Foreign investors in Turkey have many options when it comes to opening a company
. Entrepreneurs who want to expand their activities in the country can choose to open a new company or a branch in Turkey
. A branch of a foreign parent company
has several advantages regarding the rapidity of the incorporation and the incorporation costs.
The characteristics of a Turkish branch
A branch is essentially an extension of the parent company outside the country. This is a good thing as the incorporation costs will generally be lower than in the case of a new company or a subsidiary and it can commence its activities in Turkey much faster. On the other hand, the branch is fully dependent on the parent company that is fully liable for the debts and obligations of the Turkish branch.
Like any other legal entity in Turkey
, the branch must be registered at the Trade Register. Before registering the company, a set of documents need to be drafted and prepared in order for the representatives of the branch to be able to make the application for registration
Registering a branch in Turkey
The application for registering a branch in Turkey must be signed by the authorized representative of the company and submitted to the Ministry of Industry and Trade. The application must include the following documents:
- identification details for the parent company - name, nationality, date of establishments, address and capital;
- identification details for the appointed authorized representative of the Turkish branch;
- a copy of the company’s articles of association;
- a power of attorney that empowers the appointed representative to take any legal action in Turkey on behalf of the branch.
All the documents must be submitted in Turkish as certified and legalized translations. After the application is submitted to the Ministry, the company must also submit the necessary documents to the Trade Registry Office
. They include: the permit to open the branch
obtained from the Ministry of Industry and Trade, a special application form, notarized and legalized copies of the power of attorney for the branch representative and other letters and declaration forms.