1- Foreign Companies Can Open Branches in Türkiye
One of the methods of a foreign company located abroad to carry out commercial activities in Türkiye is to open a branch in Türkiye.
In this method, a limited liability (LLC) or joint stock company (JSC) is not established in Türkiye. A branch of the foreign company is opened in Türkiye.
2- Potential Tax Number is Obtained for Foreign Company
A screen printout showing the potential tax number obtained from the tax office in Türkiye for the headquarters abroad should be attached to the organization application document. There is no need to submit a separate potential tax number for the branch to be established.
3- The Signatory Person Signs the Establishment Application
The petition for the application for the establishment of the branch shall be signed by the signatory of the branch. The petition can also be signed by proxy.
4- The required information is written clearly
The title, capital, headquarters, date of opening of the branch and the subject of its actual activity on that date must be clearly indicated with the NACE code and it shall be written that the responsibility lies with the person or persons signing the petition if it is determined otherwise that this information is correct.
5- The Headquarters of Company Abroad Must Take a Decision
A decision should be taken regarding the opening of a branch in Türkiye by the authorized body of the center abroad and the appointment of a plenipotentiary representative resident in Türkiye to the branch. In the decision of the company abroad to open a branch, if it is not specified that the person or persons who will represent the branch in Türkiye and the authority given to them are authorized to represent the branch in full / in all matters, the power of attorney issued regarding these issues should be attached.
There must be a letter from the competent authority showing that the law of the country of origin where the business entity is headquartered has fulfilled the conditions required for registration for the entity to open a branch and the documents required for the registration of the branch.
Documents that must be submitted for the registration of the branch in the country where the center is located must be prepared.
A certified copy of the document containing the current registration records of the central entity and, in the case of companies, the company charter must also be prepared.
6- A document containing the main information of the main company abroad must be submitted
Title, type, subject of operation, type and amount of capital, date of establishment, registration number, law to which it is subject, whether it is a member of the European Union or not, website of the center that will open a branch, original of the declaration signed by the officials of the center, which includes the title of the branch and the amount of capital allocated to the branch, the name and surname of the person or persons who will represent the branch as fully authorized, identity number, place of residence and the address of the branch, must be submitted to the registry office in Türkiye at the time of establishment of the branch.
For branches whose subject of activity and opening permit are subject to the permission or appropriate opinion of ministries or other official institutions, this permission or appropriate opinion letter must be obtained before establishment.
7- Branch Manager Can Be a Foreign Person
If the person or persons who will represent the branch are foreign nationals, their passports must be translated into Turkish and notarized.
The signature declarations of the person or persons who will represent the branch in Türkiye (who will be the signatory) are also among the documents that need to be prepared.
8- Documents Prepared Abroad Must Be Approved From Abroad
Documents prepared by the center abroad must be apostilled or approved by the Turkish consulate.
9- The title should be determined in accordance with the rules
The title of the first branches of foreign companies to be opened in Türkiye will be as follows;
It should be determined as “Headquarters title + country where the center is located + Istanbul Head Branch/Office”.
Example: X Company GMBH Headquarters Germany Istanbul Head Office
The word “Headquarters” will not be included in other branch titles opened after the opening of the central branch.
10- Registration, Announcement Tax Office and SSI Registrations Should Be Made.
After the branches are registered in the trade registry office of the province where they will be established and registered in the chamber of commerce or the chamber of industry, the tax office is opened. Then, opening procedures are carried out before SSI, Turkish Employment Agency (İŞKUR), Municipality and other institutions.
11- Branches Can Operate Commercially
The branch in Türkiye can carry out commercial activities. It can issue invoices. It can buy and sell goods and services. Like companies in Türkiye, income makes expense statements in the same way. It submits tax and social security declarations and notifications to the tax office and social security institutions. It can employ workers. Tax and SSI rates are the same as regular companies.
You can write to us at info@karenaudit.com for information about the establishment of a foreign company’s branch in Türkiye.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
