Can a foreign company owner’s work permit be rejected even if the business is active in Turkey? Learn the 2026 rejection risks involving capital, shareholding, employees, financial criteria, documents, business activity and appeals.

Yes. A foreign company owner’s work permit can be rejected even if the company is legally established, actively trading, paying taxes and generating revenue in Turkey.

An active business is important evidence, but it does not create an automatic right to a work permit.

The Ministry of Labour and Social Security evaluates work permit applications according to the current work permit criteria and international labour force policy. The Ministry confirms that even properly completed applications are subject to substantive evaluation, and a work permit is issued only where the application is positively assessed.

For foreign shareholders, the most common problem is assuming:

“My company is real and profitable, therefore my work permit must be approved.”

That is not the legal test.

The Ministry separately examines the applicant, the company, the shareholder structure, the capital, employment levels, the proposed role and any applicable exemptions.

Can an Active Company Still Fail the 2026 Shareholder Criteria?

Yes.

For a foreign shareholder opening a business or becoming a partner in an existing company, the ordinary 2026 criteria generally require:

at least TRY 500,000 paid-in capital in the company,

at least TRY 500,000 capital attributable to the foreign shareholder,

and

at least 20% ownership by the foreign shareholder.

Therefore, a company may be actively operating and generating substantial turnover while the foreign shareholder personally fails the minimum ownership or capital test.

Example: Profitable Company but Insufficient Foreign Shareholding

Assume a Turkish company has annual sales of TRY 30 million.

A foreign investor owns 10% of the company, representing TRY 300,000 in capital.

The company may be financially healthy, but the foreign shareholder does not satisfy the ordinary shareholder criteria requiring at least TRY 500,000 of capital and at least 20% ownership.

An active business therefore does not cure a shareholder-level eligibility problem.

Can the Application Be Rejected Because the Company Has Too Few Turkish Employees?

Yes.

Under the ordinary foreign shareholder criteria, the workplace must generally employ at least five Turkish citizens.

For the foreign shareholder’s first work permit, this requirement is deferred. The permit is generally issued subject to the condition that from the beginning of the seventh month, the company employs at least five Turkish citizens every month.

This means a company can be:

registered,

operational,

profitable,

and tax-compliant,

but still face work permit problems because it does not satisfy the employment requirement.

Can an Extension Be Rejected for Failure to Maintain Five Employees?

Potentially, yes.

The first permit gives a newly established foreign shareholder time to build the required workforce, but the requirement should not be ignored after the initial six-month period.

If the ordinary shareholder criteria apply, the company should maintain evidence that the required number of Turkish employees were properly employed during the relevant period.

A business that fails to maintain the required employment structure may face difficulty when the permit is reviewed or extended.

Is There an Exception for a USD 100,000 Capital Share?

Yes.

The current criteria provide that where the foreign shareholder’s capital share is USD 100,000 or more, the ordinary shareholder requirements concerning minimum capital, minimum 20% ownership and the five-Turkish-employee condition are not applied.

This can significantly strengthen a qualifying application.

However, it does not guarantee approval.

The Ministry still evaluates the work permit application as a whole.

Can a Company Owner Be Rejected Even If They Invested More Than USD 100,000?

Yes.

The USD 100,000 exception removes certain ordinary shareholder criteria, but it does not convert a work permit into an automatic entitlement.

Other issues can still affect the application, including:

incorrect application category,

insufficient documentation,

inconsistency between corporate records and the application,

problems with immigration status,

incorrectly described duties,

regulated-profession restrictions,

or other issues arising under international labour force policy.

The Ministry expressly notes in other exemption contexts that exemption from evaluation criteria does not create an absolute right to a work permit.

Does High Company Turnover Guarantee Approval?

No.

Under the general criteria for foreign employees, companies with significant financial performance may satisfy financial-capacity rules through paid-in capital, turnover or exports. Current thresholds include TRY 500,000 paid-in capital, TRY 8 million net sales or USD 150,000 exports for qualifying established businesses.

