Important note: The cost items below are estimated market-average figures for 2026 and vary by province, accountant, chamber fees and the amount of capital. Before deciding to set up, always consult your own accountant. This guide is for general information and does not replace personal accounting advice.
Company Formation Cost in Turkey 2026: Short Answer
Company formation cost in 2026 varies markedly by company type: a sole proprietorship is 6.000-13.500 TL, a limited company 26.000-39.500 TL, and a joint stock company 33.000-45.000 TL (plus a temporary 62.500 TL capital blocking). In other words, there is roughly a five-fold gap between the cheapest option, the sole proprietorship, and a joint stock company.
But the point most entrepreneurs miss is this: the real cost is not at setup, but in the operating expenses of the first year. Because of the Bag-Kur premium alone, the first-year expense of every company type starts at 165.000 TL.
In this guide we compare the setup cost of the three company types item by item with current 2026 figures, and we explain which type suits whom, the young entrepreneur advantage and the point where you can lower the cost the most. As a team that has accompanied the setup process of more than 500 businesses at Istanbul Esenler Tekstilkent since 2008, we also share the practice behind the figures.
Setup Cost by Company Type (2026 Comparison)
Company formation cost depends not only on setup expenses but also on minimum capital, liability and the tax regime. In 2026 the setup cost of the three company types breaks down as follows: a sole proprietorship, at 6.000-13.500 TL, is the most affordable and fastest option, because it requires no notarized articles of association and no Trade Registry registration and carries no minimum capital obligation; a limited company sits in the mid segment with a 26.000-39.500 TL setup cost and 50.000 TL minimum capital (not blocked at setup, paid over 24 months); and a joint stock company brings the highest initial burden with a 33.000-45.000 TL setup cost, 250.000 TL minimum capital and one quarter of that capital (62.500 TL) blocked at a bank during setup. A sole proprietorship carries unlimited personal liability, while in a limited or joint stock company a partner's liability is limited to the capital they contribute. The tax regime also differs by type: a sole proprietorship is subject to progressive income tax (15-40%), while a limited and a joint stock company are subject to a flat 25% corporate tax. Setup takes 1-3 business days for a sole proprietorship, 2-5 for a limited company and 3-7 for a joint stock company; the fastest and cheapest start is the sole proprietorship.
Here is the full 2026 comparison table:
| Criterion | Sole Proprietorship | Limited Company | Joint Stock Company |
|---|---|---|---|
| Setup cost (2026) | 6.000-13.500 TL | 26.000-39.500 TL | 33.000-45.000 TL |
| Minimum capital | None | 50.000 TL (paid over 24 months) | 250.000 TL |
| Blocked at the bank at setup | None | None | 62.500 TL (1/4 of capital) |
| Setup time | 1-3 business days | 2-5 business days | 3-7 business days |
| Liability | Unlimited (personal assets) | Limited (to the capital) | Limited (to the capital) |
| Tax regime | Income tax (15-40%) | 25% corporate tax (general rate) | 25% corporate tax (general rate) |
| Management | The owner | A manager | Board of directors (at least 1 member) |
| Young entrepreneur exemption | Yes (income tax) | No | No |
| Who it suits | New entrepreneur, low-to-mid revenue | Limited liability, the most common choice | High capital, investors, going public |
Note: The figures vary by province, accountant and chamber fees. With the 2024 amendment to the Turkish Commercial Code, the minimum capital was raised to 50.000 TL for a limited company and 250.000 TL for a joint stock company; the compliance deadline is 31 December 2026 (confirmed by the Ministry of Trade and TURMOB).
Sole Proprietorship Setup Cost
A sole proprietorship is the most affordable start in 2026, at a typical 6.000-10.000 TL (up to 13.500 TL with e-signature and additional services). It requires no notarized articles of association and no Trade Registry registration; the process is mostly completed within 1-3 business days with a business-start notification to the tax office and an e-inspection. There is no minimum capital requirement.
The main items are: notarized signature declaration (1.050-1.150 TL), accountant's setup package (3.000-5.500 TL), ledger certification (1.200-1.800 TL) and tax office/postal expenses. An e-signature is not mandatory at setup; it becomes necessary at the e-invoice stage.
