Establishing a representative office in Turkey enables foreign companies to conduct market research, promote services, and liaise with clients, without attributing local commercial income. Istanbul Law Firm, recognized as the best law firm in Turkey for foreign corporate presence, provides full-service legal support—from trade registry filings to ongoing compliance reviews. Our Turkish Lawyers draft necessary documents such as board resolutions, POA, and representative appointment letters. The English speaking lawyer in Turkey team ensures translations are accurate, certified, and submission-ready. We also coordinate with the Trade Registry and local tax offices to register your office. For further company formation services, check our guides on Opening a Company Bank Account in Turkey and Corporate Law in Turkey.

1. Legal Basis & Permitted Activities of Representative Offices

Under Turkish Commercial Code, a representative office (liaison office) may not engage in profit-generating commercial activities—it can only carry out promotional, liaison, and informational functions. Istanbul Law Firm ensures your office’s activity conforms to permitted purposes, reducing risk of trade registry non-compliance. Our Turkish Lawyers draft purpose statements, proof of foreign registration, and notarized translations. The English speaking lawyer in Turkey team confirms all documentation is language-savvy and culturally appropriate. We help file application packages with Trade Registry and Ministry of Trade. This careful approach ensures legal approval with minimal review time. Using your representative office correctly protects foreign brand integrity in Turkey.

Representative offices must register with the Trade Registry within three months of opening, providing notarized documents, Turkish address, and tax ID registration. Istanbul Law Firm coordinates filings with Istanbul, Ankara, or Izmir Trade Registries. Our Turkish Lawyers ensure correctness of articles of association, POA, and appointment forms. The English speaking lawyer in Turkey team manages translations and communications in English. We also assist in securing a tax ID and opening a liaison office account—preceding incorporation of a subsidiary or branch. For details on opening corporate entities, see our article on Setting Up a Branch Office in Turkey. This foundational compliance avoids future violations or tax warnings.

Once registered, the liaison office will also need to apply for a unique Tax Office registration and share remit information with SGK if hiring Turkish staff. Istanbul Law Firm assists in selecting the right tax authority based on your office address. Our Turkish Lawyers complete tax filings and coordinate SGK notifications if local personnel are appointed. The English speaking lawyer in Turkey team clarifies reporting obligations to foreign companies and ensures bilingual compliance. We also facilitate opening a TOR (Tax Office Representative) role if needed. Proper legal placement ensures full alignment with Turkish corporate governance and labor frameworks.

2. Appointment of Representative & Power of Attorney Process

The representative of the liaison office must be a Turkish-resident individual, appointed by the parent company through a notarized Power of Attorney (POA). Istanbul Law Firm drafts the POA, ensuring it complies with Turkish notary standards. Our Turkish Lawyers assist with apostille or consular verification of the foreign company’s board resolution. The English speaking lawyer in Turkey team manages translation and formal presentation to notary. We also secure the appointed representative’s signature declaration and Turkish ID copies. This POA process is critical to ensure legal recognition and operational authority under Turkish law.

Once appointed, the representative must register with SGK if remunerated or hire local personnel. Istanbul Law Firm guides salary agreements, labor contract templates, and SGK registration. Our Turkish Lawyers prepare employment documents and sign up the representative with the local authorities. The English speaking lawyer in Turkey team ensures important contract clauses are bilingual and compliant. We also advise on tax withholding and payroll scope if the representative is paid in Turkey. This ensures the liaison office maintains a transparent compliance footprint without triggering local liabilities.

The POA can be limited for specific purposes—such as opening bank accounts, leasing office space, or signing commercial agreements. Istanbul Law Firm customizes POAs to suit your planned activities without overextension. Our Turkish Lawyers draft separate deed versions and coordinate notarization and translation. The English speaking lawyer in Turkey team helps customize your corporate operations and draft bilingual authority scope definitions. We also register the POA and representative details with Trade Registry and tax offices. Tailored POAs support smooth liaison office operations aligned with company intent.

