2025 Company Formation Guide – Which Company Type is Right for You?

Establishing a business in Turkey is not as complex and intimidating as it seems. If you have the right information and follow the procedures step by step, you can largely handle the process yourself. Especially sole proprietorship establishment can be completed within a few hours through e-Government. However, if you plan to establish a limited or joint-stock company; getting expert support during the Chamber of Commerce registration process reduces the risk of errors due to details such as articles of association, partnership structure and management bodies. In this guide:

• • Company establishment steps are summarized,

• • Current costs for 2025 are shared,

• • The question “Which company type is suitable for me?” is answered,

• • Confusion about capital and liability issues is resolved.

To summarize briefly:

• • If you want to start quickly sole proprietorship,

• • If you aim for partnership and growth limited company,

• • If you want to receive investment or establish a large-scale structure joint-stock company may be more suitable for you.

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1. 1. – Preparation for establishment (applies to all types)

Before starting company establishment, you need to complete the following basic preparations:

• • Determine your field of activity: Check which NACE code your business idea falls under. This code is important for official records and tax classification.

• • Determine company name: Query your chosen company name through the MERSİS system. If the same or very similar name exists in the system, you will be asked to change the name. *Applies to capital companies.

• • Determine address: You can use your home or an office as the company address. In both cases, a rental contract or title deed photocopy is required.

• • Create your capital plan:
    • • Sole proprietorship → No mandatory capital requirement.
    • • Limited company → At least 50,000 TL capital is required. This amount can be deposited to the company within 24 months.
    • • Joint-stock company → At least 250,000 TL capital is required. At least 25% must be shown as blocked in the bank account at establishment. You can deposit the remaining part within 24 months.

• • Obtain necessary digital tools:
    • • e-Signature (electronic signature)
    • • KEP address (registered electronic mail)
    • • Interactive Tax Office (ITO) password

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2. 2. – Company type comparison (summary table)

In the table below, you can quickly compare the basic differences between sole proprietorship, limited and joint-stock company types. These differences will guide you in your decision-making process.

	Sole Proprietorship	Limited	Joint-Stock
Establishment Time	1 day	3‑4 days	3‑4 days
Total Cost*	≈ 5 thousand TL	≈ 12‑16 thousand TL	≈ 12‑18 thousand TL
Capital Requirement**	None	≥ 50,000 TL	≥ 250,000 TL (25% blocking)
Liability***	Personal	Limited to capital	Limited to capital
Investment & Share Transfer	—	Possible	Possible (tax exemption available)

* As of 2025, these are average amounts including notary, chamber of commerce fees, 3-year e-Signature, financial seal, e-ledger and e-invoice expenses in Istanbul. ** In limited and joint-stock companies, the committed capital can be used freely after being deposited to the company account. The money is not “locked”, it can be used for business expenses or equipment purchases. *** In limited and joint-stock companies, partners’ liability for debts is limited only to the capital they contribute. However, for public receivables such as tax and SSI premium debts, authorized representatives (board of directors or board of directors members) may be held personally liable.

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3. 3. Sole proprietorship establishment (step by step)

Establishing a sole proprietorship is faster and more practical compared to other types. You can complete all applications yourself through e-Government. Below are the documents and steps you will need:

Required information and documents

• • NACE code: Determine the NACE code suitable for your field of activity.

• • ID photocopy and residence certificate (can be obtained from e-Government).

• • Rental contract / title deed photocopy: For address selection, you can choose one of the following two options:

Option A: Home address (home office)

• • If the house belongs to you: You can show your home as the company address with the title deed.

• • If the house is rented: You need to inform the property owner and arrange a new rental contract. In this case, 20% withholding tax is calculated on the rental fee. (Withholding: Income tax paid on behalf of the landlord.)

🏢 Option B: Office address

• • You can create your address by making an agreement with a virtual office company operating in your city. Virtual offices can be used as official notification addresses.

Application process (through ITO)

1. 1. Go to https://dijital.gib.gov.tr.

1. 1. Click the User Login button in the upper right corner.

1. 1. Log in with the register with e-Government option from the bottom right.

1. 1. In the opened form, workplace address, field of activity and tax office are automatically provided by the system.

1. 1. In the e-Documents tab, optionally check the e-Invoice / e-Archive application option.

1. 1. Approve the application → the system will give you a reference number.

1. 1. Download the Inspection Request Form from the My Documents / My Application Results section in the same panel.

1. 1. Create your tax plate and save it to your computer.

Steps after establishment

• • Have your stamp made.

• • From the notary:
    • • Signature declaration

• • Arrange SMMM power of attorney (for your accountant).

• • Wait for the tax officer to come to the address and conduct an inspection. You need to be present at the address during this visit.

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5. 5. – Limited and joint-stock company establishment

The establishment process for limited and joint-stock companies is more detailed compared to sole proprietorship. Therefore, it is recommended to work with a financial advisor (like Üstad). Below is a summary of the two-way operation of this process:

Documents to be requested from partners (to be sent to Üstad)

• • Identity and residence documents of all partners (in PDF format)

• • Notarized company establishment power of attorney (If you want to be present at the Chamber of Commerce to sign documents on the establishment day, there is no need for a power of attorney.)

• • Rental contract or title deed for company address

• • Partnership and authority distribution table (capital and signature authority information of each partner)

• • Field of activity (summarized in maximum 5 lines)

Operations carried out by Üstad

• • Company establishment consultancy

• • Preparation of the company’s articles of association

• • Preparation of documents required for notary and Chamber of Commerce procedures

• • Registration to MERSİS system and making applications

• • Making Chamber of Commerce appointments and following the signature process

• • After establishment registration procedures:
    • • Tax office registration

• • SSI workplace notification

• • Making necessary e-document applications

• • Üstad company establishment service fee: 8,500 TL + VAT (Notary, Chamber of Commerce fees and other legal expenses are not included in this amount.)

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5. 5. – Frequently asked questions

Who is covered by the ledger / e-Invoice obligation? As of 2025, e-Ledger use is mandatory for all businesses that keep books according to the balance sheet basis. All businesses (including sole proprietorships) with a turnover of 3 million TL and above must switch to e-Invoice / e-Archive application.

Can I convert my sole proprietorship to a limited company?

Yes, you can convert your sole proprietorship to a limited company by making a type change. However, in practice, closing the existing sole proprietorship and establishing a new limited company is usually a faster and more practical method.

How long does the establishment process take?

• • Sole proprietorship: If your documents are ready, it can be established on the same day.

• • Limited and joint-stock company: After the documents are completed, the registration process is completed within an average of 2–3 business days.

What legal notifications are made in the first 15 days after establishment?

The following official procedures are followed in the process after establishment:

• • Business start notification to the tax office

• • Workplace notification to SSI

• • Forwarding the Trade Registry Gazette copy to the bank and tax office

• • e-Ledger / e-Invoice activation

• • If there are employees: Job entry notification

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Support and contact

You can contact us for all questions that come to mind during the establishment process. 📩 [email protected] 💬 WhatsApp support line: +90 216 706 76 00 Digitize Your Accounting and Tax Processes with Üstad If you want to digitize accounting processes such as document tracking, trial balance, income-expense management, you can easily work with your financial advisor through the Üstad platform; you can manage your e-invoices, declarations and financial data from a single panel. This guide has been prepared for general information purposes. Document lists and application steps may vary according to company type and current legislation. It is recommended to contact us before proceeding without being sure.