For more on setting up a sole proprietorship step by step, its documents and process, see our guide to starting a sole proprietorship.
Limited Company Setup Cost
A limited company is the mid segment in 2026, with a typical 30.500-39.500 TL setup cost (about 26.000 TL in the cheapest province). Its difference from a sole proprietorship is that it requires notarized articles of association and Trade Registry registration, plus a 50.000 TL minimum capital commitment (not blocked at setup, paid over 24 months). Setup takes 2-5 business days.
| Item | Amount (2026) | Status |
|---|---|---|
| Notary (articles of association and signature declaration) | 4.500-6.500 TL | Mandatory |
| MERSIS application | Free (online) | Mandatory |
| Trade Registry fee, chamber registration and Gazette announcement | 10.000-14.000 TL | Mandatory (varies by province) |
| Competition Authority levy (0.04% of capital) | 20 TL on 50.000 TL | Mandatory |
| Accountant setup service | 11.000-16.000 TL | Mandatory |
| E-signature and financial seal | 4.500-5.500 TL | Mandatory |
| Opening ledger certification | 1.500-2.000 TL | Mandatory |
| Total (excluding capital) | 26.000-39.500 TL | Typically 30.500-39.500 TL |
The largest items are the accountant's service and the Trade Registry/chamber package; this package climbs toward the upper band in a metropolitan area. The Competition Authority levy, under Law No. 4054, is four per ten thousand of capital (0.04%), that is only 20 TL on 50.000 TL of capital (Competition Authority).
Joint Stock Company Setup Cost
A joint stock company is the type that carries the highest initial burden in 2026: a typical setup cost of 35.000-42.000 TL (the 33.000-45.000 TL band), plus one quarter of the 250.000 TL minimum capital, namely 62.500 TL, blocked at a bank during setup. This blocking is not an expense; it is released after registration and passes to the company account. The remaining 187.500 TL of capital is paid within 24 months. The setup process takes 3-7 business days.
| Item | Amount (2026) | Status |
|---|---|---|
| Notary (comprehensive articles of association and signature declaration) | 5.000-13.500 TL | Mandatory |
| Trade Registry, chamber registration and Gazette announcement | 12.000-14.000 TL | Mandatory (high in metropolitan areas) |
| Competition Authority levy (0.04% of capital) | 100 TL on 250.000 TL | Mandatory |
| Accountant setup service | 11.500-16.500 TL | Mandatory |
| E-signature and financial seal | 4.500-5.500 TL | Mandatory |
| Ledger certification (more ledgers) | 4.500-6.500 TL | Mandatory |
| Total (excluding capital) | 33.000-45.000 TL | Typically 35.000-42.000 TL |
| Capital blocking (1/4 of 250.000) | 62.500 TL | Temporary (not an expense, released) |
The main differences of a joint stock company from a limited company are: a mandatory board of directors (at least 1 member), an independent audit obligation for companies exceeding certain size thresholds, more comprehensive articles of association and more certified ledgers. A joint stock company is preferred by companies that will take on investors or aim to go public, thanks to the ease of share transfer and its tax advantage.
Steps to Set Up a Company (2026)
The process varies by company type; the general flow is below:
1. Determine the company type and the capital Choose sole proprietorship, limited or joint stock according to your revenue expectation, number of partners and liability preference. For a limited or joint stock company, set the minimum capital (50.000 / 250.000 TL) in the articles of association.
2. Agree with an accountant and prepare the documents Apply to your accountant with your identity, a workplace address document (a lease agreement or a virtual office address confirmation document) and the capital information. The accountant obtains a power of attorney from a notary.
3. Have the articles of association notarized (limited/joint stock) For a limited or joint stock company, the articles of association require notary approval; for a sole proprietorship only a signature declaration is sufficient, and there are no articles of association.
4. Complete the MERSIS and Trade Registry registration (limited/joint stock) After the online MERSIS application (free), the Trade Registry registration is completed and announced in the Trade Registry Gazette. A sole proprietorship skips this step and files the business-start notification directly with the tax office.
