Foreign companies operating abroad can open liaison offices in Türkiye. To open a liaison office in Türkiye, an application for establishment permission must be made first.
In order to obtain permission to open a liaison office, the foreign company must prepare certain documents. These documents must be apostilled by an authorized institution abroad. Then, the original apostilled documents must be sent to Türkiye.
The documents received in Türkiye will be sworn translated and notarized.
The next step involves obtaining a potential tax number for the foreign company in Türkiye.
After completing the document preparation and approval process, the necessary documents, petition, and forms for the liaison office permit should be submitted to the institution that will review them. The review process can take approximately 15 days to 1 month. If the review is successful, the liaison office activity permit will be granted.
For initial applications, permission is granted for up to 3 years based on the declared activities. Offices wishing to extend their activity period must apply for an extension before the activity period ends.
Once the permit is granted, the liaison office can operate in Türkiye.
Liaison offices in Türkiye can employ staff. If the salaries of employees in liaison offices are paid in foreign currency by the foreign headquarters, no income tax will be calculated on these salaries. This provides a significant tax advantage for these liaison offices, as income tax is calculated at rates ranging from 15% to 40%. The rates are based on a progressive income tax scale.
Social security premiums (SGK) are deducted from employees’ salaries. The premium rate is around 34%.
Liaison offices in Türkiye are not allowed to engage in commercial activities. However, they can promote and market products and services. They cannot purchase and sell goods for commercial purposes.
Activities that Liaison Offices in Türkiye Can Perform:
- Representation and Hospitality
Representation of the foreign company in sectoral organizations and relevant events, coordination and organization of business meetings for foreign company executives in Türkiye, meeting office space needs for these individuals. - Supplier Control and Monitoring
Control, inspection, and procurement of suppliers for the foreign company, ensuring that companies producing on behalf of the foreign company meet its quality standards. - Technical Support
Providing training or technical support to distributors, offering assistance to suppliers in improving quality standards. - Communication and Information Transfer
Collecting and transferring information to the foreign company on market developments, consumer trends, sales status of competitor companies and distributors, distributor performance, and other related matters. - Regional Management Center
Providing coordination and management services related to investment and management strategies for foreign companies’ subsidiaries in other countries, including planning, promotion, sales, after-sales services, brand management, financial management, technical support, R&D, external sourcing, testing of newly developed products, laboratory services, research and analysis, and employee training.
For more details on establishing and obtaining operating permits for liaison offices in Türkiye, please contact us at info@karenaudit.com.
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.
