Opening a Branch Office in Turkey: Step-by-Step Guide 2026
Published: · Updated: · 10 min read
Opening a Branch Office in Turkey: Step-by-Step Guide 2026
A foreign company entering Turkey has three structurally different options that get confused constantly: a branch office (şube), a subsidiary company (typically an LLC), and a liaison office (irtibat bürosu). Only one of them lets you actually trade with no separate legal personality — and each carries very different liability and tax consequences for the parent company.
Branch vs. Subsidiary vs. Liaison Office
| Branch office (şube) | Subsidiary (LLC) | Liaison office (irtibat bürosu) | |
|---|---|---|---|
| Legal status | Not a separate legal entity — the parent company is directly liable | Separate Turkish legal entity, liability generally limited to its own capital | Not a separate legal entity, cannot conduct commercial activity |
| Can it invoice/trade in Turkey? | Yes | Yes | No — representation and market research only |
| Approval needed | Trade Registry registration | Trade Registry registration | Ministry of Industry and Technology permit |
| Typical use case | Parent company wants direct control and full trading rights without a new legal person | Investor wants liability separation from the parent | Company wants a local presence for research/coordination before committing to trading |
Step-by-Step: Registering a Branch Office
- Appoint an authorized representative resident in Turkey — a branch must have someone empowered to act on its behalf locally
- Prepare and notarize the parent company's incorporation documents and board resolution authorizing the branch, with certified translations
- Register the branch with the Trade Registry in the province where it will operate
- Obtain a tax identification number and register with the local tax office
- Open a corporate bank account and complete social security registration before hiring any staff
Liability: The Detail Many Parent Companies Miss
Because a branch has no separate legal personality, the parent company is directly and fully liable for the branch's obligations in Turkey. If liability separation is a priority — for example if the Turkish operation carries meaningful commercial risk — a subsidiary structure is usually the more appropriate vehicle, even though it involves creating a new legal entity.
Tax Treatment
A Turkish branch of a foreign company is generally taxed on its Turkey-sourced income similarly to a resident company, and profit repatriation to the parent may be subject to withholding tax depending on any applicable double-taxation treaty between Turkey and the parent's home country. Confirm the current treaty position with a tax advisor before finalizing your structure, since treaty rates vary by country.
Frequently Asked Questions
What is the main difference between a branch and a subsidiary?
A branch has no separate legal personality — the foreign parent company is directly liable for everything the branch does. A subsidiary (usually an LLC) is a separate Turkish legal entity, so liability is generally contained within it.
Can a liaison office sign contracts or invoice clients in Turkey?
No. A liaison office (irtibat bürosu) is explicitly limited to representation, market research, and coordination activities and cannot conduct commercial trading or generate revenue in Turkey.
Do I need a local representative to open a branch office?
Yes — a branch must have an authorized representative resident in Turkey empowered to act on its behalf for registration and ongoing operations.
How is a branch office taxed compared to a subsidiary?
A branch is generally taxed on Turkey-sourced income in a similar way to a resident company, but repatriation of profits to the parent can trigger withholding tax depending on the relevant double-taxation treaty. Get current, country-specific tax advice before deciding on structure.
Which structure is right for my company?
It depends on how much liability separation you want, whether you plan to trade immediately or just explore the market first, and your tax position. A liaison office suits early market research; a branch or subsidiary suits active trading, with the branch-vs-subsidiary choice mainly about liability exposure.
Conclusion
Ready to move forward? Request a free consultation and our team will guide you through every step in Turkey.
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