Foreign Company Formation

The steps we work through, in order, during formation

Registration sits in the middle of this list, not at the end. What stretches the timeline is usually what comes after it, so the preparation is planned accordingly.

1. Structure: subsidiary, branch or liaison office

   The three carry different obligations and different tax outcomes. The nature of the activity decides: will revenue be generated in Turkey, or is this representation and market research only? Converting the wrong structure later is possible, but costs more than choosing correctly at the start.

2. Ownership structure and the non-resident shareholder

   Whether the shareholder is an individual or an entity, which documents must come from which country, how the tax identification number is obtained, and who will represent the company in Turkey. The representation arrangement sets the pace of every later step.

3. Preparing the power of attorney and formation documents

   Apostille and sworn translation for documents issued abroad, and listing every authority the power of attorney must carry. A PoA missing one authority stops the process at the least convenient point, and replacing it costs weeks because it has to come from abroad.

4. Registration and the first obligations after it

   Trade registry registration, opening the tax office file, certifying the statutory books and issuing the signature circular. These run in a dependent sequence: leave one incomplete and none of the rest can proceed.

5. Bank account and the MASAK compliance file

   In practice the longest item. The bank wants the ownership chain explained down to the ultimate beneficial owner and the source of funds documented. Starting this file before registration shortens the process noticeably.

6. How residence and work permits relate to this

   Owning a company does not by itself grant residence, and working in it requires a separate permit. We set out from the start what each status does and does not provide, because these two are frequently conflated.

7. Bringing in the capital and foreign currency transactions

   Under what description and into which account the incoming funds arrive, and whether they are recorded as capital or under another heading. Transfers arriving with an incomplete description sit at the bank, and that wait feeds straight into the formation timeline.

8. The recurring filing calendar and local representation

   The monthly and annual obligations that begin once formation ends: VAT, withholding, advance tax, the annual return and their payment dates. A shareholder abroad is not expected to track this calendar; a working local representation arrangement is set up instead.