Establishing a Liaison Office in Turkey: Step-by-Step Guide

Establishing a liaison office in Turkey can be a strategic move for businesses seeking to expand their presence and engage in business activities within the country. Turkey, located at the crossroads of Europe and Asia, offers a favorable business environment and serves as a bridge between various markets.

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In this article, we will provide a step-by-step guide on how to form a liaison office in Turkey, highlighting the key requirements and considerations.

Understanding the Liaison Office in Turkey:

A liaison office, also known as a representative office, is a temporary establishment that serves as a communication channel between a foreign company and its Turkish counterparts. It does not engage in commercial activities or generate revenue directly.

Instead, its primary purpose is to facilitate market research, establish business connections, and promote the parent company’s products or services.

Liaison Office in Turkey

To establish a liaison office in Turkey, the parent company must be a legal entity incorporated outside of Turkey. It is essential to review the legal framework governing liaison offices, including the Turkish Commercial Code, relevant regulations, and guidelines issued by the Ministry of Trade.

Choosing a Location and Name:

Selecting an appropriate location for the liaison office is crucial. Consider factors such as proximity to target markets, accessibility, and the availability of necessary infrastructure. Additionally, ensure that the proposed name for the office complies with Turkish regulations and does not violate any intellectual property rights.

Appointing a Local Representative:

Every liaison office must have a local representative appointed by the parent company. The representative should possess the necessary qualifications, be proficient in both English and Turkish languages, and have a solid understanding of local business practices.

Preparing the Application Documentation:

To initiate the establishment process, prepare the required documentation, which typically includes:

  • Application letter: A formal letter requesting the establishment of a liaison office, addressing the Ministry of Trade.
  • Notarized copy of the parent company’s articles of association or equivalent documentation.
  • Proof of the parent company’s legal existence, such as a certificate of incorporation.
  • Letter of intent: Outlining the objectives and activities of the liaison office.
  • Financial statements: The parent company’s audited financial statements for the past three years.
  • Power of attorney: Granting authority to the local representative to act on behalf of the parent company.

Submitting the Application:

Submit the application and supporting documents to the Ministry of Trade. It is advisable to engage a local attorney or consultant familiar with the process to ensure compliance and efficient handling of the application.

Post-Registration Obligations:

Once the liaison office is registered, certain ongoing obligations must be fulfilled, including:

  • Annual activity reports: The liaison office must submit activity reports to the Ministry of Trade, outlining its activities during the previous year.
  • Compliance with taxation regulations: Consult with a tax advisor to ensure compliance with Turkish tax regulations and reporting requirements.
  • Timely renewal of permits: Liaison office permits have a validity period. Therefore, it is essential to renew the permit before its expiration to ensure uninterrupted operations.

Summary of Establishing a Liaison Office in Turkey

Forming a liaison office in Turkey provides businesses with valuable opportunities to establish a local presence, build networks, and gain insights into the Turkish market. By following the outlined steps and fulfilling the legal requirements, companies can successfully navigate the establishment process.

It is crucial to remain updated on any regulatory changes and consult local experts to ensure compliance and maximize the benefits of a liaison office in Turkey.

Contact us to Establish a Liaison Office in Turkey

Our Turkish company formation team is readily available to address any questions you may have regarding forming a liaison office in Turkey, legal requirements, and the various services we offer.

We offer comprehensive company formation services that simplify the process for you. Our experienced team of legal experts provides personalized guidance, streamlining the setup of your limited liability company, joint-stock company, free zone company, branch, or liaison office.

At Akkas CPA, we prioritize clear and prompt communication. For any inquiries or to schedule a consultation, please don’t hesitate to get in touch with us by e-mail or through our Contact page.