Setting up a branch office in Turkey is a strategic way for foreign companies to enter the Turkish market without forming a new legal entity. A branch office operates under the parent company’s name and structure but must comply with Turkish registration, tax, and reporting laws. Istanbul Law Firm, ranked as one of the best law firms in Turkey for corporate and foreign investment law, provides legal structuring, filings, and full compliance support for international clients. Our English speaking lawyer in Turkey team ensures that your branch operates legally and efficiently in Turkey.

1. What Is a Branch Office and Who Can Open One in Turkey?

A branch office is a legal extension of a foreign company that does not have separate legal identity in Turkey. Istanbul Law Firm explains that branches are commonly used by financial institutions, tech companies, industrial suppliers, and consulting firms to manage operations, contracts, or imports in Turkey. Turkish Lawyers confirm that the parent company must be registered abroad, have full legal standing, and approve the branch through a board resolution. Turkish Law Firm handles notarized translations, consular certifications, and trade registry filings. English speaking lawyer in Turkey advisors walk clients through the key differences between branch, liaison office, and limited company setup.

Only companies duly incorporated and operating under their home jurisdiction’s commercial code may open a branch in Turkey. Istanbul Law Firm obtains the parent company’s certificate of incorporation, activity certificate, and articles of association. Turkish Lawyers translate and notarize documents per Turkish Trade Registry requirements. Turkish Law Firm also prepares a power of attorney and appoints a branch representative with legal authority. English speaking lawyer in Turkey advisors ensure that all foreign documents are apostilled or consularized before filing. Legal foundation is essential for successful branch launch.

A branch may not engage in activities not covered by the parent company’s main activity code. Istanbul Law Firm reviews the foreign company’s trade registry records to confirm eligibility. Turkish Lawyers align the Turkish branch activity statement with the original articles. Turkish Law Firm also advises on sector-specific licenses or limitations, including banking, insurance, or telecom. English speaking lawyer in Turkey staff provide sector-specific guides to ensure your branch complies from day one. Setting up the right type of office ensures legal and tax success—not future disputes.

2. Legal Registration Process and Required Documents

Branch registration is managed by the Turkish Trade Registry, operating under the Ministry of Trade. Istanbul Law Firm prepares and submits the full application file, including translated foreign documents, branch declaration form, and representative signature specimen. Turkish Lawyers also obtain a legal address, tax office approval, and chamber of commerce registration. Turkish Law Firm coordinates notary appointments and legalizations. English speaking lawyer in Turkey advisors guide foreign clients through a typical timeline of 7–10 business days post-document finalization.

Key documents include: parent company certificate of activity, board resolution to open a branch, articles of association, POA for local lawyers, branch representative’s ID and residency permit (if applicable), and a lease or property title for the branch address. Istanbul Law Firm prepares all forms, translations, and filings under Turkish law. Turkish Lawyers also provide sample board resolutions and document templates. Turkish Law Firm ensures the branch’s scope, capital, and address are clearly declared. English speaking lawyer in Turkey professionals manage logistics and follow-up with registry officers.

The branch must appoint a legal representative who resides in Turkey and has authority to represent the parent company. Istanbul Law Firm files signature declarations, tax forms, and power of attorney for this role. Turkish Lawyers also register the representative with the Social Security Institution (SGK) and tax office. Turkish Law Firm maintains legal copies of all appointments and regulatory communications. English speaking lawyer in Turkey advisors act as liaison between the parent company’s headquarters and Turkish authorities.

3. Tax Registration, Accounting, and Reporting for Branches

Once registered, branch offices in Turkey must obtain a tax number and register with the local tax authority. Istanbul Law Firm files tax applications, opens the branch’s VERGİ account, and ensures compliance with e-declaration systems. Turkish Lawyers also register the branch for VAT, corporate tax, and withholding obligations. Turkish Law Firm provides legal support for CPA appointment and accounting software setup. English speaking lawyer in Turkey advisors explain every tax form and deadline in English. For related topics, see: Opening a Company Bank Account in Turkey.

Branches are required to keep full statutory books, issue invoices under Turkish accounting rules, and submit monthly declarations. Istanbul Law Firm coordinates with licensed CPAs to manage bookkeeping, payroll, and tax filings. Turkish Lawyers ensure the branch complies with Turkish Financial Reporting Standards (TFRS) and cross-border reporting. Turkish Law Firm also handles E-Fatura registration, KEP address creation, and digital certificate procurement. English speaking lawyer in Turkey professionals maintain compliance logs and tax control calendars for foreign HQs.

Branches must file annual corporate tax returns, even though they do not have separate legal status. Istanbul Law Firm calculates branch income attributable to Turkish operations and allocates costs accordingly. Turkish Lawyers also advise on withholding tax and transfer pricing between parent and branch. Turkish Law Firm manages legal opinions on dividend repatriation, currency control, and capital flow declarations. English speaking lawyer in Turkey staff coordinate tax queries and audit representation. Legal tax planning is not just accounting—it’s corporate defense.

4. Employment, Payroll, and SGK Registration for Branch Offices

If the branch will hire staff, it must be registered with the Turkish Social Security Institution (SGK) and prepare compliant labor documentation. Istanbul Law Firm registers the branch with SGK and opens the online employer portal. Turkish Lawyers prepare labor contracts, onboarding forms, and work rules in line with Turkish Labor Law No. 4857. Turkish Law Firm also ensures that staff receive payroll slips, insurance declarations, and compliant notice periods. English speaking lawyer in Turkey advisors guide foreign HR managers on Turkish employment compliance.

Payroll must comply with minimum wage regulations, overtime limits, tax brackets, and severance obligations. Istanbul Law Firm supports foreign branches in setting up payroll software or outsourcing to local service providers. Turkish Lawyers handle registration of foreign employees, work permit applications, and legal limits on foreign-to-local staff ratios. Turkish Law Firm also represents the branch in labor inspections, disputes, or mediation proceedings. English speaking lawyer in Turkey professionals ensure contracts are bilingual and fully enforceable.

Branches must also follow occupational health and safety laws. Istanbul Law Firm coordinates with certified safety consultants, prepares risk reports, and ensures workplace insurance. Turkish Lawyers explain inspection procedures and file compliance declarations. Turkish Law Firm trains management in legal liabilities and SGK coordination. English speaking lawyer in Turkey staff ensure nothing is lost in translation. Employment law is strict in Turkey—and with our help, you get it right the first time.

5. Licensing and Sector-Specific Regulatory Requirements

Certain industries require special licensing before operating a branch office. Istanbul Law Firm supports clients in telecom, financial services, pharmaceuticals, construction, and education in obtaining licenses. Turkish Lawyers liaise with the Ministry of Trade, BRSA, EPDK, Ministry of Health, and other regulators. Turkish Law Firm ensures the parent company’s qualifications are recognized in Turkey. English speaking lawyer in Turkey advisors coordinate cross-border license documentation and Turkish adaptation. Sector licensing is not optional—it’s your permit to legally operate.

Professional services such as law, architecture, and engineering have local practice restrictions. Istanbul Law Firm advises foreign consulting firms whether they need a local partner or Turkish license-holder. Turkish Lawyers structure joint ventures or alternative legal vehicles when needed. Turkish Law Firm also helps clients comply with data protection (KVKK) and e-commerce laws. English speaking lawyer in Turkey staff prepare legal frameworks to avoid sanctions. For data topics, see: Technology Law Services in Turkey.

We also support license renewal, regulatory reporting, and dispute defense. Istanbul Law Firm tracks license timelines and files periodic reports. Turkish Lawyers represent branches before inspection boards and defend compliance status in administrative proceedings. Turkish Law Firm also issues legal memoranda explaining Turkish rules to foreign regulators. English speaking lawyer in Turkey professionals ensure all stakeholders stay informed. With the right licenses, your branch operates securely and lawfully.

6. Currency Control, Banking, and Invoicing Compliance

Branch offices must comply with Turkey’s currency control regulations when invoicing clients and making payments. Istanbul Law Firm ensures compliance with Law No. 1567 and the Central Bank’s FX circulars. Turkish Lawyers explain whether invoicing must be in TRY, USD, EUR, or dual currency formats. Turkish Law Firm registers clients for export declarations and foreign income reporting. English speaking lawyer in Turkey staff review client invoices, transfer forms, and FX exposure clauses. For banking-related corporate setup, see: Opening a Company Bank Account in Turkey.

We support opening local bank accounts for the branch, including TRY, USD, and EUR multi-currency accounts. Istanbul Law Firm prepares corporate account forms, authorized signatory resolutions, and KYC packets. Turkish Lawyers coordinate account activation with banks experienced in handling foreign branches. Turkish Law Firm also handles bank letters for notary, Tapu, and escrow use. English speaking lawyer in Turkey advisors confirm account readiness before payroll or vendor disbursement begins. Banking delays are preventable—with the right legal preparation.

Invoices must be issued in accordance with Turkish Tax Procedure Law. Istanbul Law Firm registers branches with the Revenue Administration’s e-invoice platform. Turkish Lawyers confirm whether VAT, withholding, or special consumption taxes apply. Turkish Law Firm also advises on withholding tax for foreign remittances, licensing, and royalty payments. English speaking lawyer in Turkey advisors ensure invoice language, content, and sequence are valid. Improper invoicing triggers tax penalties and audit risk—so we structure it right from day one.

7. POA-Based Branch Registration from Abroad

Foreign companies may register a branch in Turkey remotely through power of attorney (POA). Istanbul Law Firm drafts bilingual POAs that authorize our lawyers to file, sign, and complete the full branch setup. Turkish Lawyers arrange consular or apostilled notarization of foreign documents. Turkish Law Firm prepares and submits the branch file on the client’s behalf. English speaking lawyer in Turkey advisors coordinate courier, translation, and digital status updates. For a broader POA overview, see: Power of Attorney in Turkey for Foreigners.

We represent the parent company in every filing: chamber registration, trade registry declaration, tax application, and lease documentation. Istanbul Law Firm signs the branch representative’s appointment form, submits board resolutions, and obtains notarizations. Turkish Lawyers ensure full legal effect of the POA under Turkish law. Turkish Law Firm also keeps clients informed of any regulatory updates or notarization formatting changes. English speaking lawyer in Turkey professionals manage remote approvals and pre-clearances before submission.

Remote registration does not affect legal validity or operational capacity. Istanbul Law Firm manages every aspect from physical presence to compliance filings. Turkish Lawyers finalize branch registration without requiring travel or in-person signature. Turkish Law Firm offers virtual coordination by email, Zoom, or secure file transfer. English speaking lawyer in Turkey advisors support clients in 40+ countries with branch setup success. POA registration ensures global companies can operate locally—without ever leaving headquarters.

8. Termination or Restructuring of a Branch in Turkey

If a foreign company decides to close or restructure its Turkish branch, legal steps must be followed to protect company assets and comply with tax laws. Istanbul Law Firm prepares closure notices, liquidation petitions, and deregistration filings. Turkish Lawyers notify the Trade Registry, tax office, SGK, and chamber of commerce. Turkish Law Firm also prepares legal notices to creditors and public declarations. English speaking lawyer in Turkey advisors confirm tax clearance and legal finalization. Closure must be planned—not improvised.

We ensure that all employee rights, tax debts, and financial liabilities are settled before closure. Istanbul Law Firm coordinates employee termination protocols and prepares severance documents. Turkish Lawyers calculate final payroll, SGK contributions, and tax withholding. Turkish Law Firm advises on remaining bank funds, lease cancellation, and office deactivation. English speaking lawyer in Turkey professionals provide closure reports to the parent company. Legal closure protects brand reputation and avoids future regulatory fines.

Companies may also choose to convert a branch into a subsidiary. Istanbul Law Firm assists with transformation planning, entity formation, and asset transfer. Turkish Lawyers handle title deed assignment, employment continuation, and bank conversion. Turkish Law Firm ensures that the new legal entity receives full licenses and registration. English speaking lawyer in Turkey advisors guide HQ on timing, documentation, and compliance. Whether restructuring or terminating—we provide seamless legal execution.

9. Strategic Benefits of a Branch vs. Subsidiary in Turkey

Opening a branch office offers foreign companies a faster, lower-cost way to operate in Turkey without forming a new legal entity. Istanbul Law Firm explains that branches require fewer formation steps, have no capital requirement, and allow centralized control from the foreign HQ. Turkish Lawyers highlight that branch profits are taxed locally, but losses can be consolidated internationally. Turkish Law Firm helps clients determine whether their structure benefits more from a branch or a Turkish limited company. English speaking lawyer in Turkey advisors compare tax, HR, and reporting obligations side by side.

Branches offer transparency to Turkish regulators and business partners, as the foreign HQ remains the responsible party. Istanbul Law Firm assists clients in securing licenses, registering cross-border agreements, and maintaining compliance under the parent company’s governance. Turkish Lawyers also assist in licensing amendments and regulatory notifications. Turkish Law Firm provides legal memoranda comparing Turkish and foreign branch models. English speaking lawyer in Turkey staff advise on long-term structuring and reporting advantages. For full entity planning, see: Legal Address for Foreign Companies in Turkey.

However, subsidiaries provide better liability shielding and separate accounting. Istanbul Law Firm often recommends forming a limited company for investment-heavy or multi-project operations. Turkish Lawyers explain how subsidiaries can own real estate, issue local invoices, and access financing more freely. Turkish Law Firm structures holding companies or JVs when needed. English speaking lawyer in Turkey professionals deliver entity structure diagrams and compliance maps. Choosing the right model from the start prevents legal restructuring later.

10. Why Choose Istanbul Law Firm for Branch Setup

International companies trust Istanbul Law Firm for legally compliant, fast, and fully supported branch registration in Turkey. Our Turkish Lawyers have decades of experience in foreign company representation, sector licensing, and cross-border commercial law. Turkish Law Firm is registered with Turkish bar associations and fully insured. English speaking lawyer in Turkey advisors speak your language, understand your HQ needs, and handle local bureaucracy smoothly. For global brands and boutique firms alike—we’re your go-to legal partner.

We don’t just file paperwork—we deliver strategy. Istanbul Law Firm offers entity choice consulting, compliance forecasting, and long-term tax efficiency planning. Turkish Lawyers advise on shareholding structure, transfer pricing, and dividend policy from day one. Turkish Law Firm offers fixed-fee packages and transparent engagement terms. English speaking lawyer in Turkey professionals coordinate directly with CFOs, legal directors, and expansion teams abroad. We’re not just your Turkish branch lawyer—we’re your legal gateway to the Turkish market.

Our clients include software firms, medical device exporters, logistics groups, design studios, and consulting firms from the US, UK, EU, and Asia. Istanbul Law Firm delivers local filings, national licenses, and regional expansion blueprints. Turkish Lawyers manage the entire lifecycle of branch setup—from concept to compliance. Turkish Law Firm also supports you post-registration with labor, contracts, and litigation. English speaking lawyer in Turkey advisors remain your one-click point of contact. When you’re ready to expand into Turkey—expand legally, with us.

Frequently Asked Questions (FAQ)

• Can any foreign company open a branch in Turkey? – Yes, if it is legally registered and operational in its home country.
• Is there a capital requirement? – No. Branches have no minimum capital requirement in Turkey.
• Can we open a branch remotely? – Yes. We register branches via POA without travel.
• How long does registration take? – Typically 10–15 business days from full documentation.
• Is a Turkish partner required? – No. Foreign companies can fully own and control their branch.
• Can a branch hire staff? – Yes. We assist with SGK registration and labor compliance.
• Is the branch taxed separately? – Branch profits are taxed in Turkey but reported to HQ.
• Can we invoice clients from Turkey? – Yes. Branches can issue Turkish invoices.
• What if we need licenses? – We obtain licenses based on your industry and activity code.
• Can we later convert to a subsidiary? – Yes. We handle full branch-to-company restructuring.
• Can the branch own property? – Limited. Real estate ownership is easier via subsidiary.
• Why Istanbul Law Firm? – Because we combine international business knowledge with deep local legal experience.

Start Your Branch in Turkey with Legal Confidence

Istanbul Law Firm provides full legal service for foreign companies setting up branch offices in Turkey. Our Turkish Lawyers and English speaking lawyer in Turkey team deliver registration, compliance, and business continuity with clarity and speed.