Liaison Office Establishment in Turkey
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With a geopolitical location bridging the West and the East, Turkey offers unique opportunities to foreign investors.
We provide services in the establishment, permit extension, and closure processes of liaison offices with our legal team and certified public accountants, all professional experts in their field. Thanks to our in-depth experience in the consultancy field and our familiarity with the processes, we are fully capable of operating as an intermediary between our clients and government offices. In this way, we relieve you from having to deal with the complex bureaucracy and handle all the legal operations on your behalf.
Global companies can establish liaison offices without engaging in commercial activities by receiving permit from the Ministry of Industry and Technology, within the scope of the Foreign Direct Investment Law (FDI).
By abstaining from commercial activities, liaison offices in Turkey are able to perform duties such as representation and hosting, controls, and inspections in terms of quality and standards, provision of suppliers, communication, and transfer of information, planning and research for their parent companies. As liaison offices and salaries of their employees are exempt from taxes, establishment of this type of entities is a common choice of foreign investors who wish to explore Turkish market without taking commercial risks.
The Ministry will pay attention to the details below:
- Parent company shall be established at least 1 year before.
- Financial tables of the parent company shall be prepared for at least 1 financial year. During the application for liaison office establishment, financial reports certified by an auditor shall be presented.
- The authorities will request a capital investment in the financial tables of the parent company. In certain countries, there are no requirements for capital investment. In this case, the Ministry should be informed in advance accordingly.
- If the parent company is operating in the field of consultancy, it might be an issue during establishment processes and permit renewal applications for liaison offices in Turkey. In such cases, additional statements might be required.
- The liaison office to be established in Turkey shall not participate in commercial and consultancy activities under no circumstances.
- Following the establishment of the liaison office in Turkey, TRY and foreign currency bank accounts must be activated immediately. Please note that any delays in the process might cause the liaison office to be shut down.
- Expenses for liaison office must be processed through the local bank accounts in Turkey. Headquarters located abroad must not interfere with the payments and bank accounts of the liaison office.
- If "Technical Support" is chosen for the liaison office to be established, it is advised to have distributors or customers in Turkey to provide technical support. Because during the permit extension application, relevant information and documents can be requested (e.g., distributorship agreement).
- All expenses and payments of the liaison office must be paid from the foreign currency funding transferred by the parent company. All fund transfers are cross checked annually in May.
- Liaison offices must also have a public bank account for tax and social security premium payments. Please click here to learn about the financial structure of liaison offices.
Please click here for further points to consider during the process of submitting the documents to the Ministry in the application and establishment procedures.