How to establish a limited company in Türkiye?
HOW TO ESTABLISH A LIMITED COMPANY IN TURKEY?
A limited company is one of the most preferred types of company in Turkey due to its high commercial reputation, the prestige it provides, and many other reasons. The word "limited" means limited. The term "limited company" also refers to a commercial enterprise established as a limited partnership structure.
In Turkey, a limited company can be established by a single partner. A limited company is established with a minimum of one and a maximum of fifty partners. The legal liability of the equity partners of a limited company is limited to the percentage of their capital invested in the company. In other words, the equity partners of the company are not unlimitedly liable for the company's debts and financial obligations with their personal assets. In this form, the limited company structure protects the equity partners from debts and liabilities arising from the company's activities.
Limited companies in Turkey stand out with their relatively easy establishment process, the absence of a paid-in capital requirement, and their flexible structure. In this article, we have compiled frequently asked questions about the characteristics of a limited company, the establishment process, the cost of establishment, and the monthly expenses. If you've decided to establish a limited company for your commercial activities, you can review the details to learn about the advantages, requirements, establishment costs, and establishment processes of a limited company.
WHAT IS A LIMITED COMPANY?
A limited company is established using a limited partnership structure. A limited company can be established by both individuals and legal entities. The company can include both individuals and legal entities as partners. It is established under a single trade name with a minimum of one and a maximum of fifty partners. The operating capital of a limited company is written and registered in the company's articles of association. The company's capital consists of the total shares of the company's shareholders. Shareholders are not liable for debts incurred as a result of the company's operations. The limited partnership form also ensures that shareholders' liability is limited. Shareholders/partners are responsible for the payments and obligations specified in the company's articles of association. It's important to note here that if there are uncollectible public debts (tax debts, public receivables, etc.) from the company, the shareholders are liable for these debts in proportion to their share of the capital. However, the legal representative/director of a limited company is unlimitedly liable, together with their share of the capital, for public debts.
Limited companies have two bodies: the "General Assembly" and the "Board of Directors." At the general assembly, all shareholders have a say in all decisions regarding the company's operations. Critical issues affecting the company's future, such as the election of directors, amendments to the company's articles of association, dissolution of the company, or the appointment of an independent auditor, are decided at the general assembly. The general assembly is the highest body where all shareholders participate in company management and decisions are made. The board of directors, on the other hand, is the body that makes decisions regarding the daily processes of the company's operations. At the board of directors, decisions are made by directors authorized by the general assembly. Company activities can be managed by a single director, or multiple directors can be appointed from partners or employees, depending on needs and desires. There is no limit to the number of directors, provided at least one director is a shareholder.
WHAT ARE THE FEATURES OF A LIMITED COMPANY?
The features of a limited liability company are summarized below. By reviewing these articles, you can obtain detailed information about the company structure.
1. A single person can establish a limited liability company and serve as its director. However, it can also be established with more than one person. A limited liability company can be established with a maximum of fifty partners.
2. A limited liability company can be established by individuals or legal entities. Other companies can become partners in a limited liability company as legal entities.
3. A limited liability company must be established with a minimum capital of 50,000 TL. The company's capital is stated in the articles of association when establishing the company. It is not mandatory for capital to be available during the establishment process. According to the law, a bank account must be opened for the company and the company's capital deposited within 24 months of its incorporation. In addition, the partners may, if they wish, specify the capital payment schedule in the articles of association. Or, they can add a provision to the articles of association stating, "The company's capital will be paid on the date requested by the directors."
4. The company's capital shareholders are not liable for the company's debts with their personal assets. Shareholders are responsible for the payment of the capital they subscribed to the company. However, if the company has unpaid public debts, the company's legal representative (DIRECTOR) is jointly and severally liable for the public debts.
5. Limited companies are established with an articles of association that determine their operations. The articles of association include all details such as the company's shareholders, address, capital, field of activity, and shareholding ratios. The articles of association are registered with the Trade Registry during the incorporation process and published in the Trade Registry Gazette.
6. If a shareholder in a limited company wishes to transfer (sell) their share in the company, they must obtain approval from the general assembly, i.e., the other shareholders. If the general assembly does not approve, shareholders cannot transfer their shares to third parties.
