Liaison Office Establishment in Turkey

Establishing a liaison office in Turkey is an excellent way for foreign companies to explore the local market without engaging in commercial activities. Liaison offices act as representatives of their parent companies, focusing on activities such as market research, networking, and overseeing operations. While they are not permitted to generate revenue, liaison offices provide a strategic entry point into the Turkish market and can be a precursor to company formation in Turkey.

Why Establish a Liaison Office in Turkey?

1. Strategic Market Entry
   Liaison offices allow companies to assess Turkey’s market potential and establish a local presence without full incorporation.

2. Cost-Effective
   Compared to setting up a full-fledged business, establishing a liaison office requires fewer financial and administrative commitments.

3. Brand Representation
   Liaison offices enable companies to promote their brand, build relationships, and maintain visibility in the Turkish market.

4. Pathway to Expansion
   A liaison office can serve as a stepping stone for future company formation in Turkey, allowing businesses to transition seamlessly into commercial activities.

Key Steps to Establish a Liaison Office in Turkey

The process for establishing a liaison office involves specific regulatory requirements:

1. Application to the Ministry of Industry and Technology
   A liaison office must obtain permission from the Turkish Ministry of Industry and Technology. The application includes detailed documentation about the parent company and the intended office activities.

2. Registration with the Tax Office
   While liaison offices are non-commercial, they must still register with the Turkish Tax Office for record-keeping purposes.

3. Lease Agreement and Office Setup
   Secure a physical office location and prepare it for operations.

4. Appointment of a Local Representative
   A Turkish resident or company representative must be appointed to oversee the liaison office’s legal and administrative matters.

Liaison Office vs. Company Formation in Turkey

While a liaison office is limited to non-commercial activities, it provides businesses with the opportunity to understand the local market and regulations. Companies planning a long-term presence or commercial activities should consider transitioning to company formation in Turkey, which offers full operational capabilities.

How KEYBIZ CPAs & Advisors Can Help

At KEYBIZ CPAs & Advisors, we offer comprehensive support for establishing liaison offices in Turkey, including:

• Regulatory Guidance: Assistance with preparing and submitting the application to the Ministry of Industry and Technology.
• Tax and Administrative Support: Ensuring compliance with all regulatory requirements for non-commercial entities.
• Transition to Company Formation: If you decide to expand, we provide seamless guidance for transitioning to a commercial entity through company formation in Turkey.
• Ongoing Support: From payroll management to financial advisory, we provide continued support for all your operational needs.

Conclusion

Establishing a liaison office in Turkey is a strategic step for businesses exploring new opportunities in a dynamic market. Whether you aim to build relationships, conduct market research, or prepare for full company formation in Turkey, a liaison office offers a valuable starting point.

Contact KEYBIZ CPAs & Advisors today to learn more about liaison office establishment and how we can support your business journey in Turkey!