Setting Up a Limited Liability Company in Turkey (Ltd. Şti) 2026: Capital, Taxes & Foreign Ownership
2026
03 Sep
Overview of Establishing a Limited Company (Ltd. Şti.) in Turkey (2026)
The Limited Liability Company (Limited Şirket - Ltd. Şti.) is the preferred and most versatile corporate structure for international entrepreneurs in Turkey. Under the Turkish Commercial Code No. 6102 (TTK), foreign investors enjoy 100% foreign ownership with equal treatment to Turkish nationals, with no requirement for a local Turkish partner.
This authoritative 2026 guide breaks down the statutory requirements for incorporation, the updated minimum capital threshold of 50,000 TRY, corporate tax structures, MERSİS registration, and mandatory SMMM accounting compliance.
Key Legal & Financial Parameters of Turkish Limited Companies (2026)
| Parameter | Statutory Requirement (Ltd. Şti.) | Practical Implication for Foreign Investors |
|---|---|---|
| Number of Shareholders | 1 to 50 shareholders | A single foreign national or legal entity can own 100% of corporate equity |
| Minimum Share Capital | 50,000 TRY (Updated under Presidential Decree No. 7887) | No initial bank blocking required; capital can be deposited within 24 months |
| Shareholder Liability | Strictly limited to subscribed share capital | Personal assets are fully shielded from commercial enterprise liabilities |
| Corporate Income Tax (CIT) | 25% general statutory rate (12.5% for manufacturers) | Levied on annual net taxable corporate profits |
| Certified Public Accountant | Legally mandatory (SMMM) | Manages corporate tax declarations, monthly VAT, and bookkeeping |
| Registered Legal Address | Mandatory: Commercial office or compliant Virtual Office (Sanal Ofis) | Subject to formal tax office physical inspection (Yoklama) |
End-to-End Incorporation Process in Turkey
1. Articles of Association & MERSİS Registration: Drafting bilingual company bylaws and reserving corporate trade name.
2. Potential Tax Number Issuance: Generating tax IDs for foreign shareholders through the Digital Tax Office.
3. Chamber of Commerce Registration (İTO): Executing official signatures and registering the corporate entity.
4. Signature Circular (İmza Sirküleri): Authorizing managing directors before a Turkish Notary Public.
5. Corporate Bank Account & Tax Inspection: Opening multi-currency corporate accounts and clearing official tax office inspection.
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