Can a Foreigner Own 100% of a Company in Turkey?

The short answer: yes. A foreign investor can own 100% of a company in Turkey, without a Turkish partner, in most commercial sectors. It is one of the questions we hear most often from investors in the Gulf and the wider region, where many countries require a local partner or sponsor. This article explains what Turkish law says, who can manage the company, and the few sectors that have restrictions.

What does Turkish law say?

The question is governed by Foreign Direct Investment Law No. 4875 of 2003. The law states that foreign investors are free to invest in Turkey and are treated the same as Turkish investors, unless an international agreement or a special law provides otherwise. In ordinary sectors, foreign investment needs no prior approval.

In practice, a company fully owned by a foreigner is registered through the same procedure as a company owned by a Turkish citizen, and has the same rights.

Do I need a Turkish partner?

No. You can set up the company on your own. Both the limited liability company (Limited Şirket) and the joint stock company (Anonim Şirket) may have a single shareholder, and that shareholder can be a foreign individual or a foreign company.

To choose the right legal form for your business, see our article on types of companies in Turkey.

Can the manager be a foreigner?

Yes. Turkish commercial law does not require a company manager or board member to be a Turkish citizen or resident in Turkey; that requirement was abolished in 2012.

In a limited liability company, however, at least one shareholder must hold management and representation rights. If the company has a single shareholder, that shareholder must be one of the managers, even if an outside manager is also appointed.

Sectors with restrictions

Full foreign ownership is the rule in most activities, such as trade, import and export, services, consulting and e-commerce. Restrictions come from sector-specific laws, not from the investment law itself. The clearest example is radio and television broadcasting, where foreign capital may not exceed 50%.

Some other sectors have their own licensing or ownership rules, such as certain aviation, maritime transport and private security activities. If your business falls into one of them, check its requirements before you incorporate.

Ownership does not mean a work permit

Owning the company does not automatically give you the right to work in it in Turkey. If you want to work in your company and draw a salary from it, you need a separate work permit. The details are in our guide to work permits in Turkey.

In our experience, foreign investors are advised to register 500,000 TRY in capital to make obtaining a work permit easier.

How much capital is required?

The minimum capital is 50,000 TRY for a limited liability company and 250,000 TRY for a joint stock company. A foreign shareholder is subject to the same minimum as a Turkish one. For the cost of the setup itself, see our article on the cost of setting up a company in Turkey.

Do I need to be in Turkey to set it up?

Most steps can be completed remotely through a power of attorney, though your presence may be needed at some stages, such as opening the company bank account. To see what a foreigner needs before starting, read our article on setting up a company in Turkey as a foreigner.

Summary

Turkey is one of the few countries in the region that lets a foreigner fully own a company, with a single shareholder, under foreign management, and with no sponsor or local partner, in most sectors. What matters is checking any restrictions in your sector and planning your work permit from the start if you will work in the company.

If you're ready to start, the Dewan team in Istanbul handles company formation in Turkey, from choosing the company type to opening the bank account.