- Is setting up a company a residence permit?
- Permission to establish a commercial connection and business
- The reality of the company’s activity
- Required documents
- Residence and work permit difference
- Legal risks and recommendations
One of the most frequently asked questions by foreigners who establish a company in Turkey is whether this process provides a residence permit. In some cases, there may be a relationship between establishing a company and a residence permit; however, this relationship is not automatic. In other words, simply owning a company does not directly grant a residence permit.
Foreigners who establish a company may apply for a residence permit for the purpose of establishing a commercial connection or business. However, what is decisive here is that the company is real and active. Companies that are established on paper and do not actually operate may not be deemed sufficient for a residence permit.
The administration assesses whether the foreigner has actually established a business in Turkey, whether he/she has economic ties and whether his/her commercial activity is sustainable. Therefore, the company contract, tax registration, activity documents and commercial planning are important.
Establishing a company may also provide an economic advantage. It can show the foreigner’s business relationship with Turkey, investment plan and settlement intention. However, this situation does not have the same result in every application.
Work permit and residence permit should not be confused with each other. Residence permit gives the right to stay in Turkey; work permit gives the right to work. Being a company partner does not always mean a work permit.
For this reason, foreigners who plan to obtain a residence permit by establishing a company should support their applications with commercial activity. Otherwise, the company is only considered as a formality.
As a result, establishing a company alone does not provide a residence permit; however, real and active commercial activity may create an advantage in terms of residence permit with the appropriate application.