Establishing a representative office in Turkey allows foreign companies to explore the Turkish market, build strategic relationships, and conduct non-commercial activities without establishing a full-fledged legal entity. However, the process is regulated and requires specific permissions. This guide, prepared by a top-tier Turkish Law Firm and English Speaking Turkish Lawyers, explains the legal procedures and compliance requirements. Trust the Best Lawyer in Turkey to help you launch your presence in Turkey legally and effectively.
What Is a Representative Office?
A representative office (temsilcilik) is a legal structure that enables a foreign company to maintain a presence in Turkey solely for liaison and non-commercial activities such as:
- Market research
- Feasibility studies
- Promotion and brand development
- Communication with suppliers or customers
Key Legal Limitations
- Representative offices cannot engage in commercial activities (i.e., sell or invoice).
- They are not subject to corporate income tax but must file annual activity reports.
- They are permitted for an initial 3-year period, extendable upon application.
Legal Basis for Establishment
- Foreign Direct Investment Law No. 4875
- Regulation for Implementation of the Foreign Direct Investment Law
- Guidelines issued by the Ministry of Industry and Technology
Step-by-Step Procedure for Establishment
1. Prepare Required Documents
- Application letter (explaining intended activities)
- Certificate of incorporation of the parent company
- Board resolution to open a representative office
- Power of attorney to the Turkish representative
- Activity report and balance sheet of the parent company
2. Legalization and Translation
All foreign documents must be apostilled and translated into Turkish by a sworn translator.
3. Submit Application to the Ministry
Apply to the Ministry of Industry and Technology General Directorate of Incentive Implementation and Foreign Investment.
4. Obtain Establishment Permit
If the application is approved, the Ministry issues a permit valid for 3 years.
5. Complete Tax and Social Security Registration
Although not a commercial entity, the representative office must obtain a tax ID and register with the Social Security Institution for payroll purposes.
Post-Establishment Obligations
- File an annual activity report with the Ministry
- Maintain non-commercial status strictly
- Notify the Ministry of any changes in address or authorized representatives
Duration and Renewal
The permit is initially valid for 3 years and can be extended by submitting documents showing that the office continues to engage in permitted activities.
Common Mistakes to Avoid
- Engaging in commercial activities such as issuing invoices
- Missing annual reporting deadlines
- Failing to renew the permit on time
Why Work with ER&GUN&ER Turkish Law Firm?
- Preparation and submission of all required documents
- Official correspondence with the Ministry
- Full process management in English and Turkish
- Ongoing compliance support and permit renewal
- Trusted legal partner for foreign companies
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Frequently Asked Questions (FAQs)
- Can a representative office engage in sales? No. Only non-commercial activities are permitted.
- What is the initial duration of the representative office permit? Three years, extendable upon application.
- Are representative offices taxed in Turkey? They are exempt from corporate tax but must file certain reports.
- Do I need a Turkish partner to open a representative office? No, 100% foreign ownership is allowed.
- Is there a minimum capital requirement? No, but sufficient operational funding must be demonstrated.
- How long does the application process take? Typically 4–6 weeks if all documents are in order.
- Can I convert a representative office into a full company later? Yes, via separate legal formation and transfer processes.
- Do I need a local address? Yes, a physical office address in Turkey is mandatory.
- Are foreign employees allowed? Yes, with valid work permits.
- Why choose ER&GUN&ER? Our English Speaking Turkish Lawyers provide end-to-end legal assistance and ongoing compliance advisory.
Conclusion: Establish Your Legal Presence in Turkey with Confidence
Setting up a representative office in Turkey offers a strategic gateway into one of the region’s most dynamic markets. By partnering with the Best Lawyer in Turkey from a leading Turkish Law Firm, and working with English Speaking Turkish Lawyers, you ensure full compliance and operational peace of mind. Contact us today to begin the process.