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Setting Up in the UK from Turkey
Turkey is the UK's 16th–17th largest trading partner, with total trade between the two countries running at around £28 billion a year and growing — and one of the largest Turkish business communities outside Turkey is based in London. For Turkish founders, the UK is often a natural next step: familiar diaspora networks, established trade routes, and a legal and financial system that international investors trust. The detail that trips people up is the current UK–Turkey Free Trade Agreement itself — it's a goods-focused continuity agreement inherited from the old EU–Turkey customs union, and it doesn't yet cover services trade, which is exactly the gap the two governments are currently negotiating to close through an enhanced FTA.
Why Turkey businesses choose the UK
- Total UK–Turkey trade reached roughly £28.3–28.4 billion in the 12 months to late 2025, up around 4–6% year on year, making Turkey a top-20 UK trading partner
- The UK and Turkey are actively negotiating an enhanced Free Trade Agreement, specifically to extend coverage into services, digital trade, financial and professional services, and investment — areas the current goods-only agreement doesn't reach
- One of the largest Turkish diaspora communities in Europe is established in London, providing an existing commercial and professional network
- A common law system and internationally trusted regulatory environment that appeals to Turkish founders looking to base international or investor-facing operations outside Turkey
Anonim Şirketi / Limited Şirketi vs UK Limited Company
| Turkish Limited Şirketi | UK Limited Company | |
|---|---|---|
| Liability | Limited | Limited |
| Minimum share capital | Set by Turkish Commercial Code, payable in instalments | £1 (no statutory minimum) |
| Filing body | Turkish Trade Registry (via local Chamber of Commerce) | Companies House |
| Ongoing filings | Annual accounts, Trade Registry filings | Annual confirmation statement + accounts to Companies House |
| Officer requirement | One or more managers/directors | At least one director (can be non-UK resident) |
Most Turkish companies expanding into the UK set up a UK subsidiary, since the current goods-only FTA means UK-based services activity — consulting, software, financial services — generally needs a genuine UK-registered presence rather than being provided cross-border under trade agreement terms. Turkey and the UK have a double taxation treaty in place, so profits aren't taxed twice, but because services aren't yet covered by the trade agreement, structuring how revenue is recognised between the Turkish parent and UK subsidiary deserves proper attention. Compare subsidiary vs branch in detail →
The setup process, step by step
- 01Company registration — incorporating your UK entity with Companies House, typically completed within 24–48 hours once documentation is ready Read our Company Registration Checklist guide →
- 02Registered office — every UK company needs a UK registered office address; a virtual office solves this if you don't yet have UK premises
- 03PAYE and HMRC registration — required as soon as you have UK employees, including a Turkish founder drawing a UK salary Read our How to Register as a UK Employer (PAYE) When You Do Not Have a UK Address guide →
- 04UK business bank account — often the slowest step for Turkish-owned entities, since UK banks apply thorough KYC checks to foreign-owned companies, particularly around beneficial ownership documentation Read our Business Bank Account for Non-Residents: What Actually Works guide →
- 05Ongoing compliance — annual accounts, confirmation statements, and corporation tax returns, all on a UK filing calendar independent of Turkish Trade Registry deadlines
Common questions from Turkey founders
Will the enhanced UK–Turkey FTA change how we should structure our UK entity?
Not fundamentally — the enhanced FTA is expected to make cross-border services easier, but a UK-registered subsidiary remains the cleanest structure for UK employees, contracts and banking regardless of trade agreement terms.
Can our Turkish company remain the sole shareholder of the UK entity?
Yes — a UK subsidiary can be wholly owned by your Turkish AŞ or Ltd Şti, with Turkey-resident directors, though many groups appoint a UK-based director or authorised contact to simplify banking.
How does the Turkish diaspora in London affect our UK setup?
Practically, it means an established professional and commercial network — Turkish-speaking accountants, lawyers and bankers — but the UK company itself is registered and regulated in exactly the same way as any other UK Ltd, regardless of ownership.
How does the UK–Turkey double taxation treaty affect profit repatriation?
It prevents the same profit being taxed twice, but the practical mechanics depend on your specific group structure and are worth checking before you set dividend or management charge policies.
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