Limited Liability Company (Ltd Şti)
Limited Şirket
Company formation in Turkey
The Ltd Şti is best suited for: Small and medium-sized enterprises targeting the Turkish market, Trading and logistics companies using Turkey as a geographic hub, Foreign entrepreneurs seeking a straightforward Turkish entity, Consulting, technology, and service businesses. Ltd Şti companies pay 25% corporate income tax on worldwide income. VAT (KDV) applies at 20% standard rate, with reduced rates of 10% and 1% for certain goods. Dividend distributions to non-resident shareholders are subject to 15% withholding tax, reducible under applicable double tax treaties. Quarterly advance corporate tax payments are required. Companies must maintain statutory books in Turkish and file annual corporate tax returns by the end of April.
- Small and medium-sized enterprises targeting the Turkish market
- Trading and logistics companies using Turkey as a geographic hub
- Foreign entrepreneurs seeking a straightforward Turkish entity
- Consulting, technology, and service businesses
Key Facts
Step-by-Step Formation Process
Register on the Central Registry Agency (MERSIS)
Create a MERSIS account and prepare the draft articles of association online. MERSIS is the electronic platform through which all Turkish company registrations are initiated.
Prepare and notarise the articles of association
Draft the articles of association including company name, registered address, share capital, and shareholder details. Have them notarised at a Turkish notary public. Foreign shareholders may need apostilled passport copies.
Deposit share capital
Deposit at least 25% of the share capital (minimum TRY 2,500) into a bank account opened in the company name at a Turkish bank. The remaining capital must be paid within 24 months.
Apply to the Trade Registry Office
Submit the notarised articles, MERSIS application, bank deposit receipt, and director signature declarations to the relevant Trade Registry Office. The registration is published in the Turkish Trade Registry Gazette.
Obtain tax registration and commence operations
Register with the local tax office to receive a tax identification number. Register for VAT if applicable. The company can begin trading once the trade registry publication is complete.
Required Documents
- Passport copies of all shareholders and directors (apostilled if foreign)
- Notarised articles of association
- MERSIS application printout
- Bank deposit receipt for share capital
- Director signature declarations (notarised)
- Registered office lease agreement
- Power of Attorney if applying through a representative (notarised and apostilled)
Cost Overview
Tax Treatment
Ltd Şti companies pay 25% corporate income tax on worldwide income. VAT (KDV) applies at 20% standard rate, with reduced rates of 10% and 1% for certain goods. Dividend distributions to non-resident shareholders are subject to 15% withholding tax, reducible under applicable double tax treaties. Quarterly advance corporate tax payments are required. Companies must maintain statutory books in Turkish and file annual corporate tax returns by the end of April.
Pros & Cons
- Low minimum capital requirement — TRY 10,000 makes entry accessible
- 100% foreign ownership permitted in most sectors
- Fast setup via MERSIS digital platform — 3–5 days typical
- Access to Turkey's 85 million consumer market
- Strategic geographic position bridging Europe and Asia
- Customs union with the EU for manufactured goods
- Turkish Lira volatility creates significant currency risk for foreign investors
- Corporate tax rate of 25% is not competitive by regional standards
- Bureaucratic processes can be slow outside Istanbul and Ankara
- Accounting and tax compliance requirements are extensive
- Maximum 50 shareholders limits scalability for larger ventures
Other Structures in Turkey
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.