Turkey, a strategic bridge between Europe and Asia, offers immense opportunities for local and foreign entrepreneurs alike. Whether you're expanding your business, launching a startup, or investing in regional operations, understanding the different business structures in Turkey is essential before moving forward with your company registration in Turkey.

The structure you choose determines your legal responsibilities, tax obligations, reporting requirements, and overall operational flexibility. Making the wrong choice can create unnecessary complications later—so it’s important to make an informed decision from the start.

In this guide, we break down the main types of legal entities available in Turkey, helping you decide which structure suits your business model and goals before initiating Turkey company registration.

Why the Right Business Structure Matters

Choosing the right business structure in Turkey is more than a legal formality. It affects several key aspects of your business:

• Liability: Determines if you're personally liable for debts

• Taxation: Different structures face different tax regimes

• Capital requirements: Some entities require higher minimum capital

• Ownership flexibility: Whether locals or foreigners can own shares

• Regulatory compliance: Varies based on company type

• Reputation: Some structures are more trusted in local markets

Who Can Register a Company in Turkey?

Turkey is open to foreign investment, and foreigners can fully own and operate a company in the country. You do not need a local Turkish partner, although certain structures may benefit from having one for administrative ease.

Foreign nationals can register a company either remotely through a power of attorney or by visiting Turkey in person. The registration process is relatively streamlined and overseen by the Turkish Trade Registry Office.

Main Types of Business Structures in Turkey

Here are the most common legal structures available to both local and foreign entrepreneurs:

1. Limited Liability Company (LTD – Limited Şirket)

Best for: SMEs, e-commerce, consulting, trading, and general business

The Limited Liability Company (LTD) is the most popular and flexible legal structure in Turkey for both local and foreign investors.

Key Features:

• Requires 1 to 50 shareholders

• Minimum capital: 10,000 TRY (~$350 USD)

• Liability is limited to capital contribution

• Shareholders can be individuals or legal entities

• Suitable for a wide range of business activities

• No requirement for a local partner

• Can be managed by one or more directors

Advantages:

• Easy to set up and maintain

• 100% foreign ownership allowed

• Lower capital requirement compared to JSC

• Flexible in terms of structure and management

• Fewer corporate governance requirements

Disadvantages:

• Less prestigious than a Joint Stock Company

• May face limits if planning for public offering or large-scale financing

This is usually the go-to structure for foreign entrepreneurs pursuing company registration in Turkey for general business purposes.

2. Joint Stock Company (JSC – Anonim Şirket)

Best for: Large businesses, manufacturing, public offerings, and MA activities

The Joint Stock Company (JSC) is a more complex structure, suitable for larger enterprises or those planning to raise capital or go public.

Key Features:

• Minimum of 1 shareholder, no maximum limit

• Minimum capital: 250,000 TRY (~$8,750 USD)

• Liability is limited to the capital invested

• Can issue shares and go public

• Mandatory board of directors

• More regulated and suitable for industries like finance, banking, or insurance

Advantages:

• Suitable for raising capital through share issuance

• Higher public trust and credibility

• Ideal for large-scale or regulated industries

• Ability to go public or partner with investors

Disadvantages:

• Higher costs and more bureaucracy

• Mandatory audits under certain thresholds

• More rigid governance structure

If your business aims for regional expansion, investor involvement, or public credibility, a JSC is the right fit for Turkey company registration.

3. Sole Proprietorship (Şahıs Şirketi)

Best for: Freelancers, individual entrepreneurs, and small-scale service providers

A sole proprietorship is the simplest form of business in Turkey. It is quick and cheap to establish but carries unlimited personal liability for the owner.

Key Features:

• Owned and managed by a single individual

• No capital requirement

• Owner is personally liable for all debts and obligations

• Income is taxed as personal income, not corporate

• Suitable for low-risk, small-volume business

Advantages:

• Fast and low-cost setup

• Simple tax and reporting structure

• No need to maintain corporate records

• Ideal for consultants, tutors, or online freelancers

Disadvantages:

• Unlimited liability

• No legal separation between business and personal assets

• Harder to attract investors or scale

While not common among foreign investors, it can be a good entry point for company registration in Turkey if you're testing the market on a small scale.

4. Branch Office (Şube)

Best for: Foreign companies expanding operations in Turkey

A branch office allows an existing foreign company to operate in Turkey without creating a separate legal entity.

Key Features:

• Legally dependent on the parent company

• Must appoint a Turkish resident representative

• Subject to Turkish laws and taxes

• Requires approval from the Ministry of Industry and Technology

• Cannot conduct activities not permitted to the parent company

Advantages:

• Easier market entry for foreign businesses

• No need to raise separate capital

• Profits can be repatriated to the parent company

Disadvantages:

• Full liability falls on the parent company

• Limited flexibility compared to a subsidiary

• Must follow parent company’s business scope

This option is ideal for international corporations doing Turkey company registration for distribution, customer service, or local operations.

5. Liaison Office (İrtibat Bürosu)

Best for: Market research, non-commercial presence, early-stage planning

A liaison office is a non-commercial entity that allows foreign companies to explore the Turkish market or manage partnerships without engaging in sales or transactions.

Key Features:

• Cannot generate income or sign commercial contracts

• Must be approved by the Ministry of Industry and Technology

• Typically granted permission for 3 years (renewable)

• Used for RD, promotion, or relationship management

Advantages:

• No taxation on income

• Simple administration and no capital requirement

• Allows for market understanding before full entry

Disadvantages:

• Cannot engage in revenue-generating activity

• Approval process may take time

• Requires strict reporting and activity documentation

Use a liaison office when planning long-term company registration in Turkey, but needing time for local research and partnerships.

Which Business Structure Should You Choose?

Here’s a quick comparison based on your needs:

Final Thoughts

Choosing the right structure is the first and most important step before starting the process of company registration in Turkey. Whether you're a freelancer, startup founder, or international enterprise, Turkey provides flexible options to match your needs.

The Limited Liability Company (LTD) is the most common and practical choice for foreign entrepreneurs. However, if your business has more complex goals—such as raising capital, going public, or managing large operations—a Joint Stock Company may be more appropriate.

If you're still unsure which path to take, it's advisable to consult a local legal or tax advisor who understands the regulatory landscape of Turkey company registration.