But a foreign shareholder application is also subject to the special shareholder rules.

A company’s high turnover therefore does not automatically replace the foreign shareholder’s personal eligibility requirements unless a specific exception applies.

What About Companies With TRY 50 Million or More in Net Sales?

The 2026 general criteria provide that workplaces with previous-year net sales of at least TRY 50 million are exempt from the general employment criterion for work permit applications covering up to five foreigners.

This is an important rule for larger businesses.

However, applications involving company shareholders should still be analyzed carefully under the shareholder-specific criteria rather than assuming that every general company exemption automatically resolves the foreign owner’s position.

Can Incorrect Application Type Cause Rejection?

Yes.

A foreigner may be:

a company shareholder,

a managing shareholder,

a senior executive,

an ordinary employee,

an independent professional,

or a non-resident board member.

Those categories are not interchangeable.

If the application presents the foreigner as an ordinary employee while corporate records show that the individual is actually the controlling shareholder and business owner, the Ministry may examine the inconsistency.

The application should accurately reflect the foreigner’s real legal and operational role.

Can Inconsistent Corporate Records Cause Problems?

Yes.

The work permit file should be consistent with the company’s official records.

Authorities may examine matters such as:

shareholder percentages,

capital amounts,

management authority,

company activity,

registered workplace,

employment records,

and the actual position declared for the foreigner.

A discrepancy between the company’s registered structure and the statements in the work permit application can weaken the file.

Can Missing Documents Cause Rejection?

Yes.

The Ministry requires supporting documents for the work permit evaluation process, including identification and employment-related documentation. Depending on the application type, further corporate or professional documents may also be required.

Where additional information is requested, the application period is calculated from the date the requested documents are properly uploaded.

Foreign company owners should therefore monitor the application system carefully and respond to document requests completely and on time.

Can a Domestic Application Be Rejected Because the Foreigner Is Not Eligible to Apply From Inside Turkey?

The route of application matters.

The Ministry states that a domestic work permit application can generally be made where the foreigner has a residence permit issued in Turkey for at least six months and that permit remains valid on the application date. Certain other legally present foreigners determined by the Ministry may also qualify.

If the foreigner does not qualify for the domestic procedure, an overseas application may be required.

Using the wrong filing route can therefore create a serious procedural problem even where the company itself is active.

Can the Application Be Rejected Because of Passport Validity?

Passport validity should also be checked.

The Ministry states that applications involving a passport or substitute document with insufficient remaining validity are not processed under the applicable work authorization rules.

A company owner should therefore review personal documentation before filing rather than focusing only on the company.

Does an Active Business Prove the Foreign Owner Must Personally Work There?

Not necessarily.

The Ministry evaluates the foreigner’s actual role.

A company may be highly active while being fully operated by Turkish managers and employees.

If the foreign shareholder is living abroad and does not participate in daily management, the legal analysis may differ from that of a founder who is physically present in Turkey and personally running the business.

Work permits are intended to authorize actual work, not merely recognize investment ownership.

What If the Company Was Formed Only Recently?

A newly incorporated company can still support a work permit application.

The Ministry’s general financial criteria specifically address newly established workplaces and require at least TRY 500,000 paid-in capital for relevant applications.

For foreign shareholders, the separate shareholder criteria must also be considered.

A new business is therefore not automatically disadvantaged, but it must be structured correctly.

Can a Loss-Making Company Obtain a Foreign Owner’s Work Permit?

Potentially.

Profit is not the only relevant factor.

The Ministry’s financial criteria use measures such as paid-in capital, net sales and exports rather than simply asking whether the company generated accounting profit.

The shareholder-specific requirements likewise focus heavily on capital, ownership and employment.

A loss in one accounting period therefore does not necessarily produce automatic rejection.

Can a Company With No Employees Obtain the First Shareholder Work Permit?

Potentially, yes.

