Good to know
Good to Know
- Turkey does not require a local Turkish partner or sponsor to incorporate — 100% foreign ownership is standard for an LLC or JSC, which is a real practical advantage over many other emerging markets.
- Almost all foreign nomads/entrepreneurs use the LLC (Limited Şirket) structure rather than a sole proprietorship, because a sole proprietorship legally requires the owner to already hold Turkish residency or citizenship.
- The minimum LLC capital (50,000 TRY, about 1,067 USD) does not need to be deposited before registration — you get up to 24 months to pay it in, which helps cash flow for a new nomad-run business.
- Marmaris files through the Muğla Trade Registry Directorate rather than Istanbul or Ankara — the rules are the same nationwide, but expect slightly less English-language support locally than in the big-city trade registries, so budget for a bilingual lawyer or accountant.
- A registered Turkish company gives you a legal basis to apply for a work permit or, in some cases, a residence permit — but a work permit application happens after incorporation, not as part of it, and is not mandatory just to form the company.
- Getting the corporate bank account open is frequently the real bottleneck, not the registry filing itself — most banks want the signatory to show up in person, so factor that into any 'complete remotely' timeline claims.
- Turkey's flat 25% corporate tax rate on an LLC/JSC is usually lower than the top personal income tax bracket (up to 40%) a sole proprietor would pay on higher profits — worth modeling both ways before choosing a structure.
- As a foreigner without Turkish residency, the simple 'sole proprietorship' route is legally closed to you — you'd need an LLC (Limited Şirket) instead, which is more paperwork but is the standard route foreign-owned small businesses actually use.
- From 2026, Turkey applies a 10% minimum corporate tax floor, so even a company using incentives/deductions to reduce its taxable profit will still owe at least 10% of pre-deduction income.
- Ongoing compliance is monthly (VAT, withholding) plus quarterly advance tax filings and an annual corporate return — most foreign-owned companies use a local accountant (mali müşavir), which is a real recurring cost to budget for beyond the headline tax rate.
Corporate Tax
- Standard Rate
- 25% on net corporate profit for companies (LLCs/JSCs), applying to worldwide income of Turkish-resident companies and to Turkey-sourced income of non-resident companies/branches.
- Financial Sector Rate
- 30% for banks and specified financial institutions.
- VAT
- Standard VAT (KDV) rate is 20%, with reduced rates of 1% and 10% applying to certain goods/services (e.g. 1% on essential foodstuffs like bread); exports are zero-rated.
- Export Incentive
- Companies earning exclusively through exports get a 5-percentage-point reduction, giving an effective ~20% rate.
- Double Tax Treaties
- Turkey has signed double taxation treaties with more than 85 countries, which can reduce withholding tax on dividends, interest, and royalties for treaty-country investors.
- 2026 Minimum Tax Rule
- From 1 January 2026, a domestic minimum corporate tax applies: companies must pay at least 10% of pre-deduction/pre-exemption corporate income even if standard calculations (after incentives) produce a lower figure.
Withholding Taxes
- Interest
- 0% to 10% depending on type/recipient
- Dividends
- 10% standard (often reduced under tax treaties)
- Royalties
- 20% standard (often reduced under tax treaties)
Filing Obligations
- Companies (LLC/JSC) file an annual corporate tax return covering the fiscal year.
- Quarterly 'temporary/advance' corporate tax prepayments are filed and calculated at the same rate as the standard corporate tax rate.
- Monthly VAT declarations are required for VAT-registered entities.
- Monthly withholding tax declarations are required where payroll, rent, or certain cross-border payments trigger withholding.
- Companies must maintain statutory books/records under Turkish Accounting Standards and the Turkish Commercial Code, and larger companies face independent audit requirements.
- Related-party transactions must be documented under arm's-length/transfer-pricing rules (annual transfer pricing report; Country-by-Country Reporting for larger groups).
Entity Options For Foreigners
- Freelancer Vs Company Practical Takeaway
- For a foreign remote worker/freelancer without Turkish residency, going the sole-proprietorship route is not legally available until residency is obtained, which pushes most foreigners toward forming a Limited Şirket (LLC) even for relatively small-scale freelance/consulting income — despite the extra setup cost and compliance overhead (monthly VAT/withholding filings, bookkeeping, annual corporate return) compared to a simple sole-proprietorship setup available to residents.
