The rapid development of digitalization, the growing availability of international payment systems, and the ability of businesses to serve customers in different countries more easily have encouraged entrepreneurs to look beyond Turkey when structuring their companies. Today, everyone from e-commerce entrepreneurs and software developers to consultants and international trading companies is researching how to set up a company abroad.
So, can a person living in Turkey own a company in another country? Is it possible to establish a company without leaving Turkey? Is a residence permit required to own a company abroad? How should tax obligations be evaluated?
The short answer is: Yes, it is possible to set up a company abroad from Turkey.
However, several factors should be evaluated before incorporation, including the country in which the company will be established, the nature of its activities, the location of its customers, the tax residency of the company owner, and banking and payment service requirements.
In this comprehensive guide prepared by Offshore Company Formation, we explain the key issues that entrepreneurs who want to set up a company abroad should consider.
Can You Set Up a Company Abroad from Turkey?
Individuals and legal entities residing in Turkey may establish a company in another country, become a shareholder in an existing foreign company, or open a branch abroad, provided that the legislation of the relevant country permits it.
Therefore, being a Turkish citizen or continuing to live in Turkey does not, by itself, prevent you from setting up a company abroad.
In fact, in some countries, a significant portion of the company formation process can now be completed remotely. Depending on the country, documents and information such as identity verification, proof of address, articles of association, shareholder details, or a description of business activities may be required.
Turkish residents who establish a company abroad, become shareholders in an existing foreign company, or open a branch overseas may also have reporting obligations in Turkey following the first export of cash or in-kind capital. According to the Turkish Ministry of Trade’s current guidance dated May 13, 2026, the relevant investment may need to be reported to the Ministry of Treasury and Finance and the Ministry of Trade within three months following the initial capital transfer.
For this reason, the company should not be evaluated solely according to the rules of the country where it is incorporated. Potential obligations arising in Turkey should also be taken into consideration.
Is It Legal to Set Up a Company Abroad?
This is one of the most frequently asked questions. Setting up a company abroad is not, in itself, an illegal activity.
It is extremely common in international business for individuals and companies to own businesses in other countries. Companies may establish commercial structures in foreign jurisdictions to conduct operations, reach overseas customers, attract investment, access international payment infrastructure, or enter new markets.
The important point is that the company must be established for legitimate business purposes, income must be properly recorded, and all relevant tax and reporting obligations must be fulfilled.
The term “offshore company” is sometimes associated exclusively with tax advantages. However, offshore and international company structures can be used for many legitimate purposes, including global trade, investment, software services, consulting, intellectual property management, e-commerce, and international business operations.
Do You Need to Leave Turkey to Set Up a Company Abroad?
Every country has its own company formation system. However, in some jurisdictions, a substantial part of the incorporation process can be completed without physically visiting the country.
Therefore, it would be incorrect to assume that an entrepreneur who wants to set up a company abroad from Turkey must always travel to the relevant country.
In some countries, incorporation can be completed remotely, while opening a bank account or completing certain identity verification procedures may require additional steps.
It is also important to understand that company incorporation and bank account opening are two separate processes. The fact that you can establish a company remotely does not necessarily mean that every bank will allow you to open an account remotely.
For this reason, when choosing a jurisdiction, you should consider not only the question of “How quickly can the company be established?” but also how the company will operate after incorporation.
What Are the Advantages of Setting Up a Company Abroad?
When structured correctly, setting up a company abroad may provide businesses with several advantages on an international scale.
Easier Access to International Markets
Having a company established abroad may help businesses develop more professional commercial relationships with customers in their target markets.
If a significant portion of business activities is focused on a particular country or region, establishing a company structure that is suitable for that market may provide operational advantages.
Ability to Work with Global Clients
Businesses operating in software, digital marketing, consulting, design, SaaS, mobile applications, e-commerce, and similar digital industries can provide services to customers around the world.
In this context, setting up a company abroad may help businesses manage international contracts, invoicing, and payment processes in a more structured manner.
Access to International Payment Systems
Depending on the jurisdiction where the company is established and the acceptance policies of payment service providers, businesses may gain access to various international payment solutions.
However, one important detail should be kept in mind: Establishing a company does not guarantee that an account application with a particular payment provider will be approved.
Payment providers may separately evaluate the company’s legal structure, business sector, ownership structure, customer profile, transaction volume, and compliance requirements.
Working with Foreign Investors
Some startups choose to establish companies in particular jurisdictions because they plan to attract international investors in the future.
Managing investment agreements, shareholder structures, and equity transactions within legal systems that investors are familiar with may make investment negotiations more straightforward.
Building a Global Brand
For businesses whose target market extends beyond Turkey, an international company structure can become an important part of their branding strategy.
For businesses serving customers in different countries, the jurisdiction in which the company is incorporated may influence both brand perception and commercial operations.
Which Country Should You Choose for Company Formation?
One of the most common mistakes made by people who want to set up a company abroad is choosing a jurisdiction based solely on the initial incorporation cost.
The cheapest company structure is not always the most advantageous.
When choosing a country, the following factors should be evaluated together:
- The company’s business activity
- Target customer base
- Estimated annual turnover
- Company formation and annual renewal costs
- Accounting and reporting obligations
- Corporate tax system
- Taxation of dividends and other income
- Bank account opening requirements
- Availability of payment infrastructure
- Physical office requirements
- Local director or representative requirements
- Tax residency rules
- Double taxation agreements
- The actual nature of the company’s business activities
For example, a company that plans to serve only customers within the European Union will not necessarily have the same requirements as a global SaaS startup.
Likewise, an entrepreneur selling products through Amazon, Etsy, or another e-commerce platform may require a different corporate structure from someone providing international consulting services.
For this reason, the choice of jurisdiction should be made according to the individual and the business model.
What Is an Offshore Company?
An offshore company is generally a company established outside the country in which the owner primarily resides or conducts business.
However, it would be incorrect to assume that the term “offshore” automatically means a “tax-free company.”
The company’s tax obligations may vary depending on:
- The country where the company is incorporated
- The source of its income
- Where its business activities are carried out
- Where the company is effectively managed
- The tax residency of the company owner
Therefore, setting up a company abroad does not automatically mean that there will be no tax obligations in Turkey or any other country.
Offshore company planning should take into account not only tax rates but also the legal structure, accounting requirements, reporting obligations, banking arrangements, and the company’s genuine commercial activities.
Can You Earn Income from a Foreign Company While Living in Turkey?
Yes. However, the nature of the income received from the company and its tax treatment may vary from one person to another.
Important factors may include:
- The company owner’s tax residency in Turkey
- The country from which the company is managed
- Whether the company owner receives a salary
- Whether dividends are distributed
- The country in which the company operates
- Whether a double taxation agreement exists between the relevant countries
Tax legislation may produce different results depending on a person’s residency and taxpayer status. Therefore, before establishing a company, it is advisable to seek assistance from an accountant, tax advisor, or lawyer who specializes in the relevant field.
The taxation of foreign income in Turkey may also change over time and can vary considerably depending on an individual’s tax residency status. For this reason, every investor’s circumstances should be assessed individually.
Do You Need a Residence Permit to Set Up a Company Abroad?
The answer depends on the country in which the company will be established.
Some countries allow foreigners to own companies without living in the country, while others may impose additional requirements regarding company directors, registered addresses, or local representatives.
For this reason, owning a company and having the right to live in that country should be treated as two separate matters.
Owning a company in a country does not automatically provide you with a residence permit or work permit.
Likewise, in some jurisdictions, you may be able to become a shareholder or company owner without holding a residence permit.
What Documents Are Required to Set Up a Company Abroad?
The required documents vary depending on the jurisdiction and company type. However, documents are generally requested to verify the identity of the company owner and the purpose of the business.
These may include:
- Passport or identity document
- Proof of residential address
- Information about company shareholders
- Information about company directors
- Description of business activities
- Proposed company name
- Contact information
- Share capital information
- Proof of income or source of funds where required
In some countries, documents may need to be notarized, apostilled, or translated by a sworn translator.
Therefore, people who want to set up a company abroad should always check the current incorporation requirements of the target jurisdiction before preparing their documents.
How Does the Process of Setting Up a Company Abroad Work?
Although company formation procedures vary from country to country, the overall process usually consists of several key stages.
1. Analyze the Business Model
The first step is to determine why the company is being established.
Will it operate in e-commerce? Will it provide software services? Will it offer consulting services? Will it engage in international trade?
The right country can only be selected once the business model has been clearly defined.
2. Choose the Country
Suitable jurisdictions are compared based on the company’s customers, activities, operational model, and budget.
The decision should not be based solely on tax rates.
3. Determine the Company Type
The most appropriate corporate structure is selected from options such as limited liability companies, joint-stock company structures, partnerships, and other available legal entities.
4. Prepare the Required Documents
Identity documents, proof of address, and other documentation required for incorporation are prepared.
5. Register the Company
Once the documents have been approved, the company is officially registered with the relevant authorities in the selected jurisdiction.
6. Establish Tax and Accounting Processes
The process does not end once the company is incorporated.
Annual returns, accounting records, company renewals, and VAT or similar obligations, where applicable, must be monitored and managed.
7. Set Up Banking and Payment Infrastructure
A bank account and appropriate payment solutions are evaluated according to the company’s business model.
When these stages are managed correctly, setting up a company abroad can become a structured international investment process rather than an unnecessarily complicated procedure.
Common Mistakes When Setting Up a Company Abroad
Thinking only about the incorporation stage can lead to serious problems later.
One of the most common mistakes is adopting the approach of simply “finding the country with the lowest tax rate and establishing the company there.”
However, the total cost should also include accounting fees, annual renewals, licensing expenses, registered office costs, banking expenses, auditing requirements, and reporting costs.
Another common mistake is considering bank accounts and payment infrastructure only after the company has already been established.
Before incorporation, it is important to research whether the intended payment methods support the selected jurisdiction and the company’s business sector.
Likewise, completely ignoring potential tax and reporting obligations in Turkey may also create problems.
How Much Does It Cost to Set Up a Company Abroad?
There is no single figure that applies to every situation.
The budget required to set up a company abroad may vary depending on:
- The selected country
- The type of company
- Capital requirements
- Official government fees
- Registered office costs
- Accounting fees
- Annual renewal fees
- Licensing costs, where applicable
- Professional consulting fees
For this reason, you should calculate not only the initial incorporation fee but also the company’s total annual operating cost.
For example, a country that appears inexpensive during the first year of incorporation may become more expensive in the long term due to higher accounting or annual renewal costs.
Who Should Consider Setting Up a Company Abroad?
International company structures may be particularly suitable for individuals and businesses engaged in cross-border activities.
Examples include:
- Software companies
- SaaS startups
- Mobile application developers
- Digital marketing agencies
- Freelancers
- Consulting companies
- E-commerce entrepreneurs
- International trading companies
- Online education platforms
- Design and creative agencies
- Businesses selling products or services to global markets
However, establishing a company solely because “a foreign company is more advantageous” is not the right approach.
The scale of the business and its future objectives should always be evaluated carefully.
Can You Set Up a Foreign Company If You Already Have a Company in Turkey?
Yes. Already owning a company in Turkey generally does not prevent you from establishing another company abroad.
A business may continue operating through its Turkish company while also establishing a new company in another country.
However, if commercial transactions take place between the Turkish company and the foreign company, issues such as transfer pricing, invoicing, service agreements, and related-party transactions may become important.
For this reason, financial relationships between the two companies should be properly documented.
Does It Make Sense to Set Up a Company Abroad?
The answer depends entirely on the structure and needs of the business.
If most of your customers are located abroad, you need access to global payment infrastructure, you are planning to attract international investment, or you intend to operate in foreign markets over the long term, setting up a company abroad may be an option worth considering.
However, establishing a company solely with the expectation of lower costs or lower taxes is generally not a healthy approach.
The right company structure should be created by evaluating the following elements together:
business activity + jurisdiction + taxation + banking + payment systems + accounting + legal structure
Plan Your International Company Structure with Offshore Company Formation
Expanding from Turkey into global markets is now more accessible than ever before. However, setting up a company abroad involves much more than simply completing an online company registration form.
Choosing the right jurisdiction, selecting the appropriate company type, preparing the required documents, completing the incorporation process, and planning post-incorporation obligations should all be handled together.
Offshore Company Formation helps entrepreneurs and businesses that want to establish companies abroad evaluate different jurisdictions and international company structures.
If you are planning to expand into international markets, serve foreign customers, or build a global business structure, professional support can help you identify the company formation model that best suits your needs.
Frequently Asked Questions
Is it possible to set up a company abroad from Turkey?
Yes. Individuals and legal entities living in Turkey may establish a company abroad, become shareholders in existing companies, or open foreign branches, provided that they comply with the legislation of the relevant country.
Do I need to travel to the country to set up a company abroad?
Not always. In some jurisdictions, a large part of the incorporation process can be completed remotely. However, different requirements may apply to bank account opening, identity verification, licensing, or other procedures.
Is setting up a company abroad legal?
Yes. Owning a foreign company is a legitimate commercial activity. However, the company’s activities, income, taxes, and reporting obligations must be managed in accordance with applicable laws and regulations.
Does setting up an offshore company mean being completely exempt from tax?
No. The company’s tax position may depend on the jurisdiction in which it operates, where it is managed, the source of its income, and the tax residency of its owner.
Can I own a foreign company while living in Turkey?
Yes. Living in Turkey does not, by itself, prevent you from owning a company in another country. However, potential tax and reporting obligations arising in Turkey should also be evaluated.
How much does it cost to set up a company abroad?
Costs vary depending on the jurisdiction, company type, government fees, accounting obligations, registered office services, and annual renewal fees. Therefore, the total annual cost should be considered rather than focusing only on the initial incorporation fee.
Which country is the most advantageous for setting up an offshore company?
There is no single “best” or “most advantageous” country for everyone. The most appropriate jurisdiction depends on the company’s business activities, customers, payment requirements, budget, and tax position.