The ordinary first-permit rule allows the foreign shareholder’s five-Turkish-employee requirement to begin from the seventh month rather than on the first day of the initial permit.

However, this should not be interpreted as a permanent exemption.

If no other exception applies, workforce planning should begin before the seventh month.

What Changed on August 3, 2026?

The current rules include an important exception effective August 3, 2026.

For certain domestic applications made for 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 foreigners at the same workplace. The number of foreign workers benefiting from the rule generally cannot exceed the number of Turkish workers employed there.

This can materially change the outcome of some applications.

A foreign owner whose application might have failed under older criteria should therefore be assessed under the current 2026 framework.

Are Some Foreigners Exempt From Employment, Financial and Salary Criteria?

Yes.

Current criteria identify several categories for which employment, financial-capacity and salary criteria are generally not applied. These include, among others, certain long-term residents, foreigners who have lived in a qualifying marriage with a Turkish citizen for at least three years, and certain foreigners with at least eight years of qualifying lawful stay in Turkey.

However, the Ministry expressly states that belonging to an exempt category does not create an absolute right to a work permit.

Can the Ministry Reject an Application Despite All Numerical Criteria Being Met?

Yes.

Meeting numerical thresholds is important, but work permits are also evaluated under international labour force policy.

The Ministry states that applications are evaluated according to the work permit criteria and international labour force policy and that it may obtain opinions from relevant public institutions or professional organizations where necessary.

Therefore, satisfying capital, shareholding and employment requirements does not turn the process into an automatic registration exercise.

Can a Work Permit Be Rejected Because the Position Is Reserved or Regulated?

Potentially.

Certain professions and activities are subject to professional restrictions, special authorization or preliminary approval.

Where the foreign owner intends personally to perform a regulated professional activity rather than merely manage the company, sector-specific conditions should be examined before filing.

Company ownership does not override restrictions applicable to the profession itself.

Can the Foreigner Continue Working After a Rejection?

A rejected first-time application should not be treated as permission to continue unauthorized work.

The Ministry states that foreigners within the scope of the International Labour Force Law must have a valid work permit or exemption before working in Turkey, and unauthorized work can result in administrative consequences.

A company owner should therefore distinguish carefully between lawful ownership of the business and lawful personal employment in the business.

Can a Rejected Application Be Appealed?

Yes.

The Ministry confirms that a rejection of a work permit application may be challenged within 30 days from notification.

The objection is submitted electronically through the work permit application system together with the petition and documents supporting the challenge.

This deadline is important.

The foreigner should identify the precise rejection reason before preparing the objection.

What Should Be Included in the Objection?

The objection should directly address the reason stated in the rejection decision.

Depending on the case, supporting documents may include:

updated shareholder records,

evidence of paid-in capital,

employment records,

financial statements,

bank records showing capital contribution,

evidence of the USD 100,000 investment exception,

documents proving eligibility for a 2026 exemption,

corrected professional documentation,

or evidence clarifying the foreigner’s actual management role.

A generic objection stating that “the company is active and pays taxes” may not be sufficient if the rejection resulted from a specific legal criterion.

What Happens If the Objection Is Rejected?

If the Ministry rejects the objection, the Ministry confirms that judicial review before the administrative courts remains available.

At that stage, the legality of the administrative decision can be challenged through administrative litigation.

The rejection notice, application file and evidence submitted during the administrative objection should therefore be preserved carefully.

Can the Foreign Owner Simply Submit a New Application?

Yes.

The Ministry expressly states that rejection of a work permit application does not prevent a new application once the deficiency causing the rejection has been corrected.

In some cases, a corrected new application may be more efficient than disputing a clear documentary or structural deficiency.

In others, an appeal may be preferable because the applicant believes the Ministry incorrectly applied the law or overlooked evidence.

Practical Example: Active Business but Only 15% Ownership

A foreign investor owns 15% of an active manufacturing company in Bursa.

The company employs 40 people and has strong turnover.

