Full Guide of Establishing a Company Branch in Turkey

For businesses seeking to establish a company branch in Turkey, navigating the legal and administrative requirements can be complex. At Finlexia Accounting Firm, we offer expert guidance and support to streamline the process and ensure compliance with Turkish laws and regulations.

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Our experienced team can assist with preparing the necessary documents, registering with the trade registry, obtaining tax identification numbers, and fulfilling social security obligations. With our assistance, businesses can establish a strong presence in Turkey and take advantage of its dynamic market.

Establishing a Company Branch in Turkey: An Overview

Establishing a company branch in Turkey offers numerous benefits, including access to a large and growing market, a strategic location between Europe and Asia, and a favorable investment climate.

What is a Company Branch?

A company branch is an extension of a parent company that operates in a different location, often in another country. In Turkey, a branch is not a separate legal entity but operates as part of the parent company, allowing it to conduct business activities, sign contracts, and represent the parent company locally.

How to Establish a Company Branch in Turkey?

Prepare Necessary Documents:

• Parent Company Resolution: A resolution from the parent company authorizing the establishment of the branch.
• Articles of Association: A notarized copy of the parent company’s articles of association.
• Power of Attorney: A power of attorney appointing a representative to handle the establishment process.
• Branch Office Address: A registered address for the branch in Turkey.

Register with the Trade Registry:

• Submit the prepared documents to the Turkish Trade Registry Office.
• Obtain a trade registry number for the branch.

Tax Registration:

• Register the branch with the local tax office.
• Obtain a tax identification number.

Social Security Registration:

• Register the branch with the Social Security Institution (SGK) for employee insurance and social security contributions.

Obtain Necessary Licenses and Permits:

• Depending on the business activities, apply for any required licenses or permits from relevant Turkish authorities.

Open a Bank Account:

• Open a local bank account in the name of the branch to handle financial transactions.

Responsibilities of a Company Branch in Turkey

Compliance with Turkish Laws:

• Ensure that all operations comply with Turkish commercial, tax, and labor laws.

Financial Reporting:

• Maintain accurate financial records.
• Prepare and submit regular financial statements to the Turkish authorities.

Tax Obligations:

• File and pay corporate taxes, VAT, and other applicable taxes.
• Comply with tax regulations and deadlines.

Employment Regulations:

• Adhere to Turkish labor laws regarding employee contracts, wages, and working conditions.
• Ensure timely payment of social security contributions and payroll taxes.

Corporate Governance:

• Ensure that the branch’s activities align with the parent company’s policies and strategic objectives.
• Regularly report the branch’s performance to the parent company.

We Can Form a Company Branch in Turkey within 3 Weeks

We can finish establishing a company branch in Turkey within 3 weeks, we have established more than 260 companies for our foreign clients from Spain, UAE, Ukraine, Russia, UK, Morocco, Lebanon, Syria, S. Korea, Germany, Italy, Jordan, Vietnam, Poland, France, Pakistan, China, Hong Kong, USA, Malaysia, Iran, Portugal, Norway, Canada, Saudi Arabia, Iraq, and Kuwait.

How to Establish a Company Branch in Turkey?

A Turkish branch office or a non-Turkish company branch has autonomous capital and accounting to carry out commercial transactions with third parties, although they are closely associated with the parent company in respect of internal management. This means that rights, debts, profits, and losses of the branch offices are assumed by the parent company.

A branch office can only engage in the activities of its parent company. It cannot provide goods and services or engage in any commercial activities that are not specified in the parent company’s articles of association.

Although there is no legal capital requirement for branch offices, it is required that the incorporating company maintains a capital sufficient to run the branch office in practice.

A branch office shall use the same corporate name as that of the parent company by indicating that it is a branch office and also contain the location of the head office and the branch office.

A fully authorized branch office manager residing in Turkey needs to be appointed to run the day-to-day business of the branch office. If the manager is Turkish it will be easier, if he is a foreigner, we must obtain residency for him at first.

To establish a company branch in Turkey, we will file our application with the below documents at the Ministry of Trade in Ankara. Once the branch office license is granted, then we will proceed to finalize formation procedures at the local chamber of commerce and the tax office.

We Need the Following Documents to Establish a Company Branch in Turkey

• Mother Company’s Articles of Incorporation*
• Mother Company’s Good Standing document*
• The Company’s resolution to open a branch in Turkey (We will provide the text)
• Power of Attorney* given to the director (We will provide the text)
• Signature statement of a company director (We will get it done here)
• Passport copy of a foreign director. There must be one Turkish resident director.
• All required documents to set up a branch in the Mother Company’s home country.
• 3 photos of directors

*These documents should either be apostilled or certified by Turkish consulates in the country where the mother company is registered. All of the approved documents should be notarized and translated into Turkish.

Reach us for Establishing a Company Branch in Turkey

Establishing a company branch in Turkey can be a strategic move to expand your business footprint and tap into new markets. By following the necessary steps and understanding the responsibilities involved, businesses can successfully set up and operate a branch in Turkey.

For detailed assistance and expert guidance on establishing a company branch in Turkey, contact Finlexia Accounting Firm, your trusted partner in navigating the complexities of Turkish business regulations.

You may reach our accountants and lawyers to establish a company branch in Turkey by visiting our Contact page.