Important note: This guide is for general information for 2026; the process, documents and timelines may vary by province, tax office and line of activity. Before setting up, consult a certified public accountant and confirm the current steps with the tax office you will be registered to. This article does not replace personal accounting advice.
Starting a sole proprietorship (sahis sirketi) is, for most first-time entrepreneurs, the fastest and simplest way to begin a business; because it requires no notarized articles of association and no blocked capital, and most sole proprietorships need no Trade Registry registration either, the move from decision to activity is often just a few business days. This guide focuses exactly on that process: which documents to prepare, where to file the business-start notification, what the tax office inspection checks, and which decision in the setup causes the most mistakes. If you have not yet decided which company type (sole proprietorship, limited or joint-stock) suits you, weigh that first with your accountant, since the process, documents and cost differ by type. We deliberately give no Turkish Lira figures here; what this article explains is the process itself, and the cost of each item is a separate question best answered by your accountant. The guide was prepared with the experience of a team that has accompanied the setup and address process of more than 500 businesses at Esenler Tekstilkent Koza Plaza since 2008.
How to Start a Sole Proprietorship in Turkey: Short Answer
A sole proprietorship is a business type that a single natural person sets up in their own name, and it is the most common and fastest form in Turkey. In 2026, the setup begins with a business-start notification filed through the Digital Tax Office (formerly the Interactive Tax Office); if the documents are complete, the process, inspection included, is usually finished within one to three business days. Starting one requires no minimum capital and no notarized articles of association; most sole proprietorships need no Trade Registry registration either (traders exceeding the artisan threshold may need a chamber of commerce and registry record, which your accountant determines based on your activity volume). In this respect it is markedly simpler than a limited or joint-stock company. The core steps are these: determine the line of activity and the business address, obtain a signature declaration from a notary, file the business-start notification, pass the tax office inspection, and begin operating once the tax liability is opened. Most founders run the setup through an accountant with a notarized power of attorney, so the activity code, ledger type and taxes are set correctly from the start.
Requirements for Starting a Sole Proprietorship
The requirements for starting a sole proprietorship are quite limited compared with capital companies; in essence, a natural person of legal age and capacity, a valid business address to report to the tax office and a defined line of activity are enough. Once you meet the conditions below, you can begin the setup:
- Being a natural person: Any Turkish citizen who is at least 18 and has legal capacity can start a sole proprietorship. Foreign nationals need additional conditions and permits.
- Business address: A valid business address, to be reported to the tax office and checked in the inspection, is mandatory. A home address, a rented workplace or a virtual office address can be used.
- Line of activity and activity (NACE) code: An activity code matching your work is selected; this code determines taxation and any permit requirements.
- Tax liability: With the setup you become an income-tax payer and enter the SGK 4/B (Bag-Kur) scheme.
- No minimum capital: A sole proprietorship needs no capital blocked at a bank; this is the most important difference from a limited or joint-stock company.
Depending on your line of activity, registration with the chamber of tradesmen and craftsmen or the chamber of commerce may be required; for continuous activities such as regular e-commerce or manufacturing, this registration is often mandatory. Your accountant determines which registration suits you, and whether a license is needed, based on your activity code.
Documents Required to Start a Sole Proprietorship
As of 2026, the core documents submitted to the tax office when setting up a sole proprietorship are:
- Notarized signature declaration, usually 2 copies
- Copy of the identity document and the e-Government (e-Devlet) password
- Residence (registered address) document, obtainable from e-Government
- Business address document: lease agreement, copy of the title deed, or a virtual office address confirmation/use document
- Notarized power of attorney, if the setup is carried out through an accountant
- Passport-size photograph (requested by some tax offices)
The full document list may vary by province, tax office and line of activity; your accountant prepares a list specific to you. An electronic signature is not mandatory for the setup of a sole proprietorship; it becomes necessary when electronic document obligations such as e-invoice and e-archive begin.
