Most common business entity in Turkey
The Limited Şirket is the standard choice for most small- to mid-size businesses in Turkey. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Min capital TRY 10,000.
The full menu of Turkey business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Limited Şirket | Limited | 25% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 25% on Turkey-source profits | Foreign companies entering Turkey market |
| Public limited company | Limited | Same as Limited Şirket but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Turkey? Self-employed structure if simple, Limited Şirket if you want liability protection.
- Software / e-commerce / agency? Limited Şirket — standard, scalable.
- Operating an existing foreign company in Turkey? Branch (simpler) or subsidiary Limited Şirket (more substance).
- Planning to raise venture capital? Confirm investors accept Turkey entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Limited Şirket with minimal substance requirements.
The Limited Şirket in one paragraph
Limited Şirket is Turkey's primary limited liability vehicle. Minimum paid-up capital: $360. Headline corporate tax: 25%. 25% corporate tax + 10% withholding on dividends.. Banking accessibility: 7/10. Privacy: 4/10 (UBO non-public). Remote formation: in-person typical. Processing time: 5 business days.
For US comparison, see Turkey vs USA. For non-resident formation specifics, see forming a Turkey company as a non-resident.