5. Tax office registration and passing the e-inspection Your tax liability record is opened. A tax office officer visits the reported address and carries out the e-inspection; a signboard, reachability and activity suitability are sought at your address. For the details of the inspection, see our tax office inspection guide.
6. E-signature, financial seal and starting operations An e-signature and financial seal are obtained for e-invoice and e-ledger. For your first-period return obligations, review our tax registration guide.
Practical note: Whichever type you choose, you must report a workplace address and pass the e-inspection at that address. The address is the critical step that Micro Office has resolved smoothly for 18 years at its real office in Koza Plaza. With our virtual office service you get a legal address and inspection support.
After the Setup: First-Year Expenses
The real cost of setting up a company appears not at setup but in the mandatory operating expenses of the first year, and this is high regardless of company type. In 2026, the largest expense item for every company type is the Bag-Kur (4/b) premium; with the gross minimum wage rising to 33.030 TL, the lowest monthly premium has climbed to roughly 10.157 TL for those who pay on time (11.808 TL without the discount), that is about 122.000-142.000 TL per year. To this the accountant's fee is added: for a sole proprietorship on the business-account ledger the TURMOB floor is roughly 43.000 TL per year, up to 90.000 TL in major cities; for limited and joint stock companies the accounting fee is higher because of the balance-sheet basis. As a result, the typical first-year operating cost excluding tax is in the range of 165.000-235.000 TL for a sole proprietorship, roughly 160.000-230.000 TL for a limited company and 165.000-245.000 TL for a joint stock company (including the partner's Bag-Kur premium; management and audit costs may be added for a joint stock company). Income or corporate tax is not included in this amount; it is calculated separately on earnings. For this reason, deciding by looking only at the setup cost is misleading; planning the first year's cash needs together with the Bag-Kur and accounting items is as important as the type of setup.
The Young Entrepreneur Exemption: A 400.000 TL Advantage (Sole Only)
For those setting up a new company, the strongest incentive of 2026 is the Young Entrepreneur Earnings Exemption: for an entrepreneur who meets the conditions, up to 400.000 TL of annual earnings is exempt from income tax for 3 tax periods (a saving of roughly 70.500 TL/year).
Important: This exemption applies only to income-tax payers, that is, to sole proprietorships. Since limited and joint stock companies are corporate-tax payers, they cannot benefit from this exemption. The conditions: not having completed the age of 29 when starting business, being a taxpayer for the first time, and reporting the business start on time.
Caution: This exemption does not cover VAT, withholding and the Bag-Kur premium. The income tax exemption itself (400.000 TL per year) continues exactly as before; what has ended is the separate Bag-Kur premium support provided to young entrepreneurs. This support was abolished as of 1 January 2026 by Law No. 7566, published in the Official Gazette dated 19 December 2025. For the current amount and conditions, rely on the Revenue Administration circular.
Company Setup Cost Calculator
Select the company type and your situation to see your estimated setup and first-year cost right away:
COMPANY SETUP COST CALCULATOR (2026)
Pick a company type to see the estimated setup and first-year cost. Runs in your browser, no data saved. Figures are 2026 market ranges; consult your accountant for exact amounts.
The largest first-year item is the Bag-Kur premium (lowest approx. 10,157-11,808 TL/month in 2026). Accounting fees vary by region.
This calculator is for general information and does not replace personal accounting advice. Amounts vary by province, accountant and chamber fees.
The calculator uses 2026 market ranges (for a sole proprietorship, typically 6.000-10.000 TL, up to 13.500 TL with e-signature and additional items); consult your accountant for the exact amount.
Which Company Type Suits You?
These questions clarify your decision:
- If you are just starting, revenue is uncertain and you are under 29: Sole proprietorship. The low setup cost and the 3-year income tax exemption are the biggest advantages. However, at high profit, the progressive income tax (15-40%) turns into a disadvantage.
- If you want limited liability and expect mid-to-large revenue: Limited company. It is the most common choice; it provides a flat 25% corporate tax and protection of personal assets.
- If you will take on investors, transfer shares or go public: Joint stock company. In return for high capital and setup cost, it offers flexibility in share transfer and a tax advantage.