Step by Step: Setting Up a Sole Proprietorship (2026)
Unlike capital companies, a sole proprietorship is set up not through MERSIS and the Trade Registry but directly through the tax office. The six steps below cover the whole process from decision to activity:
1. Determine the line of activity and the business address Clarify what work you will do and the matching activity (NACE) code. At the same time, choose your business address; this address is the basis for your tax certificate, all official correspondence and the inspection. The address decision is the most critical and most error-prone step of the setup; we cover it in a separate section below.
2. Obtain a signature declaration from a notary For the setup of a sole proprietorship, you have a signature declaration drawn up at a notary. If an accountant will carry out the setup, a power of attorney authorizing the accountant is also issued at the same notary.
3. File the business-start notification through the Digital Tax Office The business-start notification is filed through the Digital Tax Office (formerly the Interactive Tax Office) with your e-Government password; you follow the Operations, Registry Notifications and Business-Start Notification steps. By law, the notification must be filed within 10 days at the latest from the date business begins. In practice, most entrepreneurs complete this step through their accountant.
4. Pass the tax office inspection After the notification, the tax office starts the e-inspection process; the inspection officer visits the address you reported and checks that the business is genuinely active, reachable and suitable for the activity. The inspection date is usually notified within 2 to 3 days by SMS or e-mail. You can find what the inspection looks for in detail in our tax office inspection guide.
5. The tax liability opens and the tax certificate is issued When the inspection concludes positively, your tax liability is opened, your tax identification number is assigned, and your tax certificate appears in your Digital Tax Office account. Setting up correct tax registration from day one matters, which is why our tax registration guide explains who must register and how.
6. SGK 4/B registration and first obligations Following your tax office registration, SGK automatically registers you as insured under the 4/B (Bag-Kur) scheme. If ledger certification, e-invoice or e-archive is needed, your accountant completes these steps, and you officially begin operating.
The whole process, if the documents are complete and the address is suitable, is usually finished within one to three business days.
Practical note: In a sole proprietorship setup, the business address you report is checked directly in the inspection; an address that is unreachable or looks unsuitable for activity delays the opening of the tax liability. The virtual office service that Micro Office has run for 18 years at its real office address in Tekstilkent Koza Plaza provides a legal business address and inspection support.
e-Government, Tax Office or Accountant: Which Setup Route Suits You?
You can set up a sole proprietorship in three different ways, and the right choice depends on your comfort with digital procedures and how much a correct tax setup matters. The first route is filing the business-start notification yourself through the Digital Tax Office on e-Government; this is the lowest visible cost, but the risk of setting the activity code, ledger type and tax options incorrectly is yours. The second route is applying in person at the tax office with your documents; you proceed with an officer's guidance, but appointment and waiting times can lengthen the process. The third and most common route is granting a power of attorney to an accountant; on this route the signature declaration, the business-start notification, the activity code selection and the inspection follow-up are handled by an expert. Setting up the first year's obligations correctly makes this route worth a small fee for most founders. The table below compares the three routes.
| Criterion | e-Government (yourself) | Tax office (in person) | Accountant (power of attorney) |
|---|---|---|---|
| Who handles it | The entrepreneur | The entrepreneur, with officer guidance | The accountant, by proxy |
| Speed | Fast, online | Depends on appointment and queue | Fast, follow-up with the expert |
| Activity code and ledger setup | Yours, with error risk | Partial guidance | The expert sets it up correctly |
| Inspection follow-up | You track it yourself | You track it yourself | The accountant tracks it |
| Extra service fee | None | None | Yes (setup package) |
| Who it suits | Digitally confident, simple activity | Those wanting in-person handling | Most first-time founders |
In practice, most entrepreneurs choose the accountant route to get through the first year smoothly and to set the activity code and ledger type correctly. Even after choosing the route, the most decisive decision is the business address you will report.
