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Do You Want to Start a Business in Türkiye?

For your expansion in Türkiye, you must comprehend the information about the company type you need and
its qualities regarding the structuring that is suitable for your strategic plans. It is essential for
the success of your organization that you structure your company correctly in terms of legal issues and taxation.

Türkiye’de Şirket Kuruluşu Hakkında Bilmeniz Gerekenler

What You Need to Know About Starting a Business in Türkiye

Legal Base

Local and foreign investors share the same rights and liabilities in Türkiye.

The rights of foreign investors are regulated by the Foreign Direct Investment Law No. 4875, which aims to encourage and protect international investors. As per to the relevant law, unless otherwise stipulated by international agreements and special law provisions;

  • Foreign investors are free to make direct foreign investments in Türkiye.
  • Foreign investors shall be subject to equal treatment with domestic investors.

Expropriation and Nationalization

As per the legislation in force, foreign direct investments shall not be expropriated or nationalized unless deemed necessary for the public interest and the investments are compensated.


Net profit, dividends, proceeds from the sale or liquidation of all or any part of an investment, compensation payments, amounts arising from license, management and similar agreements all of which arise from foreign investors’ activities and operations in Türkiye, and reimbursements and interest payments arising from foreign loans, can be transferred abroad freely through banks or private financial institutions.

Company Types and Company Formation Processes

According to the Turkish Commercial Code Act, Code No. 6102, the company types are divided into two as capital stock companies and commercial companies. We can add liaison offices that are founded with special permission under the Foreign Direct Investment Law to the said division. Joint-stock companies, limited liability companies, and partnerships limited by shares are called the capital stock companies. The shareholders of a capital stock company have the liability only to the extent of the capital amount they committed. On the other hand, ordinary limited partnerships and collective companies make up sole proprietorships. In a sole proprietorship, the principle of second-degree unlimited liability regarding company debts applies to the partners.

The formation of these company types, their basic qualities, and operation principles are regulated in the Turkish Commercial Code No. 6102, while the operation principles of cooperatives are governed by the Cooperative Law No. 1163.


The establishment of certain companies is subject to the permission the Ministry grants. Those companies are banks, financial leasing companies, factoring companies, consumer financing and credit card processing companies, asset management companies, insurance companies, holdings founded as joint-stock companies, companies that run exchange offices, companies that are involved in public warehousing, warehousing companies that have agricultural products license, commodity exchange companies, independent audit companies, inspection companies, technology development zone managing companies, companies that are subject to the Capital Market Law, and companies that found and run free zones.

Joint-Stock Company
Limited liability Company
Sole Proprietorship / Limited Partnership (Collective and Commandite Companies)
Liaison Offices

Joint-Stock Company

Limited Liability Companies (LLC)

Sole Proprietorship / Limited Partnership (Collective and Commandite Companies)


Liaison Offices


Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.

For each concrete situation, it is strongly advised to seek guidance from a professional advisor. If you are a customer of ours, please consult with your customer representative before taking any action related to the announcement. If you are not a customer, seek advice from an expert.

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