Table of Contents
- Introduction
- Why Are Chinese Investors Interested in Opening Branches in Turkey?
- What Are the Requirements for Establishing a Foreign Company in Turkey?
- Can Chinese Companies Open a Branch in Turkey?
- What Is the Step-by-Step Process for Branch Registration?
- What Documents Are Required?
- Incentives for Chinese Investors in 2025
- Tax Benefits and Government Support
- Frequently Asked Questions
- Conclusion and Legal Recommendations
1. Introduction
In recent years, economic relations between China and Turkey have strengthened significantly. As a result, many Chinese investors are now exploring the possibility of opening a branch in Turkey. Establishing a foreign-owned company or registering a branch of an existing Chinese firm is legally allowed in Turkey. However, the process involves certain legal and administrative requirements that must be carefully followed.
2. Why Are Chinese Investors Interested in Opening Branches in Turkey?
Turkey offers strategic access to both European and Asian markets, along with a young and dynamic population. These advantages, combined with Turkey’s favorable tax system, free trade agreements, and investment incentives, make it an attractive destination for Chinese businesses.
3. What Are the Requirements for Establishing a Foreign Company in Turkey?
Foreign investors have the same rights as Turkish citizens when it comes to establishing a business in Turkey. However, there are important legal differences between opening a branch and incorporating a new company:
- A branch is not a separate legal entity; it operates under the parent company.
- The branch manager can be a Turkish citizen or a foreign national.
- The scope of representation must be clearly defined in official documentation.
4. Can Chinese Companies Open a Branch in Turkey?
Yes. Chinese companies can legally open a branch in Turkey. To do so, they must apply through the Ministry of Trade and the Trade Registry Office. Key documents such as the notarized and translated articles of association of the parent company must be submitted during this process.
5. What Is the Step-by-Step Process for Branch Registration?
The branch registration process typically involves the following steps:
- The parent company issues a board resolution approving the branch opening.
- This decision is translated into Turkish and notarized.
- An application is submitted to the local Trade Registry Office.
- Tax office and Social Security Institution (SGK) registrations are completed.
- The branch begins its operations.
6. What Documents Are Required?
The following documents are needed to register a Chinese company branch in Turkey:
- Certificate of activity from the parent company
- Board resolution for branch opening (with sworn Turkish translation)
- Branch address details in Turkey
- Appointment letter and ID details of the branch manager
- Articles of association and incorporation statement
- Tax office application forms
7. Incentives for Chinese Investors in 2025
In 2025, Turkey continues to offer several incentives for Chinese investors, especially in priority sectors. These include:
- Corporate tax reductions
- VAT exemptions
- Social security premium support
- Interest subsidies
- Allocation of investment land
These incentives are particularly strong in technology, renewable energy, logistics, and e-commerce sectors.
8. Tax Benefits and Government Support
Branches of Chinese companies operating in Turkey are subject to corporate income tax on profits earned in Turkey. However, companies operating in designated free zones may benefit from tax exemptions. In certain regions, foreign companies can also receive customs and VAT exemptions.
9. Frequently Asked Questions
Should a Chinese company open a branch or establish a limited liability company in Turkey?
This depends on the scale of the investment and the market strategy. Branches are more cost-effective and directly linked to the parent company, while forming a local company offers more operational flexibility.
How long does it take for a Chinese company to open a branch in Turkey?
If all required documents are prepared, the process typically takes between 1 to 3 weeks.
Can a branch benefit from investment incentives in Turkey?
Yes, some incentives are available to branches. However, to access larger incentive packages, establishing a new local company may be more beneficial.
10. Conclusion and Legal Recommendations
Opening a branch in Turkey can be a highly strategic move for Chinese companies, provided the process is managed with proper legal and administrative support. With attractive tax advantages and sector-specific incentives, Turkey offers substantial opportunities for Chinese investors in the right industries.
That said, successfully navigating local regulations, tax obligations, and representation procedures requires a solid legal foundation. If your Chinese company is planning to open a branch in Turkey, consulting a specialized legal advisor will ensure a smooth and secure establishment process.