The Business Address in a Sole Proprietorship: The Critical Decision of the Setup
In a sole proprietorship setup, the business address you report is not just a formality; it is where the inspection takes place, what appears on your tax certificate and where all official notices arrive. That is why the address is the most critical decision of the setup. Many report a home address as the fastest solution; but it can cause problems later through the residence-versus-workplace distinction, building management restrictions, notices arriving at home and the address showing on your brand. We examined the tax, withholding and privacy side of a home address in detail in our can you use your home as a company address guide; for a general comparison of address options, see our guide to a company address in Istanbul. The most economical and professional alternative is a virtual office: it provides a legal business address, mail and notice handling and inspection support at a cost far below physical office rent, with the same legal validity. At Micro Office, we have given sole proprietorships a legal business address and inspection support for 18 years at our real Tekstilkent Koza Plaza office; you can review our virtual office service page.
After the Setup: First Obligations
Once your sole proprietorship is set up, your regular obligations begin: periodic VAT and provisional tax returns, the annual income tax return, keeping ledgers and SGK 4/B (Bag-Kur) premiums. Your tax certificate appears in your Digital Tax Office account after the return period and is downloaded free of charge. Setting up who must register and for which taxes matters from the start, and our tax registration guide covers exactly that. If you are a young entrepreneur, you may benefit from the income tax earnings exemption when you meet certain conditions; assess the current conditions of this advantage with your accountant.
Conclusion: Setting Up Your Sole Proprietorship Correctly
Starting a sole proprietorship, run with the right steps, is a beginning that requires neither large capital nor long bureaucracy and is completed in a few business days. For a healthy setup:
- Determine your line of activity and activity code correctly from the start.
- File the business-start notification through the Digital Tax Office on time (within 10 days at the latest).
- Choose your business address carefully; it is the most critical decision for passing the inspection.
- With accountant support, set up your tax and SGK obligations correctly from day one.
To set up your sole proprietorship with a legal, reliable and professional business address, fill in our application form or get in touch: our contact page, 0212 970 01 91 or WhatsApp 0543 347 27 99. For a legal business address and inspection support, review our virtual office service page.
Frequently Asked Questions
How is a sole proprietorship started, and where do you apply?
A sole proprietorship is set up with a business-start notification filed through the Digital Tax Office (formerly the Interactive Tax Office) with your e-Government password. For the application, a notarized signature declaration, an identity document, a residence document and a business address document are prepared; after the notification, the tax office inspection takes place and the tax liability is opened. The process is usually carried out through an accountant with a notarized power of attorney.
What are the requirements for starting a sole proprietorship?
The requirements for starting a sole proprietorship are being a natural person of legal age and capacity, a valid business address to report to the tax office, and a defined activity (NACE) code. No minimum capital, notarized articles of association or Trade Registry registration is required. Depending on the line of activity, registration with a chamber of tradesmen or commerce and a license may be needed; your accountant guides you based on your activity code.
How long does it take to start a sole proprietorship?
If the documents are complete and the business address is suitable, setting up a sole proprietorship is usually finished within one to three business days, inspection included. After the business-start notification, the inspection date is usually notified within 2 to 3 days. By law, the business-start notification must be filed within 10 days at the latest from the date business begins.
Is an electronic signature required to start a sole proprietorship?
No, an electronic signature is not mandatory for the setup of a sole proprietorship. The business-start notification can be filed with your e-Government password. An electronic signature becomes necessary when electronic document obligations such as e-invoice, e-archive invoice and e-ledger begin. Unlike a limited or joint-stock company, a sole proprietorship requires no electronic signature at the setup stage.
Can I use a virtual office address for a sole proprietorship?
Yes. In a sole proprietorship setup, you can use a virtual office address as your business address, register with the tax office at that address and pass the inspection. The only condition is that the provider has a genuine physical premises at that address and is reachable by the inspection officer. Micro Office's real office address at Tekstilkent Koza Plaza meets this condition.
Should I do the setup myself or through an accountant?
Both are possible. If you are comfortable with digital procedures and your activity is simple, you can file the business-start notification yourself through e-Government. However, if setting up the activity code, ledger type and tax options correctly for the first year matters, granting a power of attorney to an accountant, as most entrepreneurs do, is the safer and more time-saving route.
