In this guide, I’m going to show the type of costs related to company formation in Turkey.
We have been offering company formation and account management services in Turkey for over 25 years.
I’m going to discuss the cost of LLCs, joint stock companies, branch offices, and liaison offices. Not only these, you’ll also learn about other fees and cost-reducing tips in this post.
Let’s get started.
Author
Co-author
In this guide, I’m going to show the type of costs related to company formation in Turkey.
We have been offering company formation and account management services in Turkey for over 25 years.
I’m going to discuss the cost of LLCs, joint stock companies, branch offices, and liaison offices. Not only these, you’ll also learn about other fees and cost-reducing tips in this post.
Let’s get started.
Author
Co-author
Get in Touch with Us
Alp Atasoy
Sales and Business Development Consultant
You first need to understand what types of legal structure options you have for your business. There are mainly four different types for different purposes, and each has its own costs that differ from the others. There are also other charges and ongoing costs discussed here.
There are multiple factors that increase or decrease the setup cost while registering a company in Turkey. You need to pay for legal structure or business entity registration, government fees, notarization, professional services, office setup, and other extra charges.
One-Time Costs | Ongoing Costs |
Registration fees | Accounting fees |
Notary charges | Tax filings |
Consulting and legal setup | Payroll costs |
Capital deposit | Social security |
Translation costs | Office rent |
Bank opening | E-ledger software costs |
There are four different types of legal entities that you can register in Turkey. They mainly serve different businesses and needs. The costs for each entity varies. Here is how:
This is the most common type of legal entity used for registration. It is best for small businesses and companies that have one or two main shareholders. Depending on your needs and quality expectations, the consulting fees can range between $1,000 to $7,000.
This legal entity is for larger companies with shareholders. Share transfers are easier and are partly exempt from taxes. Due to higher capital and governance requirements, depending on the number of shareholders and the setup of the board of directors, the consulting fees for registering a joint stock company in Turkey are higher. They range between $3,000 to $8,000.
This option is preferred mainly for turn-key projects. Foreign companies who sign turn-key construction or plant supply agreements mostly need a branch office in Turkey to operate the local supplies and services under their contract. For such projects it makes sense to open a branch office without creating a separate legal entity. The registration process and costs for a branch office are very similar to a limited liability company.
A liaison office, also known as a representative office (RO), is registered in Turkey for market research, technical training or regional coordination purposes. Although a trade registration is not necessary, the application and setup costs are similar to a limited liability company. A physical address is mandatory for registering a liaison office.
The government fees and official charges vary depending on the entity type and business structure, but below are some common charges most companies must pay.
This is the department where companies must register for government compliance. The Turkish Trade Registry handles company registrations and maintains official business records.
All documents required for setting up a business must be notarized for legal compliance. These services add to the overall cost. Additional documentation fees apply, and the process validates company files at the government level.
Businesses must register with the Chamber of Commerce or with the Chamber of Industry in Turkey. A registration fee and annual membership fees are to be paid.
In Turkish Trade Law it is not obligatory to pay the total capital at company registration. Most of the capital can be paid within 24 months after company registration. Below are the minimum capital requirements for each legal entity.
For limited liability company registration in Turkey, the required minimum share capital is 50,0000 Turkish Lira and can be paid within 24 months after company registration.
The minimum required share capital for joint stock companies is 250,000 TRY. 25% of the capital has to be paid at the company registration. The remaining amount must be paid latest within two years after registration.
During the registration process of a stock company, you must deposit required amounts into the new bank accounts, provide proof of payment to the relevant authorities, and ensure all steps are completed on time.
There are additional costs beyond registration and government fees, including professional and office-related expenses.
Legal advisory and incorporation services may be required to ensure an error-free and timely setup and to avoid fines or delays. Accounting, bookkeeping, and tax consultancy fees are additional costs.
Physical offices generally require a higher budget than virtual offices. Costs may be paid monthly or annually and vary depending on location and office quality.
For all four options, a registered address must be provided, validated, and kept up to date. Virtual offices can be used in most cases.
This section covers both mandatory charges and optional costs based on business needs. Tax registrations are required, while hiring-related costs apply when employing staff.
Tax registration is mandatory in Turkey and must comply with legal requirements. Incorrect registration may result in heavy fines or negatively affect the company’s future operations.
Hiring local employees involves expenses such as job advertisements, staffing agencies, EOR services (if used), and compliance costs. Recruitment must comply with local labor laws.
Together with the company setup, employers must be registered with the social security institution. Payroll systems, taxes, and social security contributions are mandatory.
After company registration and business setup, recurring charges apply. These include accounting services, tax filing expenses, annual renewals, and compliance fees.
Some additional costs are often overlooked. Many companies are unaware of these expenses until budgets are exceeded.
Fees apply for translating documents into Turkish and notarization. Apostille requirements for foreign documents can further increase costs.
Bank account opening fees may be low but should be considered when estimating total formation costs. Minimum deposit requirements also vary by bank.
If you authorize someone to manage the process on your behalf, power of attorney fees will increase the overall cost of company formation.
| Cost Aspect | Local-Owned Companies | Foreign-Owned Companies |
| Registration process | Simple local filing | Additional approvals |
| Documentation needs | Standard documents | Translated, notarized |
| Apostille requirement | Not required | Often required |
| Legal advisory costs | Lower | Higher |
| Setup complexity | Low | Medium to high |
| Minimum capital | Standard requirement | Same, proof needed |
| Bank account setup | Faster | Slower, stricter |
| Power of attorney | Usually unnecessary | Commonly required |
| Government fees | Standard | Slightly higher |
| Compliance handling | Easier locally | More formalities |
Below are two very effective ways to reduce company formation costs in Turkey.
Obtain clear guidance on the legal entity type your business needs and the requirements involved.
Partnering with a local expert can simplify company registration and ongoing processes such as hiring, payroll, and account management. FMC Group has been operating in Turkey for 27 years and supports clients with market research, company formation, EOR, payroll handling, and financial management. This ensures compliance, avoids fines, and enables faster business setup.
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Turnstile. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Vimeo. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More Information