The foreign shareholder’s own capital is TRY 700,000.

Despite the successful business, the ordinary shareholder application may still encounter difficulty because the applicant does not meet the standard 20% ownership requirement unless an applicable exception changes the analysis.

Practical Example: Profitable Start-Up With No Turkish Employees

A foreign founder owns 100% of a profitable technology company in Istanbul.

The first shareholder work permit is granted, but the company continues operating without building the required Turkish workforce.

From the seventh month, this may create a compliance problem under the ordinary shareholder criteria unless an applicable exception applies.

Practical Example: Large Foreign Investment

A foreign shareholder owns a capital interest exceeding USD 100,000 in an active Ankara company.

The ordinary TRY 500,000, 20% ownership and five-employee shareholder criteria are not applied under the specific investment exception.

The applicant must nevertheless submit a proper work permit application and satisfy the remaining legal requirements.

Practical Example: Wrong Domestic Application Route

A foreign company owner establishes an active company in Izmir but does not have the immigration status required for an ordinary domestic work permit application.

The company’s commercial activity does not automatically cure the procedural problem.

The foreigner may need to use the overseas application procedure instead.

Frequently Asked Questions

1. Can a foreign company owner’s work permit be rejected even if the company is profitable?

Yes. Profitability alone does not guarantee approval. The Ministry applies separate work permit and shareholder criteria.

2. Is paying taxes enough to obtain a work permit?

No. Tax compliance may support the credibility of the business, but it does not replace the capital, ownership, employment and procedural requirements.

3. Can an application be rejected because the foreign owner holds less than 20%?

Under the ordinary shareholder criteria, yes. The foreign shareholder generally needs at least 20% ownership unless an exception applies.

4. Can failure to employ five Turkish citizens cause problems?

Yes. Under the ordinary shareholder rules, five Turkish citizens must generally be employed from the beginning of the seventh month of the first work permit.

5. Does investing USD 100,000 guarantee approval?

No. It removes specified ordinary shareholder criteria but does not guarantee a positive Ministry decision.

6. Can an application be rejected because documents are incomplete?

Yes. Supporting documents are part of the Ministry’s substantive evaluation process.

7. Can a rejected work permit be appealed?

Yes. An objection may be filed within 30 days from notification.

8. Can the owner apply again after rejection?

Yes. The Ministry expressly permits a new application once the deficiency that caused the rejection has been eliminated.

9. What happens if the objection is also rejected?

Administrative judicial review may then be pursued.

10. Does an active company automatically give the owner the right to work?

No. Company ownership and work authorization are separate legal rights.

Legal Assistance for Rejected Foreign Company Owner Work Permits in Turkey

An active company is valuable evidence, but business activity alone does not guarantee a foreign owner’s work permit.

A rejection may arise because the foreign shareholder does not satisfy the applicable capital or ownership rules, the company has not maintained the required employment structure, the wrong application route was used, records are inconsistent, supporting documents are incomplete or another work permit criterion has not been met.

The most important step after rejection is to identify the exact legal and factual reason stated in the decision. A rejection can be challenged within 30 days, and a new application can also be submitted after the underlying deficiency has been corrected.

Firat Fesih Kaya Law Office provides legal assistance to foreign shareholders, company owners, directors and international investors in Ankara, Istanbul, Izmir, Mersin, Bursa and throughout Turkey concerning rejected work permit applications, foreign shareholder work permits, work permit objections, company restructuring, capital and employment criteria and administrative litigation.

Legal assistance may include reviewing the rejection decision, examining company capital and shareholder records, determining whether the USD 100,000 exception or August 2026 exemptions apply, preparing the administrative objection, correcting application deficiencies and challenging an unlawful rejection before the administrative courts where appropriate.

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 clear: having a genuine and active business strengthens a foreign company owner’s work permit application, but it does not create an automatic entitlement. The company and the foreign shareholder must separately satisfy the applicable work permit framework