Establishing a Limited Liability Company (LLC) in Turkey has become one of the most strategic moves for entrepreneurs aiming to expand into Europe, the Middle East, and Asia. With its investor-friendly legal framework, competitive tax advantages, and streamlined company formation procedures, Turkey offers an ideal environment for both local and foreign investors. In this guide, we’ll walk through the essential steps, requirements, and benefits of setting up an LLC in Turkey.

Understanding the Turkish LLC Structure

A Limited Liability Company (known as Limited Şirket in Turkish) is the most common type of business entity in Turkey. It’s suitable for small to medium-sized enterprises and foreign investors looking to establish a flexible yet secure business presence.

An LLC in Turkey can be founded by a single shareholder, whether an individual or a legal entity, and the minimum share capital requirement is 10,000 TRY. The liability of shareholders is limited to their capital contribution, making this model attractive for reducing personal risk while maintaining control over business operations.

Step-by-Step Process of LLC Registration

Registering a Limited Liability Company (LLC) in Turkey is a transparent and well-regulated process governed by the Turkish Commercial Code. Each step is designed to ensure the company operates within a clear legal framework and is ready to conduct business in compliance with national standards. Below is a detailed explanation of each stage involved in the company formation process.

1. Company Name Reservation

The first step in forming an LLC is selecting a unique company name. The name must comply with the rules of the Turkish Trade Registry Gazette, meaning it cannot duplicate or closely resemble existing registered entities. Additionally, it must accurately reflect the nature of the business and may include certain descriptive terms (e.g., “Technology,” “Consulting,” or “Software”) to clarify the company’s scope.

Once the name is chosen, it is reserved temporarily until the registration process is complete. During this stage, IncorpTurkiye assists clients in verifying name availability and ensuring full compliance with Turkish naming conventions.

2. Preparation of the Articles of Association (AoA)

The Articles of Association serve as the company’s foundational document. It defines essential details such as the company’s business activities, shareholding structure, registered address, capital contribution of each shareholder, and the roles and responsibilities of directors.

This document must be drafted in accordance with Turkish Commercial Law and then notarized by a Turkish notary public. The notarization ensures that the document holds legal validity and can be submitted to the Trade Registry.

At this stage, IncorpTurkey’s legal advisors ensure that the Articles of Association align with both the client’s business objectives and Turkish legal requirements, avoiding costly revisions later in the process.

3. Capital Deposit and Bank Account Setup

Before registration, a portion of the company’s capital—at least 25% of the declared capital (minimum 10,000 TRY)—must be deposited into a temporary bank account opened in the company’s name. This serves as proof of financial readiness and demonstrates the company’s commitment to its initial investment.

After the company is officially registered, this temporary account can be converted into a permanent corporate bank account. The remaining 75% of the capital may be contributed within 24 months following incorporation.

IncorpTurkey facilitates this entire process, from liaising with local banks to assisting in account setup for foreign shareholders who may not yet be present in Turkey.

4. Application to the Turkish Trade Registry

Once all documentation is prepared, including notarized Articles of Association, shareholder identification, and proof of capital deposit, the application is submitted to the Turkish Trade Registry Office.

The Trade Registry reviews the submission to ensure that all legal requirements have been met. Upon approval, the company is officially registered and receives a Certificate of Incorporation (Ticaret Sicil Tasdiknamesi). This certificate formally establishes the company as a legal entity in Turkey.

In most cases, the Trade Registry also automatically notifies relevant governmental bodies, including the Tax Office and the Social Security Institution (SGK), simplifying the subsequent registration steps.

5. Tax Office and Social Security Registration

Following incorporation, the new company must be registered with the local Tax Office to obtain its tax identification number. This number is required for all financial transactions, including invoicing, payroll processing, and banking.

If the company intends to hire employees, it must also register with the Social Security Institution (SGK) to ensure compliance with labor laws and social insurance requirements.

IncorpTurkey handles these formalities on behalf of clients, ensuring a smooth transition from registration to operational readiness without bureaucratic delays.

6. Setting Up a Virtual or Physical Office

Under Turkish law, every LLC must have a registered business address. This address is where official correspondence and legal notices will be sent. While some companies opt for physical office spaces, many international entrepreneurs prefer virtual offices, which are fully compliant and recognized by the Trade Registry.

Virtual offices provide cost efficiency and flexibility, especially for businesses that operate remotely or do not require a physical presence during their initial stages.

IncorpTurkey provides virtual office solutions in key Turkish business hubs such as Istanbul, Ankara, and Izmir, enabling foreign investors to fulfill address requirements instantly and start operations without logistical obstacles.

Documents Required for LLC Formation

To ensure a smooth registration process, foreign investors must prepare the following documents:

• Passport copies of shareholders and directors
• Proof of address (utility bill or bank statement)
• Power of Attorney (if the process is managed by a local representative)
• Draft of the Articles of Association
• Proof of capital deposit

All foreign documents must be notarized and apostilled before submission.

Taxation and Financial Obligations

Turkish LLCs are subject to corporate income tax at a rate of 25% (as of 2025), though certain industries benefit from tax incentives and exemptions—especially those operating in Technoparks, Free Trade Zones, or R&D Centers.

Additionally, dividend distributions are subject to a 10% withholding tax, and VAT (Value Added Tax) generally applies at 20% for most services and goods.

LLCs must also maintain accurate accounting and bookkeeping records, submit annual financial reports, and comply with Turkish tax filing deadlines.

Benefits of Establishing an LLC in Turkey

Setting up a Limited Liability Company (LLC) in Turkey presents numerous strategic, financial, and operational advantages for both local entrepreneurs and international investors. Turkey’s investor-friendly regulatory environment, combined with its strategic location and access to incentives, makes it one of the most attractive destinations for business establishment. Below is a comprehensive look at the key benefits of forming an LLC in Turkey.

