Can foreigners obtain a work permit after establishing their own company in Turkey? Learn the 2026 rules for foreign shareholders, minimum capital, ownership percentage, five-employee requirement and available exemptions.

Yes. A foreign national who establishes or becomes a shareholder of a company in Turkey can potentially obtain a work permit and actively work in that company. However, establishing the company does not automatically create work authorization.

The Ministry of Labour and Social Security expressly states that foreigners who establish a workplace and intend to work on their own behalf must obtain a work permit after completing the establishment procedures and before beginning work.

Therefore, the normal sequence is:

establish the company → complete registration and tax procedures → satisfy the applicable shareholder work permit criteria → obtain the work permit → begin active management or work.

Does Company Formation Automatically Give the Founder a Work Permit?

No.

A foreigner may legally establish or own a company without automatically receiving permission to work in Turkey.

Company ownership and work authorization are separate legal concepts.

A foreign shareholder who merely invests capital and remains passive may be in a different position from a founder who personally manages employees, negotiates contracts, supervises operations or runs the company from Turkey.

The Ministry specifically confirms that foreign company partners can work by obtaining a work permit. Non-resident board members of joint stock companies and non-managing partners of other companies are treated separately under the work permit exemption framework.

Can the Foreigner Establish the Company First?

Yes.

In fact, the Ministry’s guidance provides that foreigners who intend to open a workplace and work on their own behalf should first complete establishment procedures, including relevant trade registration and tax registration, and then apply for work authorization before starting work.

This means a foreign entrepreneur does not normally obtain a shareholder work permit for a company that has not yet been legally established.

What Are the 2026 Capital Requirements for a Foreign Shareholder?

Current 2026 evaluation criteria contain specific rules for foreigners who open a new business or become shareholders.

For businesses subject to the applicable accounting system, the Ministry currently requires:

the company’s paid-in capital to be at least TRY 500,000,

the foreign shareholder’s own capital contribution to be at least TRY 500,000,

and

the foreign shareholder’s ownership percentage to be at least 20%.

These are work permit evaluation criteria. They should not be confused with the separate minimum-capital rules applicable merely to establishing a company.

A foreigner may therefore be legally capable of becoming a shareholder while still failing to satisfy the requirements for a shareholder work permit.

Is 20% Ownership Always Required?

Under the ordinary shareholder work permit criteria, the foreigner’s ownership percentage must generally be at least 20%, together with the applicable capital requirements.

However, important exceptions may apply depending on the amount invested and the foreigner’s circumstances.

For that reason, the shareholder structure should ideally be planned before incorporation rather than changed after a work permit problem arises.

Is the Foreign Shareholder Required to Employ Five Turkish Citizens?

Generally, yes, but not immediately in every new-business case.

Current Ministry criteria require at least five Turkish citizens to be employed at the workplace for a foreign shareholder or business owner.

However, for the foreign shareholder’s first work permit, this requirement is deferred during the first six months. The permit is issued with the relevant condition, and from the beginning of the seventh month, the workplace must generally employ at least five Turkish citizens each month.

This rule is particularly important for new companies.

A foreign entrepreneur may therefore obtain the first permit before building a five-person domestic workforce, but the employment requirement must normally be satisfied from month seven onward.

Example: Foreign Founder Establishes a New Company

Assume a foreign investor establishes a software company in Istanbul.

The company has paid-in capital of TRY 1,000,000. The investor owns 100% of the company and personally contributed the full amount.

The investor wants to act as managing shareholder and work full-time in Turkey.

From a capital and ownership perspective, the company may satisfy the ordinary shareholder criteria.

If the first shareholder work permit is approved, the five-Turkish-employee requirement is generally expected from the beginning of the seventh month rather than immediately.

What If the Foreigner Owns Only 10%?

Under the ordinary shareholder criteria, a 10% ownership interest would generally fall below the standard 20% threshold.

However, the person’s exact role should still be examined.

There is an important distinction between an application as a foreign shareholder working on their own behalf and an application concerning an executive or employee position.

The appropriate category should reflect the actual corporate and employment relationship.

Is There an Exception for Large Investments?

Yes. Certain exceptions can remove some ordinary shareholder criteria.

For example, current Ministry rules provide an important exception where the foreign shareholder’s capital share reaches the specified high-investment threshold. The exact structure and value of the investment should be reviewed at the time of filing because work permit criteria may change.

A foreign investor planning a substantial capital contribution should therefore assess available exemptions before choosing the ownership structure.

What Changed in 2026?

A particularly important rule became effective on August 3, 2026.

For certain domestic work permit applications involving foreigners who have legally remained in Turkey for at least one year during the previous three years under qualifying lawful status, the ordinary employment and financial-capacity criteria are generally not applied for up to three qualifying foreign workers at the same workplace.

The number of foreign workers benefiting from this rule generally cannot exceed the number of Turkish citizens working at that workplace. Where more than three qualifying foreign workers are employed, ordinary workforce and financial criteria apply to the additional workers.

