey

The Joint Stock Company (Anonim Şirket – A.Ş.) is the most sophisticated corporate structure in Turkey, ideal for large-scale operations and businesses planning to go public or issue shares.

Shareholding and Participation

Flexible Ownership: A JSC can be incorporated with a minimum of one shareholder.
International Friendly: Shareholders can be individuals or legal entities, and there are no restrictions on foreign nationality. 100% foreign ownership is permitted.

Capital Requirements

Minimum Capital: To establish a standard JSC, a minimum share capital of 250,000 TRY is required. (For companies adopting the registered capital system, the minimum is 500,000 TRY).
Payment Term: Usually, 25% of the nominal value of the shares subscribed in cash must be paid before registration, with the remaining 75% paid within 24 months.

Key Advantages of a JSC

Stock Certificates: Unlike Limited Liability Companies (LLC), a JSC can issue stock certificates (registered or bearer). This offers significant advantages in terms of ease of share transfer and potential tax exemptions for long-term holdings.
Limited Liability: The liability of shareholders is strictly limited to their capital contribution. This provides a secure shield for personal assets against corporate debts.

Corporate Governance

A Joint Stock Company operates through three primary organs:

General Assembly: The decision-making body where shareholders exercise their rights.
Board of Directors (BoD): Responsible for the administration and representation of the company.
Auditing: JSCs are subject to independent or statutory audit requirements depending on their size and industry.

Expert Incorporation Services
At Atlas Global Audit and Accounting LLP, we provide comprehensive legal and financial consultancy to ensure your JSC is established in full compliance with the Turkish Commercial Code. Contact us to launch your business in Turkey with confidence.

Establishing a Limited Liability Company (LLC) in Turkey

The Limited Liability Company (Limited Şirket – Ltd. Şti.) is the most preferred business legal entity in Turkey, especially for small to medium-sized enterprises (SMEs), due to its flexible management and simplified administrative requirements.

Key Requirements and Ownership

Simple Structure: An LLC can be incorporated with as little as one shareholder.
Global Participation: Founders can be individuals or legal entities. Turkish law allows for 100% foreign ownership, enabling international investors to maintain full control of their operations.
Minimum Capital: As of the latest regulations, a minimum share capital of 50,000 TRY is required to establish an LLC in Turkey.

Why Choose an LLC?

Ease of Incorporation: Compared to a Joint Stock Company (JSC), the process of setting up and managing an LLC is more straightforward, with less bureaucratic complexity.
Operational Flexibility: The internal governance of an LLC is highly adaptable, making it ideal for businesses that require quick decision-making.
Limited Liability: The liability of shareholders is generally limited to the amount of capital they have contributed to the company.

Corporate Governance and Limitations
An LLC operates through two main organs:

General Assembly: The ultimate decision-making body comprising all shareholders.
Board of Managers: Responsible for the daily management and legal representation of the company.

Note: Unlike Joint Stock Companies, an LLC cannot issue stock certificates. Share transfers in an LLC must be notarized and registered with the Trade Registry to be legally binding.

Partner with Experts
Navigating the incorporation process requires local expertise to ensure full legal compliance. At Atlas Global Audit and Accounting LLP, we specialize in helping foreign investors establish their LLCs in Turkey efficiently and securely. Contact us today to begin your business journey.

Foreign Company Branches in Turkey

A branch office is an ideal structure for foreign companies that wish to conduct commercial activities in Turkey without establishing a separate legal entity. As a direct extension of the parent company, a branch operates under the same legal name and credit standing.

Flexibility in Management and Closure
One of the key advantages of a branch is its operational flexibility. The parent company’s management body (e.g., the Board of Directors for a JSC) maintains full control and may decide to close the branch at any time via a formal resolution

Registration: Both the opening and closing of a branch must be registered with the relevant Trade Registry.
Announcement: All resolutions must be officially announced in the Turkish Trade Registry Gazette to ensure legal transparency.
Simplified Governance: Following recent 2024 amendments, the appointment and dismissal of branch managers have been simplified to increase administrative efficiency.

Strategic Support: At Atlas Global Audit and Accounting LLP, we manage the entire lifecycle of your branch office, from initial Ministry of Trade approval and MERSIS registration to tax compliance and liquidation procedures.

