Can a foreigner open a company in Turkey without a residence permit in 2026? Learn the rules on foreign shareholders, limited and joint-stock companies, tax numbers, remote incorporation, directors, work permits and residence rights.

Yes. A foreign national can generally establish or become a shareholder of a company in Turkey without holding a Turkish residence permit.

Under Turkey’s foreign direct investment framework, foreign investors are generally treated on an equal basis with domestic investors for company establishment. Foreign individuals and foreign legal entities can establish the company forms recognized under the Turkish Commercial Code, including a limited liability company (Ltd. Şti.) and a joint-stock company (A.Ş.). (Invest Türkiye)

A Turkish residence permit is therefore not a general prerequisite for becoming a shareholder or founder of a Turkish company.

However, three concepts must be carefully separated:

owning a Turkish company, living in Turkey, and working in Turkey.

A foreigner may be legally entitled to establish and own a Turkish company without having either a residence permit or a work permit. But if that foreign shareholder later wants to live in Turkey or personally work in and manage the company’s daily business, immigration and work-permit requirements become separately relevant.

This distinction is one of the most important issues foreign entrepreneurs should understand before establishing a Turkish company in 2026.

Can a Foreigner Own a Company in Turkey?

Yes.

Foreign nationals can establish and own Turkish companies.

Turkey’s foreign direct investment regime is based on the principle of equal treatment between foreign and domestic investors. Foreign investors can therefore establish the company structures available under the Turkish Commercial Code. (Invest Türkiye)

In most ordinary sectors, there is no requirement that a Turkish citizen must hold shares merely because the company has a foreign investor.

This means that, subject to sector-specific restrictions, a company can potentially be:

100% foreign-owned.

For example, a US, British, German, Russian, Chinese, UAE or other foreign investor can potentially establish a Turkish limited company and hold 100% of its shares.

Is a Turkish Residence Permit Required to Become a Shareholder?

Generally, no.

Official company-establishment guidance specifically distinguishes between foreign shareholders who reside in Turkey and those who do not.

For an individual foreign shareholder, passport documentation and a Turkish tax identification number are among the relevant incorporation requirements. Residence permit documentation becomes relevant where the foreign shareholder is already residing in Turkey; it is not presented as a universal prerequisite for every foreign founder. (Invest Türkiye)

Therefore:

No Turkish residence permit does not automatically mean no Turkish company.

A non-resident foreign investor can still potentially establish a company.

Can a Foreigner Establish a Limited Liability Company?

Yes.

A limited liability company is one of the most common corporate structures used by foreign investors in Turkey.

A foreign individual can be the shareholder of a Turkish limited liability company.

Likewise, a foreign company can become the shareholder of a Turkish limited company.

Depending on the proposed structure, the foreign investor can own all or part of the company.

Can a Foreigner Establish a Joint-Stock Company?

Yes.

Foreign investors can also establish or acquire shares in Turkish joint-stock companies.

This structure may be preferred for larger investments, businesses involving multiple investors, corporate groups, certain regulated activities or projects where future share transfers and investment rounds are anticipated.

The appropriate choice between a limited company and joint-stock company should be made according to the business model rather than merely choosing whichever form appears easier to establish.

Can a Foreign Company Establish a Turkish Subsidiary?

Yes.

A foreign legal entity can establish a subsidiary in Turkey.

For example, a company incorporated in Germany can establish a Turkish limited or joint-stock company and become its shareholder.

The foreign parent company will generally need corporate documents proving its legal existence, current status and authority to establish the Turkish subsidiary.

A corporate resolution authorizing the Turkish investment will also ordinarily be required.

Documents issued abroad generally need to satisfy the applicable legalization or apostille requirements and be officially translated for use in Turkey. (Invest Türkiye)

Can a Foreign Company Open a Branch in Turkey?

Yes.

A foreign company may also establish a Turkish branch rather than incorporating a separate subsidiary.

A branch does not have the same independent legal personality structure as a Turkish subsidiary.

The choice between a branch and subsidiary can have significant consequences regarding liability, taxation, corporate governance and commercial operations.

Foreign investors should therefore determine the appropriate structure before registration.

Can a Foreign Company Establish a Liaison Office?

Potentially, yes.

A foreign company may establish a liaison office in Turkey subject to obtaining the required authorization.

However, there is an important limitation:

A liaison office cannot generally conduct commercial activities in Turkey.

