The vibrant and strategic location of Turkey makes it an appealing place for foreign enterprises to operate their business there. There is one thing foreign companies must take into account while operating their business, which is to open a liaison office in Turkey. However, this can be challenging since it demands several legal requirements to be complied with. In this article, we will mention all the essential facts about how to open a liaison office in Turkey.
What is a Liaison Office?
A liaison office in Turkey is a legal entity established by a foreign business in Turkey to ease communication and represent its interests in the Turkish market without conducting business operations. Its main missions can be supporting and promoting the parent company's commercial objectives, doing market research, and assisting in relationships with regional partners, clients, or regulatory organizations.
The Benefits of Opening a Liaison Office in Turkey
Foreign businesses wanting to gain traction in the competitive Turkish market can benefit from various strategies while establishing a liaison office in Turkey. The primary advantage can be developing close relationships and direct communication with local competitors, such as potential suppliers, clients, and government agencies. In addition, foreign entities can investigate commercial opportunities, find possible partners, and keep up with industry advancements with the help of a liaison office. This local presence builds credibility and shows dedication to the Turkish market, which may encourage local partners and customers to have more faith in the company.
Requirements For Setting up a Liaison Office in Turkey
Some requirements need to be considered, such as obtaining a valid tax number, being registered with the Trade Register Office, and having a workplace in Turkey. Besides, organizations wanting to establish a liaison office in Turkey are required to submit an application and the needed documentation to the Ministry of Economy.
If you are a foreign business owner considering opening a liaison office in Turkey, you may need assistance from a lawyer in Turkey to comply with the legal requirements. Our Turkish lawyer firm, Istanbul Lawyer Firm, provides comprehensive assistance in navigating the complexities of setting up a liaison office and compliance with Turkish regulations, laws, and rules. With our experienced and skilled English-speaking lawyers in Turkey, you can have a smooth opening process.
Step-by-Step Guide to Opening a Liaison Office
Opening a liaison office is not a one-step process; it can be a challenging and complex procedure that requires thorough preparation. A comprehensive guide helps complete all legal and regulatory requirements while simplifying the process. For this reason, we will mention all the necessary steps in opening a liaison office below.
Initial Preparation and Documentation
The first step is to prepare and collect the necessary documents for this procedure. The required documentation for opening a liaison office in Turkey is below.
Establishment application form
Activity Report or balance sheet and income statement prepared for the foreign company,
Authorization document to be given to the person(s) appointed to carry out the activities of the liaison office
However, pay attention to making sure that all documents are appropriately certified, notarized, and translated into Turkish if required. Thus, you can have a smooth process.
Application Process and Regulatory Approval
After gathering and submitting the documents to the Ministry of Economy, the following step is to wait for regulatory approval. Once it is approved, you can start setting up your liaison office.
Setting Up Your Office: Practical Considerations
When you open your office, you should select a location that aligns with your business purposes. Also, for expenses or salaries, you should open a bank account and get a tax number.
What are the Transactions of Liaison Offices in Turkey?
Liaison offices in Turkey are initially issued a three-year operation authorization, which can be extended by applying to the General Directorate before its expiration. Also, the Ministry has the authority to examine whether liaison offices are conducting activities following the laws and regulations and within the specified scope of their permits, either through proactive measures or upon receiving notifications from relevant entities. Upon inspection, if it is found that an office is operating beyond the permitted scope, the Ministry grants thirty days for the office to apply for the appropriate permit. This timeframe may be extended for another thirty days with valid reasons. Failure to comply within the given period results in the Ministry revoking the office's operating license. If the Ministry determines, during the audit, that liaison offices are involved in commercial activities, their activity permits are also canceled, and relevant authorities are notified.
Closing of Liaison Offices in Turkey
To ensure compliance with Turkish corporate law and a hassle-free closing of operations, a few processes are involved in closing a liaison office in Turkey. For instance, the necessary closing documentation should be submitted to the General Directorate for starting the closing procedure.
You can reach our previous article at https://istanbullawyerfirm.com/blog/the-process-of-obtaining-a-medical-licence-for-foreigners-in-turkey