Legal Regime Governing the Establishment of Companies in Türkiye by Foreigners

Legal Regime Governing the Establishment of Companies in Türkiye by Foreigners

I. The Starting Point: You're Welcome Here

The baseline rule in Türkiye is a straightforward one — foreign individuals and legal entities are free to establish companies, acquire shares in existing businesses, and hold 100% ownership. No forced local partners, no minority caps as a default, no restrictions on which legal form you can use.

Under the Turkish Commercial Code, both joint-stock companies (A.Ş.) and limited liability companies (Ltd. Şti.) can be fully foreign-owned. For the vast majority of sectors and business models, this is the whole story.

II. Where Exceptions Apply

That said, no country offers completely unrestricted foreign ownership across the board, and Türkiye is no different. In a limited number of sectors — those touching on national security, public order, or strategic state interests — specific ownership caps or authorization requirements apply. Here's what that looks like in practice.

1. Radio and Television Broadcasting

Foreign shareholders can hold up to 50% in a media service provider — no more. On top of that, a foreign investor can be a shareholder in a maximum of two such providers, and the majority of the board of directors must be composed of Turkish citizens. Full foreign ownership is not an option in this sector.

2. Civil Aviation

For an airline to qualify as a Turkish air carrier, it must be incorporated in Türkiye, and both majority shareholding and management control must rest with Turkish citizens. In practice, foreign shareholding is capped at 49%. If you're looking to operate an airline under the Turkish flag, a local majority partner isn't optional — it's a legal requirement.

3. Maritime Transportation — Cabotage Rights

The right to transport passengers or cargo between Turkish ports — known as cabotage — is reserved exclusively for Turkish-flagged vessels and entities where Turkish nationals hold the majority of shares. Companies with 100% foreign capital cannot operate in domestic maritime transport. This restriction applies specifically to coastal routes within Türkiye, not to international shipping.

4. Private Security Services

Founders of private security companies must be Turkish citizens, and any foreign shareholding requires approval from the Ministry of Interior. In practice, foreign investors cannot hold a controlling majority stake in this sector. It's one of the more tightly regulated areas for foreign capital.

5. Defense Industry

Defense-sector companies operate under a different set of rules entirely. Foreign investments require government authorization, and both share transfers and ownership structures are subject to ongoing state supervision. In the most strategically sensitive areas, foreign investment may be heavily restricted or entirely prohibited.

6. Real Estate Restrictions for Foreign-Majority Companies

This one is worth paying close attention to. Companies where foreign shareholders hold 50% or more cannot acquire real estate located in military prohibited zones. Acquisitions in certain security zones may also require approval from the provincial governorate. Importantly, these restrictions don't affect company ownership itself — they limit where and what certain companies can purchase in terms of property.

The Bottom Line

Türkiye operates on a principle of equal treatment between foreign and domestic investors. Full foreign ownership is legally recognized and genuinely accessible across the broad majority of sectors.

The exceptions exist — and they're real — but they're also narrow and sector-specific. For most investors, they simply won't be relevant. For those operating in or near the sectors listed above, understanding these boundaries early is what allows you to structure your investment correctly from the outset.

That's exactly the kind of detail we work through with our clients — so that by the time you move forward, you're doing so with a clear picture of what's possible and how to get there.

Take your steps confidently and smoothly.