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Business registration and support in Turkey Registration of an individual entrepreneur in Turkey

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

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miroshnychenko@prikhodko.com.ua

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Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

Registration of an individual entrepreneur in Turkey

In Turkey, as in many other countries, the registration of a sole proprietorship is a key step for starting a business. However, the registration process may differ from country to country.

In this article, we will cover the basic steps required to register a an individual entrepreneur (Gerçek kişi) in Turkey for foreign nationals.

Obtaining a residence permit (ikamet) and TIN (vergi numerasi):

The first step to register a sole proprietorship in Turkey is to obtain a residence permit and a taxpayer identification number (TIN). If the residence permit expires in six months, registration of the an individual entrepreneur may be complicated.

Removal or acquisition of an office: To register your address as a business owner, you can rent or purchase an office. You can also use your actual place of residence in Turkey as the address for registering a an individual entrepreneur.
Preparation of documents: After obtaining a residence permit and TIN, it is necessary to prepare documents for registration of the status of an individual entrepreneur. This may include a passport, lease agreements, and other necessary documents. After that, you need to wait for a decision on registration.
Opening a bank account: After the successful registration of the an individual entrepreneur, it is necessary to open a bank account in Turkey. This will give you access to financial transactions and tax accounting.
Obtaining licenses (if necessary): If your type of activity requires obtaining a license, you should take care of this issue immediately. It may take some time, so it is important not to delay making such a decision and implementing it.

It will also be useful: Opening a bank account in Turkey

What kind of business should you start?

In our opinion, the three most promising business directions for Turkey are real estate, tourism and service.

As for real estate, the most sought-after cities for living and investment are located on the Mediterranean coast: Antalya, Alanya and Mersin.

The specifics of the Turkish real estate market are such that developers often do not sell apartments in their facilities on their own – they hand over this process to agencies, providing them with an agency commission.

This allows agencies not to take a commission from buyers. In other words, the buyer receives the same price from the developer and from the real estate agency, but the agency provides him with additional services: selection of the best option, legal support, post-service, and so on.

As for tourism, it is one of the main channels of attracting money to the state budget, and the state provides all kinds of support to those who develop this direction. Of course, globally, this market has long been divided between large players, but there are many opportunities to make money from tourism for small and medium-sized businesses.

For example, open a small hotel or rent apartments near the sea. Open your own travel agency or launch a service designed for tourists.

Here we move on to the third most promising direction of business for Turkey – service. Many citizens of Ukraine, having come to Turkey, followed this path. You come and see what is missing here from what you are used to at home.

Ukrainians open here beauty salons, gyms, co-working spaces, beach clubs, as well as kindergartens and international schools. And these projects are almost always popular – primarily among expats who are used to these services in their homeland.

Currently, Turkey is showing great interest in attracting investments from citizens of other countries, so the percentage of positive decisions regarding the registration of an individual entrepreneur is now high.

The general process of registering an individual entrepreneur in Turkey is quite simple, especially for foreign investors who meet all the requirements and have the necessary documents. But you cannot do without the services of an accountant and a lawyer, as many nuances need to be dealt with – especially at the start.

Contact the law firm “Prikhodko and Partners” – we will be happy to help you.

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1 question

Do you need help opening an individual entrepreneur in Turkey?

Yes

2 question

Do you need help opening a bank account in Turkey?

Yes

3 question

Do you need help preparing and collecting all the necessary data to open an individual entrepreneur in Turkey?

Yes

Can a Ukrainian open a company in Turkey without a local partner?

For many ordinary types of commercial activity, a company with wholly foreign capital is possible. A foreign founder may be an individual or a legal entity. A Turkish partner is not a universal requirement for every company, but before registration, restrictions applicable specifically to the selected sector should be checked.

Management is determined separately: who will represent the company, sign agreements and operate the account. The ability to own a business does not automatically mean the right to work personally in Turkey. Therefore, the ownership structure, authority and immigration matters are considered together, before the documents are prepared.

Is it mandatory to establish a Turkish company in order to open an account in Turkey?

This depends on who needs the account and for which transactions. An individual’s account, an account of a Turkish company and banking services for a foreign legal entity involve different banking procedures. This service primarily covers launching a Turkish company and preparing it for corporate banking.

If the legal entity is already registered in another country, it is first necessary to clarify whether the bank will consider servicing it and which documents and local connections it expects. Establishing an additional company solely for the account should be considered only after the business need has been reviewed. It is also important to take into account the accounting and corporate obligations that will arise for the new structure.

What practical advantage does an account in Turkey provide for trade?

An account helps organise payments in the country where the company purchases or sells goods: paying suppliers, receiving local proceeds and handling settlements for business transactions. Foreign currency accounts and international transfers can complement this model for working with overseas clients.

For more complex supplies, letters of credit, documentary collections or guarantees can be considered separately. For example, a letter of credit links payment to the presentation of the documents specified in it. At the same time, the bank checks the documents in accordance with the terms of the instrument and does not guarantee the quality of the goods. This is why the banking product and supply agreement should be aligned.

Can a company and an account be opened entirely online?

Representation under a power of attorney is permitted for some registration actions, but the possibility of completing the entire process without travelling depends on the specific composition of founders and signatories. Documents issued abroad must be prepared in a form acceptable to the Turkish registry. Incorrectly worded authority may result in the power of attorney having to be reissued.

The bank establishes its own identification procedure and may require the personal participation of a company representative. Online banking after the account has been opened does not confirm the possibility of making the initial application remotely. Therefore, the format of participation is agreed before booking travel, executing a power of attorney and planning the first payment.

How long does registration and the launch of settlements take?

Registration in the trade registry is only one stage. Before it, the structure must be determined and documents and translations prepared; afterwards, the necessary organisational procedures must be completed and the bank review passed. Therefore, the date on which the company appears in the registry and the date on which the account is ready for the required payments may differ.

The overall plan is affected by the founder’s documents, participation of a foreign legal entity, the need for a power of attorney, a regulated type of activity and additional bank requests. An indicative timeframe should be determined after analysing the source information. For the first contract, it is advisable to separately check whether the required currency, access and payment direction have already been activated.

Does company registration give the right to live and work in Turkey?

Company registration formalises the business but does not in itself give the founder an unrestricted right to reside or work. If the owner plans to work personally or perform management functions in Turkey, the relevant immigration and employment regime, including possible exceptions, must be assessed.

Separate financial and staffing criteria may apply to a work permit. They cannot be replaced by the minimum share capital established for company registration. This is why plans to relocate and work personally should be disclosed at the beginning of the consultation: they may affect the organisation of the business.

Is accounting required if the company is not yet earning income?

After registration, the company must comply with applicable accounting and reporting obligations even while preparing to start sales. At this stage, there may already be owner contributions, rent, equipment purchases and other transactions. They must be properly recorded and supported by documents.

The list of tax returns, notifications and electronic tools is determined by the local accountant according to the company’s status and activities. It is advisable to agree the calendar and document transfer procedure immediately. If the company will not be used for a long period, further actions regarding it should be assessed separately rather than simply discontinuing accounting and communication with the authorities.

Do CFC obligations arise in Ukraine?

Such obligations may arise if the owner is a Ukrainian tax resident and meets the statutory criteria for control of a foreign company. Ukrainian citizenship alone is insufficient for a conclusion: tax residence, ownership structure and actual control must be assessed.

Where the relevant ground exists, a CFC notification is submitted within 60 calendar days from the event. The annual report is a separate obligation. A possible exemption of CFC profit from taxation should not be equated with an exemption from reporting. To ensure the required information is available later, Turkish financial documents and corporate changes should be collected systematically from the moment the company is established.

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