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Turkey is no longer just a bridge between Europe and Asia; it is an aggressive, expanding market with its own set of rules. Investors come here for the strategic logistics and the young demographic. But let’s be honest: Turkish bureaucracy can be a labyrinth, and outdated information is expensive here. What was true two years ago is often obsolete today.
This article isn’t a theoretical lecture. We are looking at the process through the practitioner’s lens: Where are the real hurdles? What new laws apply as of December 2025? And most importantly: How do you avoid the mistakes that have cost others thousands of Lira?
Why Turkey? (Beyond the Brochures)
Forget the standard sales pitch about sun and hospitality for a moment. Economically, we are talking about a country with 416 Organized Industrial Zones (OSB) and a massive production base. If you want to see who has already succeeded, look at the major conglomerates using Turkey as their primary export hub.
A glance at the current Turkey’s foreign trade indices shows that despite global fluctuations, export volume remains the real engine. But to get a piece of that action, you have to do your homework.
Government Incentives: Read the Fine Print
Turkey aggressively woos investors, but the conditions have tightened. We need to distinguish between what’s on paper and the real world application for 2025/2026.
- Free Zones (Serbest Bölgeler): There are 19 active zones. The classic perk: 100% exemption from customs duties and VAT. But beware: Since January 1, 2025, the corporate tax exemption for sales from the Free Zone into the Turkish domestic market has been eliminated. The tax exemption now primarily applies to genuine exporters (85% export ratio).
- Technology Development Zones (Teknoparks): Ideal for software and R&D. Support for remote work has been extended through the end of 2025 (100% for computer scientists). However, a new cap applies to income tax exemptions, now pegged at 40 times the minimum wage.
Company Types & New Capital Requirements (2025 Update)
The most critical update for you: Inflation has pushed minimum capital limits upward. If you are still calculating with old numbers, you will be rejected at the Trade Registry.
- Limited Şirket (Ltd. Şti. – LLC Equivalent): This is the choice for 90% of SMEs. The minimum share capital is now 50,000 TL (previously 10,000 TL).
- Anonim Şirket (A. Ş. – Joint Stock Company): For larger operations or if you plan to bring investors on board. The minimum capital is now 250,000 TL (and 500,000 TL for non public A. Ş. with a registered capital system).
Expert Tip: Don’t just deposit the minimum. Banks and suppliers view higher starting capital as a sign of legitimacy. Furthermore, existing companies must adjust their capital base by the end of 2026 to meet these new standards.
The Incorporation Process: Digital, but Tricky
The process is centralized through the MERSIS system. A crucial change for 2025: The use of a qualified electronic signature (E Imza) or mobile signature is now mandatory for almost all steps. The days of simple wet signatures are over.
The Necessary Steps
- MERSIS Registration & Articles of Association: Everything starts digitally. You will need a Turkish tax number for foreigners (Potansiyel Vergi Numarası).
- Notarization: Even in the digital age, Turkey loves the Notary. Passports must be translated and notarized. For a deeper dive into costs and processes, check our guide on legalization of foreign documents in Turkey.
- Competition Authority (Rekabet Kurumu): 0.04% of the capital must be deposited. Today, this is often integrated via the “Harç Takip Sistemi” within MERSIS.
- Bank Account & Capital Deposit: For an A. Ş., 25% of the capital must be blocked before incorporation. For a Ltd., the capital can often be deposited after registration within 24 months (depending on bank practice).
- Trade Registry: Final registration often takes just 1-3 days if the paperwork is flawless.
Taxes & Accounting: The Numbers for 2025/2026
A good accountant (Mali Müşavir) in Turkey isn’t an option; it’s a legal requirement. The tax landscape has tightened:
- Corporate Tax (Kurumlar Vergisi): The general rate for 2025 is 25%. For financial institutions (banks, factoring), it is 30%. New this year is the introduction of a “Domestic Minimum Corporate Tax” of 10% to curb tax avoidance.
- Income Tax: Rates are progressive. For 2025: You pay 15% on income up to 158,000 TL. The top rate of 40% kicks in at 4.3 million TL.
Personnel: Hiring Foreigners
Many foreign founders want to hire their fellow nationals. It is possible, but expensive and bureaucratic.
The Ministry of Labor is strict. The so-called 5:1 Rule still applies: For every foreigner, you must employ five Turkish citizens. Additionally, the hurdle for the company has been raised: To even apply for a work permit, your company’s paid in capital must now be at least 500,000 TL (or gross sales of 8 million TL).
For a broader strategy on the job market here, refer to our guide on finding a job in Turkey.
The Costs for 2025: Expect government fees of approximately 10,571 TL for a one year work permit, plus card fees.
Cost Overview: What Does It Really Cost to Start?
Aside from share capital, you need to budget for the following administrative costs:
- Chamber of Commerce (e. g., Istanbul – ITO): Registration fees are around 2,610 TL, with annual dues between 2,650 and 3,800 TL.
- Notary Fees: For Articles of Association, signature circulars, and translations, plan for at least 5,000-10,000 TL (heavily dependent on page count).
- Accountant: Monthly fees for an inactive or small company rarely start below 3,000-5,000 TL. With domestic producer prices rising, expect service fees to adjust mid year.
Conclusion
Establishing a company in Turkey in 2025 has become more expensive and more digital than just a few years ago. The increase in minimum capital limits to 50,000 TL (Ltd.) and 250,000 TL (A. Ş.) was overdue and serves to filter the market. For those who view Turkey not just as a cheap workshop but as a strategic hub, enormous opportunities remain. The key to success lies not in the business idea alone, but in a competent Mali Müşavir (CPA) who can guide you through the jungle of new tax laws.