Free Trade Zone (FTZ) Company Formation in Turkey

Turkey’s Free Trade Zones are premier hubs designed to boost export-oriented investments by offering an exceptional legal and fiscal environment. Establishing a company within an FTZ provides global entrepreneurs with a competitive edge through significant tax exemptions and logistical advantages

Unparalleled Incentives for 2026
Companies operating in Turkish Free Trade Zones benefit from a robust incentive package, including:

100% Corporate Tax Exemption: Manufacturing companies exporting their products are entirely exempt from corporate income tax
VAT and Customs Duty Waiver: Goods and services entering the zones are exempt from Value Added Tax (VAT) and customs duties.
Income Tax Advantages: Companies exporting at least 85% of their production (FOB value) enjoy a 100% income tax exemption on employee wages.
Full Foreign Ownership: Investors can establish companies with 100% foreign capital and transfer profits abroad without any restrictions.

Our Expertise: Setting up in a Free Trade Zone requires specialized knowledge of zone-specific regulations. Atlas Global CPA (Atlas Global Audit and Accounting LLP) provides end-to-end solutions for foreign entrepreneurs, ensuring you maximize available incentives while maintaining full regulatory compliance.

Compliance and Closure of Liaison Offices in Turkey

To maintain a legal presence in Turkey, liaison offices must strictly adhere to the regulatory framework set by the Ministry of Industry and Technology. Failure to comply with these regulations may result in the revocation of the activity permit.

Revocation of Permits
The Ministry reserves the right to cancel the activity permits of liaison offices under the following circumstances:

Engaging in Commercial Activities: As liaison offices are strictly prohibited from generating revenue or conducting trade, any commercial engagement will lead to the immediate revocation of their license.
Reporting Failures: Liaison offices are required to submit an Annual Activity Report to the Ministry within the prescribed timeframes. Failure to file these reports regularly and on time is a primary cause for permit cancellation.

Voluntary Closure
The parent company retains the right to close its Turkish liaison office at its discretion. In such cases, a formal notification must be submitted to the Ministry of Industry and Technology, followed by the necessary deregistration procedures.

Expert Compliance Support
Ensuring your office remains in good standing requires meticulous administrative follow-up. At Atlas Global Audit and Accounting LLP, we provide comprehensive support for the preparation of annual reports and ensure your operations remain fully compliant with Turkish laws.

Non-Profit Organizations in Turkey: Foundations, Associations, and NGOs

Turkey offers a diverse legal landscape that not only encourages commercial investments but also supports the establishment of non-profit entities. Foreign individuals and legal entities have the right to set up organizations for social, charitable, educational, or cultural purposes, provided they comply with local regulations.

Legal Framework and Structure
The establishment and operation of non-profit organizations (NGOs) in Turkey are primarily governed by two main pillars:

Foundations (Vakıf): Governed by the Foundations Law (Law No. 5737) enacted in 2008. Foundations are characterized by the dedication of specific assets or capital to a particular social cause.
Associations (Dernek): Governed by the Associations Law (Law No. 5253). These are membership-based organizations formed by at least seven individuals or legal entities to achieve a common non-profit goal.

Participation of Foreigners
Foreign entrepreneurs and international companies can establish foundations or associations in Turkey, or become members of existing ones. This allows international organizations to conduct corporate social responsibility (CSR) projects or philanthropic activities within the country under a secure legal umbrella.

Expert Guidance on NGO Governance

Establishing an NGO involves complex registration processes, tax exemption applications, and strict financial reporting requirements. At Atlas Global Audit and Accounting LLP, we provide specialized consultancy on:

The formation and registration of Foundations and Associations.
Obtaining “Public Benefit” status and tax exemptions.
Financial auditing and compliance with the Ministry of Interior and the General Directorate of Foundations.

Cooperative Companies in Turkey: Collaborative Business Models

A Cooperative (Kooperatif) is a distinct legal entity designed to protect and promote the specific economic interests and social needs of its partners through mutual aid and solidarity. While they serve a different purpose than purely commercial entities, their administrative integration into the Turkish business environment is highly efficient.

Establishment and Procedures

While Cooperatives are governed by the Cooperatives Law (No. 1163), the practical steps for their incorporation align closely with those of Joint Stock Companies (JSC) and Limited Liability Companies (LLC).

Unified Registration: Like other corporate forms, cooperatives are registered through the Trade Registry at Chambers of Commerce, utilizing the “One-Stop-Shop” system for speed and efficiency.
Key Differences: Although the registration process is similar, cooperatives differ in terms of minimum capital requirements, the structure of their governing organs, and their focus on partner-based benefit rather than just profit maximization.
Governance: Cooperatives feature a unique management structure that ensures democratic participation of all members.

Strategic Guidance for Cooperatives

Setting up a cooperative requires a deep understanding of specific sectoral regulations. At Atlas Global Audit and Accounting LLP, we provide expert consultancy on cooperative formation, bylaws preparation, and financial auditing to ensure your collective enterprise stands on a solid legal foundation.