Foreign entrepreneurs who have already been lawfully residing in Turkey should therefore have their eligibility examined under the current 2026 rules rather than relying on older guidance.

Does the 2026 One-Year Residence Exception Automatically Apply to Every Company Owner?

No.

The August 3, 2026 rule is subject to specific eligibility conditions.

The foreigner must have completed the qualifying lawful stay during the previous three years and must otherwise fall within the scope of the domestic application framework.

The exception also does not mean that every application must be approved.

Work permits remain subject to Ministry evaluation.

Can the Foreign Founder Apply for an Independent Work Permit?

Potentially.

The Ministry defines an independent work permit as authorization issued without affiliation to an employer, allowing a foreigner to work on their own behalf and account in Turkey.

When considering an independent work permit, the Ministry may evaluate factors including:

the foreigner’s education,

professional experience,

contribution to science and technology,

the effect of the activity or investment on Turkey’s economy,

employment creation,

and, where the applicant is a company shareholder, the foreigner’s capital share.

An independent permit is therefore not automatically granted simply because someone owns a company.

Is an Independent Work Permit Better Than an Ordinary Shareholder Permit?

Not necessarily.

The correct permit depends on the person’s actual business structure and role.

Many foreign company owners may qualify through the temporary work permit framework applicable to business owners and shareholders.

The Ministry expressly confirms that temporary work permits can be issued to foreigners who are business owners or company partners.

An independent work permit is a distinct category evaluated using broader economic and professional criteria.

Can a Foreign Shareholder Begin Working While the Application Is Pending?

The safest answer is generally no unless a separate legal basis clearly permits the work.

Submitting a work permit application does not automatically authorize a foreign entrepreneur to begin managing the company.

The Ministry’s guidance requires the foreigner to obtain the work permit before commencing work on their own behalf.

Therefore, incorporation should not be followed immediately by unauthorized daily management simply because an application has been filed.

What Counts as “Working” in Your Own Company?

The analysis depends on actual activities rather than the shareholder title alone.

Activities likely to indicate active work may include:

managing employees,

directing daily operations,

providing professional services,

negotiating customer contracts,

supervising sales,

performing technical work,

acting as full-time chief executive,

or regularly operating the business from Turkey.

Passive ownership, dividend receipt and investment oversight can present a different legal position.

Can a Foreign Director Obtain a Work Permit Through the Company?

Yes, potentially.

The Ministry confirms that foreign company partners, joint stock company shareholders and board members, and qualifying company directors can work after obtaining the appropriate permit.

However, the application category and evaluation criteria may depend on whether the individual is primarily a shareholder, manager, executive or ordinary employee.

What About a Non-Resident Board Member?

A non-resident board member of a joint stock company is generally treated differently.

The Ministry states that non-resident board members of joint stock companies and non-managing partners of other companies fall within the work permit exemption framework.

This distinction is particularly useful for international companies whose foreign investors remain abroad.

If the person later relocates to Turkey and begins carrying out daily management, the work authorization analysis changes.

Does a Work Permit Also Give Residence Rights?

Generally, an appropriate work permit also serves as residence authorization during its validity, subject to statutory exceptions.

This can make the work permit route particularly relevant for foreign founders who intend both to operate the company and reside in Turkey.

However, residence rights arise from the work permit, not from owning the shares.

Can the Application Be Made From Inside Turkey?

Work permit applications can be made either from abroad or domestically, depending on the applicant’s status.

The Ministry confirms that applications are submitted through the Foreigners’ Work Permits Application System and may be filed through domestic or overseas procedures.

Whether a foreign entrepreneur can use the domestic procedure depends on their current lawful immigration status and the applicable rules at the date of application.

What If the Foreigner Does Not Have a Residence Permit?

Lack of residence does not prevent the foreigner from owning or establishing the company.

However, it may affect the route through which the work permit application must be filed.

Where the domestic procedure is unavailable, the foreigner may need to begin the work permit process through the appropriate Turkish foreign mission and complete the employer/company side of the application electronically.

Can the Company Employ Other Foreigners After It Is Established?

Yes, provided the company and proposed employees satisfy the applicable work permit requirements.

Current general criteria may include employment, financial-capacity and salary conditions.

For example, the current Ministry framework generally uses salary multiples based on the position, including:

five times the gross minimum wage for senior executives and pilots,

four times for engineers and architects,

three times for other managers,

two times for specialist or skilled positions,

and at least the gross minimum wage for certain other jobs.

These salary criteria are different from the specific rules for the company’s foreign shareholder.

Can the Foreigner Establish a Company Solely to Obtain a Work Permit?

Creating a company does not guarantee approval.

The company should be genuine, properly capitalized and capable of carrying out the intended commercial activity.

The Ministry evaluates work permit applications under international labour force policy and current eligibility criteria. The existence of a newly registered company alone does not create an unconditional right to a permit.

