Generally, foreign financial service providers that wish to enter the Turkish market need to incorporate a subsidiary or branch in Türkiye and apply with the respective regulator to obtain an incorporation permit. An applicant seeking incorporation permits for financial services must satisfy the conditions set out by the regulator supervising the applicant’s planned activity. The conditions can vary depending on the intended regulated activities (e.g., banking, insurance or capital markets brokerage) and, in particular, whether the applicant will be regulated by the BRSA, the CMB, the IRSA or the Central Bank. Generally, the following conditions need to be satisfied:

1. Company type and registered offices – Financial institutions incorporated in Türkiye are generally required to be formed as joint stock companies (anonim şirket). Banks and insurers located abroad can establish branches in Türkiye with the BRSA's and the IRSA’s approval, respectively, without incorporating a Turkish entity. Other non-Turkish financial institutions seeking to operate in Türkiye are required to incorporate a Turkish entity.
2. Constitutional documents – The applicant's articles of association must be in line with the laws and regulations of the activities planned to be conducted and the regulator must approve them.
3. Capital requirements and financial adequacy – The regulator must be satisfied that the applicant has adequate financial resources to carry out the activities. The minimum capital requirement varies depending on the extent of the services a financial institution provides (e.g., higher for banks compared to capital markets brokerage firms), which can be increased upon the regulator’s request after assessing the application.
4. Founders’ and directors’ suitability – The applicant's founders and directors must be financially sound, reputable and proper (i.e., financial and criminal records must evidence their adequacy to be shareholders/directors of the financial service provider).
5. Viable business model – The regulator will examine the applicant’s business model, the business's economic aspects and the applicant’s projections.
6. Transparent shareholding structure – The regulator will examine the applicant’s shareholding structure, its shareholders’ financial adequacy, and documentation on the financial institution’s direct and indirect shareholding.