Sole Proprietorship Sahis Sirketi
- Liability
- The owner has personal, unlimited liability for business debts since a sole proprietorship has no separate legal personality from the owner.
- Practical Fit
- Commonly used by small-scale tradespeople, consultants, and licensed professionals (lawyers, doctors, accountants), but its residency-permit requirement makes it impractical for a foreigner who hasn't yet secured Turkish residency.
- Tax Treatment
- Profits are taxed as personal income under Turkey's progressive individual income tax brackets, which range from roughly 15% up to 40% depending on income level, rather than at the flat corporate rate.
- Who Can Use It
- Under Turkish law, a foreign national may only register as a sole proprietor if they already hold a valid Turkish residence permit (ikamet) or citizenship — it is not open to a foreigner without local residency status.
- Other Obligations
- Registration with the local tax office and (typically) the Trade Registry; social security contributions (Bağ-Kur) generally apply; VAT registration required if the activity/turnover is VAT-liable.
- Capital Requirement
- None — no minimum capital or share deposit is required to establish it.
Joint Stock Company Anonim Sirket As
- Practical Fit
- Overkill for most solo nomads/freelancers or small service businesses; relevant mainly for larger-scale ventures, manufacturers, or those seeking multiple outside shareholders.
- Who Can Use It
- Also open to 100% foreign ownership; designed for larger operations or those planning to raise outside investment or eventually list publicly.
- Minimum Capital
- TRY 250,000
- Capital Payment Terms
- Typically 25% of capital paid upfront with the remainder payable within 24 months.
Limited Liability Company Limited Sirket Ltd
- Liability
- Shareholder liability is limited to the capital committed to the company, unlike a sole proprietorship.
- Practical Fit
- This is the structure most foreign entrepreneurs use in Turkey because it combines lower capital requirements than a Joint-Stock Company with liability protection and no local-partner or residency mandate.
- Tax Treatment
- Taxed at the flat standard corporate tax rate (25%, subject to the 2026 10% minimum tax floor) rather than progressive personal rates.
- Who Can Use It
- Open to foreign nationals with no residency requirement — 100% foreign ownership is permitted and at least one director (who can be a foreign national) is sufficient to manage it.
- Minimum Capital
- TRY 50,000
Scope Note
Turkish corporate/business tax law is set nationally, not by municipality — these rules apply identically in Marmaris as anywhere else in Turkey.
Registration Mechanics
- System Used
- Company registration is processed through MERSIS (the Central Registration System) together with the Trade Registry Office and local Tax Office; this is a national online/digital system, not something specific to Marmaris.
- Typical Timeline
- With documents prepared in advance, company registration itself is commonly completed in roughly 1–2 weeks, with full setup including bank account and social security registration taking longer.
Incorporation Process And Requirements
- Sector Restrictions
- A small number of regulated sectors (broadcasting, aviation, maritime transport, mining, and certain border-region real estate) carry specific foreign-ownership limitations or licensing conditions that must be checked against the planned business activity.
- Remote Incorporation
- The entire process can generally be completed without the founder traveling to Turkey, using a notarized and apostilled Power of Attorney so a local lawyer can handle tax ID applications, MERSIS filings, Articles of Association signature, and Trade Registry submission. The step most likely to still require the shareholder's personal presence is opening the corporate bank account, since most Turkish banks require the authorized signatory to attend a branch in person.
- Recommended Entity Type
- Limited Şirket (Ltd. Şti. / LLC) — this is the structure used by roughly 80–90% of foreign-owned companies in Turkey, requires only one shareholder who can also be the manager, and lets capital payment be deferred.
- Sole Proprietorship Caveat
- A sole proprietorship (individual company) is technically open to foreigners but requires the owner to hold a valid Turkish residence permit or citizenship — unlike an LLC or JSC, which have no residency requirement. For this reason almost all foreign founders use an LLC instead.
- Jurisdiction Note
- Company law in Turkey is set nationally (Turkish Commercial Code, Law No. 6102) and administered through the national MERSIS online system plus the local Trade Registry Directorate. Marmaris businesses register with the Muğla Trade Registry Directorate (part of the Muğla Chamber of Commerce and Industry network), but the legal steps, capital rules and required documents are identical to anywhere else in Turkey — there is nothing Marmaris-specific in the incorporation rules themselves.