7. In limited companies, the shareholders' shares must be recorded in the articles of association. Having the shares recorded in the articles of association ensures a solid and transparent limited company structure.
WHY ARE LIMITED COMPANIES PREFERRED IN TURKEY?
The primary reason why limited companies are among the most preferred types of companies in Turkey is the commercial prestige and corporate image they provide. Limited companies have a high commercial reputation with stakeholders such as banks, financial institutions, customers, and suppliers. Limited companies, which can be established by a single person, offer many advantages to entrepreneurs who do not need a partner for their business activities. Furthermore, their limited liability makes them a popular choice for many investors. Compared to joint-stock companies, establishment procedures and bureaucratic procedures are less complex. Simply listing the company's capital in the articles of association is sufficient to establish a limited company. Another reason for their preference is that there is no capital payment requirement during the company registration process.
From a tax perspective, limited companies are subject to corporate tax and have flat-rate income taxes, which is a reason many entrepreneurs prefer them. Compared to sole proprietorships, the income tax rate for sole proprietorships can rise as high as 40% as income increases. However, regardless of the revenue growth of a limited company, the corporate tax rate on income is a flat 25% (20% in some sectors). This feature offers a tax advantage, especially for medium- and large-scale businesses. In limited companies, important issues affecting the company's future are decided by majority vote at the general assembly. A democratic and transparent management structure is among the advantages of a limited company.
WHAT DOCUMENTS ARE REQUIRED TO ESTABLISH A LIMITED COMPANY IN TURKEY?
The documents required for the establishment and registration of a limited company are as follows: 
1. Photocopies of the company partners' IDs. If there is a foreign partner, a passport translation and potential tax identification number. If there is a legal entity partner, a registration certificate.
2. 3 passport-sized photographs of the partners.
3. Office lease agreement
4. If the establishment process is to be carried out by power of attorney, a notarized power of attorney
5. Articles of association, which specify the company's name, shareholders, address, capital, shareholding ratios, directors, and other information
6. Trade registry establishment notification form
7. Chamber registration declaration
8. Establishment application petition
NOTE: We prepare the articles of association and chamber of commerce registration documents for limited liability companies. Simply submitting ID images, photographs, and company establishment information is sufficient for the partners. All other processes are handled by our expert team.
HOW TO ESTABLISH A LIMITED COMPANY IN TURKEY?
The establishment and registration of a limited company is easy in Turkey. By following the steps below, you can easily establish your limited company. You should pay attention to some important requirements for establishing a limited company and conducting commercial activities. If you're curious about the details of the establishment process, you can learn about the requirements by reviewing the steps below.
STEP 1: Determining the Limited Company Name
To establish a limited company, you must first determine a company name. The company name should not be the same or too similar to another registered company. The company name should include at least one sector/business subject. Example business subjects include: textile, food, automotive, metal, consulting, education, engineering, etc. When choosing a limited company name, certain words are subject to the approval of the Council of Ministers. To use words like "Turkish," "National," "Turkey," and "Republic," you must first obtain permission from the Council of Ministers.
STEP 2: Determining the Limited Company Address
A business address is required for establishing a limited company. Limited companies can be established at a specific address. This address could be an office, shop, store, warehouse, workshop, etc., that you will use for your operations. If you intend to conduct your limited company operations in a specific workplace, you must first rent the workplace. If you don't need a physical workplace for your business activities, you can alternatively rent a virtual office address at an affordable cost. Renting a virtual office address is legal. You will receive an invoice for your virtual office rental services. You will also not be charged with withholding taxes, invoices, or secretary fees. You can move your company address to a different address at any time.
STEP 3: Determining the Correct Address to Receive Services for Establishing a Limited Company
The most important aspect entrepreneurs should consider when establishing a limited company is determining the correct address to receive support for the company's incorporation and subsequent monthly financial processes. An experienced and dynamic team in the limited company establishment process prepares all the incorporation documents, registers your company properly, completes all legal procedures, helps you take advantage of incentives and discounts related to your business, provides you with accurate guidance, and always guides you to avoid various cost traps. However, choosing incompetent individuals who lack sufficient experience and expertise simply because they're cheap or familiar will do more harm than good to your business. Tax regulations and laws in Turkey are dynamic. In this dynamic environment, a hard-working and experienced team will always propel you forward.