It is therefore fundamentally different from establishing a subsidiary or branch intended to generate commercial revenue.

A foreign investor planning to sell goods or services through its Turkish operation should not automatically choose a liaison office merely because it appears administratively simpler. (Invest Türkiye)

Can a Foreigner Establish a Company Without Being Physically Present in Turkey?

Potentially, yes.

Company establishment procedures can often be completed through properly authorized representatives.

A foreign investor can grant a power of attorney authorizing a Turkish lawyer or another properly authorized representative to handle specified incorporation procedures.

This can be particularly useful for investors who live abroad and do not want to travel to Turkey solely for the company-registration process.

However, the power of attorney must contain appropriate authority for the transactions to be performed.

Documents executed abroad may also require apostille or Turkish consular legalization and certified translation before they can be used in Turkey. (Invest Türkiye)

Can the Entire Company Establishment Be Completed Remotely?

A substantial part of the procedure can potentially be handled through representatives, but whether every individual step can be completed without the investor’s physical presence depends on the corporate structure, banking requirements, signature arrangements and documents involved.

Foreign investors should therefore avoid assuming that “remote incorporation” means that no personal involvement will ever be required.

Banking procedures, in particular, can create separate practical requirements.

The incorporation strategy should be planned before documents are signed abroad.

What Is MERSIS?

Company registration procedures in Turkey are conducted through the Central Registry Record System known as MERSIS.

The company’s articles of association and other corporate information are prepared through the system before registration with the competent Trade Registry Directorate.

Trade Registry Directorates operate through the Chambers of Commerce and function as the principal registration point for incorporation.

Foreign investors are subject to this corporate registration framework in the same general manner as Turkish investors. (Invest Türkiye)

Does the Foreign Shareholder Need a Turkish Tax Number?

Yes, this is generally an important part of the incorporation procedure.

Foreign individual shareholders and foreign board members may need to obtain a potential Turkish tax identification number.

The number is important for corporate registration and other transactions connected with the establishment of the company.

A foreign investor should therefore distinguish between:

tax identification, residence authorization and work authorization.

Obtaining a Turkish tax number does not mean that the foreigner has obtained a residence permit or work permit.

What Documents Does an Individual Foreign Shareholder Need?

The precise documentation depends on the corporate structure and circumstances.

For an individual foreign shareholder, passport documentation is central. The passport generally needs to be properly translated and notarized for use in the Turkish incorporation procedure.

A Turkish tax identification number is also generally required.

Where the foreign investor already resides in Turkey, residence permit documentation may also form part of the relevant documentation.

Additional documents can be necessary where the investor will also become a company manager or board member.

What Documents Does a Foreign Corporate Shareholder Need?

Where the shareholder is a foreign company rather than an individual, additional corporate documentation is necessary.

This can include evidence demonstrating that the foreign company legally exists and identifying its current authorized representatives.

The foreign company’s competent corporate body should also adopt the necessary resolution authorizing establishment of or investment in the Turkish company.

If a representative will complete the procedure in Turkey, an appropriately drafted power of attorney may also be required.

Documents issued abroad generally must satisfy the applicable authentication requirements before being used before Turkish authorities. (Invest Türkiye)

Do Foreign Documents Need an Apostille?

Frequently, yes.

Where documents are executed outside Turkey, they generally must be notarized and apostilled where the relevant international convention applies, or otherwise legalized through the appropriate Turkish consular procedure.

The documents then generally require official Turkish translation and notarization before being submitted in Turkey. (Invest Türkiye)

Foreign investors should verify these requirements before sending corporate documents to Turkey.

Incorrect legalization can significantly delay incorporation.

Can a Foreigner Own 100% of a Turkish Company?

Generally, yes.

There is no general rule requiring every Turkish company with foreign investment to have a Turkish shareholder.

Accordingly, a foreign individual or foreign corporate investor may potentially own 100% of a Turkish limited or joint-stock company.

However, sector-specific legislation can impose additional requirements.

Foreign investors entering regulated sectors should therefore conduct a separate regulatory review.

Are There Restricted Business Sectors?

Yes.

Although Turkey generally permits foreign investment on an equal-treatment basis, certain industries are regulated separately.

Banking, insurance, financial services, energy, aviation, media and other regulated activities may involve licensing, regulatory approvals or special corporate requirements.

Therefore, the fact that a foreigner can legally incorporate a company does not necessarily mean that the company can immediately begin every proposed business activity.

