Company Formation in Turkey for Indian Citizens

India–Turkey Investment Relations

India and Turkey signed a bilateral investment promotion and protection agreement in 1998 (in force from 2007), but India terminated it in 2019, so Indian investors should not assume bilateral treaty protection beyond any survival provisions — ask a lawyer how your holding structure is covered. Both countries are G20 members. Bilateral trade was about $10 billion in fiscal year 2023–24, and political tensions in 2025 have affected parts of the relationship.

Indian companies in Turkey are present in the automotive, pharmaceutical, and IT sectors; examples include Mahindra (which acquired the tractor maker Erkunt Traktor in 2017), Tata Motors, Wipro, and Polyplex's packaging unit in Çorlu. Indian companies also see Turkey as a gateway to European and Middle Eastern markets. The DEİK (Foreign Economic Relations Board) Türkiye–India Business Council has hosted FICCI delegations to promote bilateral business.

Can Indian Citizens Open a Company in Turkey?

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

Visa & Work Permit Information

Indian citizens need a visa to enter Turkey. An e-Visa (a short, single-entry stay) is available only to those holding a valid visa or residence permit from a Schengen country, the United States, the United Kingdom, or Ireland; everyone else applies for a sticker visa at a Turkish mission or its visa application center in India. Work permits require a separate application through the Ministry of Labour after company formation.

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 India

India is a party to the Apostille Convention. Indian documents are notarized and then apostilled by the Ministry of External Affairs, or by the relevant state authority for state-issued documents, before being translated by a sworn translator in Turkey. If you would rather not travel, Turkish diplomatic missions in India can notarize a power of attorney.

Moving Capital from India to Turkey

Outbound investment from India is regulated under FEMA and the overseas investment rules administered by the Reserve Bank of India. Funds are generally sent through an authorized dealer bank, which also handles the required reporting, and annual reporting on the overseas entity typically follows. Rules differ for individuals and companies, so confirm the route before you transfer share capital.

Home-Country Tax and Reporting for Indian Investors

Indian tax residents are taxed on worldwide income and must disclose foreign assets, including shares in a Turkish company, in their income tax returns. The India–Turkey double taxation avoidance agreement can reduce withholding on dividends and other payments. Because overseas holdings carry disclosure obligations, take advice from an Indian chartered accountant before incorporating.

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 Indian Citizens

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