HOW MUCH DOES LIMITED COMPANY FORMATION COST IN TURKEY?
The costs of establishing a limited company in Turkey vary annually. This is due to changes in trade registry and notary fees at the beginning of the year due to inflation. The minimum capital requirement for a limited company is limited by law. This minimum capital requirement is at least 50,000 TL. In other words, limited companies are established with a minimum capital of 50,000 TL. There is no upper limit on the capital requirement. There is no requirement for the capital to be paid when establishing the company.
Besides the capital, registration costs are also incurred. The main expenses incurred in establishing a limited company are: Chamber of Commerce registration and announcement fees, Competition Authority fees for the company's capital, notary fees, service fees for preparing the company's incorporation and articles of association, company stamps, and stamp duty on lease agreements. These costs may vary slightly depending on the city in which you wish to establish the limited company. The main reason for this difference is the differences in registration fees between chambers of commerce in each city. The cost of establishing a limited company is a one-time expense. Once the company is established and a tax certificate is obtained, you will not need to pay the same expenses again. The minimum costs for establishing a limited company are approximately as follows:
Chamber of Commerce registration and announcement fee and Competition Authority fee: $215. Approximately. Determined based on needs.
Notary fees: $225. Approximately. Determined based on needs.
Company establishment and articles of association preparation service fee: $200
Sworn translator service fee: $100
Company stamps: $7
Stamp duties on contracts: $5
TOTAL COST OF ESTABILIZED COMPANY ESTABILIZATION IN TURKEY: Approximately $752.
Note: This cost is the minimum cost for establishing a limited company in Istanbul, based on 2025 data. All establishment costs are included. The cost will be determined based on the number of partners, number of fields of activity, number of directors, and the company's needs.
To receive a FREE, up-to-date and detailed cost statement for your business, please send us a message via WhatsApp or email with the following information:
• Number of partners in the limited company
• Nationality of the partners
• Do the partners speak Turkish?
• Field of activity and scope of work
• Company address
• What will the company's capital be?
• If you don't have a physical workplace, would you like us to provide a virtual office?
• Will you be hiring? (If yes, how many people?)
• Will you be importing?
• Will you be exporting?
• How many average monthly invoices will you be issuing?
• Please explain any special information you'd like to add.
Once you provide this information, we will send you a detailed and up-to-date statement that includes all establishment costs.
THE MOST FREQUENTLY ASKED QUESTIONS ABOUT LIMITED COMPANIES IN TURKEY:
The most frequently asked questions about the characteristics, establishment process, and costs of limited companies are as follows.
1- Can a Single Person Establish a Limited Company in Turkey?
A single person can establish a limited company. They can be a manager of the company and manage the company. It is not necessary to find a partner or employ employees to establish a limited company. This feature allows entrepreneurs who do not need a partner for their commercial activities to operate with a corporate image through a limited company they establish on their own.
2- How Much Capital is Required to Establish a Limited Company in Turkey?
A limited company has a registered share structure. Each shareholder is liable in proportion to the share of capital they invested in the company. The minimum capital required for establishing a limited company is set by law. In 2025, this limit is 50,000 TL. In other words, a limited company can be established with a minimum capital of 50,000 TL. To establish a limited company, it is sufficient to have the company's capital stated in the company's articles of association. There is no requirement to block capital with a bank. Joint-stock companies, another type of capital company, require a minimum capital requirement of 250,000 TL, and at least one-quarter of the capital must be blocked in a bank account during the incorporation phase. In this respect, limited companies are more advantageous.
3- Can Foreigners Establish a Limited Company in Turkey?
There are no legal restrictions on foreign citizens establishing a limited company in Turkey. Foreigners, regardless of their nationality, can establish a limited company in Turkey with a valid passport. They can become managers of the company they establish. Foreign citizens have the same rights and obligations as Turkish citizens regarding the establishment and management of a limited company. However, there may be some additional procedures for establishing a limited company for foreigners. Furthermore, if the foreigner does not speak Turkish, the process is carried out with the assistance of an authorized sworn translator.
When foreign citizens arrive at our office with their passports, we prepare all the incorporation documents. We establish the limited company within a few days.
4- What are the Tax Rates for Limited Liability Companies in Turkey?
