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Establishing a Foreign Company Branch in Turkey

Contents

  1. Introduction
  2. Advantages of Establishing a Foreign Company Branch in Turkey
  3. Initial Stages of the Establishment Process: Preparation and Documentation
  4. Required Documents for Branch Establishment
  5. Trade Registry and Official Procedures
  6. Current Regulations and Legal Requirements to Follow
  7. Tax and Accounting Processes
  8. Conclusion: Safe Entry into the Turkish Market with Expert Support

Introduction Turkey continues to be an attractive country for foreign investors due to its strategic location and vast market. Opening a branch in Turkey allows foreign companies to quickly and affordably enter the market, offering operational advantages. This guide covers the processes and legal regulations foreign companies need to consider when opening a branch in Turkey.

Advantages of Establishing a Foreign Company Branch in Turkey Establishing a branch provides investors the opportunity to conduct business in the local market under the parent company’s control. Since branches are not independent legal entities, they are more practical in terms of cost and management. The Turkish government supports foreign investment with incentives and tax benefits, which can also be leveraged by branches.

Initial Stages of the Establishment Process: Preparation and Documentation The preparation process before establishing a branch must be completed in compliance with legal requirements. Documents such as the foreign company’s main company certificate, activity certificate, and the appointment certificate for the company’s representative in Turkey must be translated and notarized. Additionally, determining the NACE code appropriate to the sector of commercial activities in Turkey is important.

Required Documents for Branch Establishment The basic documents required for opening a branch are:

  • Articles of Association and Activity Certificate: The original and a notarized translation must indicate under which country’s laws the parent company was established.
  • Power of Attorney: The Turkish representative must be authorized to handle all transactions on behalf of the parent company. This power of attorney must be notarized by authorized institutions in Turkey.
  • Trade Registry Declaration and Chamber Registration Form: It should include details such as the branch’s name, address, and business activities. Once these documents are completed, an application is made to the trade registry, and the required fees are paid. At the end of this process, the branch is officially opened with registration at the tax office in Turkey.

Trade Registry and Official Procedures The branch is officially operational once registered at the Trade Registry Office. During the application, an establishment declaration detailing the branch’s management and control mechanisms is also required. It is essential that the documents are complete and submitted in the correct format.

Current Regulations and Legal Requirements to Follow As of 2024, the Turkish Commercial Code and other legislation promoting international investments provide certain flexibilities to facilitate the establishment of foreign company branches in Turkey. However, procedures such as notarizing all documents and obtaining approval from the Turkish Consulate in the parent company’s country must be followed. Additional regulations and requirements may apply to companies outside the European Union.

Tax and Accounting Processes Since branches operate under the financial oversight of the parent company, they gain tax liability in Turkey. It is important for branches to file their annual tax returns completely and keep accurate records. Additionally, it should be noted that branch activities must comply with Turkish tax laws and undergo legal audits.

Conclusion: Safe Entry into the Turkish Market with Expert Support Opening a branch in Turkey offers foreign companies significant business opportunities and access to a large market. However, due to the complex and multi-step procedures involved, working with expert legal consultants ensures a complete and error-free establishment process. For the most effective and secure entry into the Turkish market, you can contact us for professional support.

CR Partners

CR Partners Law Firm has become one of the well-known law firms in Turkey with its steady development since the day it was founded. Today, it is organized into specialized departments according to their fields of work in order to provide legal services in a wide range and to reach solutions in the most efficient way.

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