Company incorporation and sectoral authorization are separate legal issues.

Does Establishing a Company Give the Foreigner a Residence Permit?

No.

This is one of the most important distinctions.

Establishing or owning a Turkish company does not automatically grant a Turkish residence permit.

However, Turkish immigration law recognizes establishing business or commercial connections as one of the circumstances that may support an application for a short-term residence permit, subject to the applicable conditions and administrative assessment. (Türkiye Yatırım Ofisi)

This means that company ownership can become relevant to an immigration application, but incorporation itself does not automatically produce a residence card.

Can the Foreign Shareholder Apply for Residence After Establishing the Company?

Potentially, yes.

A foreign national intending to establish business or commercial connections in Turkey may potentially apply for an appropriate short-term residence permit if the statutory requirements are satisfied.

Company-related documents may be requested as evidence of the business purpose.

However, the application remains subject to immigration assessment.

The foreign investor should therefore avoid advertisements claiming:

“Open a company and automatically receive residence.”

That is an oversimplification of the legal position.

Does a Residence Permit Allow the Shareholder to Work?

Not automatically.

A Turkish residence permit and Turkish work permit serve different legal purposes.

A residence permit generally authorizes the foreigner to reside in Turkey under the relevant immigration category.

It does not automatically authorize the foreign national to perform employment or active business functions requiring a work permit.

Therefore, a foreign shareholder can potentially have:

a Turkish company,

a valid Turkish residence permit,

and still require a work permit before personally working in the company.

Does Establishing a Company Give the Foreigner a Work Permit?

No.

Company ownership does not automatically create work authorization.

A foreign investor may own the company without personally working in it.

If the foreigner intends to actively manage or work for the company in Turkey, the work-permit position must be examined separately under Law No. 6735 on International Labour Force.

This distinction is particularly important for foreign shareholder-managers.

Can a Foreign Shareholder Be the Manager of a Limited Company?

Potentially, yes.

A foreign shareholder can be appointed as a manager of a Turkish limited company.

However, the fact that Turkish commercial law permits the appointment does not automatically mean that the person can physically work in Turkey without appropriate work authorization.

Corporate authority and immigration authorization are separate.

A foreign shareholder-manager who actively operates the business in Turkey may need a work permit.

Can a Foreigner Be a Board Member of a Turkish Company?

Yes.

Foreign nationals can serve on the board of a Turkish joint-stock company.

The work-permit analysis depends on the foreigner’s actual position and activities.

A non-resident foreign board member who does not actively work in Turkey can fall within a different work authorization framework from a foreign executive who permanently resides in Turkey and manages daily operations.

Therefore, board membership alone should not be used to determine the immigration position.

Can a Foreigner Establish a Company While Visiting Turkey Visa-Free?

Potentially, yes.

A foreign national lawfully present in Turkey under a visa or visa exemption may participate in company-establishment procedures.

However, the permitted period of stay remains governed by immigration law.

Establishing the company does not extend the person’s visa-free period.

Likewise, it does not automatically authorize the foreigner to remain indefinitely after the company is registered.

If the foreign national wants to continue living in Turkey, an appropriate residence or work status must be obtained.

Can a Foreigner Establish the Company From Their Home Country?

Potentially, yes.

This is common among international investors.

For example, a foreign investor living in London, Dubai, Berlin or another city may issue the necessary corporate or individual documents and an appropriately drafted power of attorney abroad.

After legalization, translation and other formalities are completed, the authorized representative can handle many of the Turkish incorporation procedures.

This can allow the investor to establish the corporate structure before relocating to Turkey.

Can a Foreign Investor Open a Turkish Bank Account?

The Turkish company can open corporate bank accounts after or in connection with establishment procedures, depending on the transaction.

However, bank compliance requirements are separate from Trade Registry rules.

Banks apply their own customer-identification, beneficial-ownership, anti-money-laundering and internal compliance procedures.

Accordingly, incorporation of a Turkish company does not guarantee that every Turkish bank will immediately open an account without additional documentation.

Foreign ownership structures can sometimes result in enhanced compliance review.

Does the Company Need a Turkish Address?

Yes.

A Turkish company needs a registered office address.

The company can own or lease its premises depending on the business structure.

The address becomes relevant for Trade Registry, tax and official notification purposes.

Foreign investors should therefore ensure that the proposed address is suitable for the company’s activities.

Using an address merely to complete incorporation without considering tax and operational implications can cause problems later.

