Companixa™ Turkish Company Center offers clients a customer-focused and cost-effective services to Form a Liaison Office in Turkey. Here’s the Steps to Form a Liaison Office in Turkey. Companixa™ prides itself on our attentive and personal approach to every client. We work closely with our clients to discover and implement the customized legal solutions that best meet their needs. Companixa™ handles commercial transactions and disputes with the same dedication and intensity whether our client is a Fortune 500 company or a privately held small business.
Our Turkish company formation team is prepared to handle your company formation in Turkey. Our lawyers are experienced in liaison office formation, branch office formation, free trade zone company formation, joint stock company, joint venture formation, limited liability company formation, Turkish Liaison Office Formation, holding company formation, and company management and governance in Istanbul, Turkey.
Steps to Form a Liaison Office in Turkey
Companies established in accordance with laws of foreign countries can open liaison offices in Turkey provided that those offices do not carry out any commercial activities in Turkey. So as to open a liaison office in Turkey, the relevant company has to apply to the Directorate General of Foreign Investments of the Undersecretariat of Treasury.
Applications for establishment and extension are to be finalized within 5 days following the application provided that the necessary documents are complete and proper. Applications of foreign companies to establish liaison offices so as to operate in sectors subject to special legislation such as money and capital markets, insurance, etc. are assessed by the relevant regulatory and supervisory authorities.
We do perform all kinds of Turkish liaison office establishment and governance services for foreign companies. We have extensive experience on limited liability and joint stock companies, liaison office, and branch office formation and governance in Turkey.
Liaison offices cannot carry out any commercial activities in Turkey. If your company’s aim is to generate sales, then branch office is an option for your company.
The following documents have to be submitted for a liaison office formation in Turkey:
- The original copy of Certificate of Good Standing (This is a document that is issued by Chamber of Commerce where the mother company is incorporated. It is stated in this document that the mother company is still active and operating). It must be notarized and apostilled.
- Operational report or balance sheet and income statement of the mother company,
- The original copy of power of authority issued to the name of the person who is appointed to carry out the operations of the liaison office (Power of attorney to the Director of Liaison office). It must be notarized and apostilled.
- The original copy of power of attorney to our law firm to carry out the establishment transactions of the liaison office on behalf of the mother company. It must be notarized and apostilled.
- Board Resolution of the mother company. It must be signed by authorized persons in certificate of activity. It must be notarized and apostilled.
- The representative scanned passport copy.
- Signature declaration of Authorized person is also required.
- Application form and commitment letter also need to be signed by the authorized person. (We will send the text) It must be notarized and apostilled.
After an establishment permit is granted by the Directorate General of Foreign Investments, the relevant Liaison office is supposed to register to the local tax office and to send a copy of the tax office registration document to the Directorate General latest within 1 month.
Periodically informing the undersecretaries of Treasury
Liaison offices are supposed to provide the Directorate General with the followings every year latest until end of May so as to inform the authority about their activities of previous years:
Data Form for Liaison Office Activities
Documents certifying that the previous year expenses of the office have been covered by foreign currency transferred from abroad have to be enclosed as well.
Duration of operation permits and the extensions
Liaison offices are granted operation permits for 3 years at most. For extensions, successive extensions of maximum 5 years each may be granted by taking into consideration the activities of previous years and plans and objectives for the future.
FEES AND EXPENSES
|Attorney fee for registration of a liaison office||1,500|
|Opening a bank account||250|
|Accounting fees per month||200|
|Company address per month||100|
|Official application fees and expenses (Notary and translation expenses)||750|
There is no income tax or any other tax since the liaison office does not generate any income. There is however, social security tax, if there are employees. Moreover, employees also don’t pay income tax as well.
In which fields a liaison office can be formed?
- Representation and Hosting,
- Control, Inspection and Provision of Suppliers in Turkey with regards to Quality and Standard,
- Technical Support,
- Communication and Transfer of Information, and
- Regional Management Centre
Representation and Hosting:
It allows foreign companies to be represented in its sector and at similar organizations. Also, it enables firms’ officials to coordinate and organize business services in Turkey. Hence, these company officials can conduct business meetings at these offices and promote new business policies.
These services cannot be extended for another 5 years.
|Control, Inspection and Provision of Suppliers in Turkey with regards to Quality and Standard: |
It allows foreign company officials to inspect local suppliers that produce goods and services in the name of foreign companies. Inspections aim to keep the quality up to the foreign companies’ standards at all times. Moreover, this title covers foreign companies’ product and supplier demands.
These services cannot be extended for another 5 years.
The purpose of this field of activity is to enable foreign companies to provide services to local distributors regarding training or technical support, and support local suppliers and manufacturers to improve the quality standards. Thus, foreign companies would advance their efficiency in the Turkish market. This field of activity can be issued for five years.
Communication and Transfer of Information:
This area aims to send information to foreign companies about progress in the market, consumer patterns, the sales progress of the competitors and distributors, performance of the distributor firm and other similar matters. Thus, foreign companies would be able to gather information about the Turkish market from a distance. Certificate of incorporation can be issued for five years for this purpose.
Regional Management Center:
This activity permit can be issued for ten years. Liaison offices of foreign companies can provide coordination and management services regarding producing investment and management strategies for the foreign companies’ entities located in other countries, planning, introduction, sales, after-sale services, brand management, financial management, technical support, research and development, international procurement, testing recently developed products, laboratory services, research and analysis, training of employees and similar services.
There are strict terms to exceed regional management center services for another 10 year e.g. there shall be companies established in other areas and these companies shall consider the Company which will be established in Istanbul as the regional management center. Practically time extension applications are being rejected.
We also provide company address services for foreign companies and our rates are very moderate.
Reach us for Steps to Form a Liaison Office in Turkey
Since its foundation in 1992, Companixa™ performs company formation in Turkey and provide other company governance services for foreign companies. We have extensive experience on limited liability and joint stock companies, joint ventures, liaison office, and branch office formation and governance in Turkey.We are committed to remaining forward-thinking and preparing for the dynamically changing world of business law. You may reach our experts for Steps to Form a Liaison Office in Turkey by sending an email or through Contact page.