Limited liability companies are not subject to income tax. The fact that a limited liability company is subject to corporate tax is a significant factor for many entrepreneurs. The corporate tax rate for a limited liability company is 25% in 2025. For export and manufacturing companies, this rate is reduced to 20%. Regardless of how much a limited liability company's income increases, the corporate tax rate remains constant. It is fixed. If a limited liability company were subject to income tax, it would be subject to income tax. In this case, as income increases, the income tax rate would also increase. In this respect, limited liability companies have an advantage due to their fixed tax rate as income increases.
Limited liability companies stand out from other types of companies because the tax rate on income is fixed. According to 2025 data, if your annual income exceeds 200,000 TL, choosing a limited liability company will be advantageous in terms of tax costs. This advantage increases as income increases.
5- What Taxes Does a Limited Company Pay in Turkey?
The legal obligations and tax duties of a limited company are not limited to corporate tax. Limited companies generally pay the following taxes:
STAMP DUTY: Like every company, limited companies are required to pay stamp duty. Stamp duty is paid when preparing workplace lease agreements, service agreements, employment agreements, and many other transactions. Stamp duties are declared and paid monthly.
VAT: Value-added tax is paid by every company engaged in commercial activities. A company collects a certain amount of VAT from customers on behalf of the government on sales of goods or services. VAT rates are calculated as 1%, 10%, and 20% depending on the type of products sold. VAT collected from customers is declared monthly. After deducting any deductible VAT, the remaining amount is paid the following month.
CORPORATE TAX: Limited companies are subject to corporate tax. They are obligated to pay the corporate tax calculated on their net profit. The corporate tax rate is 20%. Limited companies engaged in manufacturing and exporting activities have a reduced corporate tax rate of 20%.
PROVISIONAL CORPORATE TAX: Provisional taxes are not a separate type of tax. They refer to the advance collection of annual corporate tax in quarterly increments. A limited company declares and pays the corporate tax on its income for each quarter.
WITHHOLDING TAX: Limited companies declare and pay the taxes they withhold and the workplace withholding tax deductions they deduct as responsible through a withholding tax return. If the limited company has employees, the withholding tax return is filed monthly. If the company has no employees, the return is filed and paid quarterly. The withholding tax return includes items such as income taxes withheld from employees' salaries, workplace rent withholding tax deductions, or service expenses.
Unless there are specific circumstances, these are generally the taxes paid by limited companies. In addition, the company may have different tax liabilities depending on its sector and field of activity. For example: Tax types such as special consumption tax, special communication tax, and banking and insurance transaction taxes are the types of taxes companies operating in the relevant sector are liable for. The amount of tax payments will be determined based on various criteria, such as the company's profit and loss status, the number of employees, and the workplace rental fee.
6- How Much Tax Does a Limited Company Pay in Turkey?
The taxes paid by a limited company may vary depending on various criteria, such as the company's business volume, income and expense status, the number of employees, its main field of activity, imports, or exports. Furthermore, the tax rates companies are liable to are clear and fixed. Sample tax payments based on the tax rates are as follows.
CORPORATE TAX: For example, if a limited company's net profit in a year is 750,000 TL, the corporate tax rate on this profit will be 25% = 187,500 TL. For a limited company engaged in exporting or manufacturing, the corporate tax required to pay on a net profit of 750,000 TL will be 20% = 150,000 TL.
PROVISIONAL TAX: Provisional tax is a declaration in which corporate tax is paid in advance on a quarterly basis. A limited company earning a net profit of 200,000 TL in a three-month period must pay a provisional tax of 25% = 50,000 TL. The provisional taxes paid are then deducted from the annual corporate tax.
VALUE ADDED TAX: For example, if a limited company sells 200,000 TL worth of products subject to 20% VAT, 40,000 TL VAT must be collected from the customer. The VAT liability for this sale is 40,000 TL. If, within the same month, a company purchases 24,000 TL worth of goods at 120,000 TL + 20% VAT to supply the products it sells, the deductible VAT is 24,000 TL. The deductible VAT is deducted from the VAT collected on sales. In this case, a VAT payment of 40,000 TL - 24,000 TL = 16,000 TL is required.