3. Required Documents & Licensing Process

To register a representative office in Turkey, the foreign company must submit a formal application to the Ministry of Trade via the Trade Registry, including notarized foreign trade registry extracts, board resolutions, and a detailed power of attorney (POA) for a resident representative:contentReference[oaicite:1]{index=1}. Istanbul Law Firm ensures that your documents are fully apostilled or legalized, officially translated by sworn translators, and formatted according to Turkish registry standards. Our expert Turkish Lawyers organize the paperwork package, checking for completeness before submission. The English speaking lawyer in Turkey team also ensures translation validity and readiness for registry review. We coordinate the registration process, including filing in the Turkish Trade Registry Gazette and notifying the local Tax Office and SGK:contentReference[oaicite:2]{index=2}. Detailed oversight significantly reduces rejection risks and speeds approval. Submitting correctly at first avoids expensive delays for your company entry into Turkey.

After submitting the application, the Ministry of Trade verifies that your office will only conduct liaison and promotional activities, not commercial ventures. Istanbul Law Firm prepares you for any follow-up requests or clarifications from registry authorities. Our Turkish Lawyers liaise with the Ministry and the Chamber of Commerce to ensure expedited handling. The English speaking lawyer in Turkey team manages draft translations of official replies, keeping you fully informed. We then secure the tax identification number and, if needed, open a bank account for office operations—referencing guidance in our articles on Opening a Company Bank Account in Turkey. Ensuring tax registration and bank readiness supports operational consistency and compliance.

Liaison offices enjoy tax-friendly status: they are exempt from corporate tax, VAT, and stamp duty on local expenses, provided they do not generate income:contentReference[oaicite:3]{index=3}. Istanbul Law Firm advises on permissible office expenses, such as rent, utilities, and staff costs, ensuring they remain within non-commercial limits. Our Turkish Lawyers prepare expense documentation to support tax filings when required. The English speaking lawyer in Turkey team creates an expense template with dual-language receipts. We also provide internal expense guidance that aligns with the limited scope of liaison activity. With accurate expense tracking, you maintain compliance while keeping your office fully functional in Turkey.

4. Employment, Work Permits & SGK Registration

A representative office may employ both Turkish and foreign staff, including a foreign liaison representative, but any foreign employees must obtain Turkish work permits and matching residence permits:contentReference[oaicite:4]{index=4}. Istanbul Law Firm supports the work permit application process, gathering employment contracts, job descriptions, and SGK filings. Our Turkish Lawyers submit the applications through the e-Government portal and liaise with the Ministry of Labor and Social Security to ensure all rules—such as minimum capital or employee quotas—are satisfied:contentReference[oaicite:5]{index=5}. The English speaking lawyer in Turkey team helps translate contracts and SGK forms, facilitating foreign staff integration. We also align your HR strategy with broader employment services described in our articles on Legal Requirements for E‑Commerce Companies in Turkey and on Residence Permit Applications in Turkey. Proper permit and SGK management ensure legal operations and employee security.

Within 30 days of hiring Turkish nationals or foreign staff, the liaison office must complete SGK registration and file monthly premium declarations. Istanbul Law Firm ensures that SGK filings are timely and accurate. Our Turkish Lawyers handle payroll setup, verify SGK employer numbers, and prepare bilingual employee contracts. The English speaking lawyer in Turkey team automates reminders for SGK filings and provides annual summaries. We integrate these filings into your overall corporate calendar—as detailed in our article on Corporate Law in Turkey—to maintain compliance. Proper SGK integration also strengthens employee benefit eligibility and audit preparedness.

Foreign employees must also obtain residence permits following their work permit approval, which Istanbul Law Firm assists through the Directorate of Migration Management. Our Turkish Lawyers coordinate visa stamping, biometric appointments, and dossier completions. The English speaking lawyer in Turkey team helps with translations and communicates guidance in English during permit interviews. We align work permit validity with residence renewals to avoid status breaches, and reference our internal guide on independent work in Türkiye. This coordination ensures foreign staff members maintain lawful status and operational stability.

