Investing in Türkiye from India: company, tax and social security
Setting up a company in Türkiye as an Indian investor: apostille and translation, double tax treaty rates, fees for technical services, social security, work permits and bank accounts.
Citizens of India and companies established in India can set up a limited or joint stock company in Türkiye, become a shareholder in an existing company, or open a branch or liaison office. Foreign Direct Investment Law No. 4875 gives foreign investors equal treatment with Turkish investors; no prior approval is needed. This article sums up the points specific to this country, in addition to the general formation steps.
Agreements between the two countries
| Agreement | India |
|---|---|
| Double tax treaty | Signed: 31 January 1995 Official Gazette: 30 December 1996, issue 22863 Withholding rates and conditions |
| Bilateral investment treaty | Not on the Ministry of Trade list |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| Apostille (Hague Convention) | Applies (since 14 July 2005) |
Sources: Ministry of Trade, bilateral agreements · Ministry of Labour and Social Security, social security agreements · Hague Conference, Apostille Convention status table. Last checked: 5 November 2026.
Tax: dividends, interest and royalties
Dividends paid by a Turkish company to its shareholder in India are subject to withholding tax in Türkiye. For the reduced treaty rate to apply, the recipient's residence certificate issued by the tax authority of its own country must be held by the Turkish company before payment.
The Turkish domestic rate on dividends is 15%; the limit in the Türkiye–India treaty is also 15%. For interest, the limit is 10% if the interest is derived by a bank and 15% in other cases. The limit on royalties is 15%, and in this treaty the same limit also applies to fees for technical services paid for managerial, technical or consultancy services.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| India | 15% | 10% – 15% | 15% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: apostille and translation
India and Türkiye are both parties to the Hague Apostille Convention. If an Indian company is to be a shareholder, its formation document (certificate of incorporation), the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in India; no consular legalisation is needed. Documents in English or Hindi are translated into Turkish by a sworn translator in Türkiye and certified by a notary.
For individual shareholders, a notarised Turkish translation of the passport is enough. In the Turkish tax number, trade registry and bank records the name is used exactly as written in Latin letters in the passport; a different transliteration causes mismatches between records. Steps: Company formation for foreigners · Tax number for foreigners
Social security and work permits
There is no social security agreement between Türkiye and India. An Indian citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in India who proves insurance in India is not treated as insured in Türkiye only for work lasting up to three months; for longer work, registration with the Turkish SGK is mandatory.
Being a shareholder does not give the right to work; a shareholder who will work as a manager in the company needs a work permit. Social security of foreign employees · Work permit criteria
Bank account and capital
The company account is opened with a bank in Türkiye. Banks may ask for documents on capital coming from abroad and on the shareholders' identity, and for an explanation of the source of funds. Transferring the capital through a bank creates a record for later profit transfers and foreign capital reporting. Reporting by foreign-owned companies
Sources
- Agreement dates: the Ministry of Trade, Ministry of Labour and Social Security and Hague Conference lists below the table.
- Three-month rule: Ministry of Labour and Social Security, notice on the insurance of foreigners exempt from work permits (22.05.2023)
- General process: Services for foreign investors · All treaty rates