How to Establish a Foreign-Partnered Company in Turkey: The 2026 Guide

Want to set up a company with a foreign partner but not sure where to start? The good news: there is no legal barrier to foreign individuals or legal entities setting up a company in Türkiye. The hard part is not overcoming legal barriers. The real test is following the process through the points where things get stuck in practice, such as opening a bank account and getting a work permit.

🚀 At a Glance

• Formation: No legal barrier. Foreign individuals or legal entities can set up a limited or joint-stock company on their own or with Turkish partners.

• Documents: For the foreign partner, additional documents come into play, such as a passport translation, a tax number and, where needed, a residence permit.

• Bank account hurdle: For foreign partners with no banking history in Türkiye, opening an account can delay formation.

• Work permit: Not required at formation, but if the partner actually manages the company, certain capital/turnover thresholds apply later.

What Is a Company with Foreign Partners?

A company with foreign partners is a company set up by one or more foreign individuals or legal entities, either with Turkish partners or on their own. Foreign individuals can set up a capital company on their own or enter into a partnership with Turkish individuals or legal entities; foreign legal entities can set up a company directly in Türkiye, open a branch or become a partner in an existing company. The process is carried out under Foreign Direct Investment Law No. 4875 and Turkish Commercial Code No. 6102; these two laws guarantee the principle of equal treatment of foreign and domestic investors.

How Do You Set Up a Company with Foreign Partners?

The framework of the formation process is almost the same as for a domestic company. The articles of association are prepared, signatures are certified, an application is made to the trade registry, and tax registration is opened at the tax office. The difference from a domestic company lies in the additional documents and checkpoints that apply to the foreign partner.

1. Preparing the Documents

The main documents required for the foreign partner are:

• A notarised copy of the passport with a Turkish translation (if the foreign partner is an individual)

• A tax office document showing the foreigner identification number

• A notarised residence permit if they live in Türkiye

• If the partner is a foreign legal entity: an apostilled translation of the parent company's board resolution, certificate of activity and registry records

• For Turkish citizens living abroad: a notarised Turkish translation of the residence or work permit

All other documents (articles of association, signature declaration, lease agreement, etc.) are exactly the same as those required from Turkish partners.

💡 Üstad Reminder: Apostille and translation work can take days. If you have a foreign partner, sorting out these documents at the very start of your plan, before the formation application, greatly reduces the risk of delay.

2. Trade Registry and Tax Office Application

An application is made to the relevant trade registry office with the articles of association and supporting documents, and after registration, tax registration is opened at the tax office. This step applies to all capital companies, whether or not they have foreign partners.

3. Opening a Bank Account

The bank account step is the one that causes the most lost time in the formation process. Banks may ask for additional documents or an approval process for foreign partners who have never had banking history in Türkiye or who are not resident. This stage is particularly important for joint-stock companies. Registration depends on a document showing that the capital has been deposited with the bank, meaning your capital commitment must be blocked.

💡 Üstad Reminder: If possible, start the bank account process a little ahead of the formation application rather than at the same time. Ask your accountant in advance which banks are more used to opening accounts for companies with foreign partners.

Work Permit Conditions

A work permit is not required during company formation, and the application can be made after formation. But two separate situations need to be distinguished here:

• Partner without a management role: Board members of a joint-stock company who are not resident in Türkiye, and partners in other company types who do not actually manage the company, do not need a work permit. Instead of a permit, these people apply for a work permit exemption, meaning they can be in Türkiye in this status without a permit.

• Partner who actually manages the company: If the partner actually holds a management role, such as manager of a limited company or board member of a joint-stock company, they must obtain a work permit. In this case, for the permit application to be accepted, the business must also meet certain capital or turnover thresholds.

Financial Thresholds for a Work Permit (2026)

At least one of the following three criteria must be met:

• Paid-in capital of at least 500,000 TL

• Net sales of at least 8,000,000 TL

• Exports of at least 150,000 USD in the last year

In addition, the company partner for whom the work permit is requested must hold a capital share of at least 40,000 TL, and the business must employ at least 5 Turkish citizens registered with the SSI (for the first foreigner for whom a permit is requested).

💡 Üstad Reminder: These figures are updated every year in line with the revaluation rate. Always confirm the current amount with your accountant before applying; a file prepared with old figures risks being rejected.

Risks to Watch Out For

• Missing or out-of-date documents: A missing apostille, translation or tax number can halt registration.

• Confusing work permits with partnership status: The difference between simply being a partner in the company and actually managing it directly changes whether a permit is needed.

• Activity-specific permits: In some sectors, even once the company is set up, separate permits or licences may be needed from the municipality, a ministry or sector authorities.

• Company types subject to prior approval: Setting up certain company types with foreign partners requires prior approval from the Ministry of Trade; if this is skipped, the formation may be deemed invalid.

Conclusion: Where to Start?

• Decide on your company type (limited or joint-stock) based on the number of partners and your growth plans.

• Draw up your foreign partner's document list (passport translation, tax number, residence permit if needed) right at the start.

• Run the bank account process in parallel with the formation application.

• If your partner will actually manage the company, check the work permit thresholds with your accountant in advance.

• Find out whether your field of activity requires any specific prior approval or licence.

❓ Frequently Asked Questions

Can foreigners set up a company in Türkiye on their own? 

Yes. Foreign individuals can set up a capital company on their own, and foreign legal entities can set up a company directly in Türkiye or open a branch.

Is a work permit required during company formation? 

No. The work permit is a separate process applied for after formation; it is not required at the formation stage.

When is a work permit not required? 

Partners who do not actually manage the company (for example, joint-stock company board members not resident in Türkiye) apply for an exemption instead of a work permit.

What most often causes delays when setting up a company with foreign partners?

Usually the bank account opening stage, especially for partners who are not resident or have no banking history in Türkiye.

Does the capital threshold for a work permit change every year? 

Yes, the thresholds are updated annually in line with the revaluation rate; you need to confirm the current amount before applying.