Can a Foreign Investor Own All the Shares in a Company in Turkey?

Company Formation and Articles of Association

Prepared by: Constantinople

In the absence of a specific restriction, a foreign investor may own all the shares of a joint stock company or limited liability company in Turkey. Law No. 4875 recognises freedom of investment and equal treatment with domestic investors, subject to exceptions in international treaties and special laws. The general claim that you must find a Turkish partner for every company simply because you are foreign is incorrect; the intended activity and share structure are examined separately.

Equal treatment does not exempt you from the company's formation, representation, capital, tax and notification obligations. Regulated activities may be subject to foreign shareholding limits or authorisation or management requirements. Shareholder status is also different from the right to work, reside or acquire immovable property in Turkey. Eligibility in one area does not mean that other procedures have been completed; these must be checked separately.

For the preliminary review, prepare the investor's nationality and residence details, the intended company type and the activity plan. If a foreign company will be a shareholder, its formation documents, current evidence of activity and signatory authority documents are also required. If you are joining an existing company, share records, the articles of association and transfer restrictions are examined separately. The position of Turkish citizens living abroad under the Law's definition of investor is also assessed on the basis of specific documents.

Prepare the activity plan, intended company type and investor's representation documents. If there is a specific refusal concerning foreign shareholding or an authorisation, provide that decision as well.

File review is a paid service. The scope and fee are set out in writing before work begins.