5. Ongoing Compliance & Office Renewal Requirements

Representative office licenses are granted for three years initially and can be renewed in three-year increments—subject to activity review:contentReference[oaicite:6]{index=6}. Istanbul Law Firm tracks renewal deadlines and prepares comprehensive renewal dossiers, including a summary of liaison activities, financial outlays, and staff registers. Our Turkish Lawyers coordinate with the Ministry of Trade to file the renewal package, paying appropriate renewal fees. The English speaking lawyer in Turkey team prepares bilingual activity reports and confirmation letters, aligning with you large-scale corporate compliance efforts. We also ensure your office address, representative details, and legal status are updated in renewed filings, preventing registry inconsistencies. Prompt renewal keeps your liaison office operationally valid and legally protected.

Additionally, any changes—such as a new representative, address update, or increased staffing—must be reported within one month:contentReference[oaicite:7]{index=7}. Istanbul Law Firm helps register these changes swiftly, preparing resolution documents and transition filings. Our Turkish Lawyers submit updated POAs, signed minutes, and notarized documents. The English speaking lawyer in Turkey team communicates updates with Trade Registry and Chamber of Commerce, preventing administrative gaps. We also reference ongoing reporting obligations discussed in our article on Business Litigation in Turkey to guard against compliance issues. Keeping registry data current avoids legal missteps and formal penalties.

Terminating the liaison office also requires formal deregistration and deletion from the Trade Registry Gazette, SGK cancellation, and tax office deregistration. Istanbul Law Firm assists with closure filings, securing a clean exit from Turkish bureaucracy. Our Turkish Lawyers prepare signed closure petitions and formal notices for relevant authorities. The English speaking lawyer in Turkey team oversees translations, tax clearances, and archive documentation. We ensure your parent company’s liabilities are terminated and that future business expansion in Turkey can occur without lingering obligations. A legally clean dissolution protects your global corporate reputation and prepares the ground for future investments.

6. Tax Position & Expense Deductions for Liaison Offices

Representative offices do not generate commercial income and are therefore exempt from corporate income tax, VAT, and stamp duty—however, they can deduct operating costs such as rent, utilities, and staff salaries as non-profit expenses. Istanbul Law Firm supports your office in preparing detailed expense reports, ensuring alignment with Turkish Tax Procedure Law and maintaining eligibility for expense deductions. Our Turkish Lawyers guide the preparation of monthly expense summaries and bilingual financial statements. The English speaking lawyer in Turkey team ensures that these records are correctly translated and formatted for tax office audits. We also advise on deductible categories and document retention policies to support any future inspections. Proper financial management ensures that your liaison office remains compliant without tax exposure. Full expense tracking supports transparency and audit readiness.

If your office incurs rental or lease payments, you must file monthly withholding tax notifications—even if no corporate revenue is generated. Istanbul Law Firm prepares and submits withholding tax forms using the Turkish tax administration (GİB) portal on your behalf. Our Turkish Lawyers verify bank statements and rental contracts to calculate the correct withholding amount. The English speaking lawyer in Turkey team translates the summaries into English to clarify the procedure for your finance team abroad. We also support BI-Lingual expense breakdowns for utility and service costs linked to office operations. This ensures your office remains compliant without overstepping the liaison status. Timely filings prevent late penalties and preserve your office’s clean record.

Though exempt from VAT, liaison offices must still issue VAT-inclusive invoices for reimbursable expenses or services provided by Turkish suppliers. Istanbul Law Firm helps structure expense policies and invoices in compliance with Turkish invoicing norms, ensuring appropriate VAT identification numbers are used. Our Turkish Lawyers draft sample invoices and guides for Turkish suppliers, while the English speaking lawyer in Turkey team prepares bilingual invoices supporting audit trail consistency. We also coordinate with CPAs for year-end financial reconciliation. Clear invoice processes support both compliance and operational clarity. Correct invoicing prevents supplier-related tax disputes and strengthens internal financial systems.