WITHOILDING TAX: For example, if the monthly net rental fee for a workplace used by a limited company is 50,000 TL and the rent is paid to a natural person, one-quarter of the net rental fee, 12,500 TL, is paid as withholding tax each month. If the leasing party is a company, an invoice is issued for the rental fee. In this case, the rental fee and VAT stated on the invoice are paid. No additional withholding tax is payable for rent paid by invoice. In addition, tax deductions from the salaries of employees in the business and withholding tax deductions for service purchases are declared and paid with a withholding tax return.
7- Is a Turkish citizen partner required for foreigners to establish a limited company in Turkey?
A Turkish citizen partner is not required for foreigners to establish a limited company in Turkey. Foreign citizens can establish a limited company in Turkey with their passports.
8- What expenses are listed as expenses in a limited company in Turkey? Which expenses are deductible from taxes?
There are many expenses incurred in conducting the operations of a limited company. All expenses and costs related to the company's operations are recorded as expenses and are deducted from taxes. The most common expenses in limited companies are:
• Office expenses. All expenses necessary for the operation of the office, such as fixtures, furniture, stationery, and computer supplies, are included.
• Office rent payments,
• Electricity, water, natural gas, internet, and telephone bills used at the workplace,
• Fuel expenses, repair and maintenance expenses, and insurance expenses for vehicles used for company activities,
• All printing materials, business cards, letterheads, printed pens, and promotional items used for company activities,
• Airline, bus, and train tickets, hotel accommodations, and meal expenses related to business travel for company executives and employees,
• Purchasing costs or production costs for products sold. All transportation, logistics, storage, and insurance expenses incurred during the purchasing or production process,
• Services purchased for company activities, such as legal services, engineering, architecture, IT, and web design, are included.
• Company personnel salaries, insurance premiums, travel and meal expenses, and overtime pay,
• Office cleaning supplies, repair and maintenance products, and customer refreshments are among the expense items.
9- Can Foreigners Be the Legal Representative of a Limited Company in Turkey? 
Foreigners can be the director and legal representative of a limited company they establish in Turkey. They can manage the limited company and manage its operations.
10- What is the Total Cost of Establishing a Limited Company in Turkey?
The main costs incurred in establishing a limited company include chamber of commerce registration fees, notary fees, the service fee for preparing the company's incorporation and articles of association, company stamps, and stamp duties on company agreements. Foreigners who do not speak Turkish will also incur the cost of a sworn translator. According to 2025 data, the total cost for a foreign citizen to establish a limited company in Turkey starts at $750. This is the total and minimum cost. All establishment expenses are included. Furthermore, the total cost will be determined based on various criteria such as the company's number of partners, capital, field of activity, whether it is a legal entity, and the number of employees employed. Furthermore, costs may vary slightly between cities. You can always contact us to get a detailed cost table specific to your job.
11- How Many Partners Can a Limited Company Be Established in Turkey?
A limited company in Turkey can be established by a single person. A single partner can also act as a company manager and manage the company. Finding a separate partner is not mandatory. However, a limited company can be established with a maximum of 50 partners.
12 – How to Choose a Limited Company Name in Turkey?
The first thing to consider when choosing a limited company name in Turkey is to check whether another company with the same name is registered. Names that are identical or very similar to those of registered companies cannot be used. By "very similar," I mean that if the first three words are the same, that name cannot be obtained. The company name must include the word "Limited Company" at the end. The company name must include at least one field of activity. Example fields of activity include: Food, Machinery, Textiles, Consulting, Automotive, and Electronics. Furthermore, the use of certain words such as "Turkey," "Turkish," "National," and "Republic" in the company name is subject to the approval of the Council of Ministers. The limited company name must be in Turkish.
13- Is it possible to establish a limited liability company online in Turkey?
Limited companies can be established online in Turkey. Regardless of your city or country, you can choose ICG PARTNERS to establish and manage a limited liability company. All transactions are handled turnkey with a power of attorney submitted to us. A limited liability company is established within a few days. You can benefit from the integrated solutions provided by ICG PARTNERS for all your needs, including renting a virtual office, tracking income and expenses, tax returns, accounting, reporting, payroll, trademark registration, e-invoicing, and e-transformation integration. Our expert team provides rapid support whenever you need it via communication channels such as phone, WhatsApp, and email.
