Company Formation in Turkey for American Citizens

United States–Turkey Investment Relations

The US–Turkey Bilateral Investment Treaty (BIT), signed in 1985 and in force since 1990, provides American investors with national treatment, most-favored-nation treatment, and protection against expropriation. This treaty offers a strong legal framework for US-based investors operating in Turkey.

The United States is among the larger sources of foreign direct investment in Turkey: AmCham Türkiye reports about 2,300 American enterprises and roughly $16 billion of direct US investment in 2003–2025. US companies are mainly interested in finance, energy, automotive, and food and beverage, with technology, including AI and cloud computing, increasingly important. The Türkiye-US Business Council (TAİK), part of DEİK (the Foreign Economic Relations Board), and AmCham Türkiye support bilateral business.

Can American Citizens Open a Company in Turkey?

Yes. Citizens of United States can form a company in Turkey with 100% foreign ownership. Turkish law does not require a local partner or Turkish shareholder. American nationals receive equal treatment under the Turkish Commercial Code, with the same rights and obligations as Turkish-owned companies.

There are no sector restrictions specific to American investors — the vast majority of business activities are open to foreign companies without special permissions.

Visa & Work Permit Information

U.S. citizens with ordinary passports have been visa-exempt for stays of up to 90 days within any 180-day period since a December 2023 presidential decree, so an e-Visa is no longer needed for short visits. The exemption is framed around tourism and short visits; confirm with a Turkish consulate that your formation formalities fit within it. Working in Turkey requires a work permit from the Ministry of Labour, applied for after the company is registered.

Foreign shareholders who do not intend to work or reside in Turkey do not need a work permit or residence permit to own a company. However, if you plan to actively manage your Turkish company from Turkey, a work permit is legally required.

Preparing Your Documents in United States

The United States is a party to the Hague Apostille Convention, so a notarized U.S. document can usually be used in Turkey with an apostille — issued by the Secretary of State of the state where the notary is commissioned, or by the U.S. Department of State for federal documents. Turkish consulates in the United States can also notarize a power of attorney directly. Anything not already in Turkish needs a sworn Turkish translation.

Moving Capital from United States to Turkey

The United States has no general exchange controls, so funding a Turkish company is mainly a banking-compliance exercise: your U.S. bank and the Turkish bank will both ask about the purpose of the transfer and the source of funds. Keep records of the capital you send — they support your U.S. tax reporting and any later repatriation of profits.

Home-Country Tax and Reporting for American Investors

U.S. citizens and residents are taxed on worldwide income. A Turkish company you own or direct typically triggers U.S. information reporting — commonly Form 5471 for foreign corporations — and may bring Subpart F or GILTI inclusions, while foreign bank accounts can require FBAR and Form 8938 filings. The U.S.–Turkey income tax treaty can help avoid double taxation, but missed forms carry heavy penalties, so involve a U.S. cross-border tax adviser before you incorporate.

Recommended Company Type

Most foreign investors choose the Limited Liability Company (LLC / Ltd. Şti.): about 91% of the foreign-partner companies established in Turkey in 2019 were LLCs, according to TOBB figures. Compare the three options below.

Requirements for American Citizens

• Valid passport from United States
• Turkish tax identification number (vergi numarası)
• Registered business address in Turkey
• Notarized Articles of Association (in Turkish)
• Minimum share capital deposit at a Turkish bank
• Power of attorney (if forming remotely without visiting Turkey)

Formation Process

1. Consultation — Choose your company type, define business activities, and plan your structure
2. MERSIS Pre-Registration — Enter company details in Turkey's central registry system
3. Articles of Association — Draft, notarize, and sign (or via power of attorney)
4. Bank Account & Capital Deposit — Open a Turkish bank account and deposit at least 25% of capital
5. Trade Registry — File with the local Trade Registry Office
6. Tax & Social Security — Register with the tax office and SGK
7. Work Permits — Apply if foreign managers or employees will be based in Turkey

The process typically takes 5–10 business days once all documents are prepared. If documents need apostille or consular legalization from United States, allow additional time.