Foreign companies may open a branch or liaison office in Türkiye.
Branch vs Liaison Office
- Branch: Performs commercial activities, generates income in Türkiye, subject to tax
- Liaison office: Only market research, promotion, activities on behalf of the parent company, cannot trade, cannot tax exemption
Branch Opening Process
- Parent company decision (authorized body)
- Documents for registration in Türkiye (main company agreement, etc. apostilled)
- Provincial trade registry office
- Tax office registration
- SGK
- Chamber of commerce registration
Contact Office
- Permission from the Ministry of Treasury and Finance of the Republic of Turkey
- 3-year permit (renewal possible)
- Commercial activity prohibited
- Annual activity report
- Obligation to employ Turkish personnel
Tax Obligation
- Branch: Corporate tax on income in Türkiye
- Liaison office: tax exemption (where activity is limited
- Double taxation agreements apply may be
- More flexible structure
- No permit required
Supreme Court 11. HD
11. HD accepts that the liaison office's permission may be revoked if it violates the "commercial activity limitation".
Company and foreigners law lawyer is recommended.