Establish a Subsidiary in Turkey

Would you like to set up a subsidiary in Turkey in 2026 and need personalized assistance? We are a team of company formation specialists in Turkey who can help both local and international clients. Check our online services and also read this article for information on this topic.

Quick Facts
Applicable legislation (home country/foreign country)	Turkish Company Law
Best used for	– natural resources, – manufacturing, – banking, – insurance, – energy
Minimum share capital	Yes
Time frame for the incorporation (approx.)	Around 2 months
Management (local/foreign)	Local
Legal representative required	No
Local bank account	Yes
Independence from the parent company	Yes
Liability of the parent company	No, the subsidiary is fully liable
Corporate tax rate	25%
Possibility of hiring local staff	Yes
Registration documents to open a subsidiary in Turkey	– Memorandum and the Articles of Association of both subsidiary and parent company; – shareholders’ ID documents; – proof of deposited capital; – power of attorney; – founders’ declaration, etc.
Local registered office (YES/NO)	YES
Process of opening a subsidiary	– choose a business structure, – submit registered address, – obtain tax identity number, – pay the share capital, – register with the Trade Registry Directorate, etc.
VAT registration	Subsidiaries are required to register for VAT if they sell taxable services/goods.
VAT rates in Turkey	– 20% (standard); – 10%, 1% (reduced)
Number of double taxation treaties	74 (approx.)
Other applicable taxes/ contributions	– stamp tax, – social security contributions, – payroll tax, – special consumption tax, – banking and insurance transactions tax, etc.
Tax incentives	– free trade zone companies incentives, – investment incentives, – R&D and design activities incentives, – foreign tax credit, etc.
Business structures	The most frequently used ones are: – the Limited Liability Company (Limited Sirket), – the Joint Stock Company (Anonim Sirket)
Fiscal year in Turkey	From 1st January to 31st December
Liability of the parent company	Generally not liable for the subsidiary
Minimum shareholders required	1 (for both LLC and JSC)
Differences between a subsidiary and branch office	A branch office is not a separate legal entity, but rather an extension of the parent company. The parent company can be held directly liable for the branch’s obligations.
Advantages of opening a subsidiary in Turkey	– expanding the business in a new market, – access to tax incentives, – easy incorporation process, – low incorporation costs, etc.
Assistance	We can help you open a company in Turkey and expand your business here, offering support through the entire incorporation process.

Can a subsidiary in Turkey be 100% foreign owned? Do I need a local business partner?

Yes, a subsidiary can be set up with 100% foreign ownership. There is no need for a local business partner to open such a company in Turkey.

What are the key features of subsidiaries in Turkey?

can carry out activities other than the parent company,
it is an independent entity,
can have a different name than the foreign enterprise,
does not need to financially report to the parent company as it has its own accounting, etc.

What is the proper business structure for setting up a subsidiary in Turkey?

The limited liability company. However, the joint stock company is also an option in Turkey.

What is the minimum share capital for a subsidiary in Turkey?

TRY 50,000 for an LLC/LTD in Turkey,
TRY 250,000 for a joint stock company in Turkey.

Below is a scheme detailing the main steps of opening a Turkish subsidiary:

What are the main conditions for opening a subsidiary in Turkey?

selecting and reserving the desired business name,
preparing the Articles & Memorandum of Association,
presenting a declaration from the parent company stating that a subsidiary is established in Turkey,
opening a bank account in Turkey,
registering for taxation in Turkey,
applying for a business license in Turkey,
getting the company stamp, etc.

NOTES:

depositing the minimum share capital within a maximum of 24 months is mandatory,
once incorporated, the company staff must be registered with the Social Security in Turkey.

Is a legal representative needed for setting up a Turkish subsidiary?

Yes, company shareholders must appoint an authorized representative. He or she can handle the incorporation process and daily operations.

REMARK: Our Turkish agents can act as representatives for subsidiaries established by foreigners in Turkey.

You can also watch the video below on how to open a subsidiary in Turkey:

Do you represent via power of attorney for opening a subsidiary?

Absolutely. There is no need to travel to Turkey to set up a subsidiary here. The same thing is also available for Turkish branches.

What is the taxation of subsidiaries in Turkey in 2026?

25% CIT (exemptions apply),
10% domestic minimum CIT under certain conditions imposed for subsidiaries in Turkey,
15% global minimum tax for multinationals exceeding EUR 750 million in global revenues,
15% WHT or lower, etc.

What are the costs for company formation in Turkey?

around USD 1,500 for establishing a company in Turkey (our lawyer’s fee),
around TRY 9,000 – fee for Istanbul Chamber of Commerce,
around TRY 15,000 as notary fees, etc.

NOTE: We suggest you use the free case evaluation page and send your questions regarding our fees.

What is the time frame to open a subsidiary in Turkey in 2026?

About 2-4 weeks.

Would you like to know more about how to open a subsidiary in Turkey in 2026? You can contact our specialists in company formation in Turkey and get your answers & offers today,

If you are interested in opening companies in other European countries, such as Spain, Sweden, or Ukraine, you may get in touch with our local representatives.