7. Liability, Insurance & Legal Safeguards

A liaison office must secure professional indemnity or general liability insurance if it enters premises contracts or signs service agreements on behalf of its parent company. Istanbul Law Firm advises on suitable insurance packages that cover premises, personnel, and third-party liability within Turkey. Our Turkish Lawyers review insurance terms to ensure alignment with statutory regulations and the liaison office’s simplified legal status. The English speaking lawyer in Turkey team helps translate policies and summaries for foreign stakeholders’ clarity. We also assist in claims coordination—should any incident occur—ensuring legal coverage is effective. Insurance compliance protects both your location and your parent company from unsolicited liability. Proper risk management reflects professional practice standards.

Although the liaison office does not execute contracts for profit, it may still host Turkish employees whose workplace risks must be insured under SGK provisions. Istanbul Law Firm supports the registration of employees and representative staff with SGK, providing social security coverage. Our Turkish Lawyers prepare employment contracts with risk disclaimers and coordinate with SGK officials to confirm workplace compliance. The English speaking lawyer in Turkey team ensures these forms are clear and compliant. We also assist with annual insurance renewals and compliance audits. Comprehensive legal safeguards protect both the employer and employees from unforeseen liabilities. This protects your liaison office and reinforces trust with staff.

Liability may also arise under data protection laws if your liaison office collects customer or client information. Istanbul Law Firm helps prepare GDPR- and KVKK-compliant privacy policies, consent statements, and data handling protocols. Our Turkish Lawyers review procedures and documentation systems to ensure legal adherence. The English speaking lawyer in Turkey team translates forms and privacy notices to match international norms. We also assist in registering your data handling practices with the Turkish Data Protection Authority (KVKK), where necessary. Proper data governance reduces regulatory risk and supports client confidence. Compliant data policies reflect modern legal standards for foreign offices.

8. Deregistration & Office Closure Procedures

Should you choose to close the liaison office, formal deregistration is required from the Trade Registry Gazette, SGK, and Turkish Tax Office. Istanbul Law Firm prepares closure documents—including resignation of representative, employee termination forms, and formal deletion applications. Our Turkish Lawyers submit these through the registry portal and ensure proper announcements are made in the Official Gazette. The English speaking lawyer in Turkey team handles translation of termination notices and closure letters. We also manage tax clearance certificates and SGK de-registrations. A structured closure process prevents lingering liabilities and prepares the way for future investment. Clean deregistration preserves corporate reputation and compliance history.

Bank accounts, lease agreements, and insurance policies must be formally terminated before deregistration. Istanbul Law Firm coordinates with banks to close liaison office accounts and arrange final settlement payments. Our Turkish Lawyers review lease cancellation conditions and notice periods to ensure legal compliance. The English speaking lawyer in Turkey team translates exit letters or notices to Turkish landlords and insurers. We also ensure final utility bills are paid and documented. Careful coordination ensures operational closure lines up with bureaucratic deregistration. This protects your parent company from future claims.

Once deregistration is confirmed, parent companies may convert the liaison office into a branch, representative, or full subsidiary as their expansion demands. Istanbul Law Firm guides the planning and execution of this transition, drawing upon our full-service entity setup services outlined in our article on Setting Up a Branch Office in Turkey. Our Turkish Lawyers draft incorporation documents, negotiate lease transfers, and manage registry updates. The English speaking lawyer in Turkey team ensures bilingual documentation and facilitates banking transitions. We also advise on tax reallocations and SGK transfers. This expansion-capable process sets the stage for scalable investment into Turkey.

9. Ongoing Compliance & Reporting Obligations

After establishment, a representative office must maintain ongoing compliance, including submitting its financial highlights and representative activity reports annually to the Trade Registry and Tax Office—even though it does not trade locally. Istanbul Law Firm prepares these annual compliance reports, ensuring accurate expense summaries and staff logs. Our Turkish Lawyers liaise with registry authorities to confirm reports meet legal norms, while our English speaking lawyer in Turkey team ensures translation accuracy for any English-speaking stakeholders. We also coordinate with accountants or service providers referenced in our posts on Corporate Law in Turkey to integrate financial reporting. Timely compliance preserves your legal status and avoids penalties under Turkish Commercial Code.