14- How Many Days Does It Take to Establish a Limited Company in Turkey?
In Turkey, preparing the limited liability company establishment documents and completing all the establishment procedures takes an average of three business days, unless there are special circumstances. Registration is required at the Chamber of Commerce for the establishment of a limited liability company. Chambers of Commerce handle these procedures by appointment. During busy periods at the Chamber of Commerce, this process can take 1-2 days.
15- Is Renting a Business Premises Necessary to Establish a Limited Company in Turkey?
A business address is required to establish a limited company in Turkey. If you intend to operate from a physical workplace, you can use a location such as an office, shop, store, or warehouse as your business address. If you don't need a physical workplace for your business activities, you can alternatively rent a virtual business address at a reasonable cost. Renting a virtual business address is legal and a very cost-effective solution.
16- Can a Limited Company Be Established at a Home Address in Turkey? Can a Home Office Ltd. Co. be established?
In Turkey, it is possible to establish a limited company by designating one room of your home as your home office. However, if your home is rented, you should remember that after incorporating the company, you will pay monthly rent withholding tax of one-quarter of the net rent. For example, if you establish a limited company in a house where you pay a net rent of 40,000 TL, the company will pay a monthly rent withholding tax of 10,000 TL. Furthermore, if you live in an apartment, the law requires you to obtain written permission from the other apartment owners to establish the company. To avoid paying rent withholding tax or the hassle of obtaining written permission from other apartment owners, you can establish a limited company with a virtual office address.
17- Do Limited Companies Pay Withholding Tax in Turkey?
Withholding tax is a tax deducted at source, declared, and paid by the taxpayer for a tax liability arising from a commercial activity. If a limited company's commercial activities necessitate withholding tax at source, it is obligated to pay it. The most common types of withholding tax are withholding tax for workplace rent, withholding tax withheld from employees' salaries, and withholding tax obligations arising from service purchases. For example, if a limited company operates in a rented workplace and the property owner is a natural person, it will pay a monthly withholding tax of one-fourth of the net rent paid.
18- Who Has Management and Representation Authority in a Limited Company in Turkey?
Limited companies have two bodies for management and representation. The first body is the General Assembly. The General Assembly consists of all shareholders. The company is managed by the General Assembly. The second body is the Board of Directors. The Board of Directors consists of directors authorized by the General Assembly. One or more individuals may be authorized as directors. The Board of Directors legally represents the company in all transactions and operations.
19- Who is Liable for the Debts of a Limited Company in Turkey?
The partners are liable for debts arising from the commercial activities and actions of a limited company in proportion to the capital they have committed to pay to the company. The company director is jointly and severally liable for uncollectible public debts (tax debts, public receivables, etc.) from a limited liability company.
20 – Is a Limited Company or a Joint-Stock Company Larger in Turkey? 
There are many criteria used to measure the size of a company. Some of these criteria include the company's capital amount, number of employees, income and expenditure, volume of activity, annual net profit, and number of branches. Because both limited and joint-stock companies are capital companies, the company's size is determined based on these criteria. When considering the partnership structure, a limited liability company can have a maximum of 50 partners, while a joint-stock company has no limit on the number of partners. Therefore, for larger structures with more than 50 partners, a joint-stock company is more suitable.
21- Can a Limited Company Go Public in Turkey? Are Limited Companies Traded on the Stock Exchange?
Limited companies cannot be publicly traded or traded on the stock exchange.
22- Can One Person Establish a Limited Company in Turkey?
It is possible for one person to establish a limited company on their own. In a limited company established as a sole shareholder, the sole shareholder can also be the company director and manage the company.
23- Where Should I Start to Establish a Limited Company in Turkey?
To establish a limited company in Turkey, you must first determine your workplace. If you will be using a physical office, we recommend renting it first. You can contact us for support in all other matters.
If you do not need a physical office for your limited company activities, we can also provide you with a virtual business address in Istanbul. Regardless of your city or country, we establish your company turnkey with a power of attorney sent to us. We prepare all the establishment documents and have your limited company ready within a few days. We offer comprehensive solutions for all your legal and financial needs.
If you're considering establishing a limited liability company, please don't hesitate to contact us to receive a detailed cost statement tailored to your business. We'll initially prepare an up-to-date and detailed cost statement free of charge.
