Holding shares in a Turkish company does not by itself give the right to work in it. The shareholder-manager of a limited liability company, the shareholder board member of a joint stock company and the managing active partner of a partnership limited by shares must all obtain a work permit. The capital and employment conditions the Ministry applies do not apply, however, where the foreign shareholder’s capital holding is USD 100,000 or more.
Which Foreign Shareholders Must Obtain a Work Permit?
The distinction lies in the management capacity, not in the shareholding. Article 10, paragraph 5 of the International Labour Law No. 6735 brings three positions in companies formed under the Turkish Commercial Code within the permit requirement:
- The shareholder-manager of a limited liability company
- The shareholder board member of a joint stock company
- The managing active partner of a partnership limited by shares
Article 13, paragraph 7 of the same law gives the mirror image: a board member of a joint stock company who does not reside in Turkey, and a shareholder of any other company who holds no management capacity, are assessed within the scope of the work permit exemption.
No work permit is required for a foreign shareholder who only contributes capital and is not appointed as a manager or board member. The obligation arises when the foreign national is made a member of the body authorised to represent the company. Who receives management authority at incorporation is therefore a decision that directly determines the permit process.
The 2026 Assessment Criteria
The Ministry publishes the Work Permit Assessment Criteria under Article 7, paragraph 6 of Law No. 6735; applications that do not meet them are refused under Article 9, paragraph 1, sub-paragraph (e). Section C of the Criteria is devoted to foreign shareholders and sets two conditions for workplaces on the balance sheet basis.
| Condition | Content | Basis |
|---|---|---|
| Financial capacity | Provided the workplace’s paid-in capital is at least TRY 500,000, the foreign national’s capital must be at least TRY 500,000 and the shareholding at least 20% | C/1.1 (a) |
| Employment | At least five Turkish citizens employed at the workplace. The first permit is issued with an annotation; the five-employee test applies monthly from the beginning of the seventh month of the first permit period | C/1.1 (b) |
| Salary | A salary declaration of no less than the multiple of the gross minimum wage set for the position, applicable at the date of application | A/3.1 |
The three elements of financial capacity are interdependent: even where the company’s paid-in capital exceeds TRY 500,000, the condition is not met if the foreign national’s own holding falls below TRY 500,000 or below 20% of the total capital.
The minimum capital required by the Turkish Commercial Code is TRY 50,000 for a limited liability company and TRY 250,000 for a joint stock company. The TRY 500,000 required by the work permit criterion is higher than both. A company incorporated at the statutory minimum will be registered at the trade registry without difficulty, but the foreign shareholder’s work permit application will be refused on financial capacity. Capital should be set at incorporation according to the permit criterion.
What the USD 100,000 Exception Removes — and What It Does Not
Provision 1.2 of Section C is explicit: in assessing a work permit application made for a foreign shareholder whose capital holding is USD 100,000 or more, the criteria set out in sub-paragraphs (a) and (b) of the first paragraph do not apply.
Not required — sub-paragraphs (a) and (b)
- Workplace paid-in capital
- TRY 500,000 Not required
- Foreign national’s capital holding
- TRY 500,000 Not required
- Shareholding ratio
- 20% Not required
- Turkish citizens employed
- 5 Not required
- Annotated first permit and month-7 rule
- Do not apply
Still required
- Salary criterion
- Applies Multiple of the minimum wage by position
- International labour policy
- Applies
- Professional qualifications
- Applies
- Professions reserved to Turkish citizens
- Applies
- Public order assessment
- Applies
At current exchange rates USD 100,000 corresponds to an amount well above TRY 500,000. The exception is therefore not a concession that lowers the capital threshold; on the contrary, it requires a higher investment in lira terms.
Its genuine advantage is that the 20% minimum shareholding and the five Turkish citizens conditions disappear entirely. That is what allows a foreign manager of a newly formed company with no staff yet to obtain a permit from day one.
Exchange rate and documentation
The text of the Criteria does not regulate which exchange rate on which date applies to the USD 100,000 figure. In practice the lira capital holding shown in the trade registry gazette is taken and converted. Because of exchange rate movement there is a refusal risk for structures sitting on the threshold; the capital holding should be set comfortably above it and the bank receipts evidencing payment of the capital should be kept in the file.
Under Article 7, paragraph 4 of Law No. 6735, a work permit application is assessed in accordance with international labour policy. Even where the criteria are met, an application may be refused on the grounds listed in Article 9 of the same law: public order, professional qualifications, reciprocity or labour market considerations. Having invested under the Foreign Direct Investment Law does not oblige the authorities to grant permits to foreign personnel, shareholders included.