Can a Virtual Office Be Used?

Depending on the nature of the business and the specific arrangement, commercial office-service structures may sometimes be used.

However, the address must be genuine and legally usable as the company’s registered address.

Certain regulated or operational businesses may require physical premises satisfying sector-specific standards.

Tax authorities may also verify business addresses.

A foreign investor should therefore avoid fictitious company addresses.

Does the Company Need a Turkish Citizen Manager?

Not as a universal rule merely because the shareholders are foreigners.

A foreign-owned Turkish company is not generally required to appoint a Turkish citizen manager solely because of the nationality of its shareholders.

However, work-permit issues must be considered where the foreign manager will actively work in Turkey.

Certain regulated industries can also impose separate management or qualification requirements.

Example: Foreign Investor Establishes a Company Without Turkish Residence

Suppose a Canadian entrepreneur lives permanently in Canada and wants to establish a software company in Turkey.

The entrepreneur does not have a Turkish residence permit.

This does not, by itself, prevent the entrepreneur from becoming the shareholder of a Turkish limited company.

The required passport, tax and corporate documents can be prepared, and the incorporation can potentially be handled through properly authorized representatives.

After establishment, the entrepreneur can remain the company’s foreign shareholder while continuing to live abroad.

If the entrepreneur later decides to move to Turkey and personally manage the business, residence and work authorization must then be separately considered.

Example: Foreign Company Establishes Turkish Subsidiary

Suppose a UK company wants to establish a wholly owned Turkish subsidiary.

The UK parent company can potentially become the sole shareholder of the Turkish company.

Corporate documents concerning the UK company and its decision to establish the Turkish subsidiary must be prepared in accordance with Turkish registration requirements.

A Turkish residence permit is obviously not required for the foreign corporate shareholder itself.

Foreign executives later assigned to Turkey, however, may require individual work authorization.

Can Buying Shares in an Existing Company Be Easier?

Foreign investors are not limited to establishing new companies.

They may also acquire shares in existing Turkish companies.

Foreign investors generally have the same rights concerning establishment and share transfers as domestic investors under Turkey’s foreign investment framework. (Invest Türkiye)

However, acquiring an existing company creates different risks.

The buyer should investigate tax liabilities, employment claims, litigation, bank debt, shareholder disputes, regulatory compliance and other historical liabilities before completing the acquisition.

Does Buying a Turkish Company Give Residence Rights?

Again, no automatic residence right arises merely from share acquisition.

A foreigner can own shares while living entirely outside Turkey.

If the foreign investor wants to relocate to Turkey, an appropriate immigration basis should be identified separately.

The size and nature of an investment may become relevant to certain immigration routes, but ordinary share ownership alone should not be presented as an automatic residence permit.

Can a Foreign Entrepreneur Work Immediately After Incorporation?

Not necessarily.

This is where many foreign entrepreneurs make mistakes.

They establish the company successfully and assume that because they own it, they can immediately begin working as its managing director.

Company registration does not itself replace a work permit.

Where the foreign shareholder intends to actively work in the business, the work-permit requirements applicable to shareholder-managers should be examined before operations begin.

What Happens If the Foreigner Works Without a Permit?

Unauthorized employment can result in substantial administrative penalties for both the foreign national and the company.

It may also create immigration consequences for the foreigner.

Therefore, an entrepreneur should not treat company ownership as a way of avoiding Turkish work permit requirements.

The safer sequence is to distinguish clearly between incorporation, investment, residence and employment from the beginning.

Can a Foreign Investor Obtain a Work Permit Through Their Own Company?

Potentially, yes.

Foreign shareholder-managers can apply for Turkish work authorization where the applicable conditions are satisfied.

The work permit evaluation framework contains specific criteria concerning foreign company partners, including capital, shareholding and employment requirements, together with various exceptions.

The company should therefore be structured with future work-permit eligibility in mind where the investor intends to personally manage the business in Turkey.

Should Work Permit Planning Be Done Before Incorporation?

Ideally, yes.

Consider a foreign investor who creates a corporate structure without considering work permit rules.

After establishment, the investor discovers that their ownership percentage, capital contribution or company’s employment structure does not satisfy the criteria applicable to the intended work permit.

Changing the corporate structure afterwards can involve additional Trade Registry, tax and shareholder procedures.

Where relocation to Turkey is part of the investment plan, corporate and immigration planning should therefore occur together.

Can Company Formation Help With a Short-Term Residence Permit?

