Fintech Company Registration in Turkey: A Complete Guide for Foreign Investors

Introduction

Turkey’s fintech sector is on a fast track to growth. The country’s strategic location, digital transformation agenda, and increasing mobile banking penetration have made it a hotspot for fintech startups and global players alike. Whether you’re launching a digital payment platform, a crypto exchange, or a peer-to-peer lending solution, registering a fintech company in Turkey comes with great potential — but also requires navigating a complex legal and regulatory framework.

In this blog post, we’ll walk you through everything you need to know about setting up a fintech business in Turkey, from choosing a legal structure to obtaining the right licenses and ensuring long-term compliance.

Why Turkey is an Emerging Fintech Hub

Turkey is uniquely positioned at the crossroads of Europe, Asia, and the Middle East. With a population of over 85 million, high smartphone penetration, and a young, tech-savvy workforce, the country offers fertile ground for fintech innovation.

Key reasons to invest in Turkish fintech:

• Rapid digitization in banking and finance
• Government support for tech and entrepreneurship
• Availability of tax incentives and investment zones
• Growing consumer demand for cashless and digital solutions
• Connectivity to EU and Middle Eastern markets

Step-by-Step Process to Register a Fintech Company in Turkey

1. Determine the Business Model and Legal Structure

Before anything else, define your fintech model clearly. Are you offering:

• Digital wallets or payment gateways?
• Cryptocurrency exchange services?
• Peer-to-peer lending?
• Robo-advisory platforms?
• Crowdfunding or investment platforms?

Your model will influence the required licenses and compliance obligations.

Most common legal structures:

Limited Liability Company (Ltd. Şti.) – Easy setup, suitable for startups

Joint Stock Company (A.Ş.) – Required for some regulated financial services and foreign partnerships

the above two are most common alternative company types in Turkey.

2. Company Incorporation in Turkey

To incorporate your business in Turkey, you must:

• Reserve your company name via the Central Trade Registry System (MERSIS)
• Draft and notarize the Articles of Association
• Appoint directors and shareholders (foreign nationals can fully own the company)
• Deposit the minimum share capital (e.g., TRY 50,000 for Ltd., TRY 250,000 for A.Ş.)
• Obtain a tax identification number and register with the Chamber of Commerce
• Register with the Social Security Institution (if employing staff)
• Open a corporate bank account in Turkey

Timeframe: Approximately 3–5 business days.

3. Apply for Fintech-Specific Licenses and Approvals

Depending on your service category, you may need to apply for one or more licenses from the Banking Regulation and Supervision Agency (BRSA / BDDK) or the Central Bank of Turkey (CBRT).

Common License Types:

Payment Institution License (PI License): For services like money transfers, card issuing, payment gateway

Electronic Money Institution (EMI License): For issuing stored-value e-money accounts (e.g., e-wallets)

Crowdfunding License: For equity- or debt-based crowdfunding platforms

Investment Advisory License: For robo-advisory, AI-based financial advice

Crypto Exchange Registration (pending full regulation): As of now, crypto platforms operate in a legal grey area but future licensing is anticipated. For more information about  Cryptocurrency Licensing in Turkey please read.

License Requirements Include:

• Detailed business plan and financial projections
• Proof of paid-in capital (e.g., TRY 2 million for payment institutions)
• Internal controls, IT security documentation, AML/KYC procedures
• Appointing qualified compliance and audit personnel
• Secure data processing and reporting infrastructure

4. Fintech Compliance and Regulatory Obligations

Operating a fintech company in Turkey means adhering to robust compliance requirements:

AML and KYC: Obligatory for all financial and crypto-related institutions. Detailed customer identification and transaction monitoring are required.

GDPR & KVKK (Turkish Data Protection Law): Must ensure secure storage and processing of user data.

Cybersecurity: Your IT systems must meet security standards mandated by Turkish authorities.

Regular reporting: Monthly, quarterly, and annual compliance filings are required depending on your license type.

Non-compliance can lead to fines, license suspension, or criminal liability.

Taxation of Fintech Companies in Turkey

Corporate Income Tax: 25% (may change based on yearly budget law)

VAT (KDV): 18% on most services, with some fintech services subject to exemptions

Withholding Tax: Applied to dividends, royalties, or services paid to non-residents

R&D Tax Incentives: Available for tech-based innovation, software development, and fintech startups operating in Technoparks

Hiring and Talent Considerations

• Foreigners can be directors, shareholders, and employees of Turkish companies.
• Work permits may be needed for foreign staff.
• Turkey has a strong pool of engineers, developers, and finance professionals.
• Many fintechs also outsource development to local software firms due to lower costs and high quality.

Why You Need Professional Legal and Investment Consultancy

Entering the Turkish fintech space without local guidance can lead to delays, regulatory hurdles, or rejection of license applications. A reliable local consultancy firm can help you:

• Design the optimal legal structure
• Ensure documentation is complete and compliant
• Liaise with regulatory authorities like BRSA or CBRT
• Accelerate the licensing and incorporation timeline
• Avoid common pitfalls and ensure data security and financial integrity

Conclusion

Setting up a fintech company in Turkey offers major growth potential, but it requires careful planning, regulatory awareness, and compliance. With the right legal, financial, and technical support, your fintech venture can not only succeed but scale efficiently in a dynamic and rapidly digitalizing economy.

 

Whether you are launching a payment platform, a digital bank, or a blockchain startup — Turkey is ready. Are you?