Branch Office
"How can a foreign company establish a branch office in Turkey?"
Quick Answer
Foreign companies may open a branch in Turkey by completing the required corporate authorizations and registering the branch and its representative at the Trade Registry, followed by tax and other operational registrations depending on the intended activities.
A branch is not a separate legal entity in Turkey; it operates as an extension of the foreign parent, which generally remains responsible for the branch’s obligations subject to applicable law and the specific facts.
Key Aspects Under Turkish Law
A Turkish branch is a registered business unit of a foreign company that conducts commercial activities in Turkey under the parent’s name through a locally registered branch title and authorized representative(s). Trade Registry registration makes the branch and its representation powers visible to third parties and is typically a prerequisite to start operations.
Key Points to Remember
- Turkish Commercial Code No. 6102 provides the primary legal framework
- Trade Registry registration is the core establishment step, and the registered branch representative’s signature/authority is typically published for third-party reliance.
- Unlike a liaison office, a branch generally conducts revenue-generating commercial activities in Turkey, which may trigger tax, employment, and licensing obligations depending on the sector.
- Proper documentation and corporate formalities are essential
Practical Considerations for Businesses
When dealing with branch office in Turkey, businesses should consider engaging qualified legal counsel familiar with both Turkish law and international business practices. This ensures compliance with local requirements while meeting global standards.
In practice, branch formation usually requires legalized/apostilled and translated parent company documents (such as resolutions, certificates, and signatory documents), appointment of a branch representative, and coordination with post-registration steps (tax office registration, e-ledger/bookkeeping setup, and SGK registration if staff will be hired).
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