Potentially.

Foreigners who intend to establish a business or commercial connections in Turkey can fall within a recognized short-term residence permit category. Official investment guidance confirms that company documentation may form part of such an application. (Türkiye Yatırım Ofisi)

However, this is an application basis, not automatic approval.

The foreigner must still satisfy the applicable immigration conditions.

Company formation should therefore not be undertaken solely because an intermediary promises guaranteed residence.

Company Ownership, Residence and Work Permit: The Critical Difference

For foreign investors, the simplest way to understand the Turkish system is:

Company ownership concerns whether the foreigner can invest in and own a Turkish business.

Residence authorization concerns whether the foreigner can lawfully remain in Turkey beyond the applicable visa or visa-exemption period.

Work authorization concerns whether the foreigner can personally perform work requiring authorization in Turkey.

These three legal questions can overlap, but they are not interchangeable.

A foreigner may own a Turkish company without residing in Turkey.

A foreigner may reside in Turkey without having permission to work.

A foreign shareholder who wants to live in Turkey and personally manage the company may need to address both residence and work authorization.

2026 Legal Position for Foreign Entrepreneurs

The basic legal position remains favourable to foreign investment in 2026.

Turkey’s foreign direct investment framework continues to provide foreign investors with broadly equal treatment in company establishment. Foreign individuals and foreign legal entities can establish Turkish companies, including limited liability and joint-stock companies. (Invest Türkiye)

A foreign individual shareholder does not generally need a Turkish residence permit simply to become the founder or shareholder of the company.

However, establishing a company does not automatically provide the foreign investor with either a residence permit or a work permit.

A foreign entrepreneur planning to live in Turkey and personally operate the business should therefore structure the investment around three separate questions:

Can I establish and own the company?

What status allows me to remain in Turkey?

What authorization allows me to personally work for and manage the company?

Answering all three questions before incorporation can prevent significant problems later.

Frequently Asked Questions

1. Can a foreigner open a company in Turkey without a residence permit?

Yes. A Turkish residence permit is not generally required merely to establish or own shares in a Turkish company.

2. Can a foreigner own 100% of a Turkish company?

Generally, yes, subject to any sector-specific restrictions applicable to the particular business activity.

3. Can I establish a Turkish limited company without living in Turkey?

Yes. A non-resident foreign investor can potentially establish and own a Turkish limited liability company.

4. Do I need to travel to Turkey to establish the company?

Not necessarily. Many incorporation procedures can potentially be handled through an appropriately authorized representative using a properly prepared power of attorney.

5. Do I need a Turkish tax identification number?

A Turkish tax identification number is generally required for foreign shareholders and becomes important in company-establishment procedures.

6. Does establishing a Turkish company automatically give me a residence permit?

No. Company ownership and residence authorization are separate legal matters. Establishing a business may potentially support an appropriate residence application, but approval is not automatic.

7. Does owning the company allow me to work in Turkey?

Not automatically. A foreign shareholder who actively works in or manages the company may need appropriate work authorization.

8. Can a foreign company establish a subsidiary in Turkey?

Yes. A foreign legal entity can establish and own a Turkish subsidiary, subject to the applicable corporate-registration requirements.

9. Can I establish a company while visiting Turkey visa-free?

Potentially, yes. However, company establishment does not extend your permitted immigration stay or automatically authorize you to work.

10. Can I obtain a work permit through the company I establish?

Potentially, yes. Foreign shareholder-managers can qualify for work permits where the applicable company, capital, shareholding, employment and other requirements are satisfied.

Legal Support for Foreign Investors Establishing Companies in Turkey

Establishing a Turkish company without a residence permit is generally possible, but foreign investors should consider much more than the incorporation itself. The proposed shareholding structure, company type, management arrangements, tax position, work-permit eligibility and future residence strategy should ideally be planned together.

Fırat Fesih Kaya Law Office provides legal assistance to foreign individuals and international companies concerning Turkish company establishment, foreign shareholding, limited and joint-stock companies, subsidiaries, branches, shareholder agreements, company acquisitions, work permits and residence-related corporate planning.

Foreign investors who intend to personally manage their Turkish businesses should pay particular attention to the distinction between being legally registered as a shareholder or director and being legally authorized to work in Turkey.

Fırat Fesih Kaya can review the proposed investment structure before incorporation and determine how the company establishment should be coordinated with the foreign investor’s intended management role and immigration status.

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