Where is the company managed?
Both legal head office and business center matter under Turkey's corporate tax system. Even if a company is incorporated abroad, making key commercial decisions, approving contracts and managing banking from Turkey may raise a business-center question.
A mailbox, local service provider and bank account at a foreign address do not by themselves establish economic substance. Directors, employees, offices, customer relationships and decision records should match the actual business.
Make activities in Turkey visible
If a founder sells, develops the product or concludes contracts from Turkey, assess whether the foreign company has a permanent establishment or permanent representative there. The double taxation treaty may be decisive in this analysis.
Service and licence fees between the foreign company and a Turkish individual or company should be at arm's length, with the scope and benefit documented. Paying personal expenses with the foreign company's card can also create separate tax and shareholder-account issues.
Bringing profits back to Turkey
A founder may receive employment income, issue service invoices or collect distributed dividends. Each route has different income classification, withholding, social security and foreign tax credit consequences.
The 2026 rules include benefits for certain foreign participation income subject to ownership and transfer-to-Turkey conditions. However, country, ownership percentage, holding period, tax burden and every other requirement must be reviewed case by case. Assess a foreign company through total tax and compliance costs before focusing on its formation fee.