A Guide for Foreign Investors Looking to Set Up a Company in Hatay

Hatay's reshaping economy means both new opportunities and a set of procedures that need to be clarified for foreign investors looking to set up a company. In this article, we cover the full process, from getting a tax ID to the work permit.

Getting a Tax ID: The First Step

The tax ID number required for any official transaction in Türkiye can be obtained for free by a foreign investor in just 15-30 minutes, with only a passport, at the tax office. This is the first and fastest step in the company formation process.

Choosing a Company Type: Limited or Joint-Stock?

The two most commonly chosen company types for foreign investors are the limited liability company and the joint-stock company. A limited company, with a lower capital requirement and simpler management structure, suits small-to-mid-sized investments; a joint-stock company is preferred for larger-scale investments, share-transfer flexibility, or projects with public-offering potential. The right choice depends on the investment's size and long-term plans.

Opening a Bank Account

Opening a bank account in the company's name requires the tax ID, company formation documents and a signature circular. Some banks may request additional documentation for foreign-partnered companies, so clarifying the document list with the relevant bank before opening the account speeds up the process.

The Work Permit and Residence Connection

If you plan to actually work in Türkiye as a company founder or partner, you'll also need to apply for a work permit. If the company reaches a certain employment and capital size, this application is typically resolved faster; a short-term residence permit can run in parallel with this process.

Accounting and Tax Obligations

• Monthly VAT and withholding tax return obligations
• Annual corporate tax return
• Keeping statutory books (journal, ledger, etc.) up to date
• Reporting obligations under an investment incentive certificate, if applicable

When Does a Liaison Office Make Sense?

If you're not yet planning to conduct commercial activity in Türkiye and just want to run market research or maintain communication with a head office, opening a liaison office instead of a full company may fit better. Liaison offices can't conduct profit-generating activity, but they're faster and cheaper to set up. If you plan to move into commercial activity later, it's worth planning that transition from the start.

Finding Commercial Property for an Office or Branch

When leasing commercial property, it's necessary to confirm the zoning status fits the planned activity, whether retail, office or warehouse use. Commercial property supply in areas still under reconstruction can still be limited, so planning early gives you both a wider choice and better lease terms.

What to Watch in Your First Year

• Filing monthly tax returns and SGK declarations on time
• Paying in the committed company capital within the required period
• Keeping employment contracts and personnel files compliant with regulations, if you hire staff
• Building the reporting obligations from an incentive certificate, if you have one, into your calendar

Choosing an Accountant

Choosing the right accountant for a foreign-capital company matters not just for legal compliance, but for making full use of tax and incentive advantages. An accountant experienced working with foreign investors makes communication easier on both language and process, and helps avoid costly mistakes.

Adjusting to the Local Business Culture and Language

Most official processes run in Turkish, so sworn-translator support is especially important for title deed, notary and government agency transactions. Working with an advisor who understands local business culture and communication style makes day-to-day operations easier and speeds up building trust with local business partners.

Structuring a Partnership Correctly

For a company set up with multiple partners, the partnership agreement needs to clearly define profit sharing, management authority and the process to follow in the event of a split, from the start. If you're working with a local partner in particular, making sure these terms are fully reflected in the company's articles of association is the most effective step toward preventing future disputes.

Trademark Registration and Intellectual Property

Before starting operations in Türkiye, checking whether your brand name is already registered with the Turkish Patent and Trademark Office, and registering your own trademark if needed, prevents a trademark dispute down the line. This step is one that companies bringing an international brand into the Turkish market shouldn't overlook as part of the formation process.

The Official Correspondence Address

The notification address declared at company formation is treated as where all official correspondence from government agencies gets delivered; keeping that address current and regularly checked removes the risk of missing an official notice. If you don't have a physical office yet, using a trusted advisory firm's address as a temporary notification address is also an option worth considering.

The Annual General Assembly and Corporate Governance

Limited and joint-stock companies are required to hold an annual ordinary general assembly meeting and share the past year's activity and financial results with shareholders. For companies with partners abroad, this meeting can be held electronically rather than in person, but the minutes still need to be properly recorded and filed with the trade registry. Missing this obligation on time can lead to delays in the company's official transactions later.

Conclusion

Setting up a company in Hatay can be completed within a few weeks when the steps are followed in the right order. Through our Branch & Office Setup Consulting and Tax & Financial Advisory services, we're with you from formation through your first year of operation.