This guide describes company formation in Türkiye. Legal requirements, capital thresholds and fees change, so confirm current details with the Trade Registry, a financial advisor (mali müşavir) or a lawyer before you act. If you plan to register a company elsewhere, the process and rules will differ.
Turning a new business idea into commercial activity requires choosing a legal form, registering and completing a set of formalities. This guide explains the main company types in Türkiye, how to choose between them and the steps to set one up.
What Does It Mean to Start a Company?
Starting a company means giving your business a legal and tax identity so it can invoice, sign contracts, employ people and open a bank account in its own name. In Türkiye the main routes are a sole proprietorship (gerçek kişi işletmesi / şahıs şirketi), a limited company (limited şirket) and a joint-stock company (anonim şirket).
What to Do Before Starting a Company
- Clarify the business idea. What exactly will you sell, and why will customers choose you?
- Define the target audience. See what is a target audience.
- Decide between B2C and B2B sales. See the B2B business model.
- Calculate the starting budget: registration costs, accountant fees, rent, equipment, marketing and a cash reserve.
- Decide the business address. You need a valid company address (a home address, a virtual office or a physical workplace, depending on the activity).
Think about the marketing plan too. See marketing strategy.
Company Types in Türkiye
Sole Proprietorship
A business run in your own name as a natural person. There is no statutory minimum capital, though you need working capital for setup and operations. It is the simplest and cheapest to set up.
- Advantages: quick and inexpensive to establish, simple accounting and a single owner makes decisions.
- Disadvantages: you are personally liable with your own assets, and it can look less established to larger customers and partners.
Limited Company
A company whose partners’ liability is limited to their capital share. It can be founded by a single natural or legal person.
- Minimum capital: 50,000 TL (check the current figure).
- Advantages: limited liability, a more credible image for corporate customers and ease of adding partners.
- Disadvantages: more formalities, higher accounting and registration costs and stricter rules when ending the company.
Joint-Stock Company
A company whose capital is divided into shares; also possible with a single shareholder.
- Minimum capital: 250,000 TL for the basic capital (check the current figure).
- Advantages: suitable for larger projects, investment and share transfers.
- Disadvantages: heavier governance and cost obligations.
Comparison
| Sole proprietorship | Limited company | Joint-stock company | |
|---|---|---|---|
| Minimum capital | None | 50,000 TL | 250,000 TL |
| Liability | Personal | Limited to capital share | Limited to capital share |
| Setup effort | Low | Medium | Higher |
| Best for | Freelancers, very small businesses | Small and medium businesses, partnerships | Larger or investment-oriented ventures |
Which Type Should You Choose?
- Sole proprietorship: a freelancer, craftsperson or very small business testing an idea with low risk.
- Limited company: most small and medium enterprises, partnerships, or businesses selling to corporate customers.
- Joint-stock company: ventures planning to raise investment, issue shares or operate at scale.
Your financial advisor can run the tax and cost comparison for your particular activity.
NACE Code, Trade Name and MERSIS
- NACE code: the activity classification code for what the company does. Choose it carefully; it affects permits and taxes.
- Trade name: the company name must be unique, not misleading and compatible with the rules for the chosen type. Also check whether a matching domain and social handles are available. See how to choose an SEO-friendly domain name.
- MERSIS: Türkiye’s Central Registry Record System, where the company’s identity and application are recorded.
How to Start a Limited Company
- Decide company details: name, activity (NACE), address, partners, capital.
- Create the MERSIS record.
- Prepare the articles of association.
- Apply to the Trade Registry.
- Complete signature declarations.
- Registration and announcement take place.
- Create the legal books.
- Check tax and other registrations.
How to Start a Joint-Stock Company
- Determine founders and shares.
- Prepare the articles of association.
- Deposit the required part of the capital.
- Check whether a permit is needed for the activity.
- Register with the Trade Registry.
- Complete management and tax processes.
How to Start a Sole Proprietorship
- Determine the activity and address.
- Agree with a financial advisor.
- Make the tax start-of-business notification.
- Pass any inspection or obtain permits required for the activity.
- Register with the relevant chamber where applicable.
Do You Need an Office?
You need a valid company address. Depending on the activity, a home address, a virtual office or a physical workplace may be used. A company can be set up at a home address if the activity and building conditions allow; check the lease, withholding tax, license and building management plan.
How Much Does It Cost?
It varies with the company type, city, capital, address and activity. Minimum capital for a limited company is 50,000 TL and for a joint-stock company 250,000 TL, but setup also includes fees, notary and registry costs, accountant fees and the address. Ask your advisor for a written estimate.
After You Register
Once the company exists, put its digital basics in place:
- Use the digital setup checklist for new businesses.
- Choose a domain and hosting.
- Build a website with web design (for online selling, see how to build an e-commerce website).
- Add the business to Google Maps; see Google Maps business listing.
- Build brand awareness and plan digital marketing.
- Check whether you qualify for support; see KOSGEB entrepreneurship certificate.
Frequently Asked Questions
How is a company started?
First decide the activity, address, company type and capital. A sole proprietorship starts with the tax start-of-business notification; limited and joint-stock companies go through MERSIS and the Trade Registry.
How much money is needed?
It depends on type, city, capital, address and activity. Limited companies need at least 50,000 TL of capital and joint-stock companies at least 250,000 TL, plus formation costs.
Is capital needed for a sole proprietorship?
There is no statutory minimum capital, but you need working capital for setup and operations.
Can one person form a limited or joint-stock company?
Yes. A limited company can be formed by a single natural or legal person, and a joint-stock company by a single shareholder.
Do I need an office?
You need a valid company address. A home address, a virtual office or a physical workplace may be used depending on the activity.
Can a company be set up at a home address?
If the activity and building conditions permit. Check the lease, withholding, license and management plan.
