Foreign companies planning to expand into Turkey can establish a branch office to carry out commercial activities under the name of the parent company. A branch is not a separate legal entity but is registered in Turkey and subject to local tax, labor, and regulatory requirements. At ER&GUN&ER, our English Speaking Turkish Lawyers guide international clients through every stage of setting up a branch in Turkey, from preparation to post-registration compliance. This guide explains all legal, procedural, and operational aspects in detail.
What Is a Branch Office in Turkish Law?
According to the Turkish Commercial Code (TCC), a branch office (şube) is an extension of a foreign company that engages in commercial activities in Turkey under the company’s name. It does not have a separate legal personality but is subject to registration and taxation in Turkey.
Branch Office vs. Liaison Office in Turkey
- Branch Office: Engages in commercial activities, can generate revenue, hire staff, invoice clients, and sign contracts. Must pay taxes in Turkey.
- Liaison Office: Cannot engage in commercial activity. Used for research, networking, or representation only.
Why Set Up a Branch Office in Turkey?
- Maintain full ownership while doing business in Turkey
- Operate under the foreign company’s name and brand
- Sell products or services locally
- Build a long-term market presence without full incorporation
- Participate in public procurement and licensing
Legal Steps to Open a Branch Office in Turkey
1. Prepare Required Documents
- Parent company’s articles of association
- Certificate of good standing/incorporation
- Board resolution to open a branch in Turkey
- Power of attorney for local legal representative
- Passport copy of appointed branch manager
- Office lease agreement
All documents must be apostilled and translated into Turkish by a sworn translator.
2. Register with the Trade Registry (Ticaret Sicil Müdürlüğü)
Our firm completes all filings with the relevant Chamber of Commerce. The branch receives a trade registry number and is officially recognized under Turkish law.
3. Obtain Tax Number and Social Security Registration
Once registered, we apply for a Turkish tax identification number and register the branch with the Social Security Institution (SGK).
4. Open a Bank Account
We assist with opening a corporate bank account for the branch using the company’s documents and registered address in Turkey.
5. Notify Municipality and Start Activity
The branch must register for municipal tax and business licenses where applicable.
Tax and Legal Compliance for Branches
- Subject to corporate tax (23%) and VAT (18%)
- Must keep Turkish-compliant financial records
- Appoint a local accountant for monthly declarations
- Must file annual financial reports with the parent company
- Income tax withholding and SSI premiums for employees
Estimated Timeline to Open a Branch Office
- Document preparation and apostille: 1–2 weeks
- Translation and notarization: 2–3 days
- Registry and tax setup: 5–10 business days
- Total estimated time: 2–4 weeks
Can a Branch Be Converted Into a Company Later?
Yes. Foreign companies that want to expand their activities or change structure may choose to establish a subsidiary (limited or joint stock company) instead of a branch. Our lawyers assist with this transition.
Why Work with ER&GUN&ER Turkish Law Firm?
- Custom-tailored branch opening strategies
- All paperwork prepared in English–Turkish
- Fast-track registration and full local representation
- Corporate tax and legal compliance advisory
- Ongoing business legal support for branch operations
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Frequently Asked Questions (FAQs)
- Is a branch a separate legal entity? No. A branch operates under the parent company and is not a separate legal person.
- Can a branch office sign contracts in Turkey? Yes. A branch can enter into binding agreements in Turkey.
- Can a branch generate revenue? Yes. Branches can invoice and conduct business like local companies.
- Is branch income taxable in Turkey? Yes. All local income is subject to Turkish corporate tax.
- Can I open a branch remotely? Yes. With a power of attorney, our team can handle everything on your behalf.
Conclusion: Build Your Business Presence in Turkey
Opening a branch office is one of the most efficient ways for foreign companies to expand into Turkey. With the legal expertise of the Best Lawyer in Turkey and our team of English Speaking Turkish Lawyers, ER&GUN&ER helps you establish a compliant, functional, and tax-registered branch swiftly and securely. Get in touch today to start your branch registration process in Turkey.