1. Full Foreign Ownership

Unlike many emerging markets, Turkey allows 100% foreign ownership in most sectors without requiring a local partner or shareholder. This liberal investment policy enables international entrepreneurs to retain full control over their business operations, strategic decisions, and profits.

Foreign investors can establish and manage an LLC under the same legal conditions as Turkish citizens, ensuring equality in business rights and protection under the Turkish Commercial Code. This policy has been a major driver in attracting global startups, technology firms, and exporters seeking a stable and transparent environment for expansion.

Through IncorpTurkey’s support, investors can easily navigate the legal framework, ensuring compliance while maintaining complete ownership and operational independence.

2. Limited Liability Protection

One of the most compelling reasons to establish an LLC in Turkey is limited liability protection. In this structure, shareholders’ financial responsibility is restricted solely to their capital contributions. In other words, personal assets are safeguarded against any company debts or obligations.

This protection makes LLCs particularly attractive for entrepreneurs and foreign investors who wish to minimize personal financial risk while still benefiting from the flexibility and advantages of private business ownership.

The limited liability model is ideal for startups, SMEs, and international investors who seek to test new markets with reduced financial exposure.

3. Flexible Management Structure

An LLC in Turkey offers a highly flexible governance structure, accommodating both single and multiple shareholders. The company can be managed by one or more directors, who may be Turkish nationals or foreign citizens. There is no legal requirement for a local director or partner, providing full managerial freedom to foreign business owners.

This flexible framework allows companies to adapt quickly to operational changes, scale efficiently, and appoint directors based on strategic expertise rather than nationality.

Furthermore, management decisions can be made remotely, enabling global investors to run their Turkish operations seamlessly with the help of IncorpTurkey’s local representation and administrative support.

4. Access to Government Incentives and Tax Advantages

Turkey’s government actively promotes foreign direct investment through an array of incentives and grants. Registered LLCs can qualify for various programs, including R&D tax exemptions, export incentives, and investment support schemes offered by the Ministry of Industry and Technology and the Turkish Investment Office.

Companies operating within Technoparks (Technology Development Zones) or Free Trade Zones enjoy additional privileges such as corporate tax exemptions, VAT exemptions, and reduced customs duties. Businesses engaged in software, gaming, and technology development may also benefit from income tax exemptions for employees and social security premium support.

These incentives not only reduce the cost of doing business but also enhance long-term profitability and global competitiveness. IncorpTurkey helps its clients identify and apply for the most suitable incentive programs to maximize these financial advantages.

5. Strategic Geographic Location

Turkey’s unique geographic position—bridging Europe, Asia, and the Middle East—offers unparalleled access to some of the world’s most dynamic markets. With its proximity to over 1.5 billion consumers across Europe, North Africa, and Central Asia, Turkey serves as an ideal hub for logistics, manufacturing, and export-oriented businesses.

The country’s modern infrastructure, advanced transportation networks, and access to major seaports and trade routes further enhance its appeal as a regional business center.

Many international companies use Turkey as a gateway to the EU and MENA regions, benefiting from its Customs Union with the European Union and extensive network of free trade agreements. This makes Turkey not only a strong domestic market but also a powerful export base for global expansion.

6. Favorable Business Environment and Growing Economy

Turkey’s steadily growing economy, supported by a young and skilled workforce, creates a fertile ground for business success. The government continues to implement reforms aimed at simplifying company registration, reducing bureaucracy, and improving digital accessibility for investors.

The Turkish banking system and financial infrastructure are highly developed, allowing companies to manage international transactions efficiently and with strong currency convertibility.

With low corporate tax rates, transparent regulations, and robust investment protection laws, Turkey provides a secure and competitive environment for businesses of all sizes.

7. Ease of Establishment and Operational Flexibility

Establishing an LLC in Turkey is a streamlined and efficient process, typically completed within 5 to 10 working days with the right documentation. The entire process—from company name reservation to tax registration—can be managed remotely through a power of attorney, allowing foreign investors to establish their presence without needing to be physically in Turkey.

Once established, LLCs have the flexibility to expand operations, hire foreign employees, open branch offices, or convert to joint-stock companies as the business grows.

IncorpTurkey simplifies these steps by managing all incorporation procedures, ensuring full compliance, and providing end-to-end administrative support.

An LLC structure in Turkey offers the perfect balance between flexibility, security, and scalability. Whether the goal is to establish a tech startup, export-oriented company, or regional branch of an international firm, Turkey’s legal and economic framework provides all the right conditions for growth.

IncorpTurkey stands as a trusted partner throughout this journey, offering legal expertise, tax advisory, and personalized business formation services. By combining local knowledge with international standards, IncorpTurkey ensures that every investor can establish, operate, and expand their business in Turkey with confidence and success.

Timeline and Cost Overview

The process of registering an LLC in Turkey typically takes 5 to 10 working days, depending on the completeness of documentation and the selected city of registration.

The total cost may vary based on notary fees, translation costs, legal representation, and office setup, but it generally remains competitive compared to other European jurisdictions.

IncorpTurkey’s Expertise in Company Formation

IncorpTurkey specializes in helping foreign entrepreneurs and investors navigate the entire LLC registration process seamlessly. From preparing documentation and managing government applications to providing virtual office solutions and tax consultancy, IncorpTurkey ensures compliance, efficiency, and peace of mind at every stage.

With deep expertise in Turkish corporate law, IncorpTurkey acts as a one-stop business partner, enabling investors to establish and operate their companies in Turkey with confidence and strategic advantage.