OpeningBranch Office in TurkeyinvolvesverycarefulstepsundertheTurkishregulatoryframework. Relevantcompaniesshouldbenefitfrom a full-fledged legal guidancebyTurkishbusinesslawyers.
Openingbranchoffice in Turkeyrequirescarefuladherencetothecountry’sregulatoryframework. The legal orbusinessheadquarters of theparentcompanymustsystematicallyfollow a series of stepstoensurecompliance. Thisarticleprovides a detailedoverview of thecorporategovernanceconsultingservicesavailabletoforeigncompaniesseekingtoestablish a branch in Turkey.
Can foreignersopen a company in Turkey?
FollowingtheregulatoryamendmentsintroducedbytheForeign Direct InvestmentLawnumbered 4875, thedistinctionbetweenforeignanddomesticinvestorswasabolished in 2013. As a result, foreigninvestorsareentitledtoequaltreatmentwithdomesticinvestorsunderTurkishlaw. Furthermore, theprinciplesandstandardsoutlined in theTurkish Commercial Codefacilitatetheestablishmentandoperation of foreign-ledcompanies in Turkey.
Formoreinformationaboutcompanyestablishmentproceduretake a look at ourarticle on Establishment of a Company in Turkey
How do I openbranchoffice in Turkey?
Commercial enterpriseswhose legal orbusinesscentresareabroad, withoutprejudicetotheprovisions of thelaws of theirowncountries’ tradetitles, can makebranchesregistered as domesticcommercialenterprises. Under Article 40 of theTurkish Commercial Code, branches of commercialenterpriseswithheadquartersoutsideTurkeyareregistered in thesamemanner as domesticcommercialenterprises, providedthattheprovisions of theirnational legal frameworkregardingtradenamesarepreserved.
Forthesebranches, a fullyauthorizedcommercialrepresentativewith a domicile in Turkeymust be appointed. Foreigncompanieslookingtoestablish a branch in TurkeymustcomplywiththeaforementionedarticleandtherelevantregulationsissuedbytheMinistry of Trade.
CoreFeatures of OpeningBranch Office in Turkey
Oneneedstobear in mindthat a branchdoes not have a separate legal personalityfromitsparentcompany. Legal andbusinesscenter of theCompany has fullresponsibilityforthebranch. What is more, thebranchcannotoperateunderitsown name but underthe name of theforeigncompany.
Main StepsforOpeningBranch Office in Turkey
Mostimportantpart is toappoint a fullyauthorizedbranchmanagerwho is either a Turkishcitizenor a foreignnationalwith a validworkpermit.
Interms of registrationprocedure, thefollowingdocumentsmust be obtainedandnotarized:
- Thecentralcompany’sArticles of AssociationandCertificate of Incorporation,
- A resolutionfromtheparentcompany’s board approvingtheestablishment of a branch in Turkey,
- A notarizedpower of attorneyappointing a branchrepresentative in Turkey,
- A statementdeclaringthebranchmanager’sauthorityandresponsibilities,
Theabove-mentioneddocumentsaresubmittedtotheTradeRegistry Office in thecitywherethebranchwilloperate. Uponapproval, thebranch is officiallyregistered, and a taxidentificationnumber is obtainedafterwards.
Pi Legal Consultancy is an internationallaw firm in Turkey. Formoreinformationaboutthistopicpleaseclicktohttps://www.pilc.law/opening-branch-office-in-turkey/