2025 Company Formation Guide – Which Type of Company Suits You?

Setting up a business in Turkey is not as complex and daunting as it seems. If you have the right information and follow the steps systematically, you can largely manage the process yourself.

Specifically, launching a sole proprietorship can be completed in just a few hours via e-Government. However, if you are planning to establish a limited liability or joint-stock company, getting expert support during the Chamber of Commerce registration process is highly recommended to reduce the risk of errors due to complexities like articles of association, shareholder structure, and management bodies.

What's in This Guide?

• Overview of company formation steps

• Up-to-date costs for 2025

• Answers to "Which company type is right for me?"

• Clarification on capital and liability questions

In Brief:

• If you want to start fast → Sole proprietorship

• If you target partnerships and growth → Limited liability company (LLC)

• If you want to raise investment or build a scalable structure → Joint-stock company (JSC)

1. Pre-formation Preparation (For All Company Types)

Required Preparations:

• Field of activity → Determine your NACE code.

• Company name → Check via MERSİS to ensure it is unique.

• Address → Can be home or office; contract or title deed is required.

• Capital plan

  • Sole Proprietorship: Not required

  • LLC: Min. 50,000 TRY (payable within 24 months)

  • JSC: Min. 250,000 TRY (25% must be blocked pre-registration)

• Digital tools

  • e-Signature

  • KEP address (registered e-mail)

  • Interactive Tax Office (IVD) password

2. Company Type Comparison (Table)

* Average expenses (Istanbul 2025): notary, Chamber of Commerce fees, e-signature, financial seal, etc.
** Committed capital can be used freely once established.
*** Directors may be held personally liable for public debts.

3. Setting Up a Sole Proprietorship (Step-by-Step)

Required Information and Documents:

• NACE code

• ID & proof of address (available via e-Government)

• Address document:

  • If you are the homeowner: Title deed (Tapu)

  • If you are renting: New lease agreement + 20% withholding tax (stopaj)

  • If you want an office: A virtual office agreement works as well

Application Process (via e-Government / IVD):

1. Go to dijital.gib.gov.tr

2. Click the "User Login" button

3. Log in using your e-Government credentials

4. Enter your address, activity, and tax office details

5. Optionally apply for e-Invoicing

6. Approve the application → Get your reference number

7. Download the "Inspection Request Form"

8. Generate and save your tax plate (vergi levhası)

Post-formation Action Items:

• Get a company stamp made

• Notary: Signature declaration

• SMMM (CPA) power of attorney

• Address inspection (tax officer visit)

4. Setting Up an LLC or JSC

Professional assistance is highly recommended for these templates (e.g., with Üstad). The process is handled in tandem:

Required Documents from Partners:

• ID & proof of address

• Notarized power of attorney

• Lease agreement or title deed

• Shareholder/authorization matrix

• Scope of activity (max 5 lines)

The Process Handled by Üstad:

• Company formation consulting

• Drafting articles of association

• Notary/Chamber of Commerce documentation

• MERSİS application

• Post-registration tasks:

  • Tax office registration

  • Social Security (SGK) registration

  • e-Document applications

• Service fee: 8,500 TRY + VAT (excluding official registry fees)

5. Frequently Asked Questions

Who is required to use e-Books / e-Invoicing?
In 2025, businesses keeping accounts on a balance-sheet basis must use e-Books; those exceeding a revenue threshold of 3 million TRY must switch to e-Invoicing.

Can I convert my sole proprietorship into an LLC?
Yes, though practically it is often simpler to close down and set up a new company.

How long does the setup process take?

• Sole Proprietorship: Same day

• LLC/JSC: 2–3 business days

Action items within the first 15 days of formation:

• Notification to the tax office

• Social Security (SGK) sign-up

• Trade Registry Gazette announcement

• e-Invoicing/e-Book activation

• Employee employment notification (if applicable)

Support and Contact

📩 destek@ustad.co
💬 WhatsApp: +90 216 706 76 00

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Note: This guide is for informational purposes only. Document requirements and application steps may change over time. Please reach out to us before taking action.