Does setting up a company in Turkey grant a residence permit?

Not automatically. Company ownership and residence permits are separate matters; the permit is assessed on its own conditions. Owning a company can be a factor in an application but does not by itself create a permit.

I am a shareholder in my company; do I need a work permit?

If you will actually work in the company, yes. Shareholding is a property relationship; working depends on a separate permit. Managing the company and being paid for it is treated as work.

Can I own a Turkish company while living abroad?

You can. There is no requirement to live in Turkey for a foreign individual or entity to hold shares in a Turkish company. In that case how the company is represented in Turkey and how its recurring filings are handled needs to be arranged separately.

In what order should this be approached?

By first being clear about what you want to do. If you will only invest, ownership may be enough. If you will live in Turkey, the residence permit is a separate route. If you will work in the company, a work permit is needed, and because it relates to the company’s structure it should be planned together with the formation decisions.

Decision Quiz

Owning, Living and Working in Turkey — Status Tool

The mistake foreign founders make most often is treating company ownership and the right to work as the same thing. A residence permit lets you live in Turkey but not work in your own company — that needs a work permit, which requires TRY 500,000 in capital and at least 20% ownership. This tool identifies the minimum status for your goals and shows what it does and does not grant for each one.

Owning a company, living in Turkey and working in your own company are three separate things. Tick what you want to do — and see which status covers it, and what it does not.

What do you want to do?Own shares in a Turkish company100% foreign ownership is possible.Be a director of the companyIncludes managing from abroad.Actively work in my companyRunning the business on the ground in Turkey.Live in Turkey for more than 90 daysVisa-free stay is capped at 90 days in 180.Bring spouse and childrenFamily accompaniment rights.

The one trap that catches everyone

A residence permit lets you live in Turkey. It does not let you work in your own company. To run the business on the ground yourself you need a work permit — which requires the company to hold TRY 500,000 in paid-in capital (ten times the LLC registration minimum) and you to personally own at least 20%. If you plan to move here and run the company yourself, budget for the “labour minimum,” not the “registration minimum.” The upside: the work permit also serves as your residence permit and opens the family route.

Status matrix

Your legal status	Own shares in a Turkish company	Be a director of the company	Actively work in my company	Live in Turkey for more than 90 days	Bring spouse and children	Key 2026 requirement
No status / abroadNever entered, or a visa-free visitor.	Permitted	Permitted	Not permitted	Not permitted	Not permitted	No status needed — the company can be registered remotely via power of attorney.
Short-term residence permitİkamet, on a business-connection basis.	Permitted	Permitted	Not permitted	Permitted	Conditional	Apply from inside Turkey + Turkish health insurance. Up to 2 years, renewable.
Work permit (çalışma izni)As founder-owner of your own company.	Permitted	Permitted	Permitted	Permitted	Permitted	TRY 500,000 paid-in capital + at least 20% ownership + the 5:1 employment ratio after 6 months.
Turquoise Card (Turkuaz)Highly qualified individual / investor category.	Permitted	Permitted	Permitted	Permitted	Permitted	A high bar: credentials or a qualifying investment. Indefinite after a 3-year transition.

Permitted · Not permitted · Conditional (separate application or extra condition)

This tool is not immigration legal advice. Residence and work permit filings should be confirmed with a licensed Turkish immigration lawyer. Thresholds and government fees are revised at least annually — verify current figures before acting.

This quiz applies general decision rules for information only and is not a substitute for professional advice. The result is a pointer — the final structure decision should be made by weighing your activity and shareholding plans together.

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Three separate statuses, three separate permissions

These three are constantly conflated, and the conflation produces bad planning. They are independent of one another.

Owning a company is a property relationship. A foreign individual or entity can hold shares in a Turkish company without living in Turkey.

Living in Turkey depends on a residence permit and is a separate application. Owning a company does not bring it automatically.

Working in your own company is the third and most frequently missed point. Being a shareholder does not mean you may actually work in the company; a work permit is obtained separately.

The three most common misconceptions

“If I set up a company I get residency.” Ownership alone does not create a residence permit. The permit is assessed on its own conditions, and company ownership is not decisive by itself.

“I am a shareholder, so I can work as I like.” Actually working in the company, running the business and being paid for it, requires a work permit. Shareholding does not cover it.

“Let me form the company and sort the rest out later.” Because permit conditions depend on the company’s structure and activity, formation decisions feed directly into the permit process. Getting the order wrong can mean going back and changing the structure.

Getting the sequence right

The right sequence starts with what you want to do. If you only want to invest in Turkey and take a share of the returns, ownership may be enough; residence and work permits do not arise.

If you want to live in Turkey, the residence permit is a separate route assessed independently of the company. If you will actually work in the company, a work permit is required, and that permit usually depends on the company meeting certain conditions.

When these three questions are not answered together, the result is a company that exists but whose owner cannot work in it. The point of this tool is to show from the start which status opens which door, and which it does not.

Frequently asked

Does setting up a company in Turkey grant a residence permit?: Not automatically. Company ownership and residence permits are separate matters; the permit is assessed on its own conditions. Owning a company can be a factor in an application but does not by itself create a permit.
I am a shareholder in my company; do I need a work permit?: If you will actually work in the company, yes. Shareholding is a property relationship; working depends on a separate permit. Managing the company and being paid for it is treated as work.
Can I own a Turkish company while living abroad?: You can. There is no requirement to live in Turkey for a foreign individual or entity to hold shares in a Turkish company. In that case how the company is represented in Turkey and how its recurring filings are handled needs to be arranged separately.
In what order should this be approached?: By first being clear about what you want to do. If you will only invest, ownership may be enough. If you will live in Turkey, the residence permit is a separate route. If you will work in the company, a work permit is needed, and because it relates to the company’s structure it should be planned together with the formation decisions.