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

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

In particular, setting up a sole proprietorship can be completed in a few hours via e-Government. However, if you are planning to establish a limited or joint stock company; due to details such as the main contract, partnership structure, and management bodies, getting expert support during the Trade Registry process reduces the risk of errors.

What’s In This Guide?

• Company establishment steps are summarized

• Current costs for the year 2025 are shared

• Answer to the question “Which type of company suits me?” is sought

• Confusion about capital and responsibility is resolved

In Brief:

• If you want to start quickly → Sole proprietorship

• If you aim for partnership and growth → Limited company

• If you want to receive investment or establish a scalable structure → Joint stock company

1. Preparation for Establishment (For All Types)

Necessary Preparations:

• Field of activity → Determine the NACE code.

• Company name → Query on MERSİS, make sure it's unique.

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

• Capital plan

  • Sole: Not required

  • Limited: Min. 50,000 TL (to be deposited within 24 months)

  • Joint Stock: Min. 250,000 TL (25% is blocked)

• Digital tools

  • e-Signature

  • KEP address

  • Interactive Tax Office (IVD) password

2. Company Type Comparison (Table)

* Average expenses (Istanbul 2025): notary, chamber fees, e-signature, financial seal, etc.
** Committed capital can be freely used.
*** Managers may be held personally liable for public debts.

3. Establishing a Sole Proprietorship (Step by Step)

Required Information and Documents:

• NACE code

• Identity & residency document (can be obtained from e-Government)

• Address document:

  • If you own: Deed

  • If you rent: New rental agreement + 20% withholding tax

  • If you want an office: Agreement with virtual office can be made

Application Process (via e-Government / IVD):

1. Go to dijital.gib.gov.tr

2. Click the “User Login” button

3. Log in with e-Government

4. Enter address, activity, and tax office information

5. Make the e-Invoice application optionally

6. Approve the application → Get the reference number

7. Download the “Survey Request Form”

8. Create and save your tax plate

Post-Establishment Requirements:

• Get a stamp made

• Notary: Signature declaration

• SMMM power of attorney

• Address check (official visit)

4. Establishing a Limited and Joint Stock Company

It is recommended to get professional support for these types (e.g., with Üstad). The process works twofold:

Documents Required from Partners:

• Identity & residency documents

• Notary power of attorney

• Rental agreement or deed

• Partnership/authority table

• Activity subject (max 5 lines)

Process Conducted by Üstad:

• Company establishment consultancy

• Preparation of main contract

• Notary/Chamber of Commerce documents

• MERSİS application

• Post-registration processes:

  • Tax office registration

  • SGK notification

  • e-Document applications

• Service fee: 8,500 TL + VAT (excluding fees)

5. Frequently Asked Questions

Who is required to keep a ledger/e-Invoice?
In 2025, those keeping a ledger on a balance sheet basis must switch to e-Ledger; those exceeding a turnover of 3 million TL must switch to e-Invoice.

Can I convert my sole proprietorship into a limited company?
Yes; but generally, it is more practical to close and establish a new company.

How long does the establishment process take?

• Sole: Same day

• Limited/Joint Stock: 2–3 business days

Things to do within the first 15 days after establishment:

• Notification to tax office

• SGK notification

• Trade Registry Gazette distribution

• e-Invoice/e-Ledger activation

• Employee entry notification if applicable

Support and Contact

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

Digitize Your Accounting and Tax Processes with Üstad

You can use the Üstad platform to digitize document tracking, trial balance, and income-expense management; manage all your tax processes from a single panel.

Note: This guide is prepared for general information purposes. Document lists and application steps may change over time. Contact us before taking action if you are unsure.