Company Formation in Turkey for German Citizens

Germany–Turkey Investment Relations

Germany is Turkey's largest trading partner in the EU, with bilateral trade of roughly $50 billion in 2023 according to Turkish officials. The Germany–Turkey investment protection treaty, signed in 1962 and in force since 1965, is one of Turkey's oldest. Germany is also one of the largest sources of foreign-capital companies in Turkey.

Roughly 8,000 German-capital companies operate in Turkey according to Turkish and German government estimates, and Germany ranked first by number of foreign-controlled enterprises in TurkStat's 2023 statistics. German investment is concentrated in automotive, machinery and equipment, energy, and chemicals, and the two economies are deeply integrated in industrial supply chains. AHK Türkiye (the German-Turkish Chamber of Commerce and Industry) and the DEİK (Foreign Economic Relations Board) Türkiye–Germany Business Council support bilateral business.

Can German Citizens Open a Company in Turkey?

Yes. Citizens of Germany can form a company in Turkey with 100% foreign ownership. Turkish law does not require a local partner or Turkish shareholder. German 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 German investors — the vast majority of business activities are open to foreign companies without special permissions.

Visa & Work Permit Information

German citizens do not need a visa for short stays in Turkey (up to 90 days within a 180-day period). Work permits are handled through the Ministry of Labour and Social Security; the Ministry's review of a complete application is commonly cited as about 30 days, and practitioners report two to three months from start to finish. Highly qualified investors may also be assessed for a Turquoise Card under Law No. 6735, with eligibility set by the Ministry.

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 Germany

Germany is a party to the Apostille Convention. A German notarization is apostilled by the competent state authority — usually the regional court president or district government, depending on the Land — and then translated into Turkish by a sworn translator. Turkey has a dense network of consulates in Germany, so signing a power of attorney at a Turkish consulate is often the quickest route.

Moving Capital from Germany to Turkey

Germany has no exchange controls, but German residents holding a significant stake in a foreign company generally have to report it to the Deutsche Bundesbank under the foreign trade and payments regulations (AWV). Ask your bank or adviser about the thresholds, and keep the paper trail for the capital you wire to Turkey.

Home-Country Tax and Reporting for German Investors

German-resident shareholders are taxed on worldwide income, and Germany's CFC rules (the Foreign Tax Act, AStG) can attribute low-taxed passive income of a foreign company to its German shareholders; genuinely active businesses are generally treated differently. The Germany–Turkey double taxation agreement governs withholding tax on dividends and other payments, so check the treaty rate for the payments you expect.

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 German Citizens

• Valid passport from Germany
• 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 Germany, allow additional time.