For most new entrepreneurs, starting with a sole proprietorship and moving to a limited company as revenue grows is a sensible path.
The Easiest Way to Lower the Setup Cost: The Address
When you look at the setup and first-year expenses, most items (notary, fees, Bag-Kur, accounting) are mandatory and fixed. The only large item you can meaningfully optimize is the workplace address.
Whichever company type you set up, you must report a workplace address. In Istanbul, rent for a central physical office usually starts at tens of thousands of Lira per month depending on size; the annual burden reaches hundreds of thousands of Lira. A virtual office, on the other hand, provides a legal business address, mail and notice handling and inspection support in the 1.250-2.083 TL per month band, that is 15.000-25.000 TL per year. It provides the same legal validity at roughly one twentieth of the cost of a physical office.
At Micro Office, we have provided sole proprietorships and capital companies with a legal workplace address for 18 years at our real office address in Tekstilkent Koza Plaza. For our three packages (Starter 1.250 TL, Professional 1.667 TL, Premium 2.083 TL per month, VAT included, 12-month contract), review our virtual office service page or our pricing page. For address options, you can also see our Istanbul company setup address guide.
Conclusion: The Real Cost of Setting Up a Company
In 2026, company formation cost is 6.000-13.500 TL for a sole proprietorship, 26.000-39.500 TL for a limited company and 33.000-45.000 TL for a joint stock company; but the real picture is set by the first-year operating expenses (starting at 165.000 TL including Bag-Kur). To make the right decision:
- Evaluate the setup and the annual cost separately. A cheap setup does not mean cheap operation.
- Choose the company type according to your revenue expectation, liability preference and young entrepreneur status; always consult an accountant.
- Optimize the address cost; it is the single decision that eases your first-year budget the most.
To set up your company at low cost with a legal and reliable address, fill in our online application form or reach us: phone or WhatsApp: 0543 347 27 99.
Frequently Asked Questions
How much is the company formation cost in 2026?
In 2026, the setup cost varies by company type: a sole proprietorship is 6.000-13.500 TL, a limited company 26.000-39.500 TL, and a joint stock company 33.000-45.000 TL (plus a temporary 62.500 TL capital blocking). These figures cover the setup expense; the first-year operating cost (Bag-Kur, accounting) starts separately at 165.000 TL.
Which company type is the cheapest?
A sole proprietorship, at 6.000-13.500 TL, is the cheapest and fastest type to set up, because it requires no notarized articles of association and no Trade Registry registration and has no minimum capital requirement. It also provides a 3-year income tax exemption advantage for entrepreneurs under 29. At low-to-mid revenue it is the most sensible start.
What is the cost difference between a limited and a joint stock company?
A limited company is more affordable, with a 26.000-39.500 TL setup cost and 50.000 TL minimum capital (not blocked at setup). A joint stock company is roughly 30-50% more expensive, with a 33.000-45.000 TL setup cost, 250.000 TL minimum capital and 62.500 TL blocked at setup. A joint stock company requires a board of directors and a more comprehensive structure.
Is the 62.500 TL blocked in a joint stock company an expense?
No. In a joint stock company, one quarter of the 250.000 TL minimum capital, namely 62.500 TL, is blocked at a bank during setup, but it is released once registration is complete and passes to the company account. So this amount is not an expense but a temporary guarantee. The remaining capital is paid within 24 months.
Does the young entrepreneur exemption apply to every company type?
No. The Young Entrepreneur Earnings Exemption (400.000 TL per year, 3 years) applies only to income-tax payers, that is, to sole proprietorships. Since limited and joint stock companies are corporate-tax payers, they cannot benefit from this exemption. The condition: being under 29 and a taxpayer for the first time.
Can I use a virtual office address when setting up a company?
Yes. In the setup of a sole proprietorship, limited or joint stock company, you can use a virtual office address as the workplace address, register with the tax office and the Trade Registry at that address and pass the e-inspection. The only condition is that the provider has a genuine physical premises at that address. A virtual office provides a legally valid address at roughly one twentieth of the cost of physical office rent.
