Opening of a Branch in Turkey by a Foreign (Foreign-Based) Company

Opening of a Branch in Turkey by a Foreign (Foreign-Based) Company

The Turkish market is an attractive center for many foreign investors with its strong domestic consumption, regional trade advantage and dynamic business ecosystem. For this reason, the subject of "Branch Opening in Turkey by a Foreign (Foreign-Based) Company"  is one of the most researched topics by both companies planning investment and entrepreneurs looking for consultancy. In this article,  we will discuss the process of opening a branch in Turkey in a practical and understandable way: what is a branch, what documents are required, what are the trade registry and tax steps, how do financial obligations work?

Note: This content is for general informational purposes only. Application details may vary by industry, city, and country of the company; It is useful to get financial advisor/lawyer support in official processes.

What Does "Branch" Mean in Turkey?

A branch is when a parent company established abroad operates in Turkey without establishing a separate legal entity . In other words, the branch is an extension of the parent company; carries out the commercial activity in Turkey, but the legal bond with the "parent company" continues.

Opening a Branch or Establishing a Company?

The most compared options at the decision stage are:

• Branch: The legal entity is not separate, the parent company bears the responsibility more directly.
• Limited/Joint Stock Company: A separate legal entity is formed in Turkey, the structure can be perceived as more "local" and investor-friendly.
• Liaison Office: Does not allow commercial activity; it is used for limited purposes such as market research and representation.

Quick summary: If you want to do business by issuing invoices in Turkey, a liaison office is not suitable; a branch or local company is generally  preferred.

Advantages of Foreign Company Opening a Branch in Turkey

Opening a Branch in Turkey by a Foreign (Foreign-Based) Company provides a strategic advantage in some cases:

• Fast market entry: It proceeds with a more "extension" logic than the establishment of a new company.
• Brand continuity: Ease of conducting operations with the name and reputation of the parent company.
• Operational flexibility: It can be applied in many areas such as sales, service, project, logistics, software, consultancy.
• Opportunity to become a regional center: Access to peripheral markets through Turkey.

Considerations

• Since the branch is not independent of the parent company, responsibility and risk management should be set up correctly.
• Accounting and tax obligations become important according to the mode of activity.

Key Institutions and Processes for Branch Opening in Turkey

When opening a branch, transactions are usually made with the following institutions:

• Trade Registry Directorate (registration of the branch)
• MERSIS (registration and application processes)
• Tax Office (tax registration, inspection, etc.)
• SSI (workplace declaration, personnel processes)
• Where required: Notary, Sworn Translator, Bank, Immigration/Work permits (for foreign employees)

Required Documents: The Most Required Documents for Branch Opening

Although the list of documents at the opening of a branch may vary from country to country and according to the structure of the parent company, in practice the most frequently requested are:

Documents Related to the Parent Company

• Certificate of activity / registration certificate (shows that the parent company is present and active)
• Articles of association / incorporation documents
• Decision of the competent body (Decision of the board of directors/partners regarding the opening of a branch in Turkey)
• Decision on the appointment of a branch manager
• Power of attorney (for the person/institution that will carry out the transactions)
• Documents showing the authorization to sign (varies by country)

Translation, Notary and Apostille

• Most of the documents  may require sworn translation and notary procedures to be used in Turkey.
• Depending on the country where the document is issued, an apostille or consular approval may be required.

Tip: The paperwork process is often the part that affects the calendar the most. When preparing documents, consistency in both content and format (date, title, scope of authority) is critical.

Branch Opening Steps: How to Proceed in Practice?

The following flow  shows the process of Opening a Branch in Turkey by a Foreign (Foreign-Based) Company in "general":

1) Clarification of Branch Information

• Branch title
• Field of activity (classifications such as NACE code may affect)
• Branch address (lease contract, title deed, etc. may be required)
• Branch manager and scope of authority

2) Preparation and Harmonization of Documents

• Parent company decisions
• Proxy system
• Translation + notary + apostille/onsay processes

3) Application and Trade Registry Registration via MERSİS

• MERSIS registration and application steps
• Official establishment of the branch with trade registry registration

4) Tax Office Registration and Inspection

• Tax number, liability facilities
• Actual address verification/polling processes

5) SSI and Personnel Processes (If Any)

• Workplace declaration
• Payroll, employment declarations

6) Bank Account and Financial Operations

• Bank account opening in the name of the branch (bank policies may vary by country, sector and document set)
• Payment infrastructures, collection, pos, etc.