Branch Office Formation in Türkiye: 2026 Expansion Guide

Foreign companies seeking to expand their operations into the Turkish market have several establishment options available. Among these, branch office formation presents a strategic avenue for international businesses that want to maintain a direct presence while preserving their parent company structure.

At Finlexia Turkish Accounting Firm, we have guided hundreds of international clients through the branch office formation process since 2017. Our multilingual team understands the complexities foreign investors face when navigating Turkish commercial regulations.

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What is a Branch Office in Türkiye?

A branch office operates as an extension of a foreign parent company rather than as a separate legal entity. Unlike foreign subsidiary formation, a branch does not have independent legal personality under Turkish law.

For international businesses looking to establish a robust presence without creating a fully independent legal entity, forming a branch office is often the most strategic and efficient route.

A branch office, unlike a subsidiary, is considered an extension of the parent company abroad. It does not possess its own distinct legal personality but operates under the regulations and name of the foreign head office. This model offers a streamlined path for foreign companies to engage in direct commercial activities in the vibrant Turkish market.

As Finlexia Turkish Accounting Firm, a top-notch full-service company formation in Türkiye and governance firm located in Istanbul, we have provided expert Turkish company formation and governance services in multiple languages since 2017. This ultimate guide distills our three years of experience to help you navigate the process of branch office formation in Türkiye in 2026.

Branch Office vs. Subsidiary: Key Distinctions

Before diving into the formation process, it is crucial to understand the fundamental difference between a branch office and its closest alternative, the foreign subsidiary.

For foreign companies requiring complete separation of legal liability, a foreign subsidiary formation might be a better choice. However, if your goal is market entry under the parent company’s name with a simpler structure, the branch office is ideal.

The Legal Framework for Branch Offices

The establishment and operation of branch offices are primarily governed by the:

• Turkish Commercial Code (TCC) No. 6102
• Code of Obligations No. 6098
• Direct Foreign Investments Law No. 4875
• Relevant Communiqués and Regulations issued by the Ministry of Trade (MoT).

Unlike a liaison office formation, which is restricted to non-commercial, preparatory, and auxiliary activities (market research, representation), a branch office is permitted to conduct full commercial activities, provided they align with the parent company’s operations and the scope approved by the MoT.

The Essential Steps for Branch Office Formation in 2026

The branch office formation process in Türkiye is supervised by the Ministry of Trade (MoT) and requires registration with the Trade Registry Office (TRO). Our experienced Turkish company formation lawyers at Finlexia CPA guide clients through every step, ensuring full compliance.

1. Pre-Application and Documentation

The first and most critical stage involves preparing the required documents for company formation. All documents issued outside of Türkiye must be officially apostilled or ratified by the Turkish Consulate in the issuing country and subsequently notarized and officially translated into Turkish.

Key Documents from the Parent Company:

• Resolution of the Parent Company’s Board of Directors: A formal decision authorizing the opening of a branch office in Türkiye, detailing the designated capital, the name and scope of the branch, and the appointment of the full-authorized branch manager.
• Articles of Association (A.o.A): Certified copy of the parent company’s current A.o.A.
• Certificate of Good Standing/Registration: Document proving the parent company is currently active and legally registered in its home country.
• Power of Attorney (PoA): A specific PoA granting one of our Turkish company formation lawyers the authority to handle the formation and registration processes on your behalf.
• Financial Statements: Parent company’s latest annual financial statements.

2. Application to the Ministry of Trade (MoT)

The application for permission to establish a branch must be submitted to the Directorate General of Incentives Implementation and Foreign Capital within the MoT.

• The MoT reviews the application to ensure the parent company is legitimate and the proposed scope of activity for the branch aligns with the regulations.
• The application must include the official address of the Turkish branch, the amount of capital allocated for the branch, and detailed information about the appointed branch manager.
• The MoT’s approval is a mandatory prerequisite for proceeding with the Trade Registry Office (TRO) registration.

3. Trade Registry Office (TRO) Registration

Upon receiving MoT approval, the branch must be registered with the Trade Registry Office where the branch’s headquarters will be located (most often Istanbul, Ankara, or Izmir).

Documents Required for TRO Registration:

• Official approval letter from the MoT.
• Signed declaration forms and petition for registration.
• Notarized copies of the branch manager’s identity and signature specimen.
• Proof of the allocated capital amount (though not deposited, it must be declared).
• Rental agreement or title deed for the branch office address.

Once all documents are filed and approved, the branch is formally registered, and a Turkish Trade Registry Number is issued. This marks the legal establishment of the branch office.

4. Post-Registration Formalities and Compliance

The establishment phase is followed by critical compliance steps to ensure the branch can legally commence operations.

• Tax Office Registration: The branch must register with the local tax office to obtain a Turkish tax identity number. This is crucial for handling corporate taxation guide and all financial transactions.
• Social Security Institution (SGK) Registration: If the branch intends to hire employees, registration with the SGK is mandatory to fulfill social security obligations.
• Chamber of Commerce Membership: The branch must register with the relevant Chamber of Commerce.
• Corporate Bank Account Opening: Our lawyers assist with the complex process of corporate bank account opening in a Turkish bank, which is required for all financial operations.

Costs and Timeline of Branch Office Formation

Understanding the financial and time investment is part of our commitment to transparent service.

The costs of company formation for a branch office include:

• Government Fees: Trade registry and notary fees (these are fixed and mandated by the state).
• Official Translation and Legalization Costs: Significant fees for the apostille/ratification and sworn translation of all foreign documents.
• Professional Service Fees: Our legal fees for drafting the necessary documents, preparing the MoT application, conducting the TRO registration, and handling post-formation compliance.
• Allocated Capital: While not a “cost,” the parent company must allocate a sufficient amount of capital to the branch (declared in the MoT application).

The roadmap for formation timeline:

• Document Preparation & Legalization: 1-3 weeks (Highly dependent on the parent company’s jurisdiction and speed of document preparation).
• MoT Application & Approval: 2-4 weeks (The most variable and crucial stage).
• TRO Registration & Finalization: 3-7 days.
• Post-Registration (Tax/SGK/Bank): 1-2 weeks.

Total Estimated Time for branch office formation: 6 to 10 weeks, depending heavily on the completeness and speed of the documents provided by the foreign head office.

Alternative Structures: Free Zones and Liaison Offices

While the branch office is excellent for full-scale commercial operations, other structures might be more suitable depending on your strategic goals:

• Liaison Office formation: Ideal for companies focused purely on market research, networking, and information gathering. Crucially, they cannot engage in commercial activity or generate income.
• Free Zone company formation: Companies established in Turkish Free Zones (like those near Istanbul or Izmir) benefit from significant tax advantages, customs exemptions, and simplified bureaucracy. This is an excellent option for manufacturing and trade-focused businesses.

Contact us for Branch Office Formation in Türkiye

Establishing a branch office in Türkiye in 2026 is a significant step toward international expansion. It grants your company direct access to a dynamic economy, a large consumer base, and a strategic logistical hub.

Navigating the necessary approvals from the Ministry of Trade and the subsequent registration with the Trade Registry Office requires meticulous attention to detail and a profound understanding of Turkish corporate law. Attempting to manage the complexities of notarization, apostille requirements, and governmental applications without local expertise can lead to significant delays and potential rejection.

If your foreign company is poised to enter the Turkish market and requires the expertise of a seasoned, full-service legal team to ensure a seamless and compliant branch office formation, do not hesitate to reach out. Contact Finlexia Turkish Accounting Firm today. Our Turkish company formation lawyers are ready to provide you with a personalized consultation and begin crafting your unique roadmap for formation and governance strategy in Türkiye.