Establishing a liaison office in Turkey allows a foreign company to maintain a local presence for approved non-commercial activities, such as market research or representation. The process requires permission from the Ministry of Industry and Technology, and the proposed activities determine whether this structure is suitable. A company planning to sell goods, invoice customers or provide revenue-generating services through its Turkish office should consider a different structure. The first decision is therefore what the local team will actually do, since the office must operate within the scope of its permit.
Once the proposed activities are defined, the parent company can prepare the application documents, appoint a representative and arrange premises, funding and staffing. It should decide who will manage the office, how expenses will be paid and which duties employees will perform. Businesses still comparing entry options can review the broader business setup options in Turkey. The parent should also assign responsibility for annual reporting and monitoring the permit’s expiry date.
When Is a Liaison Office the Right Choice?
A liaison office can suit a foreign company that needs people in Turkey to gather market information, maintain business contacts or support an approved coordination function. It has no legal personality separate from the parent company, so establishing the office does not create a Turkish subsidiary. Obligations arising from its premises, employment arrangements and other authorized operations remain attributable to the foreign company. The parent should therefore assess the commitments its local representative will be authorized to make before appointing that person.
The available activity categories extend beyond preliminary market research. Depending on the permit, they can include representation, supplier sourcing and quality control, technical support for distributors or suppliers, information exchange and regional management functions. Each category needs to match the work the office will actually perform. For example, a manufacturer considering a team to assess Turkish suppliers should describe the proposed inspection and reporting duties clearly in its application. Permission for one activity should not be treated as general authorization to perform every function available to liaison offices.
Where the planned Turkish operation will conduct commercial business, a branch or subsidiary should be assessed from the outset. A branch remains part of the foreign company, whereas a subsidiary has its own legal personality. A business seeking a separately incorporated operation may therefore consider establishing a limited liability company in Turkey. The choice should reflect who will enter customer contracts, perform services and assume the resulting obligations, since those decisions affect the structure and documents needed for establishment.
Documents Required to Open a Liaison Office
The application file must establish the foreign company’s status, describe the proposed activities and identify the people authorized to act on its behalf. It includes the application form and an undertaking explaining the office’s intended work and confirming that it will not conduct commercial activities. The undertaking must be accompanied by evidence of the signatory’s authority to bind the parent company. The parent must also provide an authenticated certificate of activity and its annual report or balance sheet and income statement. These documents should consistently identify the foreign company applying for permission.
The file must also contain an authorization document for the person appointed to conduct the liaison office’s activities. Where a lawyer or another representative handles the establishment procedure, a power of attorney is required for that role. The authority to submit the application should be considered separately from the authority to manage the office after approval. As a drafting precaution, the parent should decide whether the relevant appointments will cover dealings with the Ministry, tax registration, leasing, employment and banking. Checking these powers before execution can avoid having to obtain additional documents from abroad during the setup process.
Foreign documents must meet the applicable authentication requirements and contain the information needed for the application. The parent company’s certificate of activity must be authenticated by apostille or through the relevant Turkish consulate, as applicable. Formalities for the remaining documents depend on the document type and issuing country; Turkish translations and notarization should be arranged where required. Before translation and certification, check names, company details and the scope of each person’s authority. Authentication alone does not establish that a signatory has authority to bind the company or that a representative has been validly appointed.
Applying for a Liaison Office Permit
The completed application is submitted to the Ministry of Industry and Technology’s General Directorate of Incentive Implementation and Foreign Investment. The Ministry assesses the proposed activities and the supporting documents when deciding whether to grant permission. For a newly established foreign company, it may require at least one year to have elapsed since incorporation, taking into account factors such as the company’s business activities, capital and employee numbers. This is a discretionary condition rather than an automatic waiting period for every applicant. The application should explain what the Turkish office will do in concrete terms, including its relationship with the parent company’s operations. Broad descriptions such as “business development” should be clarified so that the intended duties can be assessed against the permitted activity categories.
Establishment applications are to be concluded within fifteen working days where the required information and documents are complete and accurate. This review period does not cover the entire setup process. Obtaining, authenticating and translating foreign documents, or correcting an incomplete application, can add time. The schedule should also allow for banking, premises and employment arrangements before the office begins operating.
An initial permit may be granted for up to three years within the scope of the declared activities. The applicant should check the actual duration and activity description in the issued permit before finalizing operational commitments. Any application for an extension must be submitted to the General Directorate before the permit expires. Extension is not automatic: the assessment considers the office’s previous activities, the parent company’s plans for Turkey, expenditure and staffing. Permits granted for market research or promotion of the foreign company’s products or services cannot be extended.
Special rules apply to liaison offices in regulated financial sectors, where the competent sectoral authority assesses the application under the relevant legislation. For other activities requiring sector-specific authorization, the Ministry may consult the responsible public authority. Identifying these requirements before filing helps the parent company determine which approval procedure applies to its proposed office.
Avoiding Activities That Put the Permit at Risk
The main compliance risk arises when the local team’s responsibilities expand beyond the activities approved by the Ministry. Staff appointed to gather market information or maintain contacts may gradually become responsible for negotiating sales, accepting orders or delivering paid services. Those duties require legal assessment before they are introduced. Issuing invoices through the foreign parent does not, by itself, establish that the Turkish office’s role remains permissible. The assessment should consider what employees actually do, the authority they exercise and how the business operates.
Internal controls should connect the permit to everyday decisions. Employment contracts, signing powers and instructions from headquarters should reflect the approved scope, with a review before new responsibilities are assigned. If the business needs a Turkish operation capable of trading, the parent should arrange the appropriate branch or subsidiary before those activities begin locally. This transition requires separate establishment procedures and consideration of existing leases, employment relationships, assets and contracts. The liaison office’s permit does not automatically authorize the new commercial operation.
Closure also requires formal steps. The office must provide the General Directorate with the relevant tax office document confirming cessation, while outstanding employment, contractual and administrative matters should be resolved as applicable. Any remaining funds should be reconciled with the office’s liabilities before the balance is transferred abroad in accordance with the closure rules. Simply allowing the permit to expire leaves these matters unaddressed. A law firm in Turkey can help the parent coordinate establishment, ongoing compliance and any later transition or closure around its actual business plans.
Frequently Asked Questions About Liaison Offices in Turkey
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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