Sole Proprietorship Formation (2026 Updated Guide)

Starting a sole proprietorship is the fastest, most affordable, and most practical way to begin your entrepreneurial journey. Designed for individuals who want to operate legally, issue invoices, and build a trustworthy business identity, this business structure is an ideal solution for solo entrepreneurs and freelancers.

Why Choose a Sole Proprietorship?

Compared to limited liability companies and corporations, a sole proprietorship offers significantly lower setup and accounting costs. Whether you run a local business or develop B2B SaaS products for the global market, this business structure provides exceptional flexibility. As your business grows, you can convert your sole proprietorship into a limited company or corporation whenever you choose.

How Does the Sole Proprietorship Registration Process Work in 2026?

As of 2026, digital transformation has made the registration process faster than ever. Long waits at tax offices are now a thing of the past. Most procedures can be initiated online through the Interactive Tax Office (IVD). Using our modern digital CPA infrastructure, we manage the process through the following steps:

• Digital Application: We complete your business registration electronically using your e-Government account, eliminating the need for costly notary approvals.
• Digital Tax Inspection: Instead of traditional on-site inspections, address verification is now completed much faster through digital inspection systems. We coordinate the process and confirm your official business commencement date as quickly as possible.
• E-Invoicing Integration: In accordance with the 2026 e-Invoice regulations and thresholds, we integrate your business directly into the appropriate e-Archive or e-Invoice system, allowing you to eliminate paper invoices and shipping costs.

Documents Required to Register a Sole Proprietorship

The required documents are simple. You can send them to us via WhatsApp or email.

• Your e-Government (e-Devlet) login credentials for application approval.
• A copy of the lease agreement or title deed for your business address. Virtual office and home office agreements are also accepted.
• A copy of your national ID or passport.

What Are the Monthly and Annual Costs of a Sole Proprietorship?

After your company is established, there are several ongoing legal and financial obligations. While you focus on growing your business, we take care of these responsibilities on your behalf.

• Stamp Taxes: Fixed stamp taxes applicable to VAT, withholding tax, and provisional tax declarations submitted periodically.
• Social Security Premium (Bağ-Kur / 4B): If you are not employed under the Turkish Social Security system (4A/SSK), you are generally required to pay monthly self-employment social security contributions. Young Entrepreneur incentives may cover these contributions during the first year and provide income tax exemptions for eligible applicants.
• Accounting Service Fee: A standard monthly accounting fee covering bookkeeping, tax filings, e-ledger services, and ongoing financial consultancy.