One of the most persistent misconceptions among foreign investors is that a work permit is a precondition for owning a Turkish business. It is not. The confusion arises because two different things — holding shares and working — are treated as one, and the distinction between them determines whether an investor needs a permit at all. This article draws the line clearly.
The rule
A foreign national may hold shares in a Turkish company without a work permit. Share ownership is an investment, not employment, and the Foreign Direct Investment Law No. 4875 confirms that foreign investors are subject to equal treatment with domestic ones.
A work permit becomes necessary when the foreign national works in Türkiye — including working in their own company. Law No. 6735 on International Labour Force governs this, and its scope covers working, not owning.
The distinction is functional rather than formal. What matters is what the person actually does, not what the share register says.
Where the line falls
No permit required:
- holding shares in a limited or joint stock company;
- receiving dividends;
- attending general assemblies and voting;
- exercising shareholder rights, including inspection and approval rights;
- sitting on the board of a joint stock company while resident abroad and not working in Türkiye.
Permit required:
- serving as a manager (müdür) of a limited company;
- working in the company in any operational capacity — managing, selling, producing, providing services;
- being present in Türkiye and running the business day to day, whatever the title.
The limited company manager position catches people out. Every limited company must have at least one manager who is a shareholder. Where the only shareholder is a foreign national, that person is necessarily the manager — and therefore needs a work permit, even though they thought they were merely an owner.
The joint stock company exception
There is a structure that avoids the issue legitimately.
A member of the board of directors of a joint stock company who resides abroad and does not work in Türkiye falls outside the work permit requirement. The person can own the company, sit on its board, take strategic decisions and receive dividends without a permit, provided they are not in fact working in Türkiye.
This is a real and legitimate structure for an investor who will not relocate. It is not available to someone who is in Türkiye running the business and has simply chosen a different job title — substance governs.
Where an investor intends to relocate and work, the answer is a work permit, and the structure should be built to support the application.
The criteria a work permit application faces
Where a permit is needed, the company's application is assessed against criteria that should influence the structure at formation:
- Five Turkish citizens employed per foreign employee, as a general rule. For a foreign shareholder-manager, the requirement is applied over the latter part of the first permit year rather than from the outset — the first months are a grace period, not an exemption.
- Paid-in capital of at least TRY 100,000 for a newly formed company.
- Alternative financial criteria for ongoing operations — paid-in capital of TRY 500,000, net sales of TRY 8 million, or exports of USD 150,000.
- A capital share of USD 100,000 or more held by the foreign shareholder may take the application outside the standard employment requirement.
- Salary criteria appropriate to the role.
These criteria were adjusted in 2026 and are revised periodically; verify the current position before relying on any figure.
The practical consequence is significant. A company formed at the TRY 50,000 statutory minimum will not support a work permit for its foreign manager. An investor who intends to work in the business should capitalise accordingly at formation — the difference is small, and increasing capital afterwards requires a general assembly resolution, registration and delay.
What working without a permit costs
Where a foreign national works without a permit, the consequences fall on both the person and the company:
- administrative fines on the individual;
- substantially larger fines on the employer, increasing on repetition;
- liability for social security contributions and the worker's return costs;
- a restriction code against the individual, affecting future residence, work permit and citizenship applications;
- possible removal.
An investor who is also the employer bears both sides of this. The restriction code is the durable cost: fines are paid once, records persist.
Residence: a separate question again
Owning a company does not by itself provide a residence permit. There is a short-term permit ground for establishing commercial connections or a business under Article 31 of Law No. 6458, and where a work permit is granted it operates as a residence permit for its duration.
An investor who owns a Turkish company, lives abroad, and visits periodically needs neither a work permit nor a residence permit — they visit within their visa entitlement. An investor who relocates needs both questions answered, and answered in the right order.
Structuring at formation
Three common situations and the structure that fits:
Investor abroad, not working in the business. Joint stock company, investor on the board, resident abroad. No work permit needed. A Turkish resident manages operations.
Investor relocating to run the business. Either form, capitalised to meet the work permit criteria — at least TRY 100,000 paid in, and consider whether a USD 100,000 shareholding brings the exemption into play. Plan for the five-employee requirement over the first year.
Investor abroad now, relocating later. Form with the later position in mind. Capitalising properly at formation costs almost nothing; restructuring later costs time at exactly the moment the business needs it.
Frequently asked questions
Can I own one hundred per cent of a Turkish company as a foreigner? Yes, outside restricted sectors.
Do I need a permit to receive dividends? No.
Do I need a permit to be a limited company manager? Yes, if you are working in Türkiye in that role.
Can I be a board member of a joint stock company without a permit? Yes, where you reside abroad and do not work in Türkiye.
Does owning a company give me residence? Not automatically. A work permit operates as a residence permit; otherwise a separate residence ground is needed.
Can I visit my company on a tourist visa? Attending as a shareholder — meetings, general assemblies — is not working. Running the business is.
How long does a work permit take? Typically weeks once the file is complete; incomplete files take much longer.
Answer the right question first
The question is never "do I need a work permit to own a company" — you do not. It is "will I be working in Türkiye", and the honest answer to that determines the company type, the capitalisation and the timetable.
Dural Hukuk advises foreign investors on structuring before formation, forms companies under power of attorney, and handles work permit applications for shareholders, managers and employees. Call +90 535 260 74 54 or use the contact form on this site.
This article is general information on Turkish law as at August 2026 and is not legal advice. Work permit criteria change; verify the current position before relying on them.