What If the Company Has No Employees?

This may still be possible during the beginning of the foreign shareholder’s first permit period, because the five-Turkish-employee condition is ordinarily deferred for the first six months.

However, from the beginning of month seven, the company must generally employ at least five Turkish citizens each month unless an applicable exception removes the requirement.

A founder should therefore budget for employment costs before relying on the shareholder work permit route.

Practical Example: 100% Foreign-Owned Consulting Company

A foreign consultant establishes a wholly owned company in Ankara with TRY 500,000 or more in paid-in capital and personally owns all of that capital.

The individual intends to provide consulting services and manage the business from Ankara.

Because this constitutes active work, the founder should obtain the appropriate shareholder work permit before beginning operations.

If the first permit is granted, the five-Turkish-employee requirement would ordinarily begin from the seventh month unless an exception applies.

Practical Example: Passive Foreign Investor

A foreign investor owns 40% of a manufacturing company in Bursa but lives permanently abroad and does not manage the company’s operations.

The Ministry recognizes non-managing company partners within the work permit exemption framework.

The analysis changes if the shareholder later moves to Turkey and becomes operationally involved.

Practical Example: Foreign Founder Already Living in Turkey

A foreign entrepreneur has lawfully remained in Turkey for more than one qualifying year during the previous three years and establishes a company in Izmir.

Because the August 3, 2026 criteria may provide an exemption from ordinary employment and financial-capacity requirements for qualifying domestic applications, the founder’s prior immigration history should be reviewed before applying.

2026 Work Permit Checklist for Foreign Company Owners

Before applying, a foreign founder should review:

company registration → shareholder percentage → paid-in capital → personal capital contribution → whether the foreigner will actively work → domestic or overseas application route → five-Turkish-employee rule → seventh-month deadline → available 2026 exceptions → actual management position → salary requirements where relevant → immigration status → supporting corporate documentation.

Frequently Asked Questions

1. Can a foreigner obtain a work permit after establishing a company in Turkey?

Yes. Foreign company owners and shareholders may obtain a work permit where the applicable conditions are satisfied.

2. Does establishing the company automatically give a work permit?

No. The company must first be established, and the foreigner must separately obtain work authorization before beginning active work.

3. How much capital is generally required in 2026?

Under the ordinary shareholder criteria, the company’s paid-in capital must generally be at least TRY 500,000, and the foreign shareholder’s own capital contribution must also generally be at least TRY 500,000.

4. What percentage of the company must the foreigner own?

The standard shareholder work permit criteria generally require at least 20% ownership.

5. Must the company employ five Turkish citizens?

Generally yes, but for a foreign shareholder’s first work permit, the requirement normally starts from the beginning of the seventh month.

6. Can the owner begin working before the permit is issued?

The foreigner should not assume so. The Ministry requires a foreigner working on their own behalf to obtain work authorization before beginning work.

7. Can a foreign company owner obtain an independent work permit?

Potentially. Independent permits are evaluated by considering education, professional experience, economic contribution, employment effects and the applicant’s capital share where relevant.

8. Does a work permit also allow the founder to reside in Turkey?

Generally, a valid work permit also functions as residence authorization during its validity, subject to specific legal exceptions.

9. Do passive shareholders need the same work permit?

Not necessarily. The Ministry recognizes non-managing company partners within the work permit exemption framework.

10. Did the work permit rules change in 2026?

Yes. A significant exception became effective on August 3, 2026 for certain domestic applications involving foreigners with qualifying lawful stay during the preceding three years.

Legal Assistance for Foreign Company Owners Seeking Work Permits in Turkey

A foreign entrepreneur can establish a company in Turkey and subsequently obtain a work permit to actively operate that business, but company formation alone does not authorize employment.

The 2026 work permit analysis should be performed before the foreign shareholder starts working because eligibility may depend on the company’s capital, the shareholder’s individual contribution, ownership percentage, Turkish employee headcount, the foreigner’s immigration history and available exemptions.

Firat Fesih Kaya Law Office provides legal assistance to foreign entrepreneurs, shareholders, directors and international investors in Ankara, Istanbul, Izmir, Mersin, Bursa and throughout Turkey concerning company establishment, foreign shareholder work permits, company director permits, work permit extensions, work permit exemptions and foreign investment structures.

Legal assistance may include reviewing the company’s capital and ownership structure, determining whether the five-employee requirement applies, assessing the August 2026 exemptions, preparing the work permit application and coordinating corporate establishment with immigration and employment requirements.

Phone: +90 312 434 22 22
Mobile / WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Office: Mevlana Boulevard No:221, Yildirim Tower, Balgat, Cankaya, Ankara, Turkey

The central 2026 rule is straightforward: foreigners may obtain a work permit after establishing their own company, but incorporation must be followed by a separate work permit application, and active work should not begin until the necessary authorization has been obtained.