Liaison office setup in Türkiye represents a strategic first step for international companies seeking to explore the Turkish market without committing to full-scale operations. As a bridge between your parent company and potential Turkish business opportunities, a liaison office offers a low-risk entry point into one of the world’s most dynamic emerging markets.
At Akkas CPA & Turkish Accounting Firm, we have guided hundreds of international businesses through the liaison office formation process since 2017, providing comprehensive legal support in multiple languages to ensure seamless market entry.
Table of Contents
- What Is a Liaison Office in Türkiye?
- Permitted Activities of Liaison Offices
- Activities Not Allowed
- Key Advantages of Liaison Office Setup in Türkiye
- Liaison Office Licensing Authority
- Required Documents for Liaison Office Setup
- Permit Duration and Renewal
- Office Address and Employment
- Taxation and Accounting Considerations
- Banking and Funding
- Transitioning from Liaison Office to Company Formation
- Costs of Liaison Office Setup in Türkiye
- Liaison Office vs Other Market Entry Models
- Why Work With Akkas CPA & Turkish Accounting Firm?
- Contact us for Liaison Office Setup in Türkiye
As Türkiye continues to position itself as a regional hub connecting Europe, Asia, and the Middle East, many foreign companies seek a low-risk, cost-efficient way to establish a presence in the Turkish market. One of the most effective entry models is the liaison office setup in Türkiye.
At Akkas CPA & Turkish Accounting Firm, we have been advising multinational corporations, SMEs, and investors on Turkish market entry, company formation in Türkiye, and ongoing corporate governance since 2017.
What Is a Liaison Office in Türkiye?
A liaison office (also referred to as a representative office) is a non-commercial presence established by a foreign company in Türkiye. Unlike a subsidiary or branch, a liaison office cannot generate income, issue invoices, or engage in profit-making activities.
Instead, its purpose is limited to market research, promotion, coordination, and representation of the parent company’s interests in Türkiye.
Liaison offices are regulated by the Ministry of Industry and Technology, not the Turkish Trade Registry.
Permitted Activities of Liaison Offices
Liaison offices are strictly limited to non-commercial functions. Commonly approved activities include:
- Market research and feasibility studies
- Promotion and marketing of the parent company
- Representation and coordination
- Technical support and quality control
- Communication hub between the parent company and Turkish partners
- Regional management or information center activities
Any deviation into revenue-generating operations may result in permit cancellation.
Activities Not Allowed
To remain compliant, a liaison office must not:
- Sell goods or services
- Issue invoices or receive payments in Türkiye
- Sign commercial contracts on its own behalf
- Engage in import/export operations
- Generate taxable income
Foreign investors seeking operational activities should instead consider alternatives such as branch office formation, foreign subsidiary formation, or free zone company formation, depending on their commercial objectives.
Key Advantages of Liaison Office Setup in Türkiye
Liaison offices remain popular due to several strategic benefits:
1. Low Entry Cost
No share capital, trade registry fees, or commercial tax exposure.
2. Simplified Legal Structure
No incorporation process under the Turkish Commercial Code.
3. Market Presence Without Risk
Ideal for testing the Turkish market before transitioning to limited liability company formation or joint stock company formation.
4. Tax Advantages
No corporate tax, VAT, or withholding tax obligations, provided activities remain non-commercial.
5. Employment Flexibility
Ability to employ foreign and Turkish personnel subject to work permit regulations.
Liaison Office Licensing Authority
Liaison offices are licensed by the General Directorate of Incentive Implementation and Foreign Investment (GDIIF) under the Ministry of Industry and Technology.
The permit is granted before any physical setup, lease agreement, or employment registration.
Required Documents for Liaison Office Setup
The application process involves a detailed submission to the Ministry. Typical documentation includes:
- Application form
- Parent company activity certificate
- Parent company articles of association
- Notarized and apostilled board resolution approving liaison office establishment
- Power of attorney for local representatives
- Financial statements of the parent company
- Statement of intended activities
A complete checklist is available under required documents for company formation, which we adapt specifically for liaison office filings.
All foreign documents must be apostilled or legalized and translated into Turkish.
Permit Duration and Renewal
- Initial permit: Up to 3 years (commonly 1–3 years depending on activity scope)
- Renewals: Possible based on compliance, activity reports, and continued non-commercial operations
Annual activity reports must be submitted to the Ministry to maintain legal status.
Office Address and Employment
Office Lease
A physical office address in Türkiye is mandatory. Virtual offices are generally not accepted.
Personnel
- At least one authorized representative must be appointed
- Foreign staff require work permits
- Salaries and expenses must be funded exclusively from abroad
Taxation and Accounting Considerations
Although liaison offices are exempt from corporate tax, they are still subject to:
- Payroll tax and social security contributions
- Stamp duty on employment contracts
- Reporting obligations
For broader context, investors should also review our corporate taxation guide to understand how different legal structures are taxed in Türkiye.
Banking and Funding
Liaison offices may open local bank accounts solely for expense payments. All funds must be transferred from the parent company abroad.
The process aligns closely with corporate bank account opening requirements, including KYC, UBO disclosures, and source-of-funds verification.
Transitioning from Liaison Office to Company Formation
Many foreign investors use liaison offices as a first-stage entry strategy before converting into a commercial entity. Depending on growth plans, common transitions include:
- Limited liability company formation for SMEs and service providers
- Joint stock company formation for larger investments or regulated sectors
We also provide strategic planning through a structured roadmap for formation, ensuring a smooth transition without compliance risks.
Costs of Liaison Office Setup in Türkiye
While liaison offices are cost-effective, investors should budget for:
- Government application fees
- Translation and notarization costs
- Legal advisory fees
- Office lease and operational expenses
- Employment and work permit costs
A transparent overview is available under costs of company formation, which we tailor specifically for liaison office structures.
Liaison Office vs Other Market Entry Models
| Structure | Commercial Activity | Tax Liability | Capital Requirement |
|---|---|---|---|
| Liaison Office | No | No | None |
| Branch Office | Yes | Yes | None |
| Limited Liability Company | Yes | Yes | Minimum capital |
| Joint Stock Company | Yes | Yes | Higher capital |
| Free Zone Company | Yes | Preferential | Depends on activity |
Each model serves a different strategic purpose. Proper legal structuring is essential.
Why Work With Akkas CPA & Turkish Accounting Firm?
As one of Türkiye’s most established corporate accounting firms, Akkas CPA provides end-to-end advisory services, supported by experienced Turkish company formation lawyers fluent in multiple languages. Our approach integrates legal, tax, immigration, and operational perspectives under one roof.
Since 2017, Akkas CPA & Turkish Accounting Firm has remained Istanbul’s trusted partner for business establishment and financial compliance.
Beyhan Akkas, CPA & Accountant
Contact us for Liaison Office Setup in Türkiye
A liaison office setup in Türkiye remains one of the most efficient and compliant ways for foreign companies to establish an initial presence, conduct market research, and build strategic relationships—without commercial or tax exposure. However, strict compliance with licensing conditions is essential to avoid regulatory risks.
If you are considering establishing a liaison office or evaluating alternative market entry options in Türkiye, contact Akkas CPA & Turkish Accounting Firm today. Our Istanbul-based legal team will guide you through every stage—from initial assessment to licensing, compliance, and future expansion—with clarity, precision, and confidence.
