Step-by-Step Legal Guide to Forming a Company in Istanbul
Summary
This article walks you through all the legal steps, required documents, and tax obligations for both domestic and foreign individuals or entities to establish a Limited Liability Company (LLC) or Joint-Stock Company (JSC) in Istanbul.
1. Choosing Your Company Type
Limited Liability Company (LLC)
- Minimum capital: 10,000 TRY
- Shareholders: 1–50
Joint-Stock Company (JSC)
- Minimum capital: 50,000 TRY
- Shareholders: at least 1
Legal Basis
- Turkish Commercial Code No. 6102
- Ministry of Trade Communiqués
2. Step-by-Step Formation Process
| Step | Action | Responsible Authority |
|---|---|---|
| 1 | Submit Articles of Association for approval | Istanbul Chamber of Commerce |
| 2 | Register for a Tax ID | Turkish Revenue Administration |
| 3 | File Social Security Enrollment (partners/employees) | Social Security Institution (SGK) |
| 4 | Publish in Trade Registry Gazette | Official Gazette |
| 5 | Notarize Company Ledgers (journal, ledger) | Notary Public |
| 6 | Notarize Signature Circular | Notary Public |
3. Required Documents
- IDs or passports of founding partner(s)
- Proof of residence (domicile certificate)
- Signature circular(s)
- Bank receipt showing 25 % of paid-in capital
- Draft Articles of Association
4. Tax & Regulatory Obligations
- Corporate Tax: 25 % (as of 2025)
- Withholding Tax & VAT Declarations
- VAT Exemption: until first issued invoice
5. Frequently Asked Questions
- Q: Why choose an LLC over a sole proprietorship?
- A: Better liability protection and clearer corporate structure.
- Q: Are there extra steps for foreign shareholders?
- A: Yes—apostilled documents and a valid residence permit are required.