Subsidiary Company
"What are the advantages of forming a subsidiary in Turkey?"
Quick Answer
A subsidiary is a separate legal entity and, depending on the chosen company type (e.g., Ltd. or JSC), shareholders’ liability is generally limited to their capital commitment, subject to statutory exceptions and specific circumstances. They may improve access to local banking and commercial arrangements, can be eligible to participate in certain tenders subject to tender requirements, and help build a stronger local market presence.
Key Aspects Under Turkish Law
Company formation and corporate governance are primarily regulated by the Turkish Commercial Code, while tax, foreign direct investment, sector-specific licensing, and employment rules may also apply depending on the business model.
Key Points to Remember
- Turkish Commercial Code No. 6102 provides the primary legal framework
- Trade Registry registration is required to establish the company (and for certain corporate actions and amendments that are subject to registration)
- Foreign investors have equal rights with domestic entities
- Proper documentation and corporate formalities are essential
Practical Considerations for Businesses
When dealing with subsidiary company 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.
Documentation requirements, timeline considerations, and regulatory approvals vary depending on the specific circumstances of each case. Early planning and proper structuring can help avoid common pitfalls.
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We share general information on company formation and establishing subsidiaries in Türkiye. Contacting us does not create a lawyer client relationship.
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