Minimum Capital
- LLC Ltd STI
- TRY 50,000
- Upcoming Change
- Existing companies registered under an older, lower minimum must raise capital to the 50,000 TRY (LLC) / 250,000 TRY (JSC) thresholds by 31 December 2026 or face dissolution risk — relevant if buying an existing shell company rather than founding new.
- JSC Anonim Sirket
- TRY 250,000
Typical Timeline
- Bank Account Opening
- Often takes longer than the registration itself and may require an in-person branch visit
- Document Preparation Stage
- 2–5 business days for notarization, apostille, translation and obtaining tax ID numbers — usually the slowest part for foreign founders, especially those applying from abroad
- Realistic End To End Estimate
- Roughly 1–3 weeks for a straightforward LLC with complete, correctly translated documents; treat quotes of '3–7 business days' as covering only the Trade Registry filing step, not the full document-gathering-to-operational timeline.
- Mersis And Trade Registry Stage
- 1–3 business days once documents are complete
- Tax Office And Sgk Registration
- 1–2 business days after Trade Registry approval
Core Requirements
- A defined business activity (with correct NACE activity code)
- At least one shareholder (can be a single foreign individual or foreign company)
- A registered company address in Turkey (a virtual office is commonly used and accepted)
- Articles of Association drafted in Turkish and filed via MERSIS
- A Turkish tax identification number ('potential tax number') for each foreign shareholder and director, obtained from the local tax office
- Notarized and apostilled passport copies with sworn Turkish translations for foreign shareholders/directors
- If a shareholder is a foreign company: an apostilled Certificate of Activity from its home Chamber of Commerce, an apostilled board resolution authorizing the Turkish establishment, and a copy of its own Articles of Association
Step By Step Process
- 1. Obtain a Turkish tax ID ('potential tax number') for each foreign shareholder/director from the tax office — needed before anything else can proceed on MERSIS.
- 2. Reserve the company trade name and create the company record in MERSIS (Central Registry Record System, run by the Ministry of Trade).
- 3. Draft the Turkish-language Articles of Association online in MERSIS, defining capital, activity, shareholders and management.
- 4. Sign the Articles of Association and shareholder signature declarations — done in person at the Trade Registry Office/notary, or remotely via a notarized, apostilled Power of Attorney authorizing a Turkish representative (typically a lawyer).
- 5. Pay the Competition Authority fee (0.04% of subscribed capital) and, for a JSC only, deposit at least 25% of capital in a blocked Turkish bank account.
- 6. Submit the complete file to the Trade Registry Directorate (in Marmaris' case, the Muğla Trade Registry Directorate); once approved the company is legally formed and the registration is published in the Trade Registry Gazette.
- 7. Complete post-registration steps: tax office registration, e-invoice/e-archive activation, certification of statutory books, opening the corporate bank account, and Social Security Institution (SGK) registration before hiring any employees.
Official Registry Links
- https://mersis.gtb.gov.tr/ (MERSIS — Central Registry Record System, Ministry of Trade — the mandatory online system for all company registrations in Turkey)
- https://www.ticaretsicil.gov.tr/ (Turkish Trade Registry Gazette — official publication of registered companies)
Typical Cost Estimate LLC
- Notary And Translation Fees
- TRY 8,000
range roughly 8,000–20,000 TRY
- Budget All In Estimate Low End
- TRY 13,000
some providers quote all-in official-fee-only packages starting around this figure, excluding legal/accounting service fees
- Trade Registry And Gazette Fees
- TRY 65,000
range seen across sources roughly 65,000–108,000 TRY
- Legal And Accounting Fees Not Included
- Figures above cover government/notary/translation costs only. Local law firms and accountants (often required in practice, and a certified accountant is generally needed on an ongoing basis) charge separate professional fees on top, which vary by provider.
- Note On Capital
- The minimum LLC capital of 50,000 TRY (~1,067 USD) does not have to be paid up front, so it is not necessarily a day-one cash outlay.
Local Partner Or Sponsor Requirement
- Detail
- Under the Foreign Direct Investment Law (Law No. 4875), foreign nationals and foreign companies can own up to 100% of a Turkish limited liability company (Ltd. Şti.) or joint-stock company (A.Ş.) with no mandatory Turkish partner or minimum Turkish shareholding. Foreign investors receive equal treatment with Turkish citizens in company management, profit distribution and capital matters.
- Status
- Not required
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
More About Marmaris
Data last updated July 2026 · Verify anything important.