How to Set Up a Business in Turkey as a Foreign Freelancer: Sahis Sirketi vs. LLC

This is the single most misunderstood part of freelancing legally in Turkey: a sole proprietorship (sahis sirketi) requires you to already hold Turkish residency. If you don't have that yet, an LLC is actually your accessible starting point, not the sole proprietorship most guides lead with. See our residence permit guide first if you haven't sorted that yet.

Option 1: Sahis Sirketi (sole proprietorship) — for residents already

• Requires a valid Turkish residence permit or citizenship — this is a genuine legal precondition, not a formality
• No minimum capital requirement
• Simplest structure: tax office registration, a formal 'yoklama' inspection, opening your books, and setting up an invoicing system
• You pay personal income tax on profits at Turkey's progressive rates (15% to 40%), plus SGK contributions if applicable — see our freelancer income tax guide for the details
• VAT (KDV) registration required if your activity is subject to it — standard rate 18%, with reduced rates of 8% and 1% for some goods and services

Option 2: LLC (Limited Sirket) — for foreign founders without residency yet

• No residency requirement — this is why most foreign founders start here
• Minimum capital requirement: 50,000 TL
• Registered through MERSIS (mersis.gtb.gov.tr), Turkey's central company registry, and the local Trade Registry office — typically completed in about 30 days
• Requires notarized Articles and Memorandum of Association, a registered business address, a tax number, and a bank account
• Offers liability protection for your personal assets from business debts, unlike a sole proprietorship
• You can verify any company's registration status afterward through the Trade Registry Gazette

Step-by-step: which one should you actually pick?

• If you don't yet hold a Turkish residence permit, start with an LLC — it's the only option genuinely open to you
• If you already hold residency and want the simplest possible structure with no capital requirement, a sole proprietorship is faster to set up and cheaper to maintain
• Either way, hire a Turkish accountant (mali musavir) early — Turkish tax registration and compliance is genuinely not something to DIY from scratch
• If you're invoicing exclusively foreign clients, ask your accountant specifically about the service-export income deduction, which can meaningfully reduce your effective tax rate