The vision discussed for some time under the “Digital Company” heading of Türkiye’s National Technology Entrepreneurship Strategy is now official: foreign investors will be able to set up companies in Türkiye entirely remotely. Minister of Industry and Technology Mehmet Fatih Kacır announced that, under the “Tech Visa” programme, digital company-formation procedures have been streamlined and bureaucratic barriers removed. (Ministry announcement: Foreign investors will be able to set up companies fully remotely.)
The announcement was made within the “Türkiye Century: A Strong Centre for Investment” vision unveiled by President Recep Tayyip Erdoğan, at an international press briefing chaired by Vice President Cevdet Yılmaz, with Treasury and Finance Minister Mehmet Şimşek and Trade Minister Ömer Bolat also in attendance.
This development carries special meaning for us. As part of the Digital Company Committee convened by the Ministry, we shared views and proposals on the scope and approach that would deliver the greatest benefit to the ecosystem. Seeing the work evolve to this point is a source of sincere satisfaction.
What the Announced Model Brings
According to Minister Kacır, the core elements of the “Digital Company” application are:
- Fully remote formation: Foreign investors will be able to incorporate without any obligation to be physically present in Türkiye, through a passport-based identity-verification (KYC) process; formation steps have been simplified so they can be completed very quickly.
- Low operating cost: From day one, founders will have access to virtual office services and an automated accounting infrastructure.
- Terminal İstanbul privileges: Members of digital companies will benefit from special privileges granting access to a world-class entrepreneurship hub under the “Terminal İstanbul Project.”
- Tax exemptions and incentives: Eligible companies will be able to benefit from tax exemptions and cost incentives until they reach a certain scale threshold.
In Minister Kacır’s words: “Foreign investors will be able to set up companies fully remotely, without any obligation to be physically present in Türkiye, through a passport-based identity-verification (KYC) process.”
Part of a Wider Talent Push
The Digital Company is one link in Türkiye’s talent-attraction strategy. Through the Türkiye TechVisa programme, run with the Ministry of Labour and Social Security, digital talents can obtain their work permits in just two weeks; in the programme’s first year, more than 5,000 digital talents were drawn to Türkiye. The Ministry also pointed to the ecosystem’s R&D base: 114 technoparks, 13,000 innovating companies, more than 1,700 R&D and design centres, and an R&D workforce that has grown from roughly 29,000 to 310,000 over the past two decades.
A Lawyer’s View: Points to Watch
The headline is strong; the application’s real value will become clear in the detail of the secondary legislation. The items we will be watching closely on behalf of founders and investors:
- Legal framework and entity type: Whether digital formation will run through the existing joint-stock/limited company types or a new status; and the digital equivalents of the articles of association, signature and registration.
- Passport-based KYC and beneficial ownership: The legal basis for remote identification, beneficial-owner declarations, and how bank-account opening will be solved.
- The “scale threshold” for tax exemption: The criteria and threshold at which the exemption begins and ends, and a design that prevents abuse.
- Virtual office and registered address: The status of the virtual office for service of process, tax residence and the registry address.
- Interaction with TechVisa: How the remotely formed company will connect to the founder’s residence/work permit and Terminal İstanbul privileges.
For a comparison with the current (classic) formation process: A Foreign Founder’s Guide to Incorporating in Türkiye.
Conclusion
Is the digital company coming to Türkiye? The answer is now clearly “yes.” As a law firm, we believe this transformation — given a clear legal framework, a predictable tax regime and genuine inter-agency coordination — can deliver a lasting advantage to the Turkish startup ecosystem. As a team that contributed to the committee process, we will follow the rollout and the secondary legislation closely, and continue to explain to founders and investors what this new opportunity means in practice.
