How to Establish a Liaison Office in Turkey as a Foreign Company

How to Establish a Liaison Office in Turkey as a Foreign Company

A liaison office (temsilcilik ofisi) allows a foreign company to maintain a presence in Turkey without engaging in commercial activity. Liaison offices are commonly used for market research, partner development, and communication coordination. At ER&GUN&ER Law Firm, our English Speaking Turkish Lawyers assist international businesses in establishing liaison offices with full legal compliance and minimal risk.

Legal Basis and Regulating Authority

Liaison offices in Turkey are regulated under:

  • Foreign Direct Investment Law No. 4875
  • Regulation on Implementation of Foreign Direct Investment Law

The competent authority for approval and oversight is the General Directorate of Incentive Practices and Foreign Capital under the Ministry of Industry and Technology.

Permitted Activities of Liaison Offices

Liaison offices cannot engage in commercial activities. Permissible functions include:

  • Market research and feasibility studies
  • Contact and communication coordination
  • Quality control and inspection services
  • Technical support and information exchange
  • Regional reporting for HQ

Engaging in sales, issuing invoices, or collecting payments is prohibited.

Step-by-Step Registration Process

  1. Prepare application dossier (parent company documents, activity plan, etc.)
  2. Submit to Ministry of Industry and Technology (via electronic system or directly)
  3. Receive initial approval (1–3 weeks)
  4. Register with local tax office (without commercial tax ID)
  5. Notify social security and employment authorities

We handle every step from document translation and notarization to regulatory filing.

Required Documents

  • Application form and commitment letter
  • Certificate of incorporation of parent company (notarized and apostilled)
  • Articles of Association (AoA)
  • Power of Attorney for local representative
  • Business plan outlining activities for 3 years

Timeframe and Office Lifespan

  • Initial approvals are typically valid for 3 years
  • Extensions can be granted upon justification (max 5 years each)
  • Total duration may be limited if the office is not active or violates scope

Tax and Employment Status

  • No commercial tax number (only identification for payments)
  • Wages paid to employees are subject to income tax and social security
  • Liaison offices must maintain payroll, declarations, and insurance records

Risks and Legal Compliance

Risks arise when liaison offices exceed their non-commercial scope, which may lead to:

  • Revocation of permit
  • Fines from tax and labor authorities
  • Loss of legal protection under foreign investor laws

We advise on activity boundaries, audit preparation, and renewal strategies.

Internal Resources and Related Legal Guides

Contact Our Corporate Lawyers for Liaison Office Setup

Whether you're testing the Turkish market or seeking strategic positioning, our Turkish Law Firm can assist. We provide fast, secure, and regulatory-compliant services for setting up liaison offices. Contact our English Speaking Turkish Lawyers for full legal support from application to operations.