The Salary Criterion in 2026
The salary may not be less than the multiple of the gross minimum wage set for the position, applicable at the date of application.
| Position | Multiple | Minimum gross salary, 2026 |
|---|---|---|
| Senior manager, pilot | 5x | TRY 165,150 |
| Engineer, architect | 4x | TRY 132,120 |
| Other managers | 3x | TRY 99,090 |
| Work requiring expertise or craft skills | 2x | TRY 66,060 |
| Domestic services and other occupations | 1x | TRY 33,030 |
A shareholder-manager or shareholder board member is as a rule treated as a senior manager and assessed at five times the minimum wage. This is not only an application condition but a commitment that determines the annual labour cost: the declared salary must actually be applied through payroll, and past payroll records are examined on an extension application.
How the General Criteria Affect a Shareholder
Section A of the Criteria establishes the general framework applying to all workplaces. For a foreign shareholder, Section C is the special provision; but Section A applies directly to the company’s foreign employees other than the shareholder.
At workplaces on the balance sheet basis, at least five Turkish citizens must be employed for each foreign national for whom a permit is sought. At workplaces with net sales of TRY 50,000,000 or more in the last year, this criterion does not apply for up to five foreign nationals.
For workplaces established in the current year, paid-in capital of at least TRY 500,000 is required. For workplaces already operating, meeting one of three measures is sufficient: TRY 500,000 paid-in capital, TRY 8,000,000 net sales, or USD 150,000 of exports.
What Changed in the Criteria in 2026
The Criteria were widened twice during the year. The provisions below took effect recently and have not yet worked through into many application files.
| Change | Content | In force |
|---|---|---|
| Foreign nationals with a history in Turkey | For foreign nationals who, as at the application date, have stayed lawfully in Turkey for at least one year within the last three under a work permit, a residence permit or international protection, the employment and financial capacity criteria do not apply to domestic applications. Limited to three foreign nationals, and their number may not exceed the number of Turkish citizens at the same workplace | 03.08.2026 |
| The eight-year rule | Foreign nationals who have spent at least eight years in Turkey under a work permit or a short-term, family, student, long-term, humanitarian or trafficking-victim residence permit were added to the list exempt from the employment, financial capacity and salary criteria | 03.08.2026 |
| Manufacturing sector | The number of Turkish citizens employed across Turkey is taken as the basis; where additional foreign nationals are needed, one foreign national per five Turkish citizens is assessed as exempt from the employment criterion on a branch basis. Valid until 31.12.2027 | 03.08.2026 |
| Poultry farming and recycling | The same five-to-one mechanism was extended to these two activity lines; at workplaces with fewer than five employees, the employment and financial capacity criteria do not apply for up to two foreign nationals, provided their number does not exceed the number of Turkish citizens | 03.08.2026 |
| Tourism and livestock | For non-specialist roles at accommodation businesses, an exemption of one foreign national per five Turkish citizens on a branch basis; for livestock businesses meeting the animal stock thresholds, the financial capacity criterion does not apply | 11.03.2026 |
Routes Other Than the USD 100,000 Threshold
The capital threshold is not the only route. Depending on the investor’s own circumstances, a more suitable channel may be available.
The employment, financial capacity and salary criteria do not apply to those whose mother, father or child is a Turkish citizen, holders of a long-term residence permit, those living in marital union with a Turkish citizen for at least three years, foreign nationals of Turkish descent and citizens of the Turkish Republic of Northern Cyprus. The position must be evidenced by documents obtained from public institutions.
The employment and financial capacity criteria do not apply to foreign nationals working in roles requiring expertise in the information technology sector, at companies holding an R&D or design centre certificate, or in technology development zones. Applications relating to R&D and technology development zones require a favourable opinion from the Ministry of Industry and Technology.
For qualified investments committing a high contribution to the national economy or a high level of employment, the general assessment criteria may be applied partially or not at all, subject to approval by the Directorate General. This route is discretionary rather than threshold-based and requires the file to be properly reasoned.
The Turquoise Card is granted to foreign nationals making a significant contribution to the national economy through export, employment or investment capacity, with the first three years serving as a transition period. Holders of a long-term residence permit or at least eight years of lawful work permits may apply for an indefinite work permit. Neither creates an absolute right.
How to Apply and How Long It Takes
- Determining the application channelWhere the foreign national is lawfully present in Turkey, the application is made domestically and directly to the Ministry. Otherwise it is made to the Turkish embassy or consulate general in the country of which the foreign national is a citizen or in which they are lawfully present.
- Preparation on the company sideThe company must be registered in the electronic application system, with an electronic signature and a registered electronic mail address in place. The foreign national’s passport must remain valid for at least sixty days beyond the permit period requested.
- Assembling the fileThe current trade registry gazette showing the capital and shareholding structure, the resolution appointing the manager or board member, the balance sheet and income statement for the last year, a passport copy and, where required, a translated diploma are uploaded to the system.
- AssessmentApplications made in due form are concluded within thirty days, provided the information and documents are complete. Where documents are missing the assessment is postponed; the postponement may not exceed thirty days other than in cases of force majeure, and applications not completed by the end of that period are refused.
- Payment of the fee and valuable paper chargeFor a foreign national whose request is approved, the fee and the valuable paper charge are paid separately. The application is refused if payment is not made within thirty days of notification.
- Visa and entryA foreign national granted a permit on an application made from abroad must enter Turkey within six months of the date the permit takes effect, failing which it is cancelled. The work permit takes the place of a residence permit.
Durations and fees
| Item | Content | 2026 |
|---|---|---|
| First permit period | Not exceeding the term of the employment or service contract, for a specified job at a specified workplace | Up to 1 year |
| First extension | With the same employer | Up to 2 years |
| Subsequent extensions | With the same employer; working for a different employer counts as a first application | Up to 3 years |
| Extension application window | From sixty days before expiry, and in any event before the permit expires | 60 days |
| Assessment period | Where the information and documents are complete | 30 days |
| Payment period | Fee and valuable paper charge, from notification | 30 days |
Obligations After the Permit Is Granted
- Social security registration completed within the statutory period
- The declared salary actually applied through payroll
- For annotated permits, the employment condition met monthly from month seven
- Notification of changes to address, trade name and shareholding structure
- Extension applied for before the permit expires
- Notification where the employment contract ends
- A new application where the foreign national works for a different employer
- Passport validity extending beyond the permit period
Tax and Social Security Points to Watch
A shareholder-manager who obtains a work permit becomes an employee of the company on its payroll. Income tax withholding, stamp duty and social security premiums are calculated on the declared gross salary. For a senior manager the burden calculated on five times the minimum wage is on its own a decisive item in the company’s annual cost.
The second point is that the salary must actually be paid. Where the declared amount is shown on payroll but not paid, past payroll records and bank records are examined on the extension application. In addition, where the foreign national is treated as resident in Turkey, full liability on worldwide income may arise; and for nationals of countries with a bilateral social security agreement, which country’s coverage continues has to be assessed separately.
Common Mistakes
- Incorporating at the statutory minimum capital and applying afterwards. The trade registry will register TRY 50,000; the work permit criterion requires TRY 500,000.
- Treating USD 100,000 as the cheaper route. At current rates it is well above TRY 500,000; its advantage is not the amount but the removal of the shareholding ratio and employment conditions.
- Setting the capital right at the threshold. Exchange rate movement can cause a refusal; the holding should be set comfortably above it.
- Declaring a salary only for the application. The declared amount must actually be applied through payroll, and past records are examined on extension.
- Forgetting the month-seven rule on an annotated permit. The five-employee condition applies monthly from the beginning of the seventh month.
- Applying for a shareholder who holds no management capacity. No permit is required; an unnecessary application costs time and fees.
- Applying for an extension after expiry. The application must be made from sixty days before expiry and in any event before the permit expires.
- Treating the criteria as a guarantee. International labour policy and the general refusal grounds apply in every case.
Frequently Asked Questions
Does every foreign shareholder in a Turkish company need a work permit?
Which conditions does the USD 100,000 exception remove?
Does the exception also remove the salary criterion?
What salary must be declared for a foreign shareholder in 2026?
How long does a work permit application take in Turkey?
What happens if the company was incorporated at the minimum capital?
Is the permit guaranteed if the criteria are met?
How long is a work permit valid and how is it extended?
As the Ozbek CPA team, we handle work permit processes for companies with foreign shareholders — setting the capital and shareholding structure at incorporation against the permit criteria, comparing the USD 100,000 threshold with the other exemption routes, preparing the application file, reflecting the salary criterion in payroll and in the labour cost, and tracking extension and notification obligations. Contact us.
