Today, the main challenge for applicants is determining the best path to stay in Turkey legally and with minimal risk. Should we look for an employer and obtain a Turkish Work Permit? Or should we become our own bosses by registering a company in Turkey? This article serves as a roadmap based on the Turkish Ministry of Labor's latest regulations for 2026, changes in insurance and tax rates, and the economic realities of the market. Below, we examine with real numbers which side of the scale weighs heavier.
What is a Turkish Work Permit (Çalışma İzni)? Real Conditions
In Turkey, the Work Permit card (Çalışma İzni) serves as both a work license and a residence permit. This means that with this card, you do not need a separate residence permit card (Kimlik).
The Employer is Everything
Unlike some countries where you can obtain a job seeker visa, in the Turkish system, the "Work Permit" is contingent upon the "Employer." According to International Labor Force Law No. 6735, a legal entity (Company) must apply for the permit on your behalf. Even if you are the owner of the company, your company (as a legal entity) applies for you (as a natural person).
The 5-to-1 Rule
One of the most critical points that unofficial consultants sometimes hide is the requirement to employ Turkish personnel. By law, for every 1 foreign employee, the employer is obligated to hire 5 Turkish citizens. This means if you want to be employed by a company, that company must have vacant quotas for foreign staff. And if you register your own company, you must be prepared to pay the salaries and insurance for 5 Turkish people (except in exceptional cases which we will discuss later).
Company Registration in Turkey; A Path for Entrepreneurs (Not Just for Residency)
Many people assume that by registering a company in Turkey, they will immediately receive a work permit. This is a false and dangerous belief in 2026. Registering a company is only the first step, and without a proper financial strategy, it can turn into a money pit.
Types of Companies in Turkey
For foreign nationals, two types of companies are most applicable:
- Limited Liability Company (LTD): Suitable for small and medium-sized businesses.
- Joint Stock Company (Anonim - A.Ş.): Suitable for large-scale investments.
The Initial Capital Trap in 2026
Under the new regulations of the Turkish Commercial Code, the minimum nominal capital to register a Limited company has increased to 50,000 TL. However, here is the vital point: with 50,000 TL capital, you have merely registered a company, but you cannot obtain a work permit for yourself. The Turkish Ministry of Labor requires a minimum paid-in capital of 500,000 TL to issue work permits to foreign partners.
Many individuals register companies with low capital, and when they apply for a work permit, they face rejection, resulting in wasted funds.
Cost Comparison: Is a Work Permit Cheaper or Company Registration?
In 2026, government fees, insurance, and taxes have seen significant increases. The table below compares the two scenarios:
- Employee Scenario: You agree to cover your own insurance costs.
- Company Owner Scenario: You have your own company and pay its expenses.
Monthly Cost Comparison Table (2026 Estimate)
| Cost Type | Employee Route (Agreed upon) | Company Registration Route (Employer) |
|---|---|---|
| Monthly Insurance | Approx. 12,000 TL (SGK Employee & Employer Share) | Approx. 9,825 TL (Bağ-Kur / Self-employed) |
| Accountant Fee (Mali Müşavir) | 0 (None) | 3,000 to 6,000 TL |
| Office Rent & Withholding Tax (Stopaj) | 0 (None) | Minimum 2,000 TL (Even for virtual offices) |
| Fixed Taxes (Stamp Duty) | 0 (None) | Approx. 500 TL |
| Total Monthly Cost (Estimated) | Approx. 12,000 TL | Approx. 16,325 TL (Minimum) |
| Risk | Dependent on the employer | Full legal and tax liability is yours |
Note: In the company registration method, if you have actual business activity, a 25% corporate tax on profits and other incidental costs will apply. The figures above are the minimums required just to "keep the file alive."
Pros and Cons: Which is Better for You?
To make the right choice, you must define your lifestyle and goals. Let's look at this realistically:
Advantages of Turkish Work Permit (Employee)
- Lower Cost: As seen in the table, the monthly cost is lower.
- Freedom from Bureaucracy: You do not deal with the tax office, chamber of commerce, or notaries.
- Stronger Health Insurance: SGK (Type 4A) insurance usually offers better coverage than self-employed insurance (Bağ-Kur), and retirement conditions are easier.
Advantages of Company Registration (Employer)
- Independence: No one can cancel your residence by firing you.
- Obtaining Bank POS: If you have a real business, having a company is mandatory to receive payments from customers.
- International Trade: You can engage in import and export.
- Residency for Family: By registering a company and obtaining a work permit, you can more easily secure residency for your spouse and children.
The Golden Plan: Obtaining a Work Permit via Company Registration
Is there a way to own a company and avoid the heavy cost of employing 5 Turkish staff? Yes!
The $100,000 Exemption
According to new regulations, if you register a company and your capital share in the company is equivalent to 100,000 USD (or equivalent currency) and you bring this amount into the company's financial cycle, the Ministry of Labor recognizes you as a "Qualified Investor."
The result? You are exempt from the requirement of employing 5 Turkish citizens!
This is the best option for those who have capital. You deposit $100,000 into your own company account, which you can use for trade or purchasing property, and in return, you are exempted from the burden of paying monthly salaries of around 200,000 TL for 5 Turkish employees.
The 6-Month Exemption for Start-ups
If you do not have $100,000 in capital, know that for the first 6 months of the company's establishment, you are exempt from the 5 Turkish employee rule to obtain your own work permit. However, be careful, as this is only for the start. After 6 months, when you apply to renew your card, the Labor Office will check if you have hired 5 Turks. If not, your card will be canceled.
Which is Better for Renewal Laws and Citizenship?
According to citizenship laws, you must have 5 years of continuous residency.
- In the Company Registration method: Control is in your hands. As long as you pay taxes and insurance (Bağ-Kur), your record continues. The risk of insurance interruption is very low because you are the manager.
- In the Employee method: There is a risk of "dismissal." If the employer fires you, the work permit is canceled. If you cannot find a new job immediately, the 5-year chain is broken, and you must start from zero.
Important Note: In both methods, you must not be outside Turkey for more than 365 days (12 months) in total during the 5 years.
Steps to Take in Case of Rejection
In 2026, the most common reasons for rejection include:
- Insufficient Company Capital: As mentioned, capital below 500,000 TL is useless for a work permit.
- Tax Debt: If the company has tax or insurance debts, the system does not allow an application.
- Wrong Job Code: Applications for professions prohibited for foreigners, such as dentistry, law, security, etc., will be rejected.
Solution: If you are rejected, you must fix the deficiencies and reapply, or if you are outside Turkey, apply via the consulate using a Reference Number.
Conclusion: Which One Should We Choose?
The final answer depends on your budget and goals:
- If you have capital over $100,000: Registering a company using the investment exemption is definitely the best and safest way to get a passport.
- If you are a freelancer or specialist (with a limited budget): The Work Permit (employee) path or finding a company that will hire you in exchange for covering insurance costs (without requiring physical presence) is more economical. In 2026, the maintenance costs of a company for a single person are not economically justifiable.
- If you intend to open a cafe, restaurant, or shop: You have no choice but to register a company, and since the nature of your work requires staff, employing 5 Turks is not an obstacle for you, but a necessity of your business.
Warning: Regulations have become extremely strict. Never register a shell company in hopes of bypassing the law, as financial penalties and the risk of deportation are very serious.
Calculating the exact SGK insurance costs or corporate taxes based on your business sector can be complex. If you want to know exactly how much initial capital is required for your desired job or which job code has a higher chance of acceptance, contact us and ask your questions. We strive to answer your inquiries based on the latest 2026 directives.
