Companies established under foreign laws can open a liaison office in Turkey, provided they do not engage in commercial activities, by obtaining permission from the Republic of Turkey Ministry of Industry and Technology.

To open a liaison office, an application must be submitted to the General Directorate of Incentive Implementation and Foreign Investment at the Ministry of Industry and Technology with the following documents:

  • Application form
  • A declaration that includes the scope of the activities to be conducted by the liaison office and an undertaking that the office will not engage in commercial activities*, along with a document showing the signing authority of the foreign company representative who signed the declaration.
  • A certificate of activity for the foreign company, certified by the relevant Turkish Consulate or in accordance with the provisions of the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents.
  • An activity report or balance sheet and income statement prepared for the foreign company.
  • A letter of authorization for the person(s) appointed to carry out the activities of the liaison office.
  • A power of attorney if the establishment process of the liaison office is to be carried out by another person.

If the original documents are presented to the General Directorate, copies of the documents are certified by the General Directorate, and the originals are returned to the applicant.

In the initial application for liaison offices, permits are issued for a maximum period of three years within the scope of the declared activities.

Offices wishing to extend their activity periods must apply to the General Directorate before their activity period expires.

The General Directorate may finalize extension requests by evaluating the activities of the office in the previous years, the foreign company’s future business plans and goals in Turkey, the current and projected expenditure amounts, and the number of personnel employed.

Offices that have been granted permission for market research or for promoting the products or services of the foreign company are not granted extensions for their activity periods.

Applications for establishment and extension are finalized within fifteen business days from the date of application, provided that the required information/documents are complete and accurate.

Requests to open a liaison office by foreign companies intending to operate in financial fields with special legislation, such as money and capital markets, or insurance, are evaluated by institutions or organizations authorized under the relevant special legislation, such as the Capital Markets Board or the Banking Regulation and Supervision Agency.

The Ministry, when deemed necessary, may finalize requests to open a liaison office by foreign companies in other sectors where permission, licenses, or similar authorizations are required for operation, by consulting the relevant institutions or organizations that grant such permissions or licenses.

Liaison offices are required to submit a copy of their tax office registration certificate and the office lease agreement to the General Directorate within one month.

Offices must notify the General Directorate within one month of any changes to the office address, office manager(s), or the foreign company’s name, along with the new lease agreement showing the new address, the letter of authorization for the newly appointed person, or documents regarding the change in the foreign company’s name.

If a liaison office terminates its activities, the office must submit a termination inspection report obtained from the relevant tax office to the General Directorate for the closure process. Apart from the balance remaining after closure and liquidation, offices are not allowed to request any transfers.

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Disclaimer: The information in this article is provided for general information purposes only. It is not intended for a professional informational purpose specific to a person or institution. Although it is similar to the subject, each business may have different situations due to its own special conditions. For this reason, it is in your best interest to consult an expert before taking any decision that will affect your business based on the information provided in this article. Karen Audit or any of the persons or institutions it is associated with is not responsible for any loss or damage that may arise as a result of the use of the information contained in this document by private or official, real or legal persons, institutions and organizations.