Representative offices must also update any changes—such as address modifications, change of representative, or shift in staff—within one month of occurrence. Istanbul Law Firm manages these registry updates, preparing board resolutions, POA amendments, and notarial documents. Our Turkish Lawyers submit change notifications to relevant government bodies, while our English speaking lawyer in Turkey team provides bilingual confirmation letters. We also reference our guide on Business Litigation in Turkey to anticipate any potential dispute scenarios arising from corporate misreporting. Keeping records current ensures legal continuity and strengthens your office’s compliance profile.

Furthermore, if the parent company plans expansion—such as launching a branch or subsidiary—the representative office must coordinate with authorities to update its legal status or close out. Istanbul Law Firm drafts restructuring petitions and business transition plans, ensuring synergy with services like Setting Up a Branch Office in Turkey. Our Turkish Lawyers prepare notifications for trade registry and tax bureau, while our English speaking lawyer in Turkey team crafts bilingual documentation for both branches. We also ensure commercial address transfers and financial rollover explanations are handled correctly. Monitoring compliance ensures safe corporate scaling without legal hiccups.

10. Why Choose Istanbul Law Firm for Representative Office Setup

Istanbul Law Firm is the trusted expert and recognized as the best law firm in Turkey for liaison office establishment and foreign corporate presence. Our experienced Turkish Lawyers and English speaking lawyer in Turkey team manage registration, SGK, SGK-facing staff, translation, POAs, and ongoing compliance—delivered with bilingual clarity. We coordinate across Trade Registry, Tax Office, SGK, and banks to provide end-to-end setup. Our internal systems are linked with guides like Opening a Company Bank Account in Turkey and Residence Permit Applications in Turkey, enabling cohesive services for foreign clients. Partnering with us ensures legal confidence, bureaucratic efficiency, and strategic oversight.

We have established liaison offices for clients in Europe, North America, and Asia, securing timely registrations and full regulatory readiness. Our Turkish Lawyers handle board minutes, embassy-notarized POAs, and commercial address protocols, while our English speaking lawyer in Turkey team provides bilingual translations and stakeholder memos. We support client engagement with our articles on Compliance and Litigation to prepare for future scale-ups. Whether you aim to test the Turkish market or maintain a long-term liaison hub, our turnkey service leaves nothing to chance.

Our service offering extends to office closures, conversions to branch/subsidiary, and integration into broader corporate architecture whenever you're ready to expand. Istanbul Law Firm assists in the entire lifecycle—from representative registration through potential branch conversion. Our Turkish Lawyers and English speaking lawyer in Turkey team advise on legal structures, tax planning, SGK transitions, and reintegration. We integrate your liaison office into your broader Turkish operational roadmap—ensuring scalable and sustainable growth.

Frequently Asked Questions (FAQ)

• Can a liaison office earn income in Turkey? – No, it's restricted to non-commercial, promotional tasks.
• Do I need a Turkish representative? – Yes, who must hold Turkish residency and be appointed via POA.
• Can I hire locals? – Yes, but foreign hires need work and residence permits.
• Is income tax due for liaison offices? – No; however, expenses and withholding tax forms must be filed.
• What is the validity period? – Licenses are valid for 3 years and renewable on report submission.
• Can the office be converted later? – Yes; we support transitions to branch or subsidiary.
• Are regular reports required? – Yes, including annual financial and activity summaries.
• Is SGK mandatory if no Turkish staff? – No, only when Turkish employees or paid staff are used.
• Do we need liability insurance? – It depends on office operations and employee exposure.
• Can parent company fund local expenses? – Yes, with proper documentation to show non-commerce nature.
• What if we want to close? – We assist with full deregistration and residual reporting.
• Why Istanbul Law Firm? – We offer bilingual, full-lifecycle legal service for foreign offices.

Set Up Your Liaison Office with Legal Confidence

Istanbul Law Firm provides full legal and compliance support for foreign companies establishing representative offices in Turkey. Our Turkish Lawyers and English speaking lawyer in Turkey team guide you